Women are earning more money now than they have in decades, but they are also reporting more financial stress than men.
Adjusted for inflation, women’s wages have increased by almost 14% since 1979, according to the U.S. Bureau of Labor Statistics. However, nearly 34% of women surveyed by GOBankingRates reported extreme financial stress, especially when it came to saving money. Only 24% of men said they experienced the same level of financial strain.
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“Women face unique financial stressors due to the compounding effects of pay inequity, caregiving responsibilities and rising costs of living,” said Constance Craig-Mason, a financial planner and CEO of Concierge Financial Advisory.
Here are four reasons 34% of women say they have extreme financial stress.
Next, learn how your bank can help if you’re feeling financial stress.
The most obvious reason more women than men report extreme financial stress is that they earn less while expected to do more with what they have.
Women make up nearly 60% of the U.S. workforce, according to the Federal Reserve Bank of St. Louis. However, they are paid an average of 84 cents for every dollar a man makes, Federal Register reported.
In addition, women are underrepresented, making up 34% of the workforce, in STEM (science, technology, engineering and math) jobs that tend to be among the fastest-growing and highest-paid, according to a study by the American Association of University Women (AAUW).
Cynthia Campos Delgado, founder and financial advisor at Campos Wealth Management, said the lack of women in high-paying roles coupled with caregiving responsibilities means they have less money to save.
“In many situations, women are being paid less and not offered higher-paying positions within a company,” Delgado said. “If women are single parents, they are bearing the financial weight of making less money while providing for dependents.”
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Many women are often responsible for the emotional and financial well-being of their households, which adds an extra layer of financial pressure.
“Women often think about the entire household and every member’s future,” said Melanie Musson, a finance writer at Clearsurance, an online insurance shopping platform. “They’re not content to make it through the month. Instead, they’re trying to figure out how to pay for activities, children’s college and potential medical bills.”
Musson explained, “Because they feel responsible for the full picture now and in the future, they tend to have more stress regarding finances. Losing financial stability means losing all stability. So, if women’s finances aren’t comfortable, they realize they could lose their home, car and lifestyle.”
Alyson Austin moved from California back to her hometown in Maine to care for her aging mother while co-founding a successful public relations agency.
“I purchased her home so that we could live together, where I can care for her while working at home,” Austin said. “I have brothers, but I’m the caregiver. Balancing family and financial responsibilities drive my stress.”
Austin isn’t alone. According to the Family Care Alliance, women make up 66% of caregivers and provide “20 hours per week of unpaid care” to their mothers.
Craig-Mason said that societal norms like caregiving place unrealistic expectations on women to manage household finances and professional responsibilities, while often earning less than men.
“These norms also discourage open conversations about women’s financial well-being, leading to a lack of confidence in making bold financial moves,” Craig-Mason said. “As a result, many women feel isolated and unsupported in their financial journeys.”
Women tend to live an average of five years longer than men, according to a report from JAMA Internal Medicine, which makes them financially vulnerable later in life, especially if they have lower lifetime earnings and smaller retirement contributions.
“One factor driving financial stress among women is making sure both their current and future financial needs are met when they are no longer working,” Delgado said. “The possibility or the reality of living longer, having an unexpected illness and being able to pay for medical expenses is also a big elephant in the room.”
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This article originally appeared on GOBankingRates.com: 4 Reasons 34% of Women Say They Have Extreme Financial Stress
