Today is Equal Pay Day, the day when women's annual earnings officially match those of men. Last year, this milestone was reached on her March 14th, so to be fair, we're progressing little by little. However, there is still a long way to go.
According to recent data from the Pew Research Center, women earn 82% of the median income of men. Black women earn just 67 cents more than non-Black men. Additionally, the Center for American Progress states that “women could lose between $400,000 and $1.2 million due to the pay gap.” Black women in particular stand to lose nearly $1 million due to the wealth gap. And guess what? It's not our fault.
“Women are not responsible for the gap between rich and poor,” Michal Janlis told ESSENCE. She is the founder and CEO of Wealthmore, a digital financial planning platform scheduled to launch this spring. “If you ask me who is to blame for the gap between rich and poor, it is not women's fault.”
She goes on to point out that despite the preconceived notion that women are bad at spending money (see Girl Mass), that's not entirely true.
“We need to celebrate Black women who are good with money,” she says. “It's really important that we change the narrative that somehow we're all responsible for this economic disparity that we're facing, and that this conversation becomes purely fact-based. I think it's time. There are a lot of old metaphors out there, so just put them to bed. First and foremost, women have always been financially responsible. Women should have equal access to credit and bank accounts. It's only been 50 years since 1974 that women have had credit scores as high as men. Women have less debt than men. The only category of people with more debt than black men is student loans, because women earn higher degrees at higher rates than black men.
Janlis continues: “When it comes to spending, the old metaphor that women are frivolous spenders is simply not true. Black women earn 67 cents on the dollar, compared to 87 cents on the dollar. Regardless, our spending patterns are normal. And finally, because we are more disciplined with our money, we get better returns when we invest.”
Despite this, several systemic barriers still prevent Black women from building adequate retirement savings, something Mikal hopes to rectify. Her platform, Wellsmore, teaches people, especially women, how to live comfortably for the rest of their lives.
assert yourself at work
“First and foremost, I cannot stress enough how important it is to make sure you are paid equally in your job, insist on raises, and step up when needed.” says Generis. “If you're not being paid equally, that wage impact goes to Social Security. It impacts your 401k, because all of those things take a percentage of your paycheck. And it impacts hiring. As a manager, I've seen time and time again that women don't negotiate their salaries. We want to make sure women feel more comfortable negotiating their salaries to ensure they're compensated equally. Ideally, the best time to negotiate salary is before you accept the role, rather than after.”
Recognize that you are the main character in your life
Despite the frustrating pay gap metrics, Janlis says the future is still bright.
“Women are staying in the workforce longer and becoming more involved with their money than ever before,” she explains. “This means they are taking on bookkeeping, accountant and chief financial officer (CFO) roles in their homes and are becoming more familiar with financial literacy and financial products. One of Wellsmore's goals is to Encourage women to start investing early and consistently. It's important to seek professional help when doing this. Finances are complex. It's important to encourage women to start investing early and consistently. The idea is a superstition, and it's one of the few areas where we ask the public to be both patient and doctor.”
pat yourself on the back
“We took pensions that were being managed by professional pension administrators and said to the average consumer, 'Good luck and think about it,'” Jeanrith says. “But what women can do is advocate for public policies that help us. There are things that are being debated in Congress right now, like the Secure Act 2.0, that we can advocate for that will actually help us. You'll be able to contribute more to your 401k. Talk to your local legislator. Advocate for it. Things like automatic IRAs, which automatically add money to your retirement as people change jobs frequently. But above all, it's important to do our best with what we're given and praise ourselves for doing so much. It'll only get better. .”
