A recent study from Bank of America found that women are increasingly gaining confidence not only in managing their finances but talking about money.1
Additionally, Fidelity openly shared that the firm gained 48% more new women customers in 2023 compared to 2019. Furthermore, the firm added 99% more Gen Z women customers and 48% more new Millennial women in the same year.2
Clearly, more women—specifically young women—see the value of personal financial planning. And their behaviors indicate high levels of financial literacy.
While progress has not been perfect—nor has it been linear—we’re celebrating how far women have come regarding their relationship with personal finance.
Let’s take a look at the road behind and the road ahead—especially for the younger generation of women seeking better financial resources and a better relationship with money.
A Brief Look Back & The Road Ahead
Where women are today and where they were centuries ago is night and day. But in more recent years, it’s clear women’s path toward financial independence has been slow.
To illustrate the pace of progress, let’s look at property ownership. The first major legal recognition of women’s right to financial independence in the United States happened when New York passed the Women’s Property Act in 1848.3 This law allowed women to own property, keep their wages, and receive an inheritance.
However, it wasn’t until 1974 when the United States passed the Equal Opportunity Credit Act that single or divorced women were permitted to apply for a mortgage or a loan without a male guarantor.4
126 years. And the progress doesn’t necessarily feel all that significant.
But when you zoom out to look at the whole picture, it has been significant. From men managing most household financial decisions in the early part of the century to today, we now live in a world where there’s sweeping support for women gaining true financial independence, improving financial education, and boosting confidence.
The State Financial Participation Today
Women’s financial confidence is at an all-time high,5 but there are unique patterns emerging that highlight the road ahead and why it’s important to find and create solutions specifically for women.
Unique Challenges Call for Unique Solutions
The financial challenges facing women are different from those facing men today. This is largely due to the disparity between men’s and women’s lifespans and lifestyles:
- More women tend to take on the majority of caregiving responsibilities.
- Women tend to live longer.
- As a result, women tend to have higher healthcare costs.
- And that means they need to save more for retirement.
These unique circumstances require unique solutions and tailored financial education. It’s only through addressing their specific needs that women will gain financial confidence.6
Women Want to Improve Their Financial Knowledge
To achieve better financial outcomes, more women are turning to financial professionals to help guide them. Thirty-three percent of women today—which is up from 26% in 2021—leverage the expertise of a financial professional, an indicator of improved financial literacy.4
There’s also a clear pattern among the older generation that demonstrates the importance of financial education. Forty-four percent of women say they wish they started saving and investing sooner, and 23% wish they educated themselves about money more.8
Millennial & Gen Z Women are Taking Control
Young women seem to be paying attention. According to a study from Allianz, more than half of Millennial women say they are the primary breadwinner in their family, compared to 39% of Gen Xers and 37% of Boomers. However, this number increased across all generations in just two years.9
Teenage girls especially want to learn about investing and personal finance. According to Fidelity, 80% of Gen Z women wish their school had more personal finance and investing resources, while 81% want a more hands-on way to learn about these topics.10
The younger generation is heeding the advice of those who came before them. Committed to taking their financial futures into their own hands, they understand that having the right financial tools and resources will only help them propel forward for all.
Goalsetter: A Holistic Financial Education Solution
Financial literacy is undoubtedly the best way to help anyone gain financial independence and confidence.
At Goalsetter, it’s our mission to help all who wish to improve their financial knowledge have access to relevant and engaging financial education content. Our Family Finance Program allows financial advisors to provide their clients with a range of tools to help the whole family become more financially responsible, including access to the Goalsetter app, a goals-based saving* and smart spending mobile app for adults, teens, tweens, and kids; and monthly emails with quick-hitting finance lessons and short videos.
Together, we can help young women gain financial confidence and learn how to set themselves up for a prosperous future.
Learn more about GoalSetter and how financial advisors are using it with their clients.
- https://business.bofa.com/content/dam/flagship/workplace-benefits/id20_0905/documents/women-money-confidence.pdf
- https://preview.thenewsmarket.com/Previews/FINP/DocumentAssets/651505.pdf
- https://www.gohenry.com/us/blog/community/the-history-of-women-and-money
- https://www.gohenry.com/us/blog/community/the-history-of-women-and-money
- https://business.bofa.com/content/dam/flagship/workplace-benefits/id20_0905/documents/women-money-confidence.pdf
- https://www.brookings.edu/articles/how-does-gender-equality-affect-women-in-retirement/
- https://business.bofa.com/content/dam/flagship/workplace-benefits/id20_0905/documents/women-money-confidence.pdf
- https://www.allianzlife.com/about/newsroom/2024-Press-Releases/Women-Taking-On-More-Financial-Responsibility
- https://preview.thenewsmarket.com/Previews/FINP/DocumentAssets/637610_v2.pdf
*Goalsetter is a fintech and not a bank. Banking services are provided through Webster Bank, N.A., member FDIC.
