Women Run the Investments in Most Homes: CFP Board
More than two-thirds of women report being their households’ primary decision-makers regarding financial investment choices.
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Women are taking on more responsibility when it comes to household finances, and now, they’re the ones calling the investment shots in most families.
More than two-thirds of women, or 69%, report being their households’ primary decision-maker regarding investment choices, according to a CFP Board report published last week. That increased participation is partly a result of four in five women earning just as much, if not more, than their partners. It’s also a reminder that when working with clients, advisors need to communicate equally to both partners in meetings (or Zoom calls).
“We’re seeing an evolution to more confident women who are taking the lead in investment decisions,” said CFP Board Chair Liz Miller.
Mars and Venus
Women are also the main budgeters and spenders in most homes, according to the CFP Board. But, while men and women have a lot in common when it comes to money matters, there are a few key differences. As more women get involved, they don’t just want to see their investments grow, they want to put them to good use, too:
- Women are more likely to prioritize philanthropic giving, healthcare costs, and planning for caregiving expenses for their loved ones whether they’re children, siblings, or parents, the CFP found.
- Some 83% of women rated living comfortably through retirement and not outliving their money as a high priority.
Advisors want to preserve clients’ assets, but many women are asking “To what end?” said Barbara Pierce, founder of the Women With Capital membership group. “At 90, yes, you want to have enough money to do OK, but what about all those life-affirming, important events in between?”
Listen Up. Though times are changing, Miller said the industry has a long-standing reputation of being dominated by male professionals — more than 75% of CFPs are men — who spoke mostly to men. Advisors’ goal today is to communicate equally with both men and women, which requires empathy. To that end, the CFP Board added questions on the psychology of financial planning to its exam in 2022.
“Our most recent professionals are being trained in how to listen, how to understand different views, and how to work with couples who want more involvement,” Miller said.
