Role of women in the economy
According to Daniel Choi who is a famous wealth management advisor, the role of women in today’s economy is to take the lead in financial planning. In this article, we are going to break down her analogy and tell you why is she right!
Role of Women at Avoiding Risk
Women are indeed great at avoiding risk. However, women are less likely to invest than men. On the flip side, they are more likely to have a cash emergency fund. But that is often too large and sits in the bank without accruing any value.
When women do end up investing, they generally tend to outperform men. This is mainly because women invest with specific goals in mind. Another major reason is the fact that men are often overconfident and make rash decisions, whereas women tend to research and take time to make investing decisions.
Women want to increase their knowledge
Finance is a vast subject and it requires to be studied thoroughly and extensively, something which women seem to enjoy. Women have always been naturally keen to learn more. If equipped with the right knowledge and tools, women can easily lap up vast amounts of knowledge on financial planning. Starting from podcasts to websites, there are multiple ways these days to gain knowledge about finance. According to a recent survey, about 66% of married millennial women said that they like taking a major interest in decisions related to personal finance.
Women are more emotionally intelligent
Women being more emotionally intelligent helps out in a major way in financial planning. This is mainly because money generally has a huge emotional aspect to it. Women tend to be able to look at the bigger picture which men rarely can. Also, women’s financial advisors are more intuitive and they can read emotional cues in meetings much more adeptly than men advisors.
Personal finances can be very intimate. When we lose a job, face a big illness or lose a loved one our decision-making abilities tend to get clouded. This is where women step in and do a better job at recognizing these emotions whereas men can often tend to ignore or be unaware of them altogether.
Women are becoming significant household earners
This is true. Women truly are becoming significant household earners in society all across the world. As of 2012, it was reported that women controlled a whopping 51.3% of personal wealth in the United States. Another interesting fact is 48% of estates worth more than $5 million are controlled by women. On the flip side, only 35% is controlled by men. It has also been predicted that in the next 40 years, women will most likely inherit $28.7 trillion in intergenerational wealth transfers which is huge. Apart from this, 90% of all women will be solely responsible for their own or their family’s finances at some point in their lives as well.
This brings us to the end of our discussion on the role of women in today’s economy. Now, let us know some of your thoughts on the same.
