How Millennial Women Stack Up

Millennials
While Global Investor Pulse research has revealed that millennials as a whole are one of the most engaged and optimistic group of investors, key differences exist between women and men in their decision-making styles, investing behaviors and views on technology. Female millennials are focused on growing wealth – and this has differentiated them from their parents. However, when it comes to other critical behaviors around financial engagement, millennials still have work to do.
  • Millennial women and investing behaviors
  • Growing gender bias in financial literacy
  • Millennial women and digital advice
  • Gap in long-term financial health

Millennial women and investing behaviors

Millennial women and investing behaviors - some things have changed while others have not.

Millennial women prioritize growing wealth almost as much as millennial men, representing a potential generational shift as women in older generations are less likely to think this way. However, millennial women continue to place a much higher emphasis on paying off debt compared to millennial men.

    Most important goals include: growing wealth

  • Millennial Women
  • Millennial Men
  • Boomer Women
  • Boomer Men
  • Most important goals include: paying off debt

  • Millennial Women
  • Millennial Men
  • Boomer Women
  • Boomer Men

Growing gender bias in financial literacy

Growing gender bias in financial literacy.

Differences in the lessons that parents are teaching their boys and girls may be the root of gaps in financial learnings. For example, young boys are more likely to learn about investing in financial markets than girls. Millennial women who learned financial responsibility from their parents were more likely to engage in and enjoy investing.

    Understand all the risks of an investment before investing

  • Millennial Women
  • Millennial Men
  • Boomer Women
  • Boomer Men
  • Put your money in the stock market

  • Millennial Women
  • Millennial Men
  • Boomer Women
  • Boomer Men

Millennial women and digital advice

Millennial women are more hesitant when it comes to digital finance advice.

Most millennial investors are interested in digital financial advice. However, millennial women express much lower levels of interest in robo-advisers (45%) compared to millennial men (72%).

    Top three reasons millennial women give for their interest in robo-advisors

  • Convenience
  • Simplicity
  • Lack of product push
  • Top three reasons millennial women give for not being interested in robo-advisors

  • Don’t have enough money
  • Prefer personal interaction
  • Not interested

Gap in long-term financial health

Gap in long-term financial health: millennial women vs millennial men.

Millennial men and women differ considerably in their savings and investing behaviors. When it comes to saving for retirement, we see a significant savings gender gap between millennial women and millennial men -- only 53% of millennial women have started saving for retirement compared with 71% of millennial men.

    Have both savings and investments

  • Millennial Women
  • Millennial Men
  • Cash allocations

  • Millennial Women
  • Millennial Men

Sentiment and Engagement

Millennial women are less positive about their financial futures and less engaged with investing than millennial men. Instead, they tend to focus more on savings related behaviors such as avoiding overspending and managing debt.

Millennial women are not as engaged with investing as Millennial men, but many are aware of future problems that could arise. Only 44% of millennial women claim they are on track to achieving their retirement goals, compared to 70% of millennial men. Plus, only 31% of millennial women feel they don’t have to worry about money whereas most millennial men (53%) go so far as to say they don’t have to worry about it.

Taking Action

As women take an increasingly active role in managing finances, it is essential for young investors to understand the habits of engaged and effective investors.

01.
Set Your Goals

As a young investor, it’s important to make sure you’re taking some initial steps—such as contributing as much as possible to an IRA and 401(k), and giving yourself a monthly goal for setting aside retirement savings.

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02.
Weekly Investment Commentary

There’s a lot of information out there. Subscribe to our Weekly Investment commentary to learn investment fundamentals and ways to build the best portfolio.

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03.
Grow Your Wealth

Don’t let cash sit idle. Continue to look for opportunities to make your money work for you.

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