When it comes to women and money, there is little doubt great strides have been made over the past few decades as many have taken the lead with managing household finances and many have also increased their earning power at work. However, much work is still necessary for the next generation of women to equalize the playing field both at home and in the office.
Allianz Life recently updated its Women, Money and Power study and the results were eye-opening. More than half of women now report that they are the CFO of their household and a nearly equal amount said they believe they have more earning power at work.
These are solid numbers that, overall, create a rightful sense of optimism. However, diving deeper into the results uncovers clear opportunities for improvement in both areas.
[See: 11 Great Investing Tips for Women.]
In the workplace. Despite 50 percent of women reporting greater earning power, the study identified a troubling trend. The number of women reporting greater earning power actually dropped from 57 to 50 percent during the four-year period between surveys.
In addition to earning power, there is another important trend to consider. In the 2017 study, only 44 percent of women report they have “leaned in” at work and asked for a raise or promotion.
There is a likely correlation that earning power will see an uptick as a result of an increased number of women stepping forward pursue a raise or promotion. So it’s possible that, until women advocate further for themselves and their value in the workplace, earning growth may face an uphill battle.
The savviness that women exhibit with their household finances can and should easily translate to being more assertive and having the confidence to take risks in their careers. Beyond gaining equal pay in the workplace, an increase in earned income establishes a solid financial foundation that helps families keep up with increased costs of living.
At home. Shifting to an analysis of financial savvy at home, the study indicated the majority of women are now taking the reins of their household finances. Fifty-one percent of women surveyed deem themselves the CFO of their household with 54 percent saying they have either complete or a great deal of responsibility for managing their household’s long-term saving and investments.
However, despite having a dominant role with household finances, 61 percent of women wish they had more confidence in their financial decision-making and 63 percent wish they knew more about financial planning and investing. So, while women may be satisfied with their current financial situation, having more financial knowledge continues to play a large part in building true financial confidence.
[See: 10 Questions to Ask Before You Hire a Financial Advisor.]
Whether through a financial advisor or via the multitude of online resources available, there are many tools and resources available that provide the information needed to help women gain greater insight and confidence with financial decision-making. Additionally and of equal importance, as more financial responsibility lands on women’s shoulders, working women need to advocate for themselves to gain the equal earning power they deserve.
Again, there is a clear tie between finances at home and at work that women should recognize and use to their advantage.
The next generation. Encouragingly, there does seem to be a shift going on with the next generation of women (25-34 in the survey). The study identified a clear appetite for greater financial knowledge and recognition of the problems created by poor financial management.
And while younger women are more interested in understanding financial concepts and more than three-quarters feel that becoming more knowledgeable and involved in managing their money has made a real difference in their lives, over half don’t know where to go for financial information.
Thankfully, with a longer horizon until they reach retirement, these younger women have the opportunity to take control sooner in their lives. In fact, for younger women who have sought help in the form of a financial professional, 93 percent said they have established financial-based goals, helping them on the right path to a more confident, successful financial foundation.
In addition, younger women are more likely to feel like they have more earning power, and are also more likely to pursue a raise or promotion as compared to older peers. Future generations of women who see more assertive behavior at work will hopefully be more confident to do the same, lessening the income disparity we see today.
Bottom line, women who build an enhanced financial knowledge base now will see the empowering benefits and will also set the standard for future generations to come.
[Read: 6 Steps to Contest an Error on Your Credit Report.]
The Allianz Life Women, Money, and Power Study was commissioned by Allianz Life Insurance Co. of North America in October 2016. The survey was completed by 1,416 women, ages 25-75, with household income of $30,000 per year or higher.
More from U.S. News
7 of the Best Health Care Stocks to Buy for 2017
6 Things to Know About Mark Zuckerberg’s Manifesto
10 Ways You Can Invest Like Warren Buffett
Women, Money and Power: The Next Generation originally appeared on usnews.com
