Are Women Becoming Wealthier Than Men? Rachel Cruze Weighs In
Written by
Nicole Spector
Edited by
Molly Sullivan
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Since the dawn of capitalism, women have made less money than men. In 2023, women’s earnings were 83.6% of men’s. Though the gender gap has significantly narrowed over the decades, it remains a long way from closing. According to the World Economic Forum’s 2024 Global Gender Gap Report, it will be another 134 years before we reach gender parity.
Given the current state of pay disparity between men and women, it’s, at first glance, a bit confusing that financial expert Rachel Cruze posted a video on her YouTube channel called “Are Women Becoming Wealthier than Men?” But note that she’s making an important distinction. She’s not asking if they’re making more at work (we know they aren’t, overall). She’s asking if they’re accruing more wealth, and that’s a different game — one that points to how women are working with what they earn and, if the answer is “yes,” then we can infer that though women are earning less than men, they’re making more out of those earnings.
Considering the Role of the Great Wealth Transfer
A major point to consider here is that of the Great Wealth Transfer. This is the passing down of wealth from the baby boomer generation to younger generations. It’s projected to total $84 trillion though roughly 2045. Both men and women stand to vastly augment their wealth through this financial phenomenon — but it’s looking like women are positioned to benefit from this more than men.
“Younger generations are expected to inherit the wealth of the generations that came before them,” Cruze said. “That wealth is passed on primarily to women, because in a marriage, women tend to live longer.”
Women Are Becoming More Financially Literate
Globally, women have lower financial literacy rates than men, but we’re seeing this gap shrink among younger generations, particularly Gen Z.
“The great thing about what we’re seeing with all these stats with women is that more and more they’re getting the opportunity and actually stepping into the space and doing an incredible job,” Cruze said.
To Continue Building Wealth, Women Must Know the 7 ‘Baby Steps’
We’re not yet at a point where we can say definitively that women are wealthier than men. Instead, we’re at a point where we can say that women are in a better-than-ever place when it comes to inheriting or building wealth.
Women (or anybody) keen on becoming wealthier, should get in line with what Cruze calls the seven baby steps.
- Start with an emergency fund of at least $1,000.
- Pay off all consumer debt.
- Grow your emergency fund to cover three to six months’ expenses.
- Invest 15% of your income toward retirement.
- If a parent, save for your kids future education (but don’t put this before saving for your retirement).
- Aim to pay your mortgage off early.
- Build wealth and be charitable.
Enlist the Help of a Financial Professional
This may as well be the eighth baby step: enlisting the expert help of a financial advisor or certified financial planner to help you meet your money goals and beyond.
“Even if you feel fully educated on building wealth, it’s always important to talk with a pro to really get the ins and outs of your money,” Cruze said. “Especially if you’re getting a large sum of money, sit down with someone and say, ‘Hey, over the period of my life, here’s where my finances are’ or ‘Here’s where I want them to be and what does it look like to get there?'”
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