A recent survey by Fidelity shows that managing finances causes anxiety for 93% of women. Jean Chatzky, the head of HerMoney.com, corroborates this, mapping it to a lack of sufficient knowledge about financial markets and products.
Chatzky believes that women have huge potential for economic advancement, thanks to innate budgeting skills and the ability to prioritize family needs. However, she observes that these skills don’t often translate into confidence in investments and broader financial management.
Her prescription is education. She urges women to boost their financial literacy and proactively seek advice from financial experts. She thinks this approach can help women overcome their financial anxieties and unlock their full economic potential.
Chatzky also emphasized the need for financial institutions to develop a better understanding of women’s unique needs and circumstances. In doing so, they can create tailored solutions to stimulate women’s financial growth and stability.
Chatzky further notes that, instead of investing, women tend to keep their money in cash. This, she explains, is due to valuation of stability and peace over risk.
Boosting women’s confidence through financial literacy
However, this mindset often locks them away from wealth maximization opportunities like stocks and real estate.
Chatzky suggests women should change their approach and seek advice from financial experts or 401K plan administrators. She believes even small steps towards understanding and managing personal finances can lead to significant long-term benefits.
Companies have begun to create environments that help to break down the barriers that prevent women from seeking financial advice. Women are encouraged to seek help and ask questions about financial management, promoting continued learning and growth.
Chatzky states that women should not ignore their long-term financial health. By reaching out for advice and gaining knowledge, they can ensure their financial future.
Founder of Ellevest, Sallie Krawcheck, reports that women handle their finances differently, with confidence increasing as they accumulate wealth. She believes it’s important for women to gain financial knowledge for their independence and decision-making capabilities.
Chatzky suggests that women should take advantage of the ‘Great Wealth Transfer’ trend. She insists on the importance of financial risk-taking for overall wealth accumulation and advises women to secure their future by learning about the transfer.
Chatzky recommends starting investments as early as possible and stresses the importance of having a diversified portfolio. She advocates that women be proactive in seeking financial advice, underlying the significance of patience as wealth accumulation takes time and steady investments are essential to success.
