Women Empowered in Finance: Survey Shows Confidence Amid Challenges

Women Taking Charge of Their Finances

As we approach International Women's Day, a recent survey conducted by Laurel Road highlights the ongoing financial journey of women in the U.S. Despite economic uncertainties, women's resilience shines through as they seek financial advice from trusted friends and family, indicating a shift in how they manage their personal finances.

Survey Insights

The eighth annual survey, which involved 2,301 women, reveals that a substantial 65% of respondents identify personal finances as a major source of stress in their lives. This number remains unchanged from last year, underscoring a continued need for women to address their financial wellbeing. Notably, 44% of these women are seeking financial advice from their personal networks, with Gen Z and Millennial women leading the trend, as 50% and 47%, respectively, turn to close connections for guidance.

Generational Differences in Financial Goals

Across various age groups, shared apprehension about the current economic landscape is evident. A significant 78% of women agree that the economy makes them anxious about achieving their financial goals. The survey reveals that women feel particularly behind in areas like retirement savings (36%), credit card debt repayment (30%), and salary negotiation (22%). Millennials, in particular, express concern over homeownership with 31% reporting they feel behind in this area.

Interestingly, despite the overwhelming stress linked to finances, 70% of women assert confidence in their financial management skills. However, the pressure persists, with 46% citing financial management as one of their top concerns, followed closely by health and family responsibilities.

Gen Z and Millennial respondents feel even more pressure regarding their careers, with 46% and 42% respectively acknowledging their jobs as a significant source of stress. Furthermore, a notable increase in educational aspirations among Gen Z women has been observed, with 37% highlighting education as a key concern, up from 26% in the previous year.

Seeking Financial Advice

Despite recognizing the importance of professional advice, only 19% of women actively consult financial advisors. Instead, they prefer gathering insights from their immediate social circles, where 44% trust friends and family for financial guidance. Intriguingly, 76% of Gen Z women look to their parents for advice, showcasing the pivotal role family plays in financial discussions.

While only 11% turn to social media influencers for trusted advice, 30% utilize social media as a source for financial trends. Gen Z is particularly inclined to seek financial knowledge through social platforms (48% compared to 39% of Millennials), though the overall usage of budgeting and investing apps remains relatively low, with only 23% of Millennials engaging with these resources.

Emerging Financial Trends

The rise of social media has influenced women to adopt new money management practices. Approximately 31% are participating in freelance side hustles, with Gen Z leading this trend at 37%. Other popular movements include DIY/upcycling (29%) and participating in no-spend challenges (21%). Yet, many remain unfamiliar with traditional financial strategies related to budgeting, debt repayment, and investing, with fewer than one in five engaging in methods like passive income or micro-investing.

Although women are grappling with financial anxiety, this year's survey reflects their proactive stance in seeking advice and sharing concerns within their networks. Experts emphasize the need for women to continue these discussions while also reaching out to professionals for guidance. Resources like Laurel Road's Student Loan Forgiveness Counseling offer accessible tools for women striving to achieve financial stability.

Conclusion

The insights from this survey present a noteworthy snapshot of women's financial resilience amid challenges. While recognizing the stress surrounding financial matters, women are taking charge, leaning on social support systems, and exploring new trends. As they navigate the complexities of managing their finances, the importance of professional guidance cannot be overstated. In conclusion, the survey indicates women are not only learning to feel empowered but are also well-positioned to embrace their financial futures actively.

For additional resources and to view the complete survey results, visit Laurel Road.