Regardless of gender, money can be a big source of stress for anyone. However, there is a clear split between the levels of money stress held by men and women and that’s an issue advisors need to be aware of.
That holds true across age and racial lines and speaks to the point that women, perhaps even more so than men, are open to working with financial professionals. Financial freedom is a concept likely to resonate with every member of an advisor’s current client base and everyone in the “prospective” camp. However, women are likely to be highly receptive to learning about how they can attain financial freedom and bolster their long-term financial outlooks.
Additionally, Morgan Stanley points out that women contribute $7 trillion annually to U.S. GDP. That’s trillion with a “T” and further confirms that advisors would do well to improve connections with female prospects and convert them into clients.
Yet even with that spending power and women rising the ranks of Corporate America, they’re still worried about money.
Women and Money Concerns
A new Fidelity survey indicates 46% of women are stressed about money while 38% are hopeful and just 25% describes themselves as confident about money. The percentages for men across those categories are 34%, 42% and 35%, respectively.
Alone, the level of stress women feel about money is something advisors need to be aware of. They should also acknowledge women’s motivation for less financial and more financial success because those motivations are different than those held by men. For example, 59% of women polled by Fidelity simply want to feel secure about money and shed related anxiety. Likewise, a third either want to provide for their families or simply live the lifestyle they’ve envisioned.
As for women’s specific money concerns, this is a target-rich environment for advisors. Fidelity notes that 85% of women are worried about inflation and 76% are fretting about having adequate emergency savings. Seventy-two percent of women are concerned about the future of Social Security and more than 60% of women are worried about their earning potential and reducing debt. Across all of those categories, women’s percentages are higher than men’s.
Another important point for advisors to consider is that 90% of women say they’re conquering financial stress by taking steps on their own. That’s good news because it shows initiative and, likely, a willingness to work with advisors.
Women Are Warming to Frank Money Talks
More points for advisors to ponder: 19% of women are intimidated to discuss money compared to just 15% of men while just 18% of women feel investing is an enjoyable. Nearly 30% of men feel that way.
However, there are positive signs when it comes to finances, women and their willingness to work with advisors.
Fidelity points out that 72% of women would rather have a lengthy conversation about finances than have a deep talk about sex. Sixty-eight percent of women would rather tell someone about their worst financial misstep than reveal a potentially naughty text message. Even better for advisors is the point that 68% of women, according to Fidelity, would rather save for the future than frivolously spend today. Add it all up and it’s clear advisors should be making more efforts to cater to female clients.