At Woodward Foundation, we believe economic freedom empowers women—and all traditionally underrepresented communities. We also know that identity is intersectional, and that for all the financial challenges faced by women today, those challenges are amplified many times over for women—and any person—of color. That's why the words of former Malawi president Joyce Banda resonate so powerfully: “When you empower a woman, you empower the whole world.” Women’s financial empowerment is not just about individual, personal independence—it’s a catalyst for stronger families, healthier communities, and thriving economies. So what exactly does that look like?
The Ripple Effect of Women’s Financial Freedom
When women achieve financial independence, the benefits extend far beyond their own lives. Studies show that women reinvest up to 90% of their income into their families and communities, compared to 30-40% for men. This reinvestment fuels better education for children, improved healthcare, and stronger community infrastructure.
Additionally, increasing women’s participation in the workforce and financial systems could add $12 trillion to the global economy by 2025, according to McKinsey Global Institute. Empowered women become change agents, driving innovation and stability in their homes and societies.
World Bank research found that closing gender gaps in income and financial access could reduce global poverty rates by 20%. Financially secure women break cycles of poverty, creating generational wealth and opportunities.
Furthermore, financially empowered women are more likely to invest in their children’s education. A UNESCO report found that when women control household income, children are 20% more likely to complete school. Women with significant financial resources also allocate more toward healthcare, improving access and outcomes for their families and neighbors. We have also long known that women entrepreneurs contribute significantly to local economies, often employing other women and supporting industries that prioritize sustainability and equity.
Barriers to Financial Empowerment
Despite the clear benefits, women still face systemic barriers to financial freedom, including:
The gender wealth gap, with women holding only 32 cents for every dollar of wealth owned by men in the U.S.
Limited access to credit and capital, with only 2.3% of venture capital funding going to women-led startups globally.
Financial literacy gaps that leave many women underinformed about investing and wealth-building opportunities.
The Path Forward: Empowering Women Empowers Us All
Here at Woodward Foundation, we know that breaking down these barriers is essential not only for gender equity but also for broader societal progress. By empowering women financially, we unlock a multiplier effect that benefits everyone.
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