Celebrity news, beauty, fashion advice, and fascinating features, delivered straight to your inbox!
Thank you for signing up to . You will receive a verification email shortly.
There was a problem. Please refresh the page and try again.
In case you needed a reminder, the gender wealth gap is real: (opens in new tab) For every dollar a white man owns, a white woman owns 32 cents, and Black and Latinx women own just pennies (opens in new tab) (this is partially a result of the insane income gap (opens in new tab)). The gap is only growing wider during the COVID-19 pandemic: Research suggests that the pandemic has disproportionately affected women, (opens in new tab) people of color, and low-income people, both in terms of health and their finances. (opens in new tab)
“It’s absolutely clear that this recession is hitting women harder,” Sallie Krawcheck, founder of female-focused financial company Ellevest, tells Marie Claire. “The data doesn’t lie. And it’s really a perfect storm. Women are losing more jobs than men are, Black and Latinx women in particular. So many of the women still in the workforce are taking on more childcare with the kids out of school…which means that a lot of them end up having to quit to manage it all. And then there’s the fact that women—again, especially Black and Latinx women—also make up the majority of essential workers.”
In response to the pandemic, Ellevest asked their community where they needed help most. They found that, due to COVID-19, 92 percent of women they polled who were earning less than $50,000 a year said they'd realized they needed to build financial safety. In addition, 80 percent of the women they polled across all income levels said they're rethinking their financial health and goals.
Ellevest says it wants to help them do that. That’s why today they're launching a new money membership designed to put more change in the pockets of “women, non-binary people, and male allies,” according to the company. Available in three affordable plans (the step-in program starts at $1 dollar a month), the new membership is accessible for those who need it most. Members will be able to invest using “proprietary, gender aware-investing algorithms,” meaning the algorithms take into account factors like pay gaps and career breaks for having children, unlike other standard investing algorithms which mostly cater to the career, earning, and spending habits of men (opens in new tab), according to Krawcheck. Members will also receive one-on-one financial planning and coaching and free workshops, plus will have access to spend and save accounts (which help you save sooner by rounding up your change) and a (super cute) Ellevest debit card.
“Wealth inequality in this country is getting worse year after year,” says Krawcheck. “That’s why it was so important to us to offer a membership with plans starting at just $1 a month. To keep our banking and investing fees low. To have no minimum amount to invest. And to build our community loud and strong, so our members can talk and connect about money.” The plan is to decrease the barriers many women face when it comes to investing. In order to help women, specifically women of color, gain financial freedom and equity, we need to start first by designing resources everyone can access. “We know that what might work for other women, who don’t struggle against intersectional injustices and systemic racism in the same way, won’t work for Black women,” she continues. “So we’re committed to centering Black perspectives as we grow our learning and coaching products."
This article has been updated.
Head to Ellevest.com (opens in new tab)or download the iOS app from the App Store to get started. Your first month of membership is free.
Megan DiTrolio is the editor of features and special projects at Marie Claire, where she oversees all career coverage and writes and edits stories on women’s issues, politics, cultural trends, and more. In addition to editing feature stories, she programs Marie Claire’s annual Power Trip conference and Marie Claire’s Getting Down To Business Instagram Live franchise.
'You' Season 4: What to Expect
The hit Netflix show has already been green-lit for another season.
By Neha Prakash
'Bridgerton' Season 3: Everything We Know
The show is moving up a fan-favorite's love story, deviating from the order of the books.
By Quinci LeGardye
'Token Black Girl' Is Our October Book Club Pick
Read an excerpt from Danielle Prescod's new memoir, here, then dive in with us throughout the month.
By Brooke Knappenberger
Peloton’s Selena Samuela on Turning Tragedy Into Strength
Before becoming a powerhouse cycling instructor, Selena Samuela was an immigrant trying to adjust to new environments and new versions of herself.
By Emily Tisch Sussman
This Mutual Fund Firm Is Helping to Create a More Sustainable Future
Amy Domini and her firm, Domini Impact Investments LLC, are inspiring a greater and greener world—one investor at a time.
Power Players Build on Success
"The New Normal" left some brands stronger than ever. We asked then what lies ahead.
By Maria Ricapito
Don't Stress! You Can Get in Good Shape Money-wise
Yes, maybe you eat paleo and have mastered crow pose, but do you practice financial wellness?
By Sallie Krawcheck
The Book Club Revolution
Lots of women are voracious readers. Other women are capitalizing on that.
By Lily Herman
The Future of Women and Work
The pandemic has completely upended how we do our jobs. This is Marie Claire's guide to navigating your career in a COVID-19 world.
By Megan DiTrolio
Black-Owned Coworking Spaces Are Providing a Safe Haven for POC
For people of color, many of whom prefer to WFH, inclusive coworking spaces don't just offer a place to work—they cultivate community.
By Megan DiTrolio
Where Did All My Work Friends Go?
The pandemic has forced our work friendships to evolve. Will they ever be the same?
By Rachel Epstein