It’s a compelling statistic: up to 90% of women will, at some point, become the sole decision-makers for their financial affairs. This means that most women will eventually be responsible for managing their household’s finances, making important decisions about savings, investments, and expenditures. Yet, many express a sense of unpreparedness for this role. In my daily interactions with clients, I often see women taking a back seat in managing their finances. The journey towards financial empowerment for women can be daunting, particularly when faced with common roadblocks such as:
- Lack of Financial Confidence: Often, it’s not the absence of financial literacy but the lack of confidence that hinders women from taking control of their finances. This issue frequently arises from not having overseen financial decisions previously, perhaps due to others in the family taking on these roles.
- Limited Practical Experience: Many women find themselves in financial decision-making roles years after focusing on other responsibilities, such as childcare. This sudden shift can feel intimidating and, without the proper resources, can be overwhelming.
- Lack of Financial Role Models: The financial industry, historically dominated by men, often means that women have a lack of female role models in the financial space. This lack of representation can perpetuate a cycle in which financial matters are perceived as male territory, even at the household level.
Charting a Path Forward
These are very real challenges that ring true for many women. But it’s not a lost cause. A few tips to help women prepare to take an active role in their finances are:
- Joint Financial Planning: One of my first recommendations for women, whether married or in a relationship, is to meet with their financial advisors as a couple. Being active in financial meetings boosts confidence; especially when women are fully present, asking questions, and engaging with their financial matters, even if they haven’t done so before.
- Active Participation in Financial Decisions: It’s important that women take an active role in their financial planning and budgeting. This does not necessarily mean overhauling and taking over all financial responsibilities, but it does mean understanding their household’s overall financial standing, setting household goals, and making informed decisions together, if in a relationship).
- Being Proactive and Staying Curious: As confidence grows, it’s important for women to use their voice to continue asking questions and stay curious. Finance can be complex. Everyone has different learning styles and areas of expertise, and it’s okay to admit when you don’t understand something. In the long run, the goal is to foster a sense of confidence that allows women to feel empowered, to seek out knowledge, and feel in control of their financial futures.
My journey and those of the women I’ve encountered in my practice echo this. My mother was an early financial role model for me and my siblings. As children, she instilled in us the importance of financial literacy as we learned from her meticulous approach to budgeting, where she accounted for literally every cent. She insisted on providing us with budgeting lessons that gave us a strong financial foundation to build off.
Whether you had a financial role model or not, the path toward financial empowerment for women is filled with opportunities for growth, but most importantly confidence-building. By addressing the confidence gap through practice, being proactive, and asking questions, women can feel empowered to take control of their financial futures.
Bio:
Megan Hughes currently serves as the Managing Director of Family Office Services at BOK Financial where she assists ultra-high-net-worth clients in navigating complex financial dynamics. With a legal and financial background, Megan brings over 11 years of experience in the financial industry and is known for her passion in providing exceptional service to her clients.
