Young women increasingly earn the title of “breadwinner”
Almost a third of Millennials and Gen Xers reported being the primary breadwinner – one and a half times higher than older generations
Yet anxiety during this financially uncertain time keeps them from sleeping at night.
Women’s contributions to their family’s finances are increasing, according to a new study from Wells Fargo released today in collaboration with International Women’s Day.
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Wells Fargo recognizes International Women’s Day (Photo: Wells Fargo)
The study asked 2,195 women in households with $ 250,000 or more in assets or $ 100,000 or more in income about how they feel, react and lead through uncertainty and change. Despite the challenges presented during the COVID-19 pandemic, women’s contributions to the family wallet are increasing.
More than half (54%) of all women in a union reported earnings greater than or equal to their spouse. And nearly a third (32%) of millennials and millennials reported being the primary breadwinner – one and a half times higher than female baby boomers and traditionalists (20%) . Additionally, half of Millennials and Gen Xers (51%) said they ran household finances, compared to just 40% of Baby Boomer and Traditionalist women.
“The economic recovery from COVID-19 will be heavily influenced by women as the next generation continues to increase their earning potential,” said Veronica Willis, investment strategy analyst at the Wells Fargo Investment Institute.
Yet younger women cite increased barriers to developing financial skills
Women of the younger generations see more obstacles to developing their financial skills. More than a third of millennials and millennials said they found financial concepts intimidating (39%) and didn’t learn enough about finances growing up (34%). While one in five millennials and millennials (21%) said they didn’t have enough time for financial literacy, compared to just 6% of baby women. -boom and traditionalists.
Two-thirds (68%) of Millennials and Gen Xers said they get extremely anxious when there is a lot of uncertainty, compared to just 49% of baby boomers and traditionalists. For nearly a third of millennials and millennials, financial uncertainty has kept them from sleeping, according to the survey.
“The financial anxiety felt by the younger generation during times of economic uncertainty is likely a direct reflection of their relative inexperience in overcoming financial difficulties,” said Nancy Amick, senior family dynamics consultant at the Wells Advisory Center Fargo Wealth & Investment Management. “Previous generations have benefited from the past experience. Many of these women have gone through turbulent markets and uncertain economic environments.”
Financial advisers need to talk more than numbers
Despite the increased barriers cited by young women, most are open and eager to learn and grow. Almost half (47%) of Millennials and Gen Xers say they need financial advice more than ever. In fact, three-quarters believe it would be helpful to discuss their financial concerns with a financial advisor, a view shared by older generations.
Millennials and Gen Xers, however, want a conversation with their financial advisor beyond the numbers. They want to talk about work (78%), family (71%) and health (60%), a feeling that ranks lower among the older generations.
“There is a clear message for financial advisers in this data. Women expect advisors to talk to them their whole life, as a context for providing financial advice,” said Heather Hunt-Ruddy , responsible for the business development and growth of Wells Fargo. Advisors.
Educate the next generation
The change in the way young women wish to approach personal finance extends beyond their own financial sense and their own experience. Many prioritize financial education for the next generation. In fact, three in four millennials and millennials (77%) say they take charge when it comes to their children’s financial education.
“Helping develop a strong financial sense in their children is a high priority for young women, as they cite this very concept as a barrier to their own financial success,” said Beth Renner, head of counseling for Wells Fargo. Wealth & Investment Management. “Women learn from the experience and pay it off.”
International Women’s Day #ChooseToChallenge
Wells Fargo has a long history of supporting women – as an employer and provider of financial services, as well as through our engagement with organizations that address issues important to women’s communities, customers and employees.
Wells Fargo’s support for women is part of our larger commitment to diversity, equity and inclusion – to serve diverse clients; hire, develop and retain diverse employees around the world; and encourage employees to value and respect each other for their differences. Wells Fargo & Company was recently appointed Bloomberg Gender Equality Index 2021 member for the third consecutive year.
As we celebrate International Women’s Day, we are proud to share the stories of some of the many wonderful women who make up our communities:
Millennial (born 1981-1996)
Gen X (born 1965-1980)
Baby boomers (born 1946-1964)
Traditionalists (born in 1928-1945)
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Wells Fargo Investment Institute, Inc. is a registered investment advisor and a wholly owned subsidiary of Wells Fargo Bank, NA, a banking subsidiary of Wells Fargo & Company.
Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC, a SIPC Member, a registered brokerage and a non-bank subsidiary of Wells Fargo & Company.
About the survey
Versta Research conducted a national online survey of 2,195 women on behalf of Wells Fargo from January 4 to 18, 2021. It included 1,680 women with household assets of $ 250,000 or more, and 515 women, ages 25 to 40 year olds who have fewer assets but have a family income of $ 100,000 or more. The survey also included a comparison group of 1,035 men, plus a comparison group of 1,084 Americans in households with fewer assets and income. The sampling was stratified by assets and income, and weighted by population estimates from the 2019 Federal Reserve Survey of Consumer Finances. Assuming there is no sample bias, the maximum margin of sampling error for the full sample of 2,195 cited women is ± 2%.
About Wells Fargo Wealth Management & Investment Management
Wells Fargo Wealth & Investment Management (WIM) is a division of Wells Fargo & Company. WIM provides financial products and services through various banks and brokerage firms affiliated with Wells Fargo & Company and is one of the largest wealth managers in the United States, with nearly $ 2 trillion in active customers. WIM serves clients through the following businesses: Wells Fargo Private Bank serves high net worth individuals and families; Abbot Downing serves high net worth individuals and families; Wells Fargo Advisors provides advice and guidance to help clients maximize all aspects of their financial lives; and Wells Fargo Asset Management brings together a strategic balance of investment capabilities to meet the investment needs of institutions, financial advisers and individuals around the world. Through Wells Fargo Private Bank and Abbot Downing, WIM is also a leading provider of trust, investment and trust services, including personal trust services and a number of asset management services. specialized heritage designed to meet the diverse needs of high net worth clients.
About Wells Fargo
Wells Fargo & Company is a leading financial services company with approximately $ 1.9 trillion in assets and proudly serves one in three U.S. households and over 10% of all mid-market businesses in the United States. and services, as well as consumer and commercial credit, through our four reportable operating segments: Personal banking and loans; The Commercial Bank; Corporate and Investment Banking; and Wealth and Investment Management. Wells Fargo ranked No. 30 in the Fortune 2020 ranking of America’s Largest Companies. In the communities we serve, the business is focusing its social impact on building a sustainable and inclusive future for all by supporting housing affordability, small business growth, financial health and a low-emission economy. carbon. Wells Fargo news, insights and insights are also available at Wells Fargo Stories.
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