According to a new study, women are increasingly becoming more financially responsible for their households as their economic power increases across the board.
Gender and Financial Dynamics
The dynamics of financial power appear to be changing in the average American family, as women across the U.S. are beginning to take on more financial control of their households, according to new research.
Women Money Power
The 2023 Women Money Power Study, conducted by the Allianz Life Insurance Company of North America, reported that women are beginning to take on more financial responsibility at home.
2023 Study Conducted
The study, which was conducted in October 2023, comprised a “nationally representative sample” of American women of varying ages with a minimum household income of at least $30,000.
Chief Financial Officers At Home
49% of women surveyed reported seeing themselves as their families’ CFO, or chief financial officer.
Two in Five Women
What’s more, two in five women described themselves as the primary breadwinner, outearning their partner and contributing more to the household.
This signals a significant jump from an Allianz study in 2021, putting that number at just 34%.
More Economic Power for Women
Researchers attribute these significant changes in gendered financial dynamics to the growing economic power of the average U.S. woman in full-time employment.
More Power Equals More Responsibility
“As women are holding more economic power, it makes sense that they would also take on more financial responsibility in their families,” said Allianz Life’s FMO head, Heidi Vanderkloot.
CFO and Breadwinner
“In this study, we saw that women increasingly were both the breadwinner in their family and in charge of household finances.” she continued.
Generational Divide
There is also a notable gap between generations in this survey, with gen-X, millennials, and baby boomers presenting different statistics.
Gen-X Women on Top
Gen-X women come in as the most financially responsible, with 54% seeing themselves as household CFOs, compared to 51% of millennials and 41% of boomers.
A Traditional Past
The small gap between millennials and gen-X, compared to the significant gap between them and boomer women, may be explained by their age difference, with boomers coming of age between the 1960s and 1980s when gender roles were more defined and traditional.
More Studies on the Subject
And Allianz is not the first to draw similar conclusions. In 2022, the non-profit financial organization Alliance for Lifetime Income teamed up with HerMoney, an organization focusing on personal finance advice and empowerment for women.
The State of Women in 2022
Their study, titled The State of Women in 2022, focused on female financial independence and how the average woman in the U.S. manages their household finances, savings, and careers.
Moving Beyond the Household
The study showed that women are moving beyond just household financial management and are increasingly taking control over things like household investments, homeownership planning, and retirement planning.
Household, Investments, Retirement
In 2022, their research, which surveyed 1000 American women, showed that 59% of women surveyed had taken over financial responsibility for their household, with approximately half managing investments and retirement planning for themselves and their partner.
An Inspiring Image
“It’s inspiring to see these women take the lead on not only managing their household finances but also investing for the future and planning for retirement,” said Jean Statler, CEO of Alliance for Lifetime Income.
Dispelling Old Beliefs
“This research clearly dispels an old belief that women are the CFOs of the household but are somehow absent when it comes to investing and planning for retirement,” she continued.
Dawning Recognition
Moreover, Statler felt that the research reflected a growing recognition that long-term financial health and independence were more important for the average woman than the average man.
More Economic Insecurity for Women
Due to the wealth gap, the average woman earns less but also lives longer than the average man, which means they typically need more retirement savings to ensure a comfortable post-employment life and to avoid needing to push back their retirement.
“Keeping Women Up at Night”
And Vanderkloot confirmed that these concerns were also reflected in Allianz’s research.
“The top worries keeping women up at night were running out of money in retirement, rising costs of health insurance, and the loss of a significant other (if they are married or partnered),” Vanderkloot said.
“So, they are nervous about their long-term financial well-being and the risks that could derail it.”
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The post Women Take Lead in Household Finances as Their Economic Power Grows – And It’s Making All the Difference! first appeared on From Frugal to Free.
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The content of this article is for informational purposes only and does not constitute or replace professional financial advice.
