A new generation of female investors is redefining wealth and influence
Key insights from the survey:
The gender gap is narrowing as Gen Z, millennial women in particular, take a much more active role in their finances
Despite the enormous challenges of the pandemic years, overall financial strength has increased for all generations and genders
Gen X women cite biggest retirement worries
US Bank first released its Women and Wealth study in March 2020, just at the start of the COVID-19 pandemic, causing shutdowns, closing schools and reorganizing the work/work balance. personal life for so many people, but for women in particular.
Results from a new survey – conducted nearly two years later – show significant differences in areas such as financial commitment, focus on retirement, general financial strength and more among women and men. men of different generations and warrant great optimism that a new generation of female investors will redefine women and wealth.
While the March 2020 study showed that women were less confident and less engaged in money management than men, generally started investing later than men, and tended to associate negative emotions with planning. financial situation, the most recent survey shows that many of these gaps are narrowing.
Women are more positive about managing their finances now: In 2020, women associated positive words like pride (35%), excitement (29%) and happiness (28%), and negative words like anxiety (33%), inadequacy (13%), fear (12%) and terror (9%) with financial planning. In the new survey, the number of women associating positive words with their finances jumped: pride (37%), excitement (34%) and happiness (31%), and the number of women associating negative words with financial planning decreased: anxiety (27%), inadequacy (11%), fear (8%) and terror (8%). However, men are generally more optimistic about managing their finances than women, although women and younger men are the most optimistic.
Women and men are now more confident in their ability to finance their future financial needs: In 2020, 23% of women and 34% of men felt they were sufficiently prepared financially to cover their future financial needs; in the new survey, both women and men felt more confident that they would be prepared: 36% of women and 37% of men said this. Unsurprisingly, Gen Z and millennial women and men were the most confident of all generations.
Both women and men are more confident than they will be able to pay for retirement: In 2020, 48% of women and 61% of men said they were confident they could retire when they were ready, a difference of 23 points. In 2022, this gap has narrowed to 5 points, with 57% of women now confident for retirement – another marked leap of positivity during difficult times.
Women of all ages are more confident in their ability to manage their finances: In 2020, 56% of women under 35, 50% of women aged 35-54 and 41% of women aged 55 and over said they were confident in their ability to manage their finances. In 2022, these numbers have increased across all generations surveyed, with 71% of Gen Z/millennial women, 53% of Gen X women and 46% of boomer women saying this. However, men are generally more confident than women in their ability to manage their finances.
More importantly, the new research points to a new generation of female investors: women who have more money saved than any other generation of women, are overwhelmingly in charge of many financial decisions, and associate financial planning with feelings of confidence, competitiveness and joy.
Gen Z/Millennial Women and men are more confident in their ability to manage their finances and in their ability to retire when they are ready than older generations. They were also much more likely to invest the money they have saved during the pandemic than other generations.
“The most positive insight from this second Women and Wealth Survey is the progress young women have made in engaging and managing their finances,” said Gunjan Kedia, vice president of management at Wealth and Investment Services at US Bank. “However, our survey also indicates a need for financial advisors to support Gen X women, who are the most vulnerable generation of women in terms of financial readiness. not get the most out of their money or their influence.But our latest results show that in just two years, more women – especially young women – are taking the reins when it comes to their money. invest moremake more financial decisions for their family and associate more positive emotions with financial planning than ever before.”
The data comes from an online survey of 3,024 people — 1,517 women and 1,507 men — with at least $25,000 in investable assets.*
The survey also found that Gen Z/millennial women and men are more likely to use online courses, podcasts and social media to improve their financial literacy. Indeed, among this generation, 47% of women and 54% of men made an investment based on something they saw on social media, 48% of women and 60% of men made an investment based on information from an online influencer, and 57% of women and 66% of men have invested through a trading app.
Research has also shown that ‘digital savvy’ men and women (defined as those who use personal finance and/or trading apps) of all generations are significantly more confident than non-digital savvy investors than they can afford to retire when they are ready. This is the case for 71% of savvy men and 65% of women (compared to 55% of non-digital men and 53% of non-digital women). This group was also highly likely to talk about money with their friends: 77% of digitally engaged men and 71% of women said they did – some a few times a week.
Additionally, the majority of Gen Z and Millennial women and men prioritize a financial services provider that has a strong equality/diversity rating in the workplace, supports gender equality in the workplace and supports international human rights – more so than older women and men. generations. And, both boomer women and boomer men highly value a financial advisor who takes the time to listen to them: 88% of boom women said this, as did 81% of boom men.
“Our latest survey taught us a lot about what’s important to each generation when it comes to managing their money,” Kedia said. “We plan to use this information to better serve women and men across generations to help them get the most out of their money and save for what matters most to them.”
For more information on the results of the 2020 Women and Wealth Insights Survey, visit the Women, money and influence section of usbank.com.
* Investable assets – personal financial investments (taxable, IRAs and Keoghs) including deposits, investments and annuities. Excludes 401(k), 403(b), profit sharing, IRA-SEP, stock purchase/ESOP, cash purchase, life insurance or home equity.
About US Bank
US Bancorp, with nearly 70,000 employees and $573 billion in assets as of December 31, 2021, is the parent company of the US Bank National Association. The Minneapolis-based company serves millions of customers locally, nationally and globally through a diverse array of businesses: personal and business banking; payment services; Business and corporate banking services; and wealth management and investment services. The company has been recognized for its approach to digital innovation, social responsibility and customer service, including being named one of the 2021 World’s Most Ethical Companies and Fortune’s Most Admired Superregional Bank. Learn more about usbank.com/about.
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