Saij Elle was started in 2018 to help women financially thrive so they become powerful contributors to a more equitable world. Wealth is power. Wealth is influence. Wealth is freedom.
Except women are still centuries aways from closing the gender wealth gap.
While women have made some progress, they still lag their male counterparts in net worth and financial security.Women in Canada approaching retirement hold just 76 cents in wealth for every $1 owned by men. (Source: HEC Montréal, 2024)
In the U.S., the gap is similar or wider with women typically hold only 55 to 70 cents for every $1 of wealth held by men, depending on the source and population group. (Source: Brookings, U.S. Census, UBS)
In this article, we’ll analyze the causes, why financial education plays an essential role for women’s autonomy, and the financial strategies that women need to focus on to achieve a prosperous economic future.
What is the gender wealth gap?
The gender wealth gap refers to the difference in net worth (assets less liabilities) between women and men. Wealth matters for financial security because, unlike income, which can stop at any time (job loss, illness, retirement), wealth provides a financial cushion and will help you ride out the uncertainties in life as well as support you to achieve several important goals.
Reasons behind the wealth gap disparity
Before exploring the financial strategies for women to help close the wealth gap, it’s important to understand the primary reasons behind this inequality. The following are the main ones.
Wage gender gap. This refers to the average difference in earnings between women and men. In Canada, women earn about 89 cents for every $1 earned by men, while in the U.S., women earn about 84 cents per $1 a man earns. While some of this gap is due to unequal pay for the same job, the difference is largely driven by women being concentrated in lower-paying sectors, underrepresented in leadership, and more likely to take on unpaid caregiving responsibilities, thus interrupting their career trajectory.
Business equity gap. Nearly half of the wealth gap between men and women near retirement can be explained by the fact that men have more ownership in private businesses, especially in sectors like technology, construction, or finance, which typically generate higher profits. Women are not only more likely to own businesses in industries that have lower margins and limited growth potential, but they also tend to face greater barriers in accessing funding to scale. (Source: HEC Montréal, 2024)
Financial & non-financial asset gap: Men in Canada typically hold close to $20,000 more in assets, including stocks, bank savings and in RRSPs and TFSAs as well as vehicles and valuable personal items. This is because women are less likely to invest money and prefer to stick to low-yield savings accounts, in part, due to a lack of financial education.
Noteworthy was that there was very little gap in the value of their homes; however, for women, home equity made up a larger share of their total wealth, making them more vulnerable to housing downturns and less liquidity during retirement.
While there’s a lot of attention on the figures related to the gender wealth gap, we at Saij Elle focus on the financial vulnerabilities women face and targeted solutions.
Women are set to face greater risks such as economic shocks and outliving their savings, because they have less wealth and income-generating assets.
But the wealth gap can be closed with the right tools, education, and action.
We lay out four key financial strategies every woman can use to start building lasting wealth and financial power.
Financial strategies for women to close the gender gap
Here are some financial strategies for women that you need to implement today.
Prioritize your financial education
You can’t close the gap if you don’t know how. Understanding how to leverage money strategically through investing, business ownership, and smart debt will ensure you build long-term wealth and create diversified, income-generating assets.
This kind of financial literacy shifts the focus from just saving to actively building financial independence and security while making sure you reduce risk.
So make it a habit to read investing books, sign up for finance courses, and watch financial news such as CNBC, Bloomberg and Yahoo Finance!
Learn from unbiased and reputable sources, especially those who can speak to your challenges as women. Keep in mind that the more knowledge you acquire, the more confident you will feel about how to take charge of your finances.
Start investing early
If there’s one golden rule in investing you should know, it’s this: Time in the market is more important than timing the market. The sooner you start investing, the more time you have to let the power of compounding work in your favour.
Compounding is when your money earns returns – and then those returns start earning returns, and so on. Over time, this creates a snowball effect, where even small, consistent investments can grow into significant wealth over time.
If you’re not sure how to begin check out our ‘Get Investing’ course for beginners, or you want to learn advanced strategies to accelerate your wealth, join Saij Elle’s Strictly Money Membership exclusively for women.
Plan for life’s transitions
Women are more likely to take career breaks and assume caregiving responsibilities, which can lead to less time in the workforce. If this applies to you, it’s important to recognize how these decisions can have real financial consequences, including lost income, lower lifetime earnings, reduced savings, and smaller pension entitlements.
Women also tend to outlive men by 5 to 6 years, meaning there’s a good chance you’ll need to fund a longer retirement.
That’s why it’s essential to build at least 12 months of emergency savings to manage unexpected expenses during your time off. In addition, keep up with investing, even if it’s a small amount, so you can accumulate an investment portfolio that can generate enough income to support your lifestyle during a 20-25 year retirement.
Know your work and learn to negotiate
Negotiation isn’t just encouraged – employers expect it. Yet research shows that women are far less likely to negotiate starting salaries or ask for raises, and that hesitation comes at a steep cost.
Failing to negotiate just your first salary can result in a loss of hundreds of thousands of dollars over the course of your career; not just in salary, but in raises, bonuses, and even retirement contributions, which are often tied to your base pay.
Knowing your worth and advocating for it is one of the most powerful tools in closing the gender pay gap. Do your research so you understand market rates for your role, sector, and region. Track your accomplishments and the value you deliver. And when opportunities for promotions or job changes arise, step into them with confidence.
The more visible and impactful your role, the greater your earning potential and the stronger your long-term financial foundation.
Join a Community Committed to Closing the Wealth Gap
At Saij Elle, we believe that financial empowerment goes beyond budgeting and saving. Our membership community supports women with the tools, knowledge, and strategies to grow wealth – from mastering negotiation and investment to creating income-generating portfolios and safeguarding your future.
You’re not in this alone. Join a powerful network of women who are committed to closing the wealth gap.
Become a member today and start building the financial future you deserve.