Show her the money

Slogans and even legislation only go so far in a world in which cash rules everything around us.

That remains true today, especially for women on the eve of International Women’s Day, commemorating the long fight for equality, rights and liberation.

Society has made strides, including legislation ensuring women receive equal pay for equal work.

It must also be recognized — especially on the financial ledger — more work needs to be done. Financial inequality remains a glaring sore spot.

The Georgetown Institute for Women, Peace and Security’s index ranks Canada 16th of 181 nations. In case you’re wondering, Denmark ranks No. 1 for women’s equality on the index monitored by Georgetown University in Washington, D.C.

In Canada, more work undoubtedly remains, says one researcher.

“It’s one thing to have rights and legislation,” says Katherine Scott, senior researcher at Canadian Centre for Policy Alternatives.

But economic realities suggest a different truth, she adds, pointing to data such as women earn about 87 cents for every dollar a man earns in Canada. “If you’re looking at annual earnings, it’s down near 70 cents.”

She further notes many inequities are institutional. Society and the economy have evolved from centuries of patriarchy. In economic terms, more women than men work in part-time positions, “a reflection of the unequal division of caring labour,” she says.

Be it paid or countless hours of unpaid work, working in the care economy — caring for children, the elderly and vulnerable — is undervalued in market economic theory. A 2023 Statistics Canada report points to unpaid and paid care workers being essential to the economy and well-being of Canadians overall, but these roles are often invisible to financial markets, and are underpaid and “devalued.”

This economic discounting translates into financial inequality.

Even IG Wealth Management —one of Canada’s largest financial companies — acknowledges the need to do better. Its recent initiative ‘Give to Gain’ to mark March 8 — International Women’s Day — suggests challenges must be addressed, including in the financial industry.

“We find many women must take pauses in careers, which can be a net benefit to many families,” says Christine Van Cauwenberghe, head of financial planning at IG Wealth Management. That largely unpaid care of children is critical to many households.

“But it can lower lifetime earnings and contributions to the Canada Pension Plan,” she says.

Lower earnings in the prime of many women’s adult lives have significant repercussions down the line. Women often save less for retirement, she adds, despite needing more capital because they live longer on average.

Hangovers from inequality of the past also persist. Older generations of women often ceded the investment decisions to their spouses. Van Cauwenberghe notes this has led to financial literacy gaps when women are widowed and face many unfamiliar financial decisions.

“You don’t want surviving spouses — men or women — to have been completely dependent upon the other for all financial decisions because that potentially puts them in a worse position later.”

Still, change for the better is evident.

“Advisers tell us all the time they’re seeing more situations where women are the financial decision-makers and primary income earners,” Van Cauwenberghe says. “In general, careers are difficult to navigate, and men can have just as many forks in the road as women.”

Shifts in the private sector, including wealth management, are trending toward equality. It’s a slow evolution, however.

Only about 15 per cent financial advisers in Canada are women even though more than half the population is female. The industry is likely to change fast to adjust to emerging realities. By 2028, women will almost control half of all personal wealth in Canada.

Scott notes public policy and support remain critical. Yet the ability and will to provide it is increasingly pinched amid challenging economic, geopolitical and social conditions. Scott points to the rise of far right movements in the U.S. and Europe, which are anti-feminist, as one pressure.

“The attack on DEI (diversity, equity and inclusion) programs is tied … to a pretty far-right agenda that’s quite patriarchal and often pushes white Christian nationalist ideas,” she says. “It carries a particular threat for women facing the erosion of reproductive rights.”

Reproductive rights are deeply tied to equality, including financial, she adds. Canada has not faced the same reactionary tides as other democracies. Yet the U.S. is illustrative of strong reactionary pressures to turn back time, as it cuts social programs that support women, especially low income women of colour.

Even in Canada, the Department for Women and Gender Equality Canada (WAGE), formed in 2018, faced massive cuts last year that threatened many programs, Scott says.

Funding has since been restored following an outcry, with the fall budget announcing more than $660 million over five years to support WAGE, providing “bridging support” for the interim, she adds.

In an email to the Free Press, a spokesperson for WAGE points to its importance in financial equality. Its Economic and Leadership Opportunities Fund, for example, has provided about $100 million to 160 organizations.

“However, it is not possible to have gender equality without safety,” it adds, noting hundreds of millions over the past four years have also flowed to fight gender-based violence, including initiatives aimed at financial abuse (i.e. preventing abusers using finances to exert control).

To that end, the federal budget announced a voluntary Code of Conduct for the Prevention of Economic Abuse for financial institutions.

Policy must continue to acknowledge the realities, particularly for the women, and men, paid and unpaid in the care economy, Scott says.

Make no mistake: government financial support — such as $10-per-day child care — pays economic and social dividends, she adds. Studies show these reduce poverty that often affects women and children more and lead to greater economic activity for everyone.

“The research is pretty clear,” Scott says. “It’s a virtuous circle.”

Joel Schlesinger is a Winnipeg-based freelance journalist

joelschles@gmail.com