Women’s financial health has hit a 5-year low, report says

Women’s financial health is at its lowest point in five years, according to a new report by Ellevest, a financial planning and investment company. The report, which pulls data from Ellevest’s Women’s Financial Health Index as well as a survey of 2,500 workers, found that factors including inflation, lowered consumer confidence, and the overturning of Roe v. Wade have all contributed to a more negative financial outlook for women.

Overall, the Ellevest Women’s Financial Health Index has fallen to a value of only 1 as of July 2022, compared to 9.8 before the pandemic. The results of the index were calculated monthly from May 2018 through this July, using 12 indicators including women’s employment rate, the consumer confidence index, inflation, the gender pay gap, paid family leave, abortion access, and corporate leadership.

“We have long known that money is women’s #1 source of stress,” says Dr. Kate Sullivan, Ellevest Head Data Scientist. “This issue has only become more acute as women’s financial health has deteriorated. In fact, the Ellevest Women’s Financial Health Index shows that women’s financial health is currently the worst it’s been in the last five years. Women’s financial health worsened during the pandemic, primarily due to employment levels, but it rebounded relatively quickly as the labor market recovered and access to paid family leave began to expand.