Overcoming Feelings of Stress, Most Women are Proactive with Their Money

As the observance of Women’s History Month comes to a close, a light has been shined on the progress women have made in financial empowerment and the obstacles they still face when it comes to money.

Stress is the number one emotion that women feel toward money and their financial situations when compared to men, according to a recent study done by Fidelity. Yet, as women continue to gather together and learn more about finances, they are starting to take charge and are hopeful for their future.

The study found 90% of women are taking action to improve their money situation. Fidelity has found that from 2019 to 2022, women opening up new retail accounts has improved by 65% compared to men, which has only improved by 60%.

Women are finding encouragement from other women. The study says that 53% of women have said that talking with peers and other women about money has helped build their confidence. 66% of Gen Z and Millennials prefer to learn about finance and money topics from other women.

In this new generation, when outspoken women are starting to dominate the financial sectors, other women are seeing that they no longer have to fear the topics of money. They can now take control of their financial situations and make them better.

Feeling Stressed Out?

Money can be a significant stressor in many people’s lives, but it may affect different people differently.

“In general, women get more stressed about money because they are more security conscience than men,” says Angela Dorsey, CFP, MBA, Founder and Financial Planner of Dorsey Wealth Management.

She suggests that women want to feel safe from running out of money but stay very conservative with their financial decisions due to a lack of confidence in personal finance.

They can become too conservative as they feel the need to be protected from the running of money, and this conservative behavior could create even worse ripple effects on women’s financial futures.

“The biggest mistake I see a lot of my female clients make is not investing as much of their money,” says Jen Swindler, CFP, AFC, and Senior Wealth Manager at Vincere Wealth Management. She also suggests that a lack of knowledge on how to invest creates this risk-averse behavior among her clients.

Historically, lack of knowledge has severely hampered women’s financial futures; as more and more financial planners start educating women, it opens the doors to new possibilities. It’s also worth noting that women and men have different priorities with money.

“It is about goals that are meaningful to them like – not running out of money, taking care of the family, and going on vacations with grandkids,” suggested Dorsey.

It is time for women to start thinking about their financial goals and how to achieve them. It begins with education, but finding a good financial advisor to trust or one that listens to you is challenging.

Listen First

As the earlier study suggested, 66% of Gen Z and millennial women prefer to learn about finances from women. It starts with making it personal and not talking down to someone.

It has been found that more than 70% of women choose different advisors after their husbands have passed.

Dorsey suggests that women need to be shown that they will not run out of money, how long-term investing works, and have some education. There are no stupid questions, just questions warranting a personal approach to help the client achieve financial success.

Female advisors also help women feel empowered by asking those questions and discussing fears and anxieties. Jen Swindler adds, “women are often more comfortable opening up about the emotional aspects of money (i.e. fear, shame, anxiety) when working with a female advisor.”

It is all about listening more than speaking. Anyone dealing with money could have different stresses in life and priorities, and to be someone who puts people at ease and takes their clients seriously to improve their circumstances can help advance these women.

Women are starting to earn as much as men, achieving high successes like men, and now are taking personal finance seriously and reaching incredible sights. It is no longer a men-dominated space, but now women can take control of their money.

In the last couple of years, financial knowledge and education have spread over the interwebs giving confidence to many people to take control of their money situations. One of the largest groups is women.

With more women creating accounts than men, it should be no surprise to see many more wealthy women and female financial advisors and planners dominating the space. It is a time not to stress but to learn, be educated, and take control of your money.

This post was produced by Wealthtender and syndicated by Wealth of Geeks.

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