Who runs the economy?
Who Runs the Economy? Women!
Illustration by Marina Belskikh
Women make up 51 percent of the U.S. population, so there’s no wonder they have such a strong influence on today’s economy. Women are responsible for driving 70-80% of consumer purchases in the U.S. and control over $20 trillion in annual consumer spending. Women are often the sole purchaser in households, buying not only for themselves, but their family members as well.
Since they hold such strong purchasing power, their purchase decisions and expectations hold an even greater impact. This makes it important for brands to understand this demographic’s wants, needs and how much purchasing power they truly hold.
To get a glimpse into just how powerful women are in our economy, here are a few key statistics regarding women’s spending habits and financial power:
In 2019, consumer spending by women in the US totaled $6.4 trillion. [Source: Catalyst]
An average of 89 percent of women across the world reported controlling or sharing daily shopping needs, household chores and food prep compared to approximately 41 percent of men. [Source: Nielsen]
Women are the primary purchasers for everyday household items. [Source: Nielsen]
17 percent of recent home buyers in 2020 were single females, versus only 9 percent that were single males. [Source: National Association of Realtors]
Women who spend money on their appearance will spend roughly $225,360 in a lifetime. [Source: OnePoll]
Women in their 20s make more makeup purchases than any other age group. [Source: OnePoll]
Women were expected to spend $125 billion on travel in 2020. [Source: The Wandering RV]
On average, the clothes in a woman’s wardrobe equal between $1,000 and $2,500. [Source: CreditDonkey]
45 percent of women say cultural inclusivity in brands is important. [Source: First Insight]
67 percent of women say that inclusivity in extended sizing is the top diversity factor to consider. [Source: First Insight]
Though women have such a strong influence on spending in today’s economy, they still face unique financial struggles.
One of the biggest challenges women face today is the gender pay gap. Women earn 81 cents for every dollar earned by their male counterparts. In addition, there is an investment literacy gap in women, with women investing an average of 40% less money than men do. To bridge these financial gaps, it’s important for women to continue to advocate for themselves in all areas of their finances. Women who are committed to their financial success and planning are typically less stressed than those who aren’t.
Women are making their mark despite these financial obstacles. In fact, the number of women in the workforce has surpassed that of men, and their purchasing power and financial empowerment is starting to increase too.
For more information onfemale spending habitsand financial power, check out this visual guide fromLexington Law.
Before we go — This month, we will be gifting a one-hour consultation to a woman who earns less than $50k per year. If this is you or someone you know, simply reply to this email and let us know. If you nominated yourself or someone else for previous months and they also fall into this category, let us know so we can add in that name once again. And thank you to those who have already reached out! As with previous months, we will randomly pick a name toward the end of the month and email everyone who responds to us.