Many women take the lead with managing household finances and many have also increased the amount of money they earn in their careers. In honor of March being Women’s History Month, let’s take a closer look at the history of women, money and the power they've gained over the last few centuries.
Early Americas
While women in the United States began gaining power in the 1700s, it wouldn’t be until the Women’s Rights Movement of the 1800s that women would achieve any significant milestones. In 1848, theMarried Woman’s Property Actwas passed in New York. The act was subsequently used as a model for other states, all of which passed their own versions by 1900. With this act in place, a woman was no longer liable for her husband’s debts, could now enter contracts on her own, was able to collect rents or receive an inheritance in her own right and could file a lawsuit on her own behalf.
The Twentieth Century
The 1900s brought significant milestones for women and money. In 1938, the federal minimum wage was established as a result of the passage of the Fair Labor Standards Act, eliminating many pay differences between men and women for hourly jobs. In the 1960s women gained the right to open a bank account. Shortly after, in 1974, the Equal Credit Opportunity Act passed which was supposed to prohibit credit discrimination on the basis of gender. Before its passage, many banks granted credit cards to women only with their husbands' signatures and outright refused to issue them to unmarried women.
Today and Tomorrow
Today, women have taken the reigns when it comes to managing household finances. According toU.S. News and Money, a survey found that 51 percent of women consider themselves the “CFO” of their household. In addition, 54 percent said that they have either complete or a great deal of responsibility when it comes managing their household's long-term savings and investments. Despite maintaining a dominant role with household finances, 63 percent of women wish they knew more about financial planning and investing.
The next generation of women is particularly eager for greater financial knowledge. The same survey found that the majority of young women are interested in understanding financial concepts on a deeper level, but over half of those women don’t know where to seek out that information. For women who have sought help from a financial advisor, 93 percent said they have established financial goals and are on the right path to a more successful financial foundation.
Lastly, today’s generation of women who take the time to build an in-depth financial knowledge base will see the empowering benefits and will also set the standard for future generations to come.
As a seasoned financial expert deeply entrenched in the world of personal finance and economic history, I bring to the table a wealth of knowledge and firsthand experience on the intricate relationship between women, money, and the evolution of their financial empowerment. Over the years, my expertise has been honed through extensive research, analysis of historical trends, and staying abreast of the latest developments in financial landscapes.
Now, delving into the fascinating article on the history of women, money, and power, let's break down the key concepts:
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Married Woman’s Property Act (1848):
- Historical Context: The article highlights the Married Woman’s Property Act of 1848 in New York, a pivotal moment in women's financial rights during the 1800s.
- Significance: This act liberated women from being held responsible for their husband's debts. It granted them the ability to enter contracts independently, collect rents, inherit, and file lawsuits in their own name.
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Twentieth Century Milestones:
- Federal Minimum Wage (1938): The Fair Labor Standards Act of 1938 marked a significant milestone by establishing the federal minimum wage. This played a crucial role in reducing pay disparities between men and women in hourly jobs.
- Right to Open Bank Accounts (1960s): During the 1960s, women gained the right to open bank accounts independently, a vital step towards financial autonomy.
- Equal Credit Opportunity Act (1974): The act aimed to eliminate credit discrimination based on gender. Before this, many financial institutions required a husband's signature for credit cards and denied them to unmarried women.
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Current Landscape:
- Women as Financial Managers: The article emphasizes that, today, women are actively managing household finances. A survey cited by U.S. News and Money reveals that 51 percent of women consider themselves the "CFO" of their households.
- Responsibility in Long-Term Savings and Investments: 54 percent of women claim a significant responsibility for managing long-term savings and investments within their households.
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Financial Knowledge and Aspirations:
- Desire for Greater Financial Knowledge: Despite their active roles, 63 percent of women express a desire to know more about financial planning and investing.
- Next Generation's Aspirations: Young women are eager to understand financial concepts on a deeper level, but over half of them struggle to find reliable sources for such information.
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Financial Advisor Impact:
- Seeking Professional Guidance: The article notes that 93 percent of women seeking advice from financial advisors have established financial goals, indicating the positive impact of professional guidance.
- Empowering Benefits: Building a robust financial knowledge base is presented as empowering for women, not only benefiting the current generation but also setting a standard for future ones.
In conclusion, this insightful article traces the historical journey of women's financial empowerment, from legal milestones to contemporary trends, underscoring the evolving roles women play in managing finances and the importance of financial literacy for future generations.
