Opportunities to Advance Gender Equality and Empowerment
December 10, 2024
Authors: Eloise Duncan and Gaurangi Gyanesh Singh
Financial Resilience Gender Gap is Narrowing in Canada
The financial resilience gender gap is closing. This is the difference in the household financial resilience of women compared to men, with this tracked three times a year by Financial Resilience Institute for women and key women populations. For years, Financial Resilience Institute has been tracking women’s financial resilience and well-being, with women consistently having lower mean financial resilience scores and higher financial stress levels overall compared to men, highlighting systemic challenges and vulnerabilities for women and more vulnerable populations. Yet new findings from the October 2024 Seymour Financial Resilience Index® reveal the gap has narrowed significantly – with the difference between the mean financial resilience scores of men and women decreasing from 12% in February 2020 to just 4% in October 2024.
Insights from the Institute’s 2023 Financial Resilience and Financial Wellness Gender Gap Report provide important context for this progress. This narrowing of the gender gap at the national level is a function of many factors. Overall, women have demonstrated strong adaptability and adjusted their financial behaviours by significantly reducing non-essential expenses, seeking advice from financial advisors, and taking steps to improve their financial literacy between February 2020 and October 2024.
The financial resilience gender gap measured through the Seymour Financial Resilience Index ®
Yet challenges remain, with women more financially stressed than men
Even as the financial resilience gap narrows, women in Canada are more likely than men to experience financial stress, with many financial stress indicators – and impacts on overall health and well-being – measured by the Institute as an independent authority. As of June 2024, 72% of women reported that money worries cause them emotional stress compared to 64% of men, and 67% of women reported that money worries impact their mental health compared to 62% of men. As of June 2023, 71% of women in Canada also reported feeling stressed about not having sufficient savings for retirement compared to 65% of men, while 23% of women reported having high levels of financial well-being compared to 26.4% of men.
Similarly, women facing economic exclusion barriers are more financially vulnerable, with opportunities evident to help support women in the economy as outlined in our Institute’s Economic Inclusion and Mobility Intelligence Memo (November 2024). The Institute’s Index and Financial Well-Being Studies (2017-2024) data validate that women facing more than one barrier have increased financial vulnerability, and more financially vulnerable households experience many more challenges (for example food insecurity) compared to those households that are more financially resilient.
More financially vulnerable women and families remain challenged and experience financial inclusion and access-to-financial help challenges
In addition, the Institute tracks financial inclusion and access-to-help barriers for women and more vulnerable populations, with these exacerbated for more financially vulnerability women and populations. These include women taking care of others; those living with low incomes; single parents and women facing economic exclusion barriers, Indigenous women and/or those living with a disability. Systemic barriers, unplanned life events stressors or shocks (like divorce) and gender inequality challenges can be additive. This can lead to increased financial vulnerability and financial stress, knock-on impacts on women’s health and overall personal well-being and that of their families. Challenges for women entrepreneurs can also have impacts on the growth and resilience of our communities, with small businesses the engine of growth.
A need for sustained commitment to help more women overcome barriers and exercise agency
There is a need for sustained commitment and action by many players, including Policymakers and banks, to help advance gender equality and empowerment of women and girls, in line with the Sustainable Development Goal #5. Women and girls face inequality in many aspects of their lives. Systemic inequalities, such as adverse social and gender norms, structural discrimination and the division of unpaid caregiving can limit women’s access to education, employment opportunities and finance. Statistics validate how these challenges persist in different ways for women: as individuals, employees and customers in the financial sector. Yet women are powerful agents of change, and solution-makers to social challenges in their community. They are financial decision-makers, wealth creators, employees, and business owners in the formal and informal economy. Women need to be supported to exercise their agency, and many system players have a role to play.
Many system players have a role to play in reducing gaps and advancing gender equality
Driving systems change, advancing gender equality and empowerment and improving the financial health and resilience of women in Canada and globally requires cross sector collaboration, with many public and private sector organizations and leaders having a role to play. Improved financial health and financial resilience, financial inclusion, economic inclusion and financial empowerment for women and girls are important enablers of overall well-being and resilience. Policymakers can continue to invest in policies and programs to advance gender equality and support families and women in the economy, building on goals to help build a more resilient equitable and inclusive Canada. For example, programs such as federal and provincial government childcare subsidies (helping women and families overall) or financial support or other government benefits for more financially vulnerable women make a difference.
Employers have a role to play, and can foster diversity, equity and inclusion in the workplace; invest in leadership programs and help women employees to improve their financial wellness and financial resilience. Employment also supports financial security and financial resilience and empowered decision-making outside of the workplace through equal pay and gender-responsive benefits.
Financial Institutions also have a vital role to play in advancing sustainable finance, gender equality and women’s empowerment and in the workplace, financial sector and community. They can develop strategies, offerings and pathways to impact through the lens of sustainable, responsible and inclusive finance. By integrating gender equality into their business strategies, products and workplace-related policies and practices, financial institutions can drive progress towards a more equitable, resilient financial system and healthier inclusive economies that benefit both women and men globally. Banks have a particularly important role to play in closing the estimated financing gap for gender equality of $US 360 billion, as outlined in the UN Women Gender Snapshot 2023 [5]. Banks can design and implement tailored products, services and programs that effectively support women’s financial health and financial resilience. They can also offer insurance to help women living with low incomes, or access to credit and other solutions to help female owned businesses to improve their business financial health.
Community organizations continue to play a vital role by offering financial literacy and financial empowerment programs for women (and men) and valuable social programs, education and support for those facing financial hardship and barriers. The non-profit sectors continues to do critical work to support women, girls, entrepreneurs and families on the ground and in their communities, in particular for those who are living with low incomes and/or may need more targeted support.
Similarly, fintech, technology social enterprises, philanthropic organizations, funders and leaders can provide capital, technology, tools and enablers to help foster financial inclusion and improved financial health and resilience outcomes, enabling more women and girls to thrive and prosper.
Advancing systems change, including by targeting efforts to help improve the financial health and resilience of women overall and those who are more financially vulnerable, is of course a journey, with many complexities and considerations. That said, we believe that evidence-based policies and programs informed by data, lived experiences and an intersectional lens allow for more targeted interventions, investments and impact measurement. Collaborative partnerships, a focus on inclusive finance and new funding models can help different organizations to lean into their strengths and contribute different pieces to the puzzle. Ultimately, a holistic, long-term approach and consideration of intersections between financial and overall resilience for women and girls, and financial and overall well-being can serve as a pathway to help more women and girls to build more secure, resilient futures. Setting targets, tracking progress and establishing transparent and accountable reporting practices to ensure gender equality goals are important in Canada and globally. In this way, progress can be advanced to advance gender equality and empowerment of women and girls and achieve Sustainable Development Goals in order to ultimately help create a better world.
[1] Financial Resilience Institute’s October 2024 Index release and 2023 Financial Resilience and Financial Wellness Gender Gap Report can be accessed at https://www.finresilienceinstitute.org/index-releases-and-reports/
[2] The February 2021 Index contained key data on the improved financial resilience of women, and in particular female millennials. To access the release, see https://www.finresilienceinstitute.org/index-releases-and-reports/
[3] Financial Resilience Institute tracks the financial health, financial well-being, and financial resilience of women and key populations, alongside financial inclusion and access-to-help challenges. This work levers the Seymour Financial Resilience Model ® and Financial Well-being studies instrument and also measures the impact of targeted interventions and improved access to help. For more information, access our reports on Financial Inclusion and Access to Financial Help Challenges for more Financially Vulnerable or Underserved Populations and The Financial Vulnerability and Challenges of Key Populations published in January 2023, available at https://www.finresilienceinstitute.org/index-releases-and-reports/
[4] Low-income women are more challenged and report lower levels of financial well-being than men and women with higher incomes, with a much lower Financial Well-Being score based on Financial Resilience Institute’s Financial Well-being Model. For more information see https://www.finresilienceinstitute.org/financial-well-being-model-and-score/ and Low-Income Canadians Reports: https://www.finresilienceinstitute.org/low-income-canadians-reports/
[5] https://www.unwomen.org/en/digital-library/publications/2023/09/progress-on-the-sustainable-development-goals-the-gender-snapshot-2023
Note: we recognize that this article discusses gender in binary terms (as male and female) and does not examine and compare the financial resilience or financial well-being of people with other identities and expressions, such as trans+, gender variant, and two-spirit, representing about 1 in 200 people. Statisticians, researchers, and financial health experts should aim to lean into primary data collection and reporting that reaches beyond gender binary terms and responses, with this approach taken by the Financial Resilience Institute in our Financial Well-Being Studies and work to analyze data with a gender lens.
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