Women, Money & Power Study Reveals Suprising Trends

Among the high impact presentations delivered during FSC’s “Why Women Are Winning” conference for female financial advisors, a study titled, “Women, Money & Power” unveiled some fascinating and, in some cases, unexpected trends.

The presentation detailed a range of statistics based on surveying women about their roles and perceptions when it comes to financial planning. All advisors seeking to grow their client base can benefit from this data, which explains female clients’ approach to financial planning, as well as their emerging position as “financial caretakers” in both household and business situations.

General Statistics

The Women, Money & Power study shared some overarching statistics that demonstrate the expanding wealth women are attaining. Here are just a few:

Women comprise two thirds of the U.S. workforce

One third more women than men graduate from college

More than half of women with business degrees out-earn their spouses

By 2010, women will control 60% of all wealth in the U.S.

The study also shared some surprising data that advisors should be aware of as directly impacting their client relationships. One notable statistic cited that 70% of women discontinue the relationship with their financial advisor within three years of their husband’s death!

This fact becomes even more significant when considering that the average age of widowhood for women is just 56 years old. This trend contributes to the statistic that, at some point in their lives, 90% of women will be solely responsible for their finances. These figures strongly suggest that, as an advisor, it’s crucial for you to develop an equal relationship with both parties of married clients regardless of the roles each plays in managing their joint finances.

90% of women today feel “financially insecure” despite controlling more wealth, having more education and being more involved in financial decisions

50% of women at some point fear “losing everything” and “living on the streets”

Women who work with a financial professional feel 50% more financially confident, 50% more likely to achieve financial security and 200% more likely to educate their children on how to be financially independent

This data seems to suggest that despite the rapid emergence of women’s wealth and their role in financial planning, their own perceptions on the subject are lagging behind. These statistics can help you as an advisor better understand the mindset of your female clients and prospects as you engage in the process of building a relationship with them.

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Five Financial Personalities

The study also categorized women as financial planners into five personality types, and broke down the percentages found for each type involved with the research. The five financial personalities were categorized as follows:

Personality type	Attributes
Financial dreamer- 8%	Prefers to be taken care of
Financial avoider- 17%	Tends to feel confused about her many financial options
Financial initiator- 18%	Feels capable of taking ownership of her finances
Financial collaborator- 23%	Prefers to share financial responsibilities equally with a partner
Financial analyzer- 35%	Researches all options before making a decision

While all clients could likely be slotted into one of these categories, the interesting aspect of these statistics is the proportional make up of the categories. Identifying which attributes your female clients exhibit can help you better understand their mindset when working with you, and adjustments you can make in your approach with them.

As an example, financial analyzers represent the largest segment in the study’s research. As such, it’s obviously important to understand the mindset of these clients. The financial analyzer typically researches all of their financial choices, including who to partner with as their advisor, in great detail. This approach, in many instances, will be somewhat different than a common experience with male clients. Studies indicate that men, on average, spend less time making important decisions than women. Being tuned in to these differences can help you better serve your female clients.

Click here to view the Women, Money & Power video presentation

The Women, Money & Power study was conducted by Allianz, and presented by Maria Lindsley, Vice President of Consulting Services.

>> Watch the Video
>>Listen to the Audio Clip

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