In an unprecedented shift, women are coming into possession of trillions of dollars, marking a significant moment in economic history. This monumental transfer of wealth isn't just reshaping the landscape of financial power; it's setting the stage for a transformative impact on investment, philanthropy, and business innovation. As we delve into this seismic shift, it's essential to understand its dimensions, drivers, and potential outcomes.
The Dimensions of Change
The current era is witnessing the largest intergenerational transfer of wealth in history, with a significant portion flowing into the hands of women through inheritances, entrepreneurship, and increased participation in the workforce. This trend is magnified by demographic shifts, including longer lifespans for women and changing societal norms that empower them with more control over personal and family finances. Estimates suggest that by 2030, women could hold a staggering 30% to 40% of global private wealth.
Drivers of the Wealth Transfer
Several factors contribute to this historic wealth transfer. Firstly, women are increasingly at the helm of business enterprises, both as founders and leaders, contributing to a rise in self-generated wealth. Education plays a crucial role, with women now earning more degrees than men in many parts of the world, thereby enhancing their earning potential. Additionally, societal changes have led to more equitable inheritance laws and practices, ensuring that women receive their fair share of generational wealth.
Impact on Investment and Philanthropy
With this wealth, women are poised to become influential players in investment and philanthropy. Research indicates that women investors tend to prioritize sustainable and responsible investing more than their male counterparts. This focus on ethical investment is likely to drive significant capital towards initiatives addressing environmental sustainability, social justice, and health care.
In philanthropy, women's approach often involves a desire to create meaningful, lasting change. This could lead to increased funding for education, poverty alleviation, and gender equality projects, with a long-term view of societal improvement.
Business Innovation and Economic Growth
The economic empowerment of women through this wealth transfer is also expected to spur business innovation. With more resources, women entrepreneurs can fund new ventures, scale existing businesses, and invest in research and development. This increase in diversity of thought and leadership in the business world is likely to yield novel solutions to complex problems, driving economic growth.
One of the best ways for women to utilize their monies is to invest in women through venture capital and Angel investing. They have not always find this because they were not privy to this education on the topic- but that is changing rapidly now. There are so many new initiatives to educate and inspire women to learn about
these alternative investment paths than can be more lucrative than traditional investments.
The transfer of trillions of dollars into the hands of women represents a watershed moment with the potential to reshape economies, societies, and the environment. As women exercise greater influence over financial decisions, their priorities—ranging from sustainable investing to philanthropy—are likely to become central themes in the global narrative of wealth management.
This shift is not just about economic power; it's about fostering a world where prosperity is intertwined with values of sustainability, equality, and innovation. In this historic moment, the possibilities are as vast as they are inspiring.
It’s because of the wealth shift that we created our movie Show Her The Money.
The purpose of the movie is to pull back the curtain on venture capital as a wealth-building asset class most women have not heard about.
We have been taking the movie on a world tour to educate and inspire women in an engaging storytelling way about how fascinating and impactful this type of investment can be. And why they will want to consider putting a part of their portfolio into women-founded venture funds that are investing in women entrepreneurs.
Research by Pitchbook and others shows that women-owned businesses tend to be more successful, manage their monies better, give a better rate of return, and exit more quickly. Thus making venture capital a great alternative investment for a small percentage of your portfolio.
Catherine Gray
Producer- Show Her The Money
CEO She Angel Investors, Host of Podcast Invest in Her, Keynote Speaker
www.ShowHerTheMoneyMovie.com
Watch my Ted talk here!
https://youtu.be/Ms-tROEeLn4