The Wave Of Female Wealth Is Here: Why Your Practice Should Never Underestimate The Power Of A Woman
As a woman who has worked in the financial services industry for 23 years, I’m keenly aware of the central role we play in money decisions. This was evident during a recent walk I took with two female friends. The conversation quickly moved to money decisions that we make every day for our families: from smaller ones like the summer camps we’ve diligently researched for our children, to larger ones, like home improvement projects or purchasing our next car. Even though I see this play out for me in my life, I wanted to dig deeper to understand if women are increasingly impacting the economy through the financial decisions they make for their families.
For one, I learned spending money is just part of it. Women are increasingly earning money too.
According to the U.S. Bureau of Labor, 38% of American women out-earn their husbands.1 Women are not only contributing to household income, they also want to be included in long-term financial decisions. According to a study conducted by UBS, 96% of women believe both spouses should participate in major decisions around their long-term finances.2
The intersection of my professional knowledge and my personal experience during that walk hit me like a ton of bricks: if my friends and I, who are full-time wage earners, are talking about these topics every day, then surely, we’re not alone. After doing some research, I learned very quickly that we are not! By 2030, American women are expected to control much of the $30 trillion in financial assets that baby boomers will possess.3 This was my light bulb moment!
Are financial advisors fully capitalizing on this massive opportunity in growing their business by engaging female investors more intentionally? Could this rising economic power of women, the powerful demographic changes and the convergence of the relative complexity of their financial lives be one of the most significant engines for growth in the wealth management industry? I certainly think so, but don’t just take my word for it: let the numbers speak for themselves.