While the gender savings gap apparently has closed in their so-called “personal economies,” new research suggests that women are still showing less confidence than men when it comes to investing and money management.
That was one of the key takeaways from the results of a new survey conducted by HerMoney Media and Principal Financial Group, which found that men and women are saving similar percentages of their annual household income and have relative amounts saved in personal emergency funds at equivalent rates.
However, only 45% of women employees compared to 58% of men employees were confident about money management and only 22% of women considered themselves knowledgeable about investing compared to nearly half of men (46%).
Playing the Long Game
The survey also revealed that female employees are taking a longer-term approach when it comes to their money. The majority of women (55%) hold their investments in an economic downturn as compared to 40% of men. Additionally, nearly a third of men (32%) rebalance their portfolio or sell shares during economic downturns compared to only 16% of women who rebalance or sell.
“The good news is that women are focused on precisely the right financial threats and aren’t allowing a volatile economy to derail them. In fact, when it comes to making investing decisions, women—who have long had a reputation for being risk-averse—seem to have turned an important corner in their investment decisions,” said Jean Chatzky, CEO of HerMoney.com.
When it comes to financial guidance, however, roughly 6 in 10 (59%) women reported not working with a financial professional (compared to 50% of men), even though 60% view them as the most trusted resources for making investment decisions. Compared to men, women are using a wider variety of resources to learn about investing, such as through podcasts (44% vs. 27%), books (40% vs. 26%), and workplace programs (25% vs.15%).
“While employees’ needs are varied, almost everyone can benefit from more guidance, education, and support to build their financial acumen and confidence,” observes Teresa Hassara, senior vice president of workplace savings and retirement solutions at Principal Financial Group. “The more personalized the experience, the more success we believe individuals will have when it comes to achieving long-term financial security and retirement goals.”
Resources in Action
The survey also focused on how workplace wellness programs are evolving to help employees build a stable financial foundation. When comparing what employees are looking for from these programs—and how they’re using them—the results were uneven by gender.
According to the findings, women employees (40%) were more likely than men (32%) to say financial wellness feels like “being at peace (without financial stress).” Yet, significantly more men (28%) than women (18%) report a reduction in their own stress levels due to the financial wellness programs at their companies.
Additionally, when asked how various elements of the financial wellness programs offered by their employer are utilized, both women and men reported awareness and use of resources available to them, but men reported stronger results. To that end, men, more so than women, credit their employer’s financial wellness programs with helping them increase their emergency savings (25% vs 13%), reduce debt (21% vs 9%), and improve their setting of financial goals (23% vs 15%).
“While it’s heartening to see these programs are helping move the needle in the right direction, these survey results show an imbalance in value, which could be stunting the financial stability of women who need more support tackling the building blocks of personal finance,” added Chatzky. “At the end of the day, companies offer financial wellness programs so their employees can feel just that—financially well. In this area of support, we still have a long way to go.”
The findings are contained in HerMoney’s 2023 State of Women survey, which was conducted in August 2023 among 900 women and men ranging in age from 18 to 75 who are employed full-time at small- and mid-size employers, with access to either health insurance or a retirement savings plan as a benefit.
