Millennial women are likelier to use technology to help with finances. Generation X women balance financial pressures and priorities, and women in the Baby Boomer age group focus on stability for finances.
A new study from RBC Wealth Management analyzes how different generations of women handle day-to-day costs and long-term expenses, finding that many are closing traditional gender wealth gaps as they prioritize their relationship with finances. The findings surveyed 2,010 high-net-worth individuals in the U.S., including 1,505 women and 505 men, all with investable assets of at least $1 million.
“We are seeing a transformative era where women are focused on growing their wealth but also redefining its purpose, integrating personal values with financial success,” said Angie O’Leary, head of Wealth Strategies at RBC Wealth Management. “This change recognizes that the growth of women’s wealth is not just a statistic but a testament to resilience, innovation and their capacity to carve out a legacy infused with purpose.”
While all generations cited investments as a top source of wealth, Millennial women were likelier to generate their wealth through business ownership and innovation (62%), along with holding executive roles (43%). This was compared to 20% and 22% for Gen X women and 10% and 14% for Boomer women, respectively.
Millennial women also outpaced men in higher total and investable assets.
Women across all generations listed philanthropy as a financial goal, including 52% of Millennials, 24% of Gen Xers, and 29% of Boomers. Of all age groups, 23% of women list philanthropy/charity as a key beneficiary of their wealth.
“With women outliving their partners and the Great Wealth Transfer underway, there is a significant concentration of wealth among Boomer women who continue their longstanding commitment to philanthropy,” said O’Leary. “We’re seeing younger generations of women—particularly Millennials—following suit, prioritizing legacy and charitable giving earlier and faster than ever before as their economic power grows.”
Similar to how each generations plans differently for the future, the findings also showed notable disparities in how women chose to engage with advisors. While Millennial women anticipate working with an advisor who offers digital-first interactions and 24-hour response times, Gen X and Boomer women prefer regular check-ins with clear agendas, writes RBC Wealth Management.