Money month: Why women are still shortchanged on earning, saving and investing - Angela Meyer

The disconnect between women’s financial influence and their perception of economic power presents a unique opportunity for transformative change. Photo / 123rf

THREE KEY FACTS

• A 2015 study by the New York City Department of Consumer Affairs found that women’s products cost 7% more than similar men’s products.
• Women make 85% of consumer purchases.
• According to the OECD, women perform over four hours of unpaid labour daily, compared to just over two hours for men.

In the second of our Money Month series, co-founder of Hi Money and Project Gender, Angela Meyer, shines a light on the state of New Zealand women’s financial lives.

OPINION

Today, women are more educated, active in the workforce, and more likely to start companies than ever before. We influence household budgets, make key financial decisions, and increasingly contribute to household incomes. We hold immense economic power, driving 85% of all purchasing decisions and controlling $23 trillion of the world’s economy. Women shouldn’t be thought of as a niche. We are the market.

I wish I could say all is well financially for women, but it’s not. Many women feel a ton of shame about not having it all sorted financially. So why are women often left with the short end of the stick? What is happening with our money? Where is it going?

The sad fact is we don’t make as much, what we do make we spend on others, and if we do spend it on ourselves, we have to pay more.

Much of women’s spending goes towards necessities and family needs rather than personal investment or wealth accumulation. Society expects women to prioritise family spending over their own financial growth, which keeps our economic power from being fully realised. In a recent online session I was hosting, a woman commented, “I spend everything I have on my family and hardly anything on myself. I always put other needs before my own.”

When we do spend on ourselves, it costs more. Women’s shampoo is more expensive, women’s deodorant, women’s razors, haircuts, medical braces, getting a shirt dry cleaned – even girls’ toys and pink secateurs at Bunnings. Why? Because of the unofficial “pink tax” – the extra amount women are charged for products and services marketed specifically to them. A 2015 study by the New York City Department of Consumer Affairs found that women’s products cost 7% more than similar men’s products. Over a lifetime, these small price differences add up, further draining our financial resources.

The Pink Tax causes women's products to cost 7% more than comparable men’s items. Photo / 123rf

With a gender pay gap at 8.7% for Pākehā women, and substantially higher gaps for Māori, Pacific, Asian, and disabled women, we simply don’t have as much money. The follow-on effects are huge. Women, on average, live longer than men, risking running out of money as we age, when we have much less capacity to earn it. We then have less money to invest and earn from those investments, leading to less wealth. This creates a domino effect throughout our lives and the financial system, especially since women make 85% of consumer purchases. That $6 latte represents a significantly higher percentage of a woman’s income compared to a man’s.

This disparity is even clearer when we look at marketing and consumer culture. Companies know we are the primary decision-makers for household purchases, and they target us relentlessly. From groceries to healthcare to education, we manage budgets and make crucial financial decisions daily. But this control over spending doesn’t translate into greater economic security. Instead, it often means our financial resources are spread thin, covering immediate needs with little left for savings or investment.

We cannot discuss women’s personal finance, money, or economics without discussing systemic oppression. Unpaid labour, the pink tax, and societal expectations combine to syphon women’s money in ways that are both visible and invisible, impacting our financial stability and economic power.

Te Ara Ahunga Ora, Retirement Commission’s National Strategy for Financial Capability (2021-2024) recognised the specific needs of women, urging the sector to support women’s financial empowerment. Initiatives like the 2022 “It Starts with Action” campaign challenge businesses to commit to helping wāhine grow their financial confidence and wellbeing. It’s a good start, but to address these issues, we need systemic change. Policies that promote equal pay, affordable childcare, and shared household responsibilities are essential.

It’s been 36 years since Marilyn Waring published her seminal work, If Women Counted (also known as Counting for Nothing), in which she highlighted how the invisibility of unpaid labour affects women’s lives. Because this work isn’t valued economically, it often goes unrecognised socially and politically.

According to the OECD, women perform over four hours of unpaid labour daily, compared to just over two hours for men. This discrepancy not only limits our time and energy for paid work but also reinforces the gender wage gap, keeping us economically dependent and underrepresented in high-paying roles.

Women's financial decisions often prioritise family needs, limiting personal investment and wealth accumulation. Photo / 123rf

Many women express concerns about how they are perceived and treated in the financial and consumer world. In the Double Denim Gender Intelligence Report 2017 a significant number of women felt men were treated better by tradespeople, car dealerships, financial advisors, and real estate agents. This lack of recognition has led to insufficient support and resources for women to learn about, and earn more money.

While we work to change the existing system, we must navigate it to the best of our ability. Many women are learning more about money, and financial institutions are slowly wising up to the vast economic power of women - which is frankly remarkable given all the systemic barriers we face.

I try to celebrate the wins, I really do, but it’s sobering to remember how very far we have to go. At today’s pace, it’ll take 135.6 years to close the gender gap worldwide, according to the World Economic Forum.

Women can’t wait that long. We need support now.

This disconnect between women’s financial influence and their perception of economic power presents a unique opportunity for transformative change. By fully acknowledging and supporting women’s financial strength, society could unlock immense economic potential. This isn’t just about addressing the gender pay gap, the pink tax, and other systemic barriers; it’s about fundamentally shifting the landscape. We must increase financial literacy and foster a culture where women feel confident and empowered to make financial decisions that benefit themselves and their families. A holistic approach will ensure that women’s economic contributions are recognised, valued, and maximised, driving broader societal prosperity.

I’m here for that.