Women are driving financial confidence - demographic aspects of women and making financial decisions

American Demographics, Dec, 1997

TV commercials depict self-assured women making decisions about brokerage services, mutual funds, insurance, financial planning, and other services. The images are on target. Women are becoming more financially self-reliant. One-third have money in a 401(k), Individual Retirement Account (IRA), or other self-directed retirement plan. Whats more, they are a driving force in Americans increasing financial confidence.

Women who say they feel quite competent in core financial issues are a minority, but a growing one. Rising shares feel competent about deciding how to save money (37 percent in 1996, up 8 percentage points from 1994), planning their familys financial future (23 percent, up 8 points), planning for retirement (23 percent, up 7 points), and deciding how to invest money (19 percent, up 7 points). Growing shares of women also feel quite competent in other financial areas, such as buying home, auto, or liability insurance, financing homes, buying life insurance, making estate-planning decisions, and minimizing tax liability.

Men remain more confident than women about financial issues, but their confidence hasnt been rising. This has narrowed the gender gap. Across 13 financial issues, the average percent of women saying they feel quite competent rose 6 percentage points between 1994 and 1996, to 22 percent, compared with a 1-point increase for men, to 29 percent.

The increasing confidence does not seem to be false optimism. The generation of women who demanded equal opportunity in the workplace is now in its peak earning years. Its followed by a generation that has known nothing but financial independence and responsibility. It shouldnt surprise anyone that American women are becoming more financially savvy. by the editors of Roper Reports