NEW YORK--(BUSINESS WIRE)--Ellevest, the tech-enabled investment and planning company built by, for, and with women, today launched a 2018 Money Census report that explores how women and men feel about money, power, equality, and their opportunities to get ahead. In a post-presidential election year that added attention and momentum to women’s movements like #MeToo and put a spotlight on the treatment of women, Ellevest asked* 2,000 American professional women and men about everything from gender pay and investing gaps to the role that their values play in their personal and professional lives. Key findings:
As a result of the 2016 election:**
- 43% of women are more concerned about the unequal treatment of women, versus 25% of men.
- 46% of women are standing up more for what they think is right at home and at work, versus 38% of men.
- 46% of women are thinking more about money, versus 38% of men.
Workplace fairness:
- 83% of women believe there is a gender wage gap (in which men make more than women for performing the same job), versus 61% of men.
- Only 42% of women think their workplace is a level playing field for women, versus 58% of men who believe that it is.
- Nearly half of women (48%) agree that women have to work twice as hard to earn half as much; only 25% of men believe this to be true for women.
Investing and financial security:
- Only 55% of women are aware of the gender investing gap (how much they invest versus their male counterparts), and they still greatly underestimate how much the gap costs them over the course of their lives.
- 64% of men believe they know how to reach their financial goals, versus only 47% of women.
- The #1 confidence booster for women is saving and investing (63% of women ranked it over things like salary and education).
Sallie Krawcheck, Ellevest co-founder and CEO, said: “Around the world, more women are speaking truth to power, and I believe we’ve reached a tipping point. Those who can’t or won’t see the inequalities women face will either come around and join us on the path to progress – or they’ll have to get out of the way.”
Krawcheck continued: “But while we work to shift the balance of financial power, women may lose upward of $100 a day† through the gender investing gap alone. As we wait for those wheels of progress to turn, expanding access to investing tools and opportunities gives more women a way to express their financial power now.”
The full report can be found on the Ellevest website here, with additional resources to support women’s lives, careers and finances available here.
*The Ellevest 2018 Money Census (the “Census”) was conducted online between November 3-10 2017 in conjunction with Chadwick Martin Bailey. Base: Women (1,034), Men (1,009), Women of Color (231), Non-Women of Color (808), LGBTQ (200) and Non-LGBTQ (968). Participants are US residents who range in age from 22-65, more than 90% of whom are above the age of 30. All participants represented having personal incomes of $50,000 or greater and were involved in managing their personal or household finances. Not all questions were answered by Census participants. The Census was funded by Ellevest.
**Differential spread far greater for population subsets (LGBTQ women and women of color), versus women overall.
†Source Ellevest. To arrive at “about $100 a day”, we compared the wealth outcomes for a woman who begins investing at age 30 with one who began investing at age 40 after having saved in a bank for 10 years. Both women begin with an $85,000 salary at age 30 and all salaries were projected using a women specific salary curve from Morningstar Investment Management LLC, a registered investment adviser and subsidiary of Morningstar, Inc., which includes the impact of inflation. We assume savings of 20% of salary each year. The bank savings account assumes an average annual yield of 1% and a 17% tax rate on the interest earned, with no account fees. The investment account assumes an investment with Ellevest using a low-cost diversified portfolio of ETFs beginning at 91% equity and gradually becoming more conservative during the last 20 years, settling at 56% equity by the end of the 40 year horizon. These results are determined using a Monte Carlo simulation—a forward looking, computer-based calculation in which we run portfolios and savings rates through hundreds of different economic scenarios to determine a range of possible outcomes. The results reflect a 70% likelihood of achieving the amounts shown or better, and include the impact of Ellevest fees, inflation, and taxes on interest, dividends, and realized capital gains. We divided the calculated cost of waiting 10 years to invest, $337,657, by 3,650 (the number of days in 10 years). The resulting cost per day is about $92.50.
About Ellevest
Ellevest is an innovative investing and planning company that redefines personal finance for women with a practical, goals-based approach. Ellevest gives women the tools they need to take financial control: a straightforward, full-picture investment plan that reflects real life. Ellevest does not guarantee investment performance. All investing entails risk, including the possible loss of principal, and there is no assurance that the investment will provide positive performance over any period of time. For more information, visit www.ellevest.com.
