Would it surprise you to discover that in 2024, the top 10 wealthiest individuals globally are men? Perhaps not. Men have dominated the global wealth rankings since Forbes started curating its annual lists of the wealthiest people in the world in the 1980s. While it is true that women are increasingly becoming financial powerhouses, they still lag behind men by a wide margin. Francoise Bettencourt Meyers, chairperson of L’Oréal, with a net worth of $99.5b, is the only woman in this year’s Forbes World’s Billionaires Top 20 list. However, she trails her male counterparts, with Bernard Arnault, owner of French luxury goods conglomerate and holding company LMVH and the world’s wealthiest person, having a net worth of $233b. In Jamaica, similar wealth disparities exist. Whilst Jamaica has the third highest percentage of women in managerial positions, Jamaican women still earn less than men across all sectors. However, women are gradually increasing their economic influence and participating more actively in wealth creation. By being more deliberate about investing, generating wealth, and creating financial security, women can close the gender wealth gap.

Women and Wealth Creation

Despite significant gains, women are still underrepresented in wealth creation, leadership of companies, and ownership of businesses even in Jamaica. As such, their net worth is often less than men. A 2023 gender assessment report from the World Bank revealed that Jamaican women earn less than men across all sectors, regardless of education or employment. Still, women are breaking barriers, increasingly becoming business owners, particularly in newly formed businesses, and securing high-earning positions in upper echelons of management. Breaking these barriers allows women to acquire the financial resources necessary to procure high-value financial assets like stocks and bonds or real assets like houses and land. It also empowers women to save and invest for retirement, acquire insurance for unplanned medical or other unexpected costs, as well as cover tuition or other fees related to personal development. Globally, women control about 32 per cent of the world’s wealth. While there are limited statistics for Jamaica, the disparity between men’s and women’s wealth exists. How can women increase their wealth and close in on wealth parity?

Bridging the Gap with Financial Education

Becoming more financially secure begins with education and developing a growth mindset around money. Women can access financial education through various avenues, such as free online courses, podcasts, financial blogs, workshops, and seminars. For a more structured approach, paid courses or personal financial advisors can offer in-depth guidance. High-net-worth women often take the time to educate themselves about personal finance, investments, and risk management. As women become more financially literate, they are better equipped to make informed decisions that help them build and sustain wealth over the long term. By leveraging financial education to build long-term wealth and shrink the gender gap, women can attain greater financial independence and economic equality.

Build Wealth through Strategic Investments

While the wealth gap is closing and more women are getting financially educated, equality remains a distant goal. One way to accelerate progress is for women to actively participate in wealth-building through investment. Many of the wealthiest women in the world, like Bettencourt Meyers, Alice Walton, and Jacqueline Mars, have benefited from inherited wealth or transfers from their spouses. However, for those without such fortunes, creating generational wealth is still possible. In Jamaica just over a third of the accountholders in the Jamaica Central Securities Depository (JCSD) are women, meaning they are underrepresented as investors. Women therefore need to become more engaged in investing, as financial vulnerability disproportionately affects them. Lower net worth makes women more susceptible to financial shocks from job loss, medical bills, or retirement challenges. A study by the JPMorgan Chase Institute revealed that women have 20 per cent lower liquid assets and higher debt burdens than men. Additionally, women tend to struggle more than men to regain their financial stability after major medical expenses. This underscores the importance of everyone, particularly women, building a robust safety net and accumulating wealth through strategic investments.

While some women will have some savings, simply relying on savings accounts will not provide the returns needed to significantly create and grow wealth over time. Instead, focus on long-term investments that include stocks, bonds, real estate, and other growth-oriented assets. Having a well-diversified investment portfolio can be a solid path to wealth creation.

Bridging the Gap with Entrepreneurship

It is often said that generational wealth is more likely to be created by owning a business rather than through employment. Business ownership is an often-critical driver of wealth creation, as seen in the Forbes Billionaire list where most individuals have accumulated wealth through owning and growing businesses. Therefore, embracing entrepreneurship can be a powerful means to build wealth and bridge the gender gap. According to World Bank data, while 50 per cent of businesses in Latin America and the Caribbean are owned by women, female participation is systematically higher among newly registered firms. This suggests that women are increasingly embracing entrepreneurship. This sets the stage for a major leap forward to bridge the gender gap as these new businesses become more successful and grow in value. In Jamaica, there are examples of successful women-owned businesses, such as Kimala Bennett’s Limners and Bars (Lab) and Thalia Lyn’s Chicken Mistress Limited (also known as Island Grill), which highlight the potential for women to thrive in various industries. Women can also focus on cultivating and scaling their businesses as a path to long-term wealth and economic empowerment.

Have a Strong Support System

Supporting other women is another essential part of closing the wealth gap. Women in leadership positions can use their influence to mentor and elevate other women. For instance, film-maker Ava DuVernay has prioritised hiring female directors on her projects, creating opportunities for talented women who might otherwise have been overlooked in a male-dominated industry. Similarly, philanthropist Melinda French Gates has directed her venture capital firm to invest $1 billion in projects that support women and minorities, aiming to break the “bro culture” of the start-up ecosystem. Even initiatives on a smaller scale can make a significant difference. For example, track and Field Legend Shelly-Ann Fraser-Pryce’s Pocket Rocket Foundation, among others, provides support through mentorship and scholarships to help young girls realise their full potential in sports and academics. By providing a strong support system, women can empower each other to overcome barriers, advance in their careers, build lasting wealth and help to close the gender wealth gap by investing in the current and future generations of women.

Bottom Line

Achieving gender wealth parity requires collective action and a shift in mindset. Women need to embrace their role in managing and growing their wealth. By becoming more financially literate, investing wisely, embracing entrepreneurship, and having a dedicated support system, progress toward closing the wealth gap is possible. While the road ahead may be long, each step forward counts. For those just starting their wealth-building journey, seeking professional advice can be a game-changer. Consulting a wealth advisor can help women create a tailored investment strategy that aligns with their financial goals and sets them toward greater economic security. It is not just about closing the gap — it’s about creating lasting change that empowers future generations of women to take control of their financial futures.