For decades, men have dominated the financial world. However, recently we have been witnessing a shift in this paradigm, as women are taking control of their finances and accumulating wealth at an unprecedented rate. Women are set to inherit trillions of dollars from their parents, spouses, and businesses over the next few decades.
According to a study by the Boston Consulting Group, women could control roughly $93 trillion, or 34.2% of all private wealth, by 2023. This represents a massive increase from just $34 trillion in 2010. The study also found that women are expected to inherit 70% of the $41 trillion in intergeneration wealth that will be transferred over the next 40 years.
So, what’s driving this shift in wealth accumulation? One major factor is the increase in women’s education and workforce participation. Women are now more likely than ever to hold advanced degrees and high-paying jobs, which has allowed them to accumulate wealth and invest in their futures. Additionally, women are taking more active roles in managing their family’s finances, which has given them greater control over their financial futures. Younger generations of women are more likely to take charge of financial decisions, with 70% of millennial women saying they take the lead compared to 40% of baby boomers.
Women aren’t just inheriting wealth; they’re creating it too. Female entrepreneurship is on the rise with women-owned businesses growing at a faster rate than those owned by men. In fact, women now own more than 11.6 million businesses in the U.S., generating over $1.7 trillion in revenue. In Canada, there has been a 30% increase in women-owned businesses in the past decade.
This change isn’t just a trend, but a seismic shift in the global economy. It represents a new era of economic empowerment for women, as they take control of their finances and shape the future. According to the Economist Intelligence Unit, women who hold wealth are more likely to use their wealth to improve the world than men—citing the ability to make the greatest impact as their main driver for charitable giving rather than tax benefit. Unfortunately, this shift is not without its challenges. Despite increasing progress, women still face significant barriers when it comes to finances, including the gender pay gap and lack of access to capital.
For women to truly harness the full potential of this shift, we must work on addressing these barriers and promoting greater gender equality in all aspects of finance and wealth creation. We can do so by supporting women-owned businesses, advocating for equal pay and opportunities, and providing educational resources to help women make informed financial decisions. These steps will hopefully lead to greater economic empowerment, equality, and a prosperous future for all.
By Mikalyn Trinca Colonel, B.Sc, Nicola Wealth Office Services Team
