By Eric Tashlein
Your Finances
Eric Tashlein.
Women generally worry more about money than men. Multiple studies have shown this to be true, including a 2016 survey that revealed women are more likely to lose sleep over issues of personal finance. As a certified financial planner, I have seen this dynamic play out among my own clients.
And while the economy and the stock market are hitting on most cylinders, a new survey shows that women are worrying more, not less, about money. According to the 2019 Women, Money and Power Study, a survey carried out every three years by Allianz Life:
– Fewer women say they feel financially secure (62 percent in 2019 compared with 68 percent in 2016).
– Fewer women say they are the breadwinner in their household (38 percent in 2019 versus 47 percent in 2016 and 60 percent in 2013).
– Fewer women report having more earning power (42 percent in 2019, 50 percent in 2016, and 57 percent in 2013).
– Fewer women say they are the CFO of their household (47 percent in 2019, 51 percent in 2016, and 53 percent in 2013).
– Fewer women say they have asked for a promotion or a raise at work (27 percent in 2019 compared with 44 percent in 2016).
Nearly six in 10 women (57 percent) wish they were more confident in their financial decision making, according to the April 2019 online survey of 900 women nationwide.
Women face well-known obstacles on the road to financial security: they live longer than men, earn less and therefore save less, are more likely to spend money and time on caregiving, and often are harmed financially by divorce or widowhood. But it’s unclear why women should have lost ground over the past six years.
Among the survey respondents, 25 percent were working with a financial advisor, down from 30 percent in 2016. Of those, 60 percent said the advisor treats their spouse/partner as the decision maker. I believe it’s important to treat couples as equals in managing their financial lives.
Women, married or single, can enhance their financial confidence and independence by seeking out education on the topics of investing and financial planning. In addition, numerous studies have shown that people who create and follow a comprehensive financial plan feel more positive about their financial future.
A final thought. While women are less likely than men to feel confident about their investing skills, multiple studies show that women are better than men at investing. Both married and single women consistently achieve higher returns, primarily because they hold onto their investments longer. How’s that for a confidence booster?
Eric Tashlein is a Certified Financial Planner professional™ and founding Principal of Connecticut Capital Management Group, LLC, 2 Schooner Lane, Suite 1-12, in Milford. He can be reached at 203-877-1520 or through connecticutcapital.com. This is for informational purposes only and should not be construed as personalized investment advice or legal/tax advice. Please consult your advisor/attorney/tax advisor. Registered Representative, Securities offered through Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC. Investment Advisor Representative, Cambridge Investment Research Advisors, Inc., A Registered Investment Advisor. Cambridge Investment Research Inc., and Connecticut Capital Management Group, LLC are not affiliated.