Did you know that 27% of the world’s total wealth is influenced by women? That comes to about $20 trillion with $11.2 trillion of that in the US. Women either create, control or influence a tremendous amount of wealth and it’s growing. If money makes the world go ’round then women are positioned to be a significant force in the spin. In the United States that $11.2 trillion equates to roughly 39% of the country’s $29 trillion of investable assets. All of this is according to a research report released by the Center for Talent Innovation, “Harnessing the Power of the Purse: Female Investors and Global Opportunities for Growth“.
The entrepreneurial ranks are growing as we move into economic recovery. This country was founded on the ingenuity of innovation and dreamers who created new realities. We find ourselves at an inflection point in history where the middle class is slowly being destroyed and entrepreneurship may be the best way out. During this time women, especially women of color, are creating businesses and wealth at rates higher than ever before. According to the research 62% of women around the globe identify themselves as the primary source of the household’s assets. This is partly do to more and more women becoming the heads of the household either due to divorce, never marrying or a shift in thinking about wealth creation. Women make most of the spending decisions for their households even if they are not the primary breadwinner yet women are largely an untapped market when it comes to addressing their financial needs.
Of the women in the US, UK, India, China, Hong Kong and Singapore 66% of women are the primary decision makers of the household’s assets yet 53% don’t have a financial planner. 75% of the women under the age of 40 in the US don’t have a financial planner, the most important financial planning years for the second half of life. However, taking a look at the women that do have financial planner, 67% report feeling misunderstood by their financial planner or that their planner is not truly interested in their personal wealth success.
This begs the question, do women not have a solid understanding of finances? T’he study shows this is not the case. It turns out women are just as financially literate as men according to their assessment, but women perceive themselves to be less knowledgeable. Women and men have different views of wealth, as with most things. While both genders consider wealth as necessary to achieving life goals and for retirement women tend to view wealth with broader implications. Women tend to want to invest in socially responsible ways. They want their money to go to bettering the world and invest in companies with diverse leadership. That is not to say that men don’t want these things, the survey results reveal women want it at a higher rate than men.
At the end of the day women are gaining ground in wealth creation, control and influence on a global basis. However, women are still a largely untapped market when it comes to helping them manage that wealth. Additionally, despite having as much financial literacy women lack confidence in their financial knowledge. There’s no clear answer as to why we’re seeing this type of movement for women. We can look to the structure of the family changing with women working more and more outside of the home and getting promoted. Regardless of the reason why women are taking their places as wealth creators which is a good thing for the world. We need some more wealth and balance in the world. Even though in the US women still earn less than men for the same work, that gap is quickly closing.
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