Women And Money
And Their Alarming Lack Of Confidence
As we crash into what could be a jarring season for opening investment statements, it’s worth taking a second to reflect on the fact that nine of 10 women will be solely responsible for their finances at some point in their lives, yet research shows we continue to suffer from a surprising lack of confidence when it comes to managing money.
Women, sadly, are far less inclined to learn about money and investing, and studies show we are less likely to answer financial literacy questions correctly, according to a report published by The Global Financial Literacy Excellence Center last year. For example, only 38% of women, versus 55% of men, correctly answered a simple question about interest rates and inflation.
Crucially, those who are more financially literate are more likely to plan for retirement, to invest in the stock market, pay attention to fees and to borrow at low costs, according to the report. Yet even women with more financial knowledge tended to undervalue their own comprehension, giving themselves a lower score than men, when asked to assess their understanding of money matters, according to the report.
Sifting through an overlooked but fascinating poll of women that Fidelity Investments published earlier this year, you quickly get a sense of the lack of confidence many women have when it comes to money:
60% of women say they are concerned about having enough savings to last throughout retirement.
Just 47% say they are confident talking about money and investments with a financial professional.
37% of those surveyed reported insecurity due to not having researched their options.
36% say they lack confidence because they lack experience with money.
36% say they worry about not knowing who to talk to in order to get the best financial advice.
80% of women refrained at some point in their lives from talking about their finances to people they are close with.
Fortunately, there are a couple other numbers that are a bit more optimistic, especially the 92% of women who said they wanted to learn more about financial planning. And 83% said they intended to learn more about financial planning so over the next year.
The sooner the better, says Kristen Robinson, senior vice president of women and young investors with Fidelity. “If they don’t know enough or have enough experience,” Robinson says. “It almost paralyzes them and they won’t take that next step.”
Source: forbes
Patty Block, President and Founder of The Block Group, established her company to advocate for women-owned businesses, helping them position their companies for strategic growth. Charting the course for impactful, sustainable, profitable businesses, the beacon is control: of your strategic direction, your money, your time, your staffing, and your ability to bring in business. The Block Group brings together the people, resources and ideas that build results.
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