How Important Is Financial Empowerment for Women Today?
Women have important reasons to take a long-term approach to plan for their financial empowerment. They live longer than men, and they stand to inherit a substantial portion of the $68.4 trillion in wealth over the next 25 years. Yet a recent survey found that many women prioritize immediate needs over long-term goals like retirement planning. The Female Financial Empowerment survey by Edward Jones revealed that women are demonstrating greater financial confidence.
When asked to choose what best defines financial empowerment for women today, the most popular answer was becoming debt-free. It is followed by living a desired lifestyle, as these choices underscore how women may focus on short-term priorities. The survey findings offer insights into how to empower women to achieve their financial goals. The survey showed that 66% of women have never consulted a financial advisor.
What Financial Empowerment Means to Women Today
One thing financial advisors can do is to help women today understand what financial empowerment means and how they might achieve it. Moreover, survey respondents varied, and a third of women were getting information on how to increase their income to reach their financial goals. Just 16% of respondents said saving for retirement would make them feel more empowered. By taking the time, financial advisors can help women develop a strategy in achieving important milestones.
Taking Action Will Lead to Better Life Choices
While women today have different routes to empowerment, taking action now helps free them up to make decisions that are in line with their goals. Nearly 38% of women said that a lack of financial knowledge has hurt major life choices. While many women acknowledged that they expressed an interest and an ability to get information. Of the 40% of women who reported their level of financial goals, believed they could become more financially savvy in one to three years.
The majority also said they have already taken steps towards becoming more financially empowered. This included 37% of women who were self-educating through financial tools and resources. The remaining 22% met with a financial advisor and 10% enrolled in financial education courses.
Goals-based Investing is Empowering
When it comes to building financial empowerment for many women today, they could benefit from an empathetic financial advisor. One who can offer strategies for paying down debt, budgeting, and retirement planning. The key to getting truly in sync with what women today need for financial empowerment is to think like them, not just about them.
Many women are motivated by working towards a goal, which they want to engage fully in the process. Also, with women increasingly breaking barriers, a personalized, goals-based approach can help establish financial goals for women today. They may be looking for a trusting financial advisor-client relationship which will help empower women toward what matters most to them for the future. When it comes to financial planning and saving, 63% of the women wanted to have a financial cushion of at least $5,000.
