Kicking off Women’s History Month, Fidelity Investments released new findings highlighting the financial stress affecting women today.
The research revealed that “stress” was the dominant emotion women felt about their finances, cited by 46% of respondents, contrasting with “hopeful,” the top sentiment among men (42%). This financial stress in women is driven by several factors, including high inflation rates (85%), lack of adequate emergency savings (76%), and concerns over the future of Social Security and Medicare (72%). Despite these worries, the primary long-term financial goal for over half of the women surveyed (59%) was to achieve a sense of security and not have to worry about money.
Teen boys were also likelier to feel confident with their money (46%) than teen girls (36%), and teen girls were more likely to feel stressed about money (23%) than boys (16%). This is likely because parents have generally talked more about finances with boys rather than girls in the past, finds Fidelity. Fifty-eight percent of men recalled speaking about money with their parents before they turned 18-years-old, compared to 53% of women. Additionally, 27% of teen boys have had conversations around how to invest relative to 20% of teen girls.
“It’s no secret women continue to face unique challenges that have historically gone unaddressed by the financial services industry,” said Joanna Rotenberg, president of Personal Investing at Fidelity Investments, in a statement. “Through working with millions of women of all ages, we understand first-hand that knowing and tackling these challenges both inspires women and helps chip away at the gender gap, which is important today and for future generations.”
Tackling financial stress head on
Fidelity’s research shows more women are taking action when it comes to their finances, in an effort to reduce stress and increase confidence. Sixty-six percent said they have adjusted their spending habits, while 60% are paying down debt, 59% have improved their credit score, and 53% are contributing to an emergency fund.
Others are prioritizing short- and long-term savings, including retirement. Individual retirement accounts (IRAs) opened annually by women grew by 60% and contributions increased by 91% in 2022 compared to 2019.
Fidelity also saw a 10% increase in women who were reaching out for financial planning conversations. Over half of women surveyed (55%) said they prefer to learn about money from women, especially Gen Z and Millennials (66% each).
Fidelity’s study surveyed among 3,747 adults who were ages 18 or older. Additional findings from the research can be found here.
SEE ALSO:
- Women Advisors Prioritize Helping People Over Compensation
- More Women Concerned on Ability to Retire than Men
- Inflation Continues to Derail Women’s Retirement Savings in 2023
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
