By SoFi | Apr 09, 2018 |
You’ve probably heard the stats about the gender pay gap in America: Women today earn $0.81 for every dollar that men do—which, over the course of a career, can means hundreds of thousands of lost wages.
Here at SoFi, we want to do everything we can to help you attain everything you’re entitled to. Sometimes, that means researching your market value and asking your employer for more. Other times, it might mean looking for a new role, with higher pay and more opportunity for advancement.
But there’s something else you can do to close the gender wage gap—something that might be even more powerful.
Yes, women today earn less than men, but according to a recent SoFi study, they’re also investing their earnings less—which means they’re missing out on the opportunity to grow their wealth on a much larger scale.
By considering investing your money, you have the potential to make progress on longer-term financial goals like buying a home, starting a business, or retirement. Keep in mind that all investing comes with risk.
The Gap Between How Men And Women Invest
SoFi’s data insights research from 2017 shows that women typically have an acute understanding of their finances. They know how much they owe and how to repay it—and they do it faster than their male counterparts. Women pay around $200 more per month on their loans, and end up paying them off nearly four months ahead of men.
Studies also show that women are committed to building the skills they need to thrive in their careers. On average, women invest more than men in education: in a separate 2016 report by Council of Graduate Schools found women were earning almost two-thirds of graduate degrees and half of the masters’ and doctorates at the schools surveyed.
But when it comes to investing their money, women fall behind. Here are just a few eye-opening statistics based on a current analysis of over 10,000 SoFi Wealth accounts.1
Other Gender Differences In Financial Behavior
Men Invest 6.6% Of Their Income, While Women Contribute 5.4%.
While women earn less than men, investing a smaller percentage of their income can hurt their ability to meet long-term financial goals.
On Average Of Those Who Have Recurring Deposits, Men Contribute 48% More Than Women.
More men than women regularly contribute to their savings goals before spending money elsewhere.
Men Contribute 32% More Than Women.
When controlling for income, and looking at people making $50-$200K per year, men contribute one-third more than women.
53% Of Men Choose The Most Aggressive Investment Plan, Compared To 38% Of Women.
SoFi financial advisors often recommend choosing an aggressive investment plan for a long-term goal like retirement.