Tammy Lally shared in a TEDx talk how money shame is best explained by "the intensely painful feeling or experience of believing that we are flawed—and therefore unworthy of love and belonging based on our bank account balances, our debts, our homes, our cars, and our job titles."
Wow. How did we get here?
To help better understand shaming around money, especially its impact on women, I decided to dive into history. Here are a few facts that stood out.
Before the U.S. even existed as a sovereign nation, the American colonies adopted British law that stated that women were to become the property of their husbands upon marriage.
It wasn't until 1848 that New York passed the Married Woman's Property Act. This ensured that women were no longer responsible for their husband's debts. It also meant that women could enter contracts, collect rents and receive their inheritance.
In 1974, the Equal Credit Opportunity Act was passed, allowing women to apply for credit and loans. (48 years ago)
Since then, women have become successful and profitable business owners, leaders, and self-made billionaires.
It is clear that women in the U.S. are generating and managing an increase in wealth. And yet, in our society, we see financial shaming geared towards women.
To discuss this topic further, we invited Carol Parrish, Financial Advisor, helping women leaders in male-dominated industries, to be a guest on the AVIATE Lounge Chat here on LinkedIn.
My co-host, Jessica Webster, Corporate Pilot & Founder and President of Hera Aviation Group, and I were curious and asked Carol the following questions about financial shaming and its impact on women. Watch here.
What are some of the factors that cause shame, specifically for women?
On student loan debt, how can women better financially prepare themselves before going to college?
How can we stop the shame pattern?
Investing- since investing is very personal, how can women explore their financial identity? Is it okay for it to change?
How can women gain and leverage better wealth?
My great "aha" moment during the conversation was realizing that I am generally tense when I talk about finance. I need to change my posture on the topic and explore finance by relating it to what I enjoy most.