TEMPLE, Texas — The gender pay gap in Texas is among the worst in the United States, according to a new Forbes Advisor study.
The overall study looked at women's overall financial standing compared to men in each state, analyzing factors like median income to determine the gender pay gap, unemployment rates, percentage of six-figure earners, poverty rate, and percentage change in income between 2018 to 2022.
What researchers determined was that Texas was one of the worst states for women financially, ranking 48 out of 50 thanks to an overall score of 13.49 out of 100. The Lone Star State trailed behind Alabama (49) and North Dakota (50).
Below are the key findings for Texas:
- On average, women make 25% less than their male counterparts. Their median salary is $39,615 compared to men's median salary of $52,823.
- In other words, women make an average of 75 cents that every dollar a man makes on average in Texas.
- About 13% of women who work full-time in the state earn a six-figure salary compared to men at around 25%.
The study also determined that, despite Texas being a business-friendly state, there are fewer women-owned businesses (21%) compared to men-owned businesses (60%). Forbes also states that women have a harder time accessing loans and other forms of financial help to keep their business afloat.
The top 5 states where women were better off financially relative to men, according to the study:
- Vermont
- Oregon
- Montana
- Arizona
- North Carolina
How women can help improve their financial standing outside of employment
Though women still struggle to keep up with men when it comes to pay equality (women on avg. earn 84 cents to every dollar a man makes in the U.S.), Forbes Advisor encourages women to empower themselves financially. Though not a permanent solution to the bigger issue at hand, Forbes Advisor suggests doing the following:
- Create a budget that promotes positive cash flow
- Look at your income and compare to your expenses to create a better budget plan
- Find areas you can cut spending like small subscription services (these can add up over time)
- Have a short-term goal to promote better success at having a budget/attaining a bigger budget goal (i.e. do not buy take-out for lunch all week)
- Picking the right budget plan that fits your lifestyle (i.e. the 50/30/20 plan: 50% of your paycheck goes to needs, 30% goes to wants, and 20% goes toward savings or paying off debt)
For more on how to make the most of your money, click here.