Here at Ellevest, we’re thinking a lot about what the “Feminization of Wealth” can mean. And, honestly, it’s pretty great stuff.
What is the “Feminization of Wealth,” you may be asking?
It’s a term we coined to describe a world in which women have more money. And this world isn’t just a daydream. It’s a world we’ll likely usher in because of pretty powerful mega-trends in motion right now.
One of these mega-trends is the Great Wealth Transfer, which we’ve researched and written about in our 2024 Women and Wealth Survey. To TL;DR this historic event, it’s the name given to the next 20-or-so years when women will increasingly inherit money (directly from Baby Boomer men who will leave their wealth to their wives — who live longer than they do — and then to their kids).
But it’s also bigger than that. Another mega-trend leading to the “Feminization of Wealth”: Women are increasing their earning power. This can happen as a natural result of women now making up the majority of college and post-grad graduates (setting them up to earn more money) and with women starting more businesses (ditto). It can happen as the increased diversity of boards may be driving a tipping point in women CEOs at big companies.
The “Feminization of Wealth” can also be an outcome of women getting married later and so maintaining control over their money. Or women maintaining control over their money even after they get married. It can also be an outcome of more single women buying homes, and of more and more women investing, both of which can help her build her wealth. (Love this last one particularly.)
And what is a key characteristic of a woman who is building her wealth?
Confidence.
(That’s not our opinion. That’s what our research tells us.)
And what does a confident woman do?
She leaves a bad marriage. And then she builds a better life for herself and her children, on her own terms.
She quits the dead-end job that fills her with dread every Sunday night. You know, the one where she’s forced to return to the office or lose out on a promotion. And she goes to work instead at a modern company that understands that flexibility at work is an advantage. And that diversity drives better performance.
She spends more money on her kids: coding courses, dance lessons, sports equipment, field trip spending money. And she may help financially support other members of her family as well, while beginning to build generational wealth.
She buys the f***ing latte — or goes to the Beyoncé concert with her friends or takes the trip to Europe (complete with souvenirs) — without the whole guilt-driven, shame-centered internal monologue about over-spending.
She donates to non-profits that align with her values. Like fighting climate change. Like supporting other women and girls. And, in doing so, she doesn’t insist that her name is plastered all over their headquarters or that they have a big gala for her.
She donates to political candidates who support legislation that supports her and her family. Like paid family leave and a stronger social safety net.
She invests to make a positive impact — directing money into the hands of companies committed to addressing issues disproportionately affecting women. It’s a money move that can strengthen our communities, our economy, and our climate, all while driving financial returns.
We’ll see more of this in finance:
And less of this:
We know we say it all the time, but for those in the back: Nothing bad happens when women have more money.
This is a world — driven by the “Feminization of Wealth” — that we’re set on seeing soon.
