Own your financial journey

Women are increasingly taking the reins when it comes to their finances. Between 1972 and 2022 the number of households with female breadwinners tripled, while households with co-breadwinners more than doubled in this period, according to a Pew Research study.  They routinely manage household budgets and plan for saving and spending. But when Equitable conducted a recent survey, only one-third of women we polled said they feel confident making financial decisions. 

While women are adept at managing their day-to-day and short-term needs, they’re often less self-assured when it comes to the longer-term planning needed to ensure a financially comfortable future. Despite this lack of confidence, 90% of the women we surveyed indicated that they already invest outside of their retirement accounts, showing these women understand and are embracing the power of investing to help them reach their goals. 

The importance of a financial plan  

This strikingly high figure reveals that women already prioritize investing for the future as an integral part of their budgets. By anticipating future financial requirements, they can set aside money for long-term goals, even as they allocate resources to pay for today’s wants and needs.

Interestingly, while these women are already investing in high numbers, there’s a self-identified gap between the amount they feel they should save and what they actually put aside. We found that, despite their efforts, half of the women we surveyed still feel they need to catch up on saving for the future. 

To address that gap, having a written financial plan can help women make financial decisions more confidently by providing a strategy for addressing both current and future needs. That includes allocating funds for savings and investments and choosing the best vehicles for diverse financial priorities. 

The benefits of being financially engaged

In our survey, 2/3 of the women we spoke with said they wished that they had become financially engaged earlier in their lives - and with good reason. By becoming more actively involved in their financial journeys, women gain confidence, lower their stress levels, and, for those in a relationship, strengthen their partnerships. No matter where you are in your journey, the time to get involved in financial decision making is now!

If you’ve chosen to remain single, or if you’ve found yourself single again after the end of a partnership, mindful financial engagement and a disciplined approach to financial decision making is likely to ensure improved confidence and better outcomes in your financial journey.

For couples, openly communicating about financial matters can bring them closer together. Working together to determine shared goals and strategies for reaching them lets each person have input into the financial aspect of their partnership.

While no one likes thinking about the end of a partnered relationship – be it through separation, divorce, or death - it’s worth considering how such a change in circumstances would impact your financial situation. It’s important to plan for any eventuality and to stay engaged in making financial decisions so that you’ll be prepared should your situation change and require you to assume household financial responsibility.

No matter where you are in your financial journey, now is the time to consider—and take ownership of—your role in financial planning. Take time to understand what you don’t yet know about finances and investing, and commit to learning more. A financial professional can help you fill in the gaps, providing expertise and support to develop a well-balanced financial plan for achieving your long-term goals while still meeting your current and short-term needs. Let’s plan how.