How (and why) we created the Ellevest Women's Financial Health Index

How (and why) we created the Ellevest Women’s Financial Health Index

how are you?

It’s something we ask each other a lot of, especially since the pandemic started. There is a lot filled with this little question – we are asking about someone’s mental, physical and emotional health. But the underlying reason, we’ve argued, is their financial health.

We can feel your doubts seeping through the screen. But think about it: You ask if their job is going well, whether they feel pressured by gas prices, whether they are feeling hopeful or anxious about their (financial) future, etc.

We’ve known for a long time that finances are a huge source of stress, especially for women. Everyone has heard the term.she gives up. “We know that gender bias is rampant in the business world. We know that the wealth gap between the sexes is huge. But we had no way of measuring the state of women’s public financial health right now, or the ways in which you are dealing with it.

So we built one.

Introducing the Ellevest Women’s Financial Health Index

While there is a lot of information out there about certain things that affect women’s financial health — the wage gap, inflation, employment rates, etc. — none of the individual data points tell the whole story. But if we don’t track our progress (or regression) over time, we ignore what might happen next. Plus, it’s hard to improve what you can’t measure – or advocate for change about something you can’t measure.

Such as The A financial company built specifically for women—a company that helps tens of thousands of real women understand and manage their money every day, a company that actually exists to get more money in the hands of women—we knew it was up to us. And so on We have developed the first and only comprehensive measure of women’s financial health.

without getting very We respond to you (although I did here(For those of you who love data as much as I do), here’s how it works: The Ellevest Women’s Financial Health Index takes 12 key indicators and combines them into a good one — one score that identifies and tracks a woman’s financial health. It measures how well you feel the financial landscape is working for us or against us, and how we deal with it.

These indicators are:

  • women’s employment

  • Student debt gap

  • Consumer confidence

  • inflation

  • wage gap

  • Get paid family leave

  • reproductive autonomy

  • Number of women CEOs in Fortune 500 companies

  • The number of women in Congress

  • Venture capital raised by women

  • Whether women save and invest regularly, according to our internal data

  • Whether women invest for impact, again according to our internal data

The result is a number between 1 and 10, with 1 representing the worst things for a woman’s financial health in the time period measured (in this case, May 2018 to today), and 10 being the best.

So how be Women do now?

Well, it probably won’t surprise you to hear that things are tough now. But here’s the part that might be: As measured by the index, things are much tougher than they were in the middle of the COVID-19 lockdown. While its mean for this time period was 6.8, The Ellevest Women’s Financial Health Index currently sits at a score of 1. In other words, our measure of women’s financial health is worse now than it has been at any other time in the past five years.

The reasons probably won’t come as a surprise either. Inflation is at an all-time high in the time period we studied, and consumer confidence is at an all-time low. Although the “Big Resignation” may have helped rebound women’s employment rates, wages are not keeping pace with inflation. And then, it almost goes without saying, there is an ongoing onslaught against abortion and access to reproductive health care, which has huge economic implications.

This is the bad news. And we know it’s easy to get overwhelmed—we were at first, too. It is a sobering reflection of what many of us go through in our lives, in our relationships, and in the workplace and communities. But this number gives us a new way to measure, speak up, and advocate for women’s financial health.

What’s Next?

Then, we raise this wake-up call to anyone who will listen, focus on the next steps you’re asking us to take, and continue to work to drive systemic change.

The bright side is that some factors are trending up (even if not always as quickly as we’d like): More women are working in Congress and in the C-suite at Fortune 500 companies. And in 2021, Institutions get more venture capital funding ever (even if it’s still a lot less than what the founders got). More women than ever are choosing to invest their money for impact. Combined with our findings from the Ellevest Financial Wellness 2022 survey, which showed that more and more women are prioritizing their financial well-being, things are far from hopeless.

Additionally, advocacy and change in one area can raise the bar in others: for example, more women elected to Congress can (hopefully) help protect reproductive autonomy. More female leaders in Fortune 500 companies could lead to paid family leave for more workers. More corporate venture capital could mean more companies solving real-world problems women face.

We will be calculating the Ellevest Women’s Financial Health Index on a monthly basis from now on. We will continue to track results, identify opportunities, share updates, and push for change.

In the meantime, don’t succumb to these forces – there are always steps we can take to improve our individual financial health. Work to build a solid financial foundation, build and follow a financial plan, and improve your relationship with money. (We’ve created a set of downloadable worksheets to get you started.) Ask for more. Invest your money in companies and industries that align with your values ​​and make the world a better place.

We will be here every step of the way.

Full and systematic results of the Ellevest Women’s Financial Health Index can be found over here.

#created #Ellevest #Womens #Financial #Health #Index

Leave a Comment

Your email address will not be published.