Empowerment through finance: Women leading the way

Women are seizing the moment. After a history of factors including social pressure, unequal incomes, household responsibilities and more that made it harder for women to have an equal say in financial decision-making, there is momentum for change. Women today are feeling more empowered and better positioned to take an active role in their financial lives.

The proprietary Women, Money, and Relationships study conducted by Zeldis Research Associates for Equitable, found that as women get more involved in managing their financial well-being, they gain confidence and improve their knowledge and skills pertaining to financial matters. The research shows that women want this information and want to be more involved. In fact, 2/3 of the women we surveyed said they wish they had engaged with their finances sooner.

Women build skills and confidence by working with a financial professional

Long admired for their ability to run their household budgets and day-to-day finances, women are applying those skill to longer-term financial planning and decision making.  Competent and increasingly confident in their abilities, many women are choosing to add a trusted financial advisor to their team. Whether providing useful resources, credible information, or professional experience to help them understand that information, working with a financial professional can empower women as they pursue their financial goals. 

Our study found that such a relationship also helps women increase their confidence in their own capabilities. Women who worked with a financial professional reported feeling more financially secure, calm, and knowledgeable about finances. They were also more likely to report that they were saving or investing enough and that they had more confidence about reaching their financial goals. The study also found that women who use a financial professional are significantly more involved and more confident in handling their investing, financial planning, long-term health planning, and estate planning strategies. 

One divorced study participant shared how working with a financial professional helped her take more control of her financial life. “Right now, I'm learning how to manage my portfolio a lot more by researching and from advice from advisors.”

Working with a financial professional doesn’t simply make women feel better about their finances, it leads to quantifiable benefits. The study found that women who use a financial professional:

It’s no surprise then that the women who do work with a financial professional report being pleased with their results. Among those engaging a financial advisor, 80% said they were “satisfied” and 57% said they had a “strong relationship” with that person. 

It’s worth noting that working with a financial professional doesn’t mean women are leaving the decisions to someone else. On the contrary, women who engage financial professionals are more likely to improve their financial knowledge and skills and build confidence in their ability to make good financial decisions. 

They’re embracing the importance of holistically approaching their financial future by:

• Practicing collaborative responsibility by committing to being involved and not delegating financial responsibility
• Deliberately including the future in their budgets and plans by actively engage in retirement planning
• Cultivating financial confidence by increasing their involvement in financial decision-making and planning 

And, finally, by keeping the balance between saving and spending, today and the future - understanding that having the funds to support what we want to do frequently starts with financial wellness supported by a plan that can adapt and endure.

How women work with financial professionals

The study found that women who use a financial professional are more involved and feel more confident in handling their investing, financial planning, long-term health planning, and estate planning strategies. 

But, despite the many benefits women experience when engaged with a financial professional, relatively few of the women surveyed report they are doing so. Only 20% of respondents say they work with a financial professional. Millennial and Gen Z women, as well as single or divorced women, are even less likely. 

Gen X and Baby Boomer women respondents are slightly more likely to use a financial professional, as are married or widowed women, but even among those groups, less than one-third of women report that they do so. 

Still, 61% of women in the study said they felt comfortable asking for help managing their finances. These women are open to working with financial professionals who create a welcoming atmosphere where women feel they are being heard and understood and that they have a trusted person they can ask questions. 

Today, women are standing up and taking charge of their financial future. They are actively asking for help, learning more about financial planning, decision-making, and improving their financial skills. 

Are you ready to join them?  Reach out to Equitable Advisors to talk with a financial professional today.