Women Manage Their Families and Finances

Women have been making strides in financial decision-making, overturning traditional gender norms, and leading positive change in their communities. Regardless of work status, more and more women are taking an active role in money matters. Our blog emphasizes the need to acknowledge and encourage the valuable contributions that all household members are providing to impact their financial picture.

The Day-to-Day Decisionmakers

No matter the makeup of each household, both members likely share the reins of major decision-making (or own them completely if there is one family leader). Each person’s keen insight and intuition help guide the path of the family’s choices. From everyday matters to significant life events, each voice carries weight and authority. Whether it’s determining the best education for children, making critical health-related decisions, deciding where to live, or how to spend summer vacation, each person’s wisdom and foresight are at the forefront. With empathy and understanding, strength and leadership help shape the direction of the household, reflecting the profound influence and respect each person commands as an active decision-maker. This has long since been the case for many household decisions, so why have financial decisions been historically so gendered? And why should they be any different?

More and more women are taking charge and becoming primary contributors to financial matters. In fact, according to recent studies, women now control approximately 30% of global wealth and influence over 80% of household purchasing decisions. Additionally, according to a Nielsen study, women will own 75% of the discretionary spending by 2028, with nearly two-thirds of women being the primary decision-makers regarding their household’s financial decisions.

The Power of Female Finance

Your financial acumen can play a vital role in shaping your family’s financial goals, investment strategies, and overall wealth management. Studies suggest that women’s involvement in financial decision-making leads to better outcomes and greater financial security.

Recent data suggest that women’s role in the financial decision-making of their households is steadily increasing. According to this recent survey, 40% of women reported being the primary decision-makers regarding household finances. This shift is attributed to women’s increasing education levels, career advancements, and changing societal norms. Additionally, the study highlighted that 90% of women actively participate in financial discussions with their partners, indicating a growing trend of collaborative decision-making within households. These findings underscore the significant and evolving role that women play in shaping the financial landscape of their families. Furthermore, the data reveals that women are increasingly taking charge of long-term financial planning and investments. In a 2021 study by Fidelity, 67% of women are now investing outside of their retirement accounts, jumping from 44% in 2018.

This shift reflects the growing recognition of women’s financial acumen and desire for financial security. The study also found that women tend to prioritize forward-looking goals such as saving for their children’s education and planning for retirement, indicating their proactive approach toward securing their family’s future. The same study showed that female investors outperformed male investors by an average of 40 basis points, or 0.4%, because women tended to invest with purpose, showed more discipline, and took a steady, long-term approach. All this signals a positive trend toward greater gender equality in personal finance.

We’re In This Together

Why do you think women are getting better financial outcomes with their investing? We believe it’s in the decision-making process, blending intuition, empathy, and analytical thinking to navigate choices. Women are more likely to value collaboration and actively seek input and feedback from different people. This approach involves thorough research, data analysis, and logical reasoning to inform decisions and this decision-making style integrates cognitive, emotional, and relational aspects, resulting in thoughtful and balanced choices.

Having a team to assist in navigating your family’s financial and estate planning decisions can bring numerous benefits and peace of mind. More and more women are stepping into the primary or co-financial decision-maker role, understanding the importance of making informed and strategic choices when it comes to their family’s financial well-being. Assembling a team of experts, such as a financial advisor, accountant, and estate planner, provides access to their specialized knowledge and experience. These professionals can help analyze current financial situations, identify potential risks and opportunities, and develop personalized strategies to achieve long-term goals. A professional team can guide families through complex financial concepts and legal processes, ensuring that they make informed decisions that align with each family’s unique needs and aspirations. Moreover, this collaborative approach provides a support system, allowing all family decision-makers to gain confidence, delegate tasks, and share the responsibilities associated with financial and estate planning.

At Treehouse Wealth, we help all family decision-makers to thrive on their financial journeys. If you’re unsure whether you’re on the right path, reach out – we’d be happy to chat. A professional team can be a valuable addition to help impact a family’s financial outcomes.