Although stress continues to dominate women’s feelings toward money and saving, new research finds that, through the help of peer-supported groups, they’re tackling stress head on by taking control of their finances.
According to the study by Fidelity Investments, which was conducted in recognition of Women’s History Month, “stress” (46%) is the No. 1 word women use to describe their emotions surrounding money—more so than men (34%), whose top term is “hopeful” (42%). Women are also more concerned about inflation (85%) and not having enough saved for emergencies (76%)—more so than men at 79% and 65%, respectively.
Notably, however, nearly 90% of women say they have made money moves recently or are planning to within the next six months. Fidelity notes that this trend is evident among its customers, with the number of retail accounts opened annually by women growing 65% between 2019 and 2022, compared to a 60% growth in retail accounts opened annually by men.
Fidelity also observes that women across generations are continuing to become more active in managing finances.
- Women are prioritizing retirement by opening IRAs and increasing their contributions. The number of IRAs women opened each year grew by 60% and contributions grew by 91% in 2022 compared to 2019.
- Women are contributing to their emergency funds. Women are 47% more likely than men to use the firm’s Goal Booster, a short-term savings tool for the workplace, designed to make it easier for employees to set and fund emergency savings and other short-term goals.
- Women are taking advantage of guidance opportunities. A record number of women reached out for planning conversations in 2022—10% more than in 2021.
Women Supporting Women
While most women plan to take action with their money over the next six months, 19% still report feeling intimidated by the process of getting help with their financial decisions. That said, the firm’s recent research on members of its Women Talk Money community finds women are more motivated to take money action when they feel supported by other women.
Here, the research found more than half of women (53%) say talking about financial topics with peers helps them feel more confident with their financial journey. This is especially true of younger women, with 66% of Gen Z and Millennials preferring to learn about financial matters from other women. Moreover, women are ready and willing to help each other succeed, with nearly 7 in 10 (69%) saying they go out of their way to help other women because another woman helped them.
Promoting transparency was another important factor, with 74% of all women agreeing that it is important to be open about the support system they have in place to combat the outdated stereotype that successful women have to do it all on their own. Gen Z and Millennial women (45%) were also the most likely age groups to be more open about money within the past six months.
“It's no secret women continue to face unique challenges that have historically gone unaddressed by the financial services industry,” said Joanna Rotenberg, president of Personal Investing at Fidelity Investments. “Through working with millions of women of all ages, we understand first-hand that knowing and tackling these challenges both inspires women and helps chip away at the gender gap, which is important today and for future generations.”
Fidelity’s study is based on a national online survey among 3,747 adults conducted Jan. 3-12, 2023, by Big Village (not affiliated with Fidelity). Fidelity also surveyed members of its Women Talk Money community in mid-January 2023 to better understand their current emotions surrounding money and how the community has influenced their financial knowledge or financial well-being.
