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Which Generation of Women is Financially Ready?

June 18, 2014 | By admin
money-girl

A study recently released by Ameriprise Financial suggested that women, especially older women, feel more financially ready and willing to take the lead when it comes to making economic decisions in their lives. The study polled more than 2,000 women and 1,500 men, ages 25 to 70, with investable assets of at least $25,000. The male participants were used as a “control group” to compare their responses against the women in the survey.

According to the study, women with ages 55 to 70, or baby boomers, were more likely to declare that it is their responsibility to know and understand their financial situations and create a feasible financial plan.

In a news statement, Suzanna de Baca, Ameriprise Financial’s vice president of wealth strategies, commented that “Women are more financially empowered now than ever before.” She added that, “It’s promising that women ages 55-70 are the most likely to feel in control of their finances, have a financial plan and value financial security.”

The study revealed that younger generations of women are following suit to being financially responsible. However, Gen X women, or those ages 35 to 54, are having difficulty taking charge of their finances since they face cultural and economic challenges that are very different compared to the Baby boomers.

Forty-two percent, or more than two in five, Gen X women have reportedly gone through divorce and/or unemployment, support a child’s college education, or experienced a decrease in assets during the recession years. More than 50% of them in the survey said, “being able to save money while paying bills” was an important measure of financial success in their current lives. Debt is a huge financial block to Gen X women compared to women of other generations.

The survey also showed that close to two-thirds of Gen X women were least likely to try to take control of their financial situations. The women also responded that they weren’t saving enough for their futures.

“Our research has shown that there are countless circumstances that can influence a woman’s perspective about money and her feelings about the financial future,” said de Baca. “It also demonstrated that women are resilient and eager to roll up their sleeves and tackle obstacles. Framing financial challenges as ‘lessons learned’ and planning for expected and unexpected life milestones can build strength and confidence.”

Photo credit: “Money Girl” by  Tax Credits is licensed under CC BY 2.0.

 

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