Women’s contributions to their family’s finances are growing, according to a Wells Fargo study. The study polled 2,195 women in households with $250,000 or more in assets or $100,000 or more in income about how they are feeling, responding to and leading through uncertainty and change. Despite the challenges presented during the COVID-19 pandemic, women’s contributions to the family pocketbook are growing, the study found.
Over half (54 percent) of all partnered women reported greater or equal earnings to their spouse. And nearly one-third (32 percent) of millennial and Gen X women reported being the primary breadwinner — one and a half times higher than women from the boomer and traditionalists (20 percent). Additionally, half of millennial and Gen X women (51 percent) stated they lead the household finances as compared to only 40 percent of women in the baby boomer and traditionalists.
“The economic recovery from COVID-19 will be heavily influenced by women as the next generation continues to increase their earnings potential,” said Veronica Willis, investment strategy analyst with the Wells Fargo Investment Institute.
Women in younger generations see more barriers in developing their financial skills. More than a third of millennial and Gen X women said they find financial concepts intimidating (39 percent) and did not learn enough about finances while growing up (34 percent). While one-in-five millennial and Gen X women (21 percent) said they do not have enough time to devote to building financial skills, as compared to only 6 percent of baby boomer and traditionalists women.
Two-thirds (68 percent) of millennial and Gen X women said they get extremely anxious when there is a lot of uncertainty, as compared to only 49 percent of baby boomer and traditionalists women. For almost a third of millennial and Gen X women, financial uncertainty has kept them up at night, according to the survey.
“The financial anxiety experienced by the younger generation during times of economic uncertainty is likely a direct reflection of their relative inexperience getting through financial hardship,” said Nancy Amick, senior family dynamics consultant with the Advice Center within Wells Fargo Wealth & Investment Management. “Prior generations have the benefit of past experience. Many of these women have weathered turbulent markets and uncertain economic environments.”
Despite the increased barriers cited by younger women, most are open and eager to learn and grow. Nearly half (47 percent) of millennial and Gen X women report needing financial advice now more than ever. In fact, three-quarters believe it would be valuable to talk through their financial concerns with a financial advisor — a view shared among the older generations.
However, millennial and Gen X women want a conversation with their financial advisor beyond the numbers. They want to talk about work (78 percent), family (71 percent) and health (60 percent), a sentiment not as highly ranked among the older generations.
“There is a clear message to financial advisors in this data. Women expect advisors to converse with them about the totality of their lives, as context for providing financial advice,” said Heather Hunt-Ruddy, head of business development and growth for Wells Fargo Advisors.
The change in the way young women wish to approach personal finance extends beyond their own financial acumen and experience. Many are prioritizing the financial education of the next generation. In fact, three out of four millennial and Gen X women (77 percent) say they take charge when it comes to the financial education of their children.
“Helping to develop strong financial acumen in their children is a high priority for young women because they cite that very concept as an inhibitor to their own financial success,” said Beth Renner, head of the Advice Center for Wells Fargo Wealth & Investment Management. “Women learn from experience and are paying it forward.”
