Why Corporate Women Hesitate to Discuss Money and Its Impact

Women often shy away from discussing money, and this behavior is having a significant impact on their careers. According to a study, eight out of ten women refrain from talking about finances with family and friends. Additionally, a Wells Fargo study shows that the gender gap in willingness to discuss financial information widens as women move up in senior leadership. I had the opportunity to speak with Tori Dunlap, Founder and CEO of Her First $100K and bestselling author of "Financial Feminist: Overcome the Patriarchy's Bullsh*t to Master Your Money and Build a Life You Love," to understand why women hesitate to talk about money and its implications.

Unlock Women's Financial Potential and Empower Their Careers

Myths About Talking About Money

In her book, Tori Dunlap tackles the myth that discussing money is impolite. She believes this narrative holds women back, keeping them underpaid, overworked, and in the dark. This conditioning begins in early childhood when girls are taught to be nurturers and prioritize others. As we grow older, men are encouraged to have conversations about money and wealth, while women are often told that expressing an interest in money is impolite or greedy.

Tori Dunlap explains that this mindset limits women's financial growth and opportunities. It prevents them from advocating for themselves and making informed decisions about their finances. By breaking free from these myths, women can take control of their financial futures.

Money Gives Women Options

The idea that money provides options is at the core of Dunlap's mission to increase women's financial literacy. She shares her own journey of working towards a corporate leadership position. At one point, she realized she needed to leave her job but didn't have enough savings. This experience inspired her to save her first $100K and start helping other women do the same.

Money gives women the freedom to choose their paths. It allows them to leave toxic jobs, abusive relationships, or any situation that is not serving them. It also provides the financial freedom to take risks on opportunities that can enhance their careers. With money in hand, women have the power to shape their lives and pursue their dreams.

Transparency Reduces the Pay Gap

The gender pay gap has remained stubbornly persistent over the past two decades, with women earning approximately 80% of what men earn. Even at executive levels, women face a significant pay gap. Research shows that greater pay transparency can help close this gap.

Historically, women's reluctance to discuss their salaries has kept them in the dark about pay discrepancies. Without this knowledge, they are less likely to negotiate for equal pay. By talking about money openly, women can gain a better understanding of their worth and work towards closing the pay gap.

The Link Between Leadership and Finance

Dunlap emphasizes that we need to address the systemic issues that contribute to the gender wealth gap. Personal finance is only 20% about personal choices; 80% is influenced by systemic factors. This parallels the leadership gender gap, which is a combination of subconscious bias and personal choices women can make to advance.

As advocates, we can play a role in empowering women by providing better education in leadership and finance. However, true change will only occur when the system itself changes. By working together, we can create a more equitable environment for women in both leadership and finance.