A new study by Fidelity Investments finds that more than half of women are taking control of their money in the near-term, but inflation and other economic worries are prompting them to seek support.
According to the firm’s research, women have a more positive outlook on their careers, relationships, caregiving responsibilities and the impacts of the pandemic, compared to last year. Yet, despite this optimism, with current economic factors such as 40-year-high inflation, nearly half (47%) of women say their outlook on money and the economy has gotten worse over the past year. Consequently, many are looking for guidance on their long-term financial outlooks.
Women have taken action regarding their short-term money needs, according to the research. In particular, more than half of women (53%) cut back on non-essential expenses and entertainment in the past year—and within the next 12 months, some plan to pay down debt (39%) and start or add to an emergency fund (30%).
But when looking beyond the immediate future, the short-term actions women took likely will not eliminate their three primary stressors in a significant way, which include inflation (71%), cost of essentials (65%) and not having enough saved for emergencies (58%).
The good news, according to Fidelity, is that women have expressed an interest in learning more about managing their money to tackle those stressors and make their money work harder for them, with top areas including managing debt and credit (27%), creating and sticking to a budget (25%), and saving (24%).
Gen Z (24%) and Millennial (25%) women are more likely than older women (14% of Boomers) to say that having a trusted resource to make decisions and manage investments on their behalf would motivate them to invest. In fact, 44% of Gen Z women don’t currently invest and plan to start, though half of these women (22%) plan to invest in the next year, the findings show.
Career and Work-life Balance
In part due to the perspectives gained during the pandemic and distance from traditional work life, women feel they have achieved a stable mindset within their careers. Fidelity’s research found that many women feel as though they can succeed in their job (84%), are more satisfied with the flexibility of their work schedule (80%), and have a good work-life balance (77%).
Compared to a year ago, career satisfaction among the younger generations specifically has increased, with Gen Z (31%) and Millennial (31%) women reporting a favorable view of their or their spouse’s job security compared to Gen X (21%) and Boomer (21%) women.
When considering a new job offer, women want to maintain a feeling of flexibility. According to another Fidelity study, the top three most important non-financial factors to this segment when reviewing a job offer include:
- Paid time off (68%)
- Schedule flexibility (52%)
- Remote working (41%)
Two other key elements with a sizeable impact include compensation and benefits. Nearly three-quarters (72%) of working women feel confident around understanding and making the most of employer-provided benefits. Moreover, nearly two-thirds of women (63%) feel happy with the benefits their employer provides.
That said, only 57% reveal they understand how to negotiate or ask for a promotion, potentially creating an even larger wedge in the gender pay gap, Fidelity notes. In addition, 85% of working women indicated they don’t plan to negotiate for a raise or promotion in the next 12 months. However, when women do negotiate, the overwhelming majority (83%) get at least some of what they requested.
Burnout Still Present
Meanwhile, the study also revealed that even though most women have a positive outlook on their personal life, younger working women, in particular, are feeling the impact of various stressors and are, not surprisingly, feeling more burnt out.
Only 31% of Gen Z and Millennial working women feel they have the resources to manage their stress and burnout, compared to 50% of Boomer women. Gen Z (35%) and Millennial (31%) women were also more likely to have taken time off from work due to challenges with mental health or burnout, compared to just 14% of older women. In a new hybrid working world that continues to ask more of women every day, finding the resources to help lessen that stress is crucial to maintaining long-term well-being, Fidelity suggests.
The findings are based on a survey of 2,008 U.S. adults, including 995 men and 991 women, conducted August 15-18, 2022, by Big Village, which is not affiliated with Fidelity Investments.
