The Importance of Fostering Financial Community for Women

Building and maintaining financial resilience isn’t a perfect science. It’s also not something you should expect to do alone. After all, your financial wellness journey is a marathon, not a sprint. And research suggests that we as women are consistently less confident than men when it comes to managing our finances.¹ But that doesn’t mean we’re less competent with managing money. When equipped with the right tools and support, we can empower ourselves financially and change the narrative (and silence that negative inner voice!).

So, what is a financial support system? It’s a group of individuals you trust and can rely on to help you build your financial knowledge, understand your personal financial situation and reach your goals.² Recruiting a support network to help you navigate financial management is a great way to transcend historical challenges and create a stronger financial future for yourself.

Our Common Personal Financial Challenges

In the United States, the gender pay gap has barely changed in the last 20 years. In 2022, women made 82 cents for every dollar earned by their male counterparts.³

So, why is there a lingering income gap between men and women? There’s not really one simple explanation. Between traditional in-home family roles, periodic and extended career breaks and education gaps, women have historically earned less than men. Caretaker roles continue to affect women at work, impacting their accessibility to higher pay. This is all speaking very generally, of course.

Consider this: In 2022, 48% of women in the workforce had at least a bachelor’s degree, compared to 41% of men.³ Even then, the pay gap remained significant, with women still earning less on average than men.

There’s another layer: intersectionality

If you factor in intersectionality—the understanding of how women in different marginalized groups are affected by wage disparity—you’ll find that some groups of women make even less than the overall average compared to men. For example, a woman of color or a woman with a disability may experience different barriers and challenges in the workplace compared to white or nondisabled men and women.⁴

Life expectancy trends add even more perspective. The average life span of women in the U.S. is approximately five years longer than that of men. If you look worldwide, the gap extends to seven years.⁵ So, if women are living longer, they may accumulate more debt over time.⁶

How the Right Support System Can Help You

Is there a solution to help women access resources to build financial literacy, grow their careers and provide for themselves and their families? Indeed, there is: Financial support systems can be the key to catalyzing growth. Lean into resources that can help you understand your relationship with money and provide the guidance you need to make progress in specific areas.

Take the Quiz: Are You Financially Literate?

The benefits of supportive community

Improving financial literacy for women is a win for us all. By supporting their personal and professional growth—all while helping build financial education—women can take more of an active role in their financial wellness. Improving women’s financial literacy could involve:

• • Engaging in mentorship and networking opportunities with successful women willing to assist others in achieving financial goals.
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• • Building confidence to understand current financial situations and progress toward future goals.
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• • Increasing access to funding for business loans and educational financial support.

Connecting with successful, financially empowered women is crucial in building up other women as they define their own financial footing, both in the U.S. and beyond.

Financial Support Group Examples

Looking for financial support groups to help you along your way? We understand and want to help! Here are some ideas to get you started:

• • Women-focused financial institutions: Consider looking for other institutions that prioritize financial literacy and management in your local area. Many of these groups offer mentorship, training and networking events that can help you on your journey. Groups like the Financial Alliance for Women may be a valuable resource. And at Synchrony Bank, we have plenty of online resources and tools to help you.
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• • Women-led venture capital firms: Women investing in women is a recipe for success. There are dozens of active firms with women leaders at the helm that are equipped and knowledgeable to assist with startup funding and support for entrepreneurs seeking to build and grow across industries.

These are just a couple of examples of support systems that can provide a community atmosphere as you grow and develop your fiscal management skills. You may choose to identify an expert to work with instead of a larger group. That’s OK, too!

Identify what areas you’d like to work on first and find support from there. For example, if you’re looking to improve your budgeting skills or learn how to invest, you can home in on networks that can help you reach your goals.

The Final Word

While the data suggests that women may be at a disadvantage, there’s still hope. You can achieve your goals against all odds, and with the right support, navigate your journey forward. Whether you’re doing it alone or with a partner, you can create a financial foundation that makes it possible to reach for a better tomorrow.

 

Talia Stinson is a Content Specialist with Synchrony and has a background in research, content strategy and management. She specializes in writing on financial, technology and wellness topics.

 

READ MORE: 5 Tips to Empower Women in Managing Personal Finances

 

 

Sources:

1. Women and wealth: Exploring the gender gap. U.S. Bank. August 5, 2021.

2. Gabrielle Olya. How To Build Your Financial Support System. Yahoo Finance. March 13, 2023.

3. Rakesh Kochhar. The Enduring Grip of the Gender Pay Gap. Pew Research Center. March 1, 2023.

4. Leah Asmelash. ‘Intersectionality’ has become a hot-button topic in recent years. Here’s what it means. CNN. April 19, 2023.

5. Robert H. Shmerling. Why men often die earlier than women. Harvard Health Publishing. June 22, 2020.

6. Kris Alban. Financial wellness: Why women have a more difficult path to get there. BenefitsPRO. April 10, 2019.