PERSONAL FINANCE INSIGHTS FOR WOMEN BY WOMEN
How to start your financial literacy journey, to feel empowered and make informed decisions
TIMELESS TRAITS
The four key traits that make strong female leaders thrive in the workplace
WEIGHING DOWN SUCCESS
How women’s weight impacts their wage
Women's participation in the economy has steadily increased in education, workforce experience and earnings. However, barriers still exist in terms of growing their wealth. Surveys show that women often feel less confident than their male counterparts regarding financial literacy. Financial literacy is crucial for managing money effectively, including budgeting, investing and saving for emergencies and other goals. Due to lower financial literacy rates than men, women may face challenges such as handling living expenses, building wealth and managing loans and debt The finance and business world is overwhelmingly male-dominated The Emporio Organization was founded to create a community dedicated to empowering young women to make informed decisions about personal finance and business Our bi-weekly newsletter aims to provide an easily accessible and readable platform where women can gain personal finance knowledge and stay updated on recent economic, global and political news By reading each newsletter, you are one step closer to making more informed decisions that impact your life
In addition to our newsletter, Emporio offers numerous resources to enhance financial literacy, including our annual publication, our Spotify podcast "Let’s Get Down to Business," our weekly financial literacy video series and our globally distributed youth financial literacy kits Learn more about these resources at www theemporioorg com We look forward to empowering you on your financial journey!
Financial literacy is the ability to understand and effectively use different financial skills like financial management, budgeting and investing. Financial literacy is the critical tool for achieving financial independence. When women understand how to manage their finances, they are more likely to make informed decisions that support their longterm financial goals. Financial literacy can help women increase their income and reduce their stress about money. It also gives women th the world. By having enjoy the peace of fi
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Throughout the different newsletters, we will focus on various aspects of financial literacy. For the purpose of this issue, we will provide a brief overview of key parts of financial literacy that we have identified to introduce fundamental concepts.
A budget refers to an estimation of revenue and expenses made for a specified future period Budgeting usually occurs on an ongoing basis For example, you can create a budget each month, which allows you to ensure that you will have enough money to spend during each month Without a budget, you might run out of money before your next paycheck A budget shows you how much you make and how to spend your money It helps you decide what to spend your money on and if you can spend less on some things and more on others
Expense management refers to the process deployed by a business to process, pay and audit employee-initiated expenses Any business encounters a wide variety of employee expenses during operations, from office supply purchases to rent It is essential to have a strong expense policy and procedure in place so your company’s finance team can properly track and reimburse employee spending In upcoming issues, we will discuss the different types of budgeting you can use and how expense management works
Saving is the act of setting aside money now in preparation for the future. Different financial institutions offer savings options, including big banks, community banks, online banks and credit unions Within these banks and credit unions, customers can use four basic types of accounts to manage their savings: a checking account, a savings account, a money market account and a certificate of deposit Checking and saving accounts are solid options for storing money that you use daily and need readily available For larger sums of money, or money that will not be needed for six months or longer, individuals can consider a money market account or certificate of deposit
Why should to put my money in one of these accounts? Well, money that is put into a bank or credit union is insured by the federal government and protected against loss. This means that deposits in a bank or credit union are safeguarded so that even if the institution fails, the money is not lost So, if this is saving, what is investing? Investing is the process of buying assets that increase in value over time and provide returns in the form of income payments and capital gains In the broader scope, investing can also be about spending time or money to improve your own life and the life of others
In future issues, we will cover investing in more detail Let's cover the foundational knowledge right now In the most straightforward sense, investing works when you buy an asset at a low price and sell it at a higher price This kind of return on your investment is called a capital gain. Earning returns by selling assets for profit or realizing your capital gains is one way to make money investing.
What are the basic types of investments? There are four main asset classes that people can invest in with the hopes of appreciation: stocks, bonds, commodities and real estate A stock is a type of security that represents ownership in a corporation and constitutes a claim on part of the corporation’s assets or earnings A bond is a debt security issued by entities such as governments or corporations to raise capital, where investors lend money in exchange for periodic interest payments and the return of the principal at maturity A commodity is a basic good used in commerce that is interchangeable with other goods of the same type and is often traded on futures markets Lastly, real estate refers to the purchase, ownership, management, rental, or sale of land and buildings for the purpose of generating income or capital appreciation
Now that we know the foundation of saving and investing, what is the difference between the two? For the most part, saving is good for short-term goals, while investing is generally used for long-term goals The main factor that distinguishes savings from investing is the element of risk Investing takes on more risk, so if you choose to invest, it may be best to use funds that you may not need in the immediate future Money for things like down payments on houses or cars may be better to deposit into a savings account
Debt management is a way to get debt under control through financial planning and budgeting. The goal of a debt management plan is to lower your current debt and move toward eliminating it. You can create a debt management plan for yourself or go through credit counseling. Debt management can be a helpful tool for releasing debt. However, the results are not immediate. Debt management does not address debt like mortgages or car loans.
With that being said, it does have numerous benefits For example, under a debt management plan, you will typically pay off all of your existing accounts within five years Additionally, it simplifies payments because instead of having multiple payments and due dates to remember, you will just make one payment to the credit counseling agency Having only one payment can make it easier to manage your money Lastly, it can improve your credit score because as one starts making payments
A retirement plan may be seen as a roadmap to a comfortable life after work. It entails accumulating money to pay for the lifestyle you want to enjoy in the future. Your retirement plan may change over time, but the earlier you get started, the better. Creating a retirement plan begins with determining your long-term financial goals and tolerance for risk, and then starting to take action to reach those goals The process can begin anytime during your working years, but the earlier the better The process of creating a retirement plan includes identifying your income sources, adding up your expenses, putting a saving plan into effect and managing your assets By estimating your future cash flow, you can judge whether your retirement income goals are realistic A retirement plan is very important because it allows you to save money so that you can have a safe lifestyle once you retire
Getting this far in the issue is already the first step to becoming more financially literate Education is the most important thing when it comes to financial literacy The more you learn, the more information you have to make informed decisions Below, are a few more ways to expand your financial literacy knowledge Self-Study and Use Online Resources: Utilize books, articles, videos and reputable financial websites to independently enhance your financial knowledge Access Formal Education and Awareness Programs: Enroll in courses, workshops, or seminars offered by educational institutions and financial organizations to gain structured financial education Seek Professional Advice: Consult with financial advisors, accountants, or other financial professionals to receive personalized guidance and insights Network and Learn From Peers: Engage with friends, family and colleagues to share experiences and knowledge, benefiting from diverse perspectives on financial management
Over centuries, many leaders across the globe have not just changed the course of history but also deeply influenced the trajectory of humanity and evolution of civilization. The definitions of ethics and values have transformed dramatically over many centuries along with what constitutes socially acceptable practices. It is hence a challenging proposition to define universally acceptable leadership traits given the variations in cultural sensitivities and chronological shifts in belief systems over centuries. Nevertheless, across time and across the globe, there are at least four key traits that successful leaders exemplify: agile, driven, inclusive and inspiring.
Agile leaders, be it in an idyllic school setting or a war zone, are adept at setting the vision and orchestrating alignment in the team. What sets the agile leaders apart is their ability to adapt to changing needs and feedback to guide evolution of their ideas while taking balanced risks Agility or the lack of it can make or break even the most successful teams as it is not always the strong who survive but the ones who can adapt to changes
Drive determines the leader’s ability to face barriers and challenges with resilience This not just builds confidence the team reposes on the leader but the confidence they feel about their own abilities Success begets success from an inner drive that sustains through peaks, plateaus and valleys While it is easier to lead through rosy times, what set an extraordinary leader apart is their drive that outlasts bad circumstances
In the modern workplace, success should be measured by dedication, hard work and ambition, but under the surface, a less visible bias often tips the scales: body weight. Although the performance of two equally dedicated, hardworking and ambitious women could be the same, their paychecks tell a different story. While men are spared from the harsh scrutiny of their appearance, the compensation for women’s countless hours of labor and work relies on the simple digits of a weight scale. This is the reality for many women who have faced injustice at work, unknowingly being trailed by the shadow of discrimination and gender inequality
Although the biases towards sexual orientation, race and skin tone have decreased significantly in the workplace, weight bias appears to be on a rise In a study by Harvard University that analyzed data from over four million tests of attitudes between 2007 and 2016, weight bias increased by 40%
"Heavier women tend to earn less," the Federal Reserve Bank of St Louis said in a 2011 report "These penalties have not only increased over the past few decades but continue to increase as women age "
As women age, weight plays a determining factor in their wealth A report by the National Institutes of Health, unveiled that the financial net worth of obese women between the ages of 51 and 61 years of age was 40% lower than that of normal- weight peers. Furthermore, their net worth dramatically plummeted to 60% of their counterparts between ages 57 and 67 years of age.
“I am somebody of what you would call a ‘normal’ BMI, but even when I had minor weight fluctuations of maybe 15 or 20 pounds, I saw myself being passed over for higher visibility projects and client interactions,” career coach Elizabeth Pearson said “Then once I had lost those 20 or 25 pounds, all of a sudden I’m being promoted ”
Pearson is not the only one affected by weight discrimination in the workspace Even high-profile individuals like Selena Gomez were scrutinized when they began to gain weight
After being diagnosed with Lupus Disease, an autoimmune disease that can cause inflammation and tissue damage throughout the body, Selena Gomez experienced a weight increase from her lupus medication which caused her to “hold a lot of water weight ” As she recieved harsh bodyshaming, Gomez spoke up about the matter on her Tik Tok Live.
“Not a model, never will be,” she said. “I just wanted to say and
encourage anyone out there who feels any sort of shame for exactly what they're going through, and nobody knows the real story "
Gomez’s sudden weight change has affected not only her mental health but also her public image and reputation, which many women who gained weight can relate to
Since the North American ideals of feminine beauty emphasize thinness, women whose bodies deviate from these beauty standards become vulnerable to weight stigmatization This idealized female body continues to be heavily promoted by the mass media, diet industry and fashion industry
However, men rarely face weight bias, and some studies even concluded that overweight white males actually earn more. Women who begin gaining weight receive less frequent promotions and raises, immensely impacting their wages over time. Furthermore, female job applicants affected by excess weight are less likely than male applicants to be recommended for hiring.
Weight plays a similar role in political candidates. Overweight female candidates received lower ratings of honest, dependability, reliability and ability to perform a strenuous job, whereas non-overweight female candidates were believed to uphold these qualities. Overweight male political candidates received actually more positive ratings than male candidates not affected by excess weight.
As society grapples with body positivity and inclusivity influenced largely by the lack of diversification of body image on social media, the weight-pay gap remains a stark reminder that society has miles to go before achieving genuine workplace equality where individuals are valued for their skills and contributions and not their body image
Anika Shah
Boredom The thing that plagued many of us during the pandemic Not being able to hang out with their friends or play sports, many teens found themselves in a constant state of boredom during the pandemic, often dismissing it by watching TV or doom scrolling on their phones. However, seventh-grader Sasha Kitson decided to turn her boredom into something different: starting a business
Kitsons entrepreneurial journey started with a jar of old coconut oil that her mom found in their pantry
“We didn’t want to throw it out, and after some research we decided to make a coconut oil-based soap out of it,” Kitson said
After realizing how fun the process was, Kitson and her mom started making soaps for fun to combat the boredom of the pandemic They would send the soaps that they created as gifts to friends and family and noticed that they were very popular
“That was when I got the idea to start a business and share my hobby with the world,” Kitson said
Kitson decided to start selling her soaps to support her parents, who are also entrepreneurs
“Because my parents are entrepreneurs, business has always been a constant in my life,” Kitson said “I felt a sense of duty to them for their unconditional support and wanted to repay them while lessening their financial burdens by starting my own business ”
Kitson also spoke to the passion she has for business.
“Because of my parents, I was lucky to be exposed to something that I am now so passionate about,” Kitson said “I love how it provides both creative and logical aspects, allowing me to embrace my creative side while also maintaining regularity through the logical aspect ”
In the years since Kitson started her soap business, it has evolved, and now sells personalized gift boxes, as they sell for higher margins and are more popular
“My company’s name is Herbal Kiwi, and it is an online e-commerce store that sells personalized gifts for all occasions,” the now sophomore said “Our main market is women aged 18-30, so we have a lot of self-care items such as handmade soaps and candles ”
Through Herbal Kiwi’s online store, the reach of Kitson’s products has also expanded, and she now sees around 100 orders a month, with orders increasing to around 300 a month during the holiday season
“I have a store on Etsy, and at one point I also used Shopify to create an independent storefron and Instagram ad campaigns to reach people across America,” Kitson said. “We also sent out d customers ”
A big part of Kitson’s job is managing the financials of Herbal Kiwi and making sure that oper smoothly
“To learn about running the financial part of a businesses I took a lot of advice from my paren finance and accounting online,” Kitson said “I also recently attended a finance intensive at the Pennsylvania, which helped strengthen my business knowledge and confidence ”
On the other side of entrepreneurship, Kitson also runs a nonprofit, named Junior Athletes America (JAFA)
“I now run JAFA, a nonprofit organization dedicated to empowering young athletes excel in th Kitson said “We do this by raising funds that go towards need-based scholarships for middle a school students.”
From her extensive experience, Kitson offered some entrepreneurial advice to young girls looki their own business
“Don’t be afraid to get your hands dirty and experiment,” Kitson said “I used to be so scared o things and reaching out to people, but after a few failures I became immune to the embarrassm and decided to embrace the growth that comes from failure instead ”
“Women are too soft They’re not competitive enough ”
“Women are just too emotional to handle the stress of high-leadership roles.”
While many of these stereotypes are rooted in historical ideals, women today are still burdened with such misconceptions. But in the ever-growing field of business, the need for more women in leadership positions is not just a matter of equity, but also a strategic advantage for growth and innovation. Forbes has credited several key attributes that cause female founders to build businesses that produce more revenues, have bigger potential and execute more effectively: inclusion, empowerment, and ambition. As of early 2023, women are reported to now lead more than 10% of Fortune 500 companies, including one company in the top 10. While this is certainly impressive in itself, the numbers simply don't measure up to the vast potential and ability that women possess. However, not to worry, as increased awareness on this issue has led to more women in senior leadership roles, and it is projected to continue
Empathy, resilience and integrity are all core fundamental characteristics of female leaders But what is important is that women value relationships They prioritize the well-being of not only themselves, but the entire team They are mindful of each other and how their actions affect others, and they take care to respect boundaries This emphasis on a safe and encouraging environment allows employees to feel comfortable communicating with women in higher-up positions, creating trusting relationships with each other But not only do they feel safe in the workplace, they feel heard They aren’t afraid to voice up their suggestions and opinions In these environments, colleagues are able to feel a sense of belonging and inclusion This is the basic foundation that establishes a healthy work environment, allowing the prioritization of collaboration and working for success
Women lead by example Thus, having prominent females in the business field empowers other women to feel inspired to do so as well. When prominent females excel in their field, not only do they break barriers and debunk discriminatory gender assumptions, but they become the powerful role models that other women look up to. Their accomplishments are proof that gender doesn’t define one’s capabilities, and other women feel motivated to reach similar successes. It is crucial to encourage more women leaders in the growing field of business, as it creates a domino effect, inspiring more and more women to take a step forward in reaching their dreams. Naturally, more women in business increases diverse perspectives that work together to cultivate groundbreaking innovations across all levels of business.
While men traditionally dominate leadership roles in the business world, it does not mean that women are short of skill in that aspect They have unwavering resilience, unyielding ambition, valuable integrity and efficient problemsolving skills – all crucial qualities of a leadership figure Moreover, their understanding of emotional intelligence, such as empathy and interpersonal skills, show that they are very well-rounded Not only do they excel in capability, but they bring new insights to the field Women view life through different lenses, and their unique experiences are interwoven into their ideas and contributions, driving innovation in the field as a whole For example, the CEO of YouTube, Susan Wojcicki, stood at the forefront of YouTube’s explosive growth throughout the past decade, transforming it into the world’s largest video-sharing platform for content creators and viewers alike Another example is Mary Barra, the CEO of General Motors, which focuses on the innovation of electric vehicles and sustainability for our planet, making significant strides in autonomous vehicle technology It is imperative to encourage the abundance of women's perspectives, as this enhances the capabilities of the business field
In a male-dominated field, it is especially important for there to be more women leaders who can set an example for other women to follow These leaders exemplify confidence in vocalizing their opinions and unwavering resilience, staying driven despite obstacles that may block them in their path to success, qualities that are extremely essential in business. Truly, women leaders make a difference in the world of business.
She sits, encompassed in a male-dominated industry, gnawing her way through a list of tasks for the day Barely resting in her first couple of months of laboring in the industry, she wakes up at dawn, working until her nightlight is the only sign of life in a world of darkness. It seems as if she carries an undying flame inside of her. Yet, as she dedicates increasingly more time in the atmosphere of finance, she realizes that the men around her are slowly extinguishing her fire. With each sexist remark like “you’re not the man for the job,” each new assignment carelessly thrown at her from her boss, and each sight of her manager promoting her male co-workers over her, she finds it harder to remain content with her work. Her spark for finance slowly dies.
However, she is not the only one in such a challenging scenario; many women in finance experience the same feeling of disrespect and an underestimated perception. In 2015, Women in Capital Market, a Canadian national not-for-profit, conducted a survey with 1000 male and female capital market employees and found that women felt less valued than men, less challenged, and less supported by their managers In addition, they experienced less satisfaction with their salary For example, the U S Government Accountability Office reported in 2023 that the average woman earns $0 61 for every dollar earned by men, displaying the wide disparity in wages between the two genders As a result, because of the unsatisfaction women experience in finance, the unjust gender division and aggressive male-domination drives away prospective women and heightens the difficulty in retaining female workers
In a more extreme yet realistic instance where women experienced the sexist remarks of executive workers, Michael
Moritz, the chairman of Sequoia Capital was asked in a Bloomberg interview why there was a lack of female partners at his firm In response, he stated that his company “[was] not prepared to lower our standards” to increase diversity Moritz’s response depicts the extreme gender discrimination, where men often overlook women’s potential and brush off their brutal comments – both actions which hinder the full blossom of women’s maximum potential and illustrate the feeling of an unsettling hostility they encounter
In addition to the consequence of stumping women from flourishing in the realm of finance, the gender prejudices and discrimination also limit their climb to the top of the pyramid, decreasing the number of women in executive positions According to Harvard Business School’s studies, they found that women only held 9% in the senior roles of venture capital and only 6% of the positions in private equity Furthermore, a 2018 report from McKinsey & Company, a global management consulting firm, unveiled that despite men and women’s initially equal starting platform, women only account for 19% of the executive positions, or the C-suite, in finance.
The lack of women leaders looms as a challenge for women to climb the ladder, as Francesca Federico, co-founder of Twelve Points Wealth Management, noted that the finance industry composes of “pretty much an ‘old boys club’ and most men have gotten into this industry because their father or golf buddy or college alumni was in it. I think women have a hard time breaking in because there have never been that many to begin with.”
However, with the awareness and the acknowledgement of the gender disparities in finance, the industry can initiate the creation of a nurturing environment, so the flames of women can be kindled and spark wildfires of women leaders
