It's Women's History Month. Here's How Much the Average Woman Has in Her Bank Account

The average woman has over $7,000 less in her checking account than the average man.

March is Women's History Month. Now is the perfect time to celebrate women's historical wins and find out what work still needs to be done for continued progress for equality. Unfortunately, women as a whole are at a financial disadvantage when compared to their male counterparts. There are many reasons for this, including the current gender wage gap. It turns out women also have lower average checking account balances than men.

The average woman has more than $7,300 less in her bank account

There is often a big difference in the financial situations of men and women. We tend to focus on the gender wage gap, which is a significant issue -- but there are also other ways the average woman is behind financially compared to men.

Overall, women tend to have less money in their bank accounts. We've previously discussed average checking account balances at The Ascent. Using data from the Federal Reserve Board, we found the average woman has a checking account balance of $5,283.96, while men have an average balance of $12,586.30. That's a noticeable difference -- $7,302.34 less.

Factors that lead to financial disparities for women

Having less money can make living in today's expensive world more challenging. You may wonder why the average woman has less money in her bank account. There are a variety of factors that lead to financial inequalities between men and women. Here are a few:

• A gap in wages: The gender wage gap still exists. Recent data from the Pew Research Center shows that women earned an average of 82% of what men made in the United States in 2022. While the gender wage gap is narrower now when compared to decades past, progress must continue. Women remain at a financial disadvantage as they continue to make less money, yet they live longer than men.
• A low federal minimum wage rate: The current federal minimum wage is $7.25 an hour, which hasn't increased since 2009. It's hard to imagine how anyone can afford to live working at such a low wage. More women are working minimum wage jobs than men. According to the National Women's Law Center, women represent more than 2 in 3 minimum-wage workers nationwide.
• Child care costs: Lack of affordable child care is another factor impacting women's finances. Many women leave the workforce because high childcare costs make it prohibitive to continue working. It can also be harder for mothers to reenter the workforce after time away to raise children. The American Association of University Women notes that the "motherhood penalty" significantly impacts women's finances. Mothers make $0.58 for every dollar paid to fathers.
• Gaps in financial knowledge: There is also a gender gap regarding financial literacy. A lack of financial knowledge can lead to decreased confidence surrounding money management. A 2019 study by UBS found that globally, only 23% of women make long-term financial planning decisions. Increased access to financial literacy resources can empower women to feel more confident so they can take charge of their finances.

Let's change the narrative

While financial disparities still exist between men and women, we can work hard to make progress. Supporting political candidates with policies prioritizing women's equality and showing up to the polls are two ways to make a difference and change the narrative.

Additionally, women especially can set themselves up for success by improving their financial knowledge. They can also share what they learn with other women. If you'd like to improve your financial situation, check out our free personal finance resources to learn more.