Ellevest's founder is dedicated to ensuring women are equipped to grow their wealth.
Sallie Krawcheck established Ellevest nearly ten years ago, aiming to put more financial resources in women's hands.
Currently, women earn approximately 83 cents for every dollar a white man makes, as reported by the American Association of University Women. While some sectors have smaller wage gaps, the overall disparity in earnings persists for many women.
Krawcheck is striving to ensure that more women understand how to manage their finances effectively. In addition to the wage gap, there's a significant knowledge gap regarding investing. Ellevest's mission is to reshape the investment landscape for women.
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Why Women Should Focus on Wealth Through Investing
With limited financial means, many women find it challenging to begin investing. Krawcheck suggests that investing is often more straightforward than other wealth-building methods.
“Historically, there have been two scalable ways to accumulate wealth,” she explains. “One is real estate, which requires a down payment and mortgage. The other is market investing, which doesn’t necessitate loans or hefty down payments.”
Investing can be a passive approach, Krawcheck notes, allowing wealth accumulation without substantial time or effort devoted to managing investments. Many online platforms require little to no initial deposit, making it easier to start investing compared to real estate.
Transforming Women’s Financial Education
From an early age, women often receive the message that money is complicated and that they should rely on men for financial guidance. This notion can leave them unprepared for various financial obligations.
“The pervasive idea is that ‘you’re not good with money,’” she observes. “‘You’re doing something wrong because you enjoy pampering yourself, and that’s shameful.’ Consequently, women associate money with stress and uncertainty.
The narratives surrounding money often ignore the obstacles faced by women, particularly in relation to the gender pay and investment gaps.
“It’s genuinely not your fault,” Krawcheck asserts. “You’re earning 80 cents for every dollar a white man makes, while also managing higher costs for your children. Additionally, there's the pink tax and increased debt rates simply because you’re a woman. No one acknowledges this, but it’s true.”
Krawcheck is determined to change this narrative. She aims to dismantle the educational barriers and provide resources typically reserved for men, encouraging women to take proactive steps now to secure their financial future.
Nothing detrimental occurs when women have more financial resources.
