Fact: As at the end of 2020, men comprised the top 10 of the world’s wealthiest individuals.

This has been the case for eons and will continue to be for the foreseeable future. Because, while there’s no denying that women are increasingly becoming economic forces, and despite the increasing power of their purse strings, they nevertheless remain almost in another class of beings from men, as far as the gender wealth gap is concerned.

Case in point: The world’s wealthiest man is now Jeff Bezos, CEO and founder of Amazon, the world’s largest retailer at approximately US$175 billion and coming in second is Elon Musk, CEO and co-founder of Tesla, with an estimated net worth of $US162 billion, according to Bloomberg’s Billionaires Index, March 2021.

On the other hand, according to Forbes‘ real time billionaires list on December 22, 2020, the world’s wealthiest woman, Françoise Bettencourt Meyers, chairwoman L’Oreal, is worth an estimated $72 billion. The second-wealthiest woman, Alice Walton, daughter of Walmart founder Sam Walton, is reportedly worth $67.6 billion. Alice is also neck-and-neck with Mackenzie Bezos, the recent ex-wife of Jeff Bezos.

Apples to oranges, right? So, why the discrepancy between the wealthiest men and women?

Gender wealth gap

What explains this gender wealth gap? Historically, women have always lagged behind men in terms of earning. Despite attempts for wage parity in the workplace, in many instances what obtains in real-life experience is, and has always been, a gender wage gap. There are many drivers for this, but none more compelling than the gender gap, which, among other things, sees women in the workplace, especially if they decide to raise families, essentially punished for doing so. They are perceived by management as less “serious” than their male counterparts so that when opportunities for advancement to the executive echelons of the company arise, it’s the men who more often than not get them, since their domestic situations are thought to be less complicated. When a woman does advance to the boardroom, and is able to substantially improve her income, there are whispers and innuendos about the reason for this. The fact is, however, if women have a lower financial footing than men, then they have less liquid assets and consequently, lower net worth than men. Yes, this is still the case in 2021.

Wealth=power. Who has it?

In a bygone era, women needed their husbands’ permission to open a bank account. Today, women are more empowered than ever before in history regarding their personal finances, and are increasing their wealth faster, adding an estimated $5 trillion to the global wealth pool every year, or one-third of the world’s wealth. This point is often illustrated with the example of Oprah Winfrey, the self-made impresario of a diversified media empire who rose from poverty as a person of colour in America’s segregated Deep South in the 1950s.

But, wealthy as she is, Oprah’s estimated net worth is merely US$2.5 billion compared to the world’s ultra-high net worth men. And even for that matter, the top 10 women who it bears pointing out, have amassed their wealth overwhelmingly through family inheritance, divorce or becoming widowed, in other words: men.

Which brings us to the issue that is central to the wealth gender gap: Men still have significantly more wealth and, therefore, more power and the ability to create even more wealth.

Can women ever catch up to men?

Is it a flight of fancy to aim for equal wealth distribution between the sexes? For the foreseeable future, maybe. Still, statistics show that less than 15 per cent of ultra-high net worth individuals around the world are women. But, forget high net worth for a moment. How many women reading this can answer the following basic questions:

What’s your current net worth?

How much debt do you have?

What’s your investment portfolio like? The truth is, if women want to seriously try and narrow the wealth gap in a meaningful way, the key is to no longer be comfortable in prescribed societal roles, but rather, redefine them. This is how:

• Teach girls to be financially literate. In traditional households, girls are often given the message that financial matters don’t concern them. These girls grow up to become women who don’t think they have a meaningful role in financial decisions for themselves and their families, because they lack the skill set to make informed and effective decisions about money.

• Know your worth and begin talking to your bosses about improving your salaries if you know you’re not being paid what you should be. This does not make you a troublemaker; it makes you an empowered woman on the job.

• Begin to invest wisely. A characteristic of high-net worth women is their willingness to educate themselves about money and to take calculated risks. Remember, a diversified portfolio will cut down on potential losses in the event of a turbulent market, as your investment will be spread across several asset classes. Possession of a mere savings account alone will not significantly accommodate your wealth-generating goals.

• Support other women. When you are in positions of influence, always be mindful to send the elevator back down, whether by mentorship or philanthropy. Melinda Gates recently promised to put $1 billion towards projects that boost gender equality over the next 10 years. On-the-rise film-maker Ava DuVernay, who is staking her claim in Hollywood, employs female directors for her show Queen Sugar. And Oprah Winfrey, with the establishment of her leadership academy, is ensuring successive generations of African academically gifted girls will shake off the impoverishment they were born into, rather than be enslaved by it.

Financially focused women are the key to women becoming stronger economic forces. During this International Women’s Month, let’s remember we’re stronger together than when we tear each other apart.