Of Australia’s 2.8 million millionaires, 43 per cent, or 1.2 million, are women. While this may be a promising figure, the journey to financial independence for many women remains fraught with barriers and it’s important to know real estate isn’t the only way to gain access into the millionaires club.
When I started mentoring Vivienne Leong she was studying digital communications at university and, self-admittedly, didn’t know much about finance. Eight years later Vivienne is 26 and has produced thousands of finance videos, become a viral content creator on TikTok and, through becoming financially literate, well on her way to a wealth-building journey.
Like Vivienne, I also started with limited financial knowledge but threw myself into the finance industry to learn the basics and teach others. In Australia’s property hungry society, so many believe a house is the (only) key to wealth and multi-millions. However, understanding more about a diverse array of investments sheds light on many more accessible ways to start investing.
Attacking the very real gender wealth gap
Building wealth is not easy and in Australia women face significant barriers, a challenge explored in Finder’s Wealth Building Report 2024. According to Finder, the gender pay gap begins early in life: parents of boys aged under 12 pay an average of $10.30 per week in pocket money, compared to $9.30 for girls. This disparity continues into adulthood, with women earning less than men and often taking career breaks to raise children, which impacts their ability to save and invest.
Sarah Megginson, Finder’s personal finance expert, highlights the significant gap in net wealth between men and women.
“The average male reports a net wealth of $479,539, while the average female reports $324,942 – that’s 48 per cent less,” she shares.
Superannuation is a key contributor to this disparity. According to Australian Taxation Office data, the average super balance for men aged 15 and over is $146,420, compared to $114,350 for women—a 28 per cent gap. This disparity begins modestly at 11 per cent for Australians in their 20s and balloons to 36 per cent by the age of 50, largely due to women stepping out of the workforce to care for children.
The ripple effect of these financial inequities is evident in home ownership statistics: 43 per cent of single males own a property compared to 38 per cent of single women, and only 18 per cent of single women own property outright compared to 25 per cent of single men.
Beyond real estate: expanding wealth-building horizons
Real estate has long been viewed as the cornerstone of wealth creation in Australia but I’d like to propose that there’s a case for diversifying investments into shares, ETFs, and other financial products which have a more accessible barrier to entry.
Historically, women have been less likely to invest in shares than men, but this is changing. According to the ASX’s 2023 Australian Investor Study, half of the 1.2 million investors who entered the share market after 2020 were women.
The shift toward equity investments among women is encouraging, but more needs to be done to educate and empower women in this space. This is why I’m proud to volunteer for the Australian Shareholders Association who provide independent education and advocacy and why I founded The Stock Network to demystify the stock market and make it less intimidating and more accessible for women to start investing at all stages of life.
Closing the gender wealth gap requires a multi-faceted approach
- Financial and stock market literacy: Providing accessible education about investments and financial planning is crucial.
- Policy change: Advocating for policies that address systemic issues, such as pay inequality and superannuation disparities, is essential.
- Community support: Building networks where women can share knowledge, experiences and resources fosters empowerment.
- Early education: Encouraging financial literacy from a young age can help close the gap before it widens.
Vivienne’s story, and mine, show that with access to education and opportunities, women can overcome barriers to financial independence. The gender wealth gap is significant, but through awareness, advocacy, and action, we can level the playing field and empower more women to join the millionaire club, with or without a mortgage.