Report: Women Of Color Are The Top Demographic With No Savings

The data is in: Women of color are the top demographic with no savings, and one key contributor is the gender wage gap. Women, in general, face specific financial challenges over a lifetime. Some of those challenges include women living longer but retiring with less and taking career breaks while also getting paid less. 

Many factors contribute to the gender wage gap. Per American Progress, discrimination, and occupational segregation are key elements. This layered issue also includes other components. “The stubborn resilience of the gender wage gap, coupled with intersecting racial bias in the workplace, means that many women of color are perpetually underpaid, and these losses accumulate and grow over time.”

American Progress continues, “As a result, women of color are less able to build savings, withstand economic downturns, and achieve some measure of economic stability.”

According to Forbes, the gender wage gap has resulted in women, on average, earning 16% less than men. That amounts to women earning around 84 cents for one dollar a man makes. The wage gap over decades has a devastating impact. “A 20-year-old woman just starting full-time, year-round work stands to lose $407,760 over a 40-year career compared to her male counterpart.”

Bankrate reports that after paying monthly expenses, 1 out of 3 workers are not able to save for future expenses. “For Americans, it likely feels akin to walking a tightrope with no safety net, where the balance between expenses and earnings becomes a delicate dance,” states Bankrate Economic Analyst Sarah Foster.

Living paycheck to paycheck means being financially vulnerable. In this circumstance, disruptions to income could be life-changing. There are no funds for emergencies, an inability to invest in education or a business, being unable to retire and having to work, and health complications due to stress.

Experts suggest finding ways to increase your income. From getting a raise or a promotion to a second job or side hustle, women are seeking out more financial stability. Also, looking at expenses and cutting anything that isn’t a necessity, including paying down credit card debt, will help create more room in your budget. Consulting a financial advisor could also help you create a plan to reach your fiscal goals.

While women of color are the top demographic with no savings, many seek ways to educate themselves and work toward monetary reliability.