208 Years Until Gender Equality: Credit Shouldn’t Hold Us Back.

We were stunned by the findings of Equality Can’t Wait: that gender equality is 208 years away. If you haven’t seen the star-studded video starring Melinda Gates and some of our favorite comedians, check it out here. Re-watching it a year later is a stark and somber reminder that we are unlikely to see the type of gender equality we are all working for in our lifetimes — unless something changes.

Here at Sequin Headquarters, we have been studying the many threats to women’s financial equality. To bring you up to speed, here are some statistics that blew our minds:

• A Pay Gap: Women make less money than men. In 2020, women make only $0.81 for every $1.00 that men make.
• A Credit Score Gap: Women have lower credit scores than men. There is a 7-point credit score gap between men and women: in the United States, women average a credit score of 621 while men’s credit score is 630 out of a possible 850 points. This is not because women are less creditworthy: rather, because of the gender wage gap, women receive lower credit lines than men and thus use more of their available credit than men.
• An Interest Rate Gap: Borrowing money on credit is more expensive for women than for men. Interest rates are higher. As a result of the credit score gap, it costs women 0.5% more to borrow loans than men.
• A Student Debt Gap: Women have more student debt than men. Women hold 66% of all student debt, and are 2x more anxious than men when it comes to paying it back.
• An Investing Gap: Women traditionally miss out on investing opportunities. Historically, women have invested less than men — which can cost a literal fortune over a lifetime and cause an enormous gender wealth gap.
• A Retirement Gap: Retirement is more expensive for women than for men. Women are 80% more likely than men to be impoverished during retirement. This is partially because women live longer and because women’s healthcare is more expensive, but also because women make less money over their lifetimes.

At every turn, women are far more disadvantaged than men financially and these numbers are even bleaker if you’re a black woman or a woman of color. For example, while women on average make $0.81 for every $1.00 that men make, according to U.S. census data analyzed by the American Association of University Women, Asian women make $0.85, white women make $0.77, black women make $0.61, Native American women make $0.58, and Latinx women make $0.53.

There’s no doubt that we’re far from the gender equity that we want to achieve if things continue the way that they have.

What actions can we each take to stop this course of action in its tracks and get to gender equality FASTER?

Educate yourself and others on the state of the problem:

• Read articles like this one, and the ones linked on Sequin. Share research related to the state of gender equity in this country.
• Talk about this issue with your friends, family, colleagues, classmates, and anyone who will listen.

Exercise your purchasing power:

• Avoid pink-tax items by buying unisex or mens products or buying products that mark down pink taxed items (like Billie!).
• Buy female-owned products like the ones on these lists (pursepower.com & genderfair.com).
• Join movement-building organizations like Ax the Pink Tax to stay up-to-date on the latest issues related to the pink tax.

Close the pay gap within your workplace:

• Advocate for gender equity policies. In California, you can find the CA Pay Equity Law, Resources, and Pledge for employers and employees at women.ca.gov.
• Promote salary transparency in your workplace. Learn more at 81cents.com.
• Pay attention to gender diversity in who you choose to mentor, sponsor, hire, and promote.

Grow your wealth and avoid being a victim by being smart about your own money:

• Don’t leave money on the table. Investing can net hundreds of thousands to millions of dollars in the future.
• Adjust your investment goals to fit your unique situation. Most firms default to average but men’s salaries tend to be higher and peak later. Women have longer lifespans, so you may want to adjust your investing to meet your needs.
• Consider who you are investing in and who you are investing with. Consider impact portfolios based on personal finances and gender-specific salary curves.

What else can we do to move the needle for women? Comment below.

Disclaimer: A friendly and earnest reminder that content in the Sequin Project is not intended to be financial advice, and that the writers at Sequin are not certified financial advisors. If you’re looking to make any decisions related to the content above, please contact a certified financial advisor first.