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
Most important goals include: paying off debt
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
Put your money in the stock market
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
Top three reasons millennial women give for not being interested in robo-advisors
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 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 and men are not in agreement about many of their feelings for their financial future. Male millennials are clearly much more confident, and millennial women express considerably more concern about making ends meet.
Millennial feelings about their financial future:
Millennial thoughts about the biggest risks to their financial future:
Millennial behavior regarding finances:
Millennial women are still far more risk averse than millennial men. Millennial women report lower knowledgeability and engagement with learning about investing than millennial men. While Millennial women do report higher knowledgeability about investing than older generations, self-reported knowledgeability is only slightly higher for Millennial women than for older generations, whereas Millennial men show a sharper increase in self-reported knowledgeability compared to older generations of men. The same pattern is shown for the percentage of women who say they enjoy managing their investments.
Agreement with statement about investing:
Global Investor Pulse research has shown that money management personalities guide investment behaviors and women have historically taken a less active role in managing their finances. But decision making styles are slow to change. Millennial women are no less likely to rely on their partner for financial decision making than previous generations.
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.
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.
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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