Financial Independence for Women: A Historical Perspective
It’s hard to believe now, but before 1974, most women couldn’t get a credit card, car loan, or mortgage without a male co-signer. This year marks the 50th anniversary of the Equal Credit Opportunity Act, a pivotal moment that transformed women’s financial lives.
The Roaring 20s
In the 1920s, known as the “New Woman” decade, only 20% of women worked outside the home. Financial independence for women was rare, and many were dependent on men for survival. Stories of hardships abound, with women facing poverty if their husbands passed away or left the family.
Mothers were sometimes forced to leave their children in orphanages until they could secure housing and employment. The advice to “plan for a rainy day” was crucial, as women needed to prepare for unforeseen circumstances.
Just in Case
Women had to find creative ways to set aside money for emergencies. Side jobs, like midwifery or baking, provided an opportunity for women to earn their own money. Oftentimes, women kept their savings separate, preparing for a rainy day.
Insurance also became a safety net for women without significant savings. In uncertain times, having a financial cushion was essential for survival.
Rainy Day-2024 Edition
Despite significant progress, the need for an emergency fund remains vital. Divorce and the death of a spouse can still cause financial instability. Planning for unforeseen events, like natural disasters or economic downturns, is essential.
In California, with wildfires and unpredictable weather, preparing for emergencies is a necessity. It’s crucial to have savings and work with a financial planner to secure a stable financial future.
As we celebrate the strides made towards women’s economic independence, it’s important to remember the wisdom of our mothers and grandmothers. Planning ahead and building resilience are key elements in achieving financial independence for women.
