As a woman in finance, I often like to think about how far we, as women, have come. There is still progress to be made. For instance, most financial advisors are still men. But it’s good to celebrate the many positive changes that have happened. Serving our clients at Foster Group is my top priority, but I also spend time helping more women choose this profession. As I continue to advance in my own career, I want to help other women grow into positions of leadership in their advisory firms.
For most of our country’s history, women have been discriminated against in the realm of finance. Women were considered property of their husbands in the 1700s. As such, they could not own property or assets on their own. In 1839, Mississippi became the first state to allow women to legally own property.1 It wasn’t until the 1960’s, more than 100 years later, that women in the U.S. were allowed to open their own bank accounts! Even then, they were still not allowed to apply for a credit card or a loan on their own. Banks saw women as financially risky and would not let them apply for credit and loans unless they had a husband or father co-sign the agreement. Mortgage lenders discriminated against women by depreciating their income if a woman was of childbearing age. Without credit, it was almost impossible for women to buy houses, start businesses, or do other things that are important to an independent person.
In 1974, Congress passed the Equal Credit Opportunity Act. This allowed women to apply for credit on their own, without any discrimination. I wanted to highlight this because it has been 50 years since Congress passed the act. Women can celebrate 50 years of equal opportunity in obtaining credit! In 1976, Congress amended the Act to also prohibit discrimination based on “race, color, religion, national origin, age, the receipt of public assistance income, or exercising one’s rights under certain consumer protection laws.” 2 The law finally recognized that all people in this country should be allowed the same financial opportunities.
Because I’ve grown up in the years since the law passed, it’s hard to imagine having to depend on a man to open a bank account or obtain credit. Opening my own bank account and obtaining my first loan for college, by myself, was a huge part of becoming an adult. As a young woman, not being allowed to do this would have been devastating. Those initial years of learning to manage my own finances and credit were instrumental to becoming who I am today. I’m thankful that I am not seen as financially incompetent just because I’m a woman!
A lot has changed for women in finance in the last 50 years, and I hope to see even more changes in the next 50!
Sources:
1 Lanterncredit.com
2 Consumerfinance.gov
Investopedia.com