Women oversee more than a third of all household financial assets in the U.S., totaling over $10 trillion, according to a recent McKinsey Study. But that will soon change.
By 2030, women in the U.S. will control more than $30 trillion in assets, according to the same study. With 90% of women expected to become the primary decision-makers for their financial matters at some point in their lives, it’s important they are equipped to make key decisions regarding their savings, investments and expenditures.
However, a confidence gap exists regarding women managing these responsibilities, said Megan Hughes, managing director of Family Office Services at BOK Financial®. “In my daily interactions, I often see women taking a back seat in managing their finances.”
This observation and the impending surge in women controlling financial assets underscores the need for women to step up, she said, armed with both knowledge and assurance in their financial abilities.
However, Hughes said this journey can seem daunting, particularly when faced with common roadblocks such as:
- Lack of confidence: Often, it's not the absence of financial literacy but the lack of self-assurance that hinders women from taking control of their assets. This issue frequently arises from a lack of experience, perhaps due to others in the family taking on these roles.
- Limited practical experience: Many women find themselves in financial decision-making roles years after focusing on other responsibilities, such as childcare. This sudden shift can feel intimidating and, without the proper resources, can be overwhelming.
- Lack of role models: The financial industry being historically dominated by men may mean that some women have a lack of female role models in the financial space. This lack of representation can perpetuate a cycle in which money matters are perceived as male territory, even at the household level.
Kathleen Burns Kingsbury, wealth psychology expert and coach, echoes this sentiment and said, “While they are just as financially literate as men, women tend to be less self-assured when it comes to managing and investing money.”
However, this gap is not insurmountable, said Kingsbury. As we celebrate International Women's Day and Women’s History Month in March, both experts offer concrete steps to help women bridge this self-doubt.
Strategies for building financial confidence
1. Make a habit of educating yourself
Kingsbury advocates for continuous learning, suggesting, "Commit to reading one personal finance article or blog a week to increase your knowledge base—and ultimately your confidence." This proactive approach helps demystify financial concepts, making them more accessible and less intimidating.
“Everyone has different learning styles and areas of expertise, and it's okay to admit when you don’t understand something,” Hughes added. “In the long run, the goal is to foster a sense of empowerment, to seek out knowledge and feel in control of their financial future.”
2. Actively participate in financial discussions
Both Hughes and Kingsbury stress the importance of actively participating in financial planning, especially in a partnership. Kingsbury recommends regular "money meetings" to discuss household budgets and set future goals. This practice not only enhances understanding but also fosters a collaborative environment for decision-making in your household.
3. Get involved and build self-assurance gradually
Kingsbury recommends starting with a manageable task. If you are not quite ready to dive into investment decisions, you can begin by exploring ways to save on expenses such as insurance or cell phone bills.
“Women don’t necessarily need to overhaul and take over all financial responsibilities if they aren’t handling them now but should understand their household’s overall financial standing, help set household goals and get involved to help make informed decisions together, if in a relationship,” Hughes said.
4. Lean on professional guidance
Recognizing when to seek advice is a strength, not a weakness, Kingsbury said. "A financial advisor can work with you to develop a holistic wealth plan." This partnership can provide clarity, direction and a sense of control over one's financial journey, she continued.
Finding an advisor both members of the relationship are comfortable with is key. “Being active in these conversations boosts self-esteem; especially when women are fully present, asking questions and engaging with money matters, even if they haven't done so before,” Hughes said.
Additionally, with a trusted advisor by their side, women can navigate significant life events such as divorce, the loss of a loved one or retirement—events that can have a major impact on their finances. This support empowers women to safeguard their financial well-being and long-term security.
Never too late to start
The path toward financial empowerment for women is filled with opportunities for growth, but most importantly self-trust.
“With education, practicing what you know and finding the right advisor, you can empower yourself to make important financial decisions for you and your family,” Kingsbury said.
By adopting these strategies, women can develop the necessary confidence to take a more active role in navigating money management—at any stage of life. Owning your financial destiny paves the way for more informed decision-making, thereby fostering a sense of independence and security that's likely to have a positive impact on other areas of your life as well.
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