Money Top Source Of Stress For Women

Thu, 22 September 2022  |  consumers demographics women 

Money is women's #1 source of stress according the second annual Ellevest Financial Wellness Survey. More than half (59%) of women worry about money at least once a week. And a mere 14% feel prepared for a recession.

"We have long known that money is women's #1 source of stress. This issue has only become more acute as women's financial health has deteriorated. In fact, the EWFHI shows that women's financial health is currently the worst it's been in the last five years," said Ellevest Head Data Scientist Dr. Kate Sullivan, who constructed the proprietary index. "Women's financial health worsened during the pandemic, primarily due to employment levels, but it rebounded relatively quickly as the labor market recovered and access to paid family leave began to expand. Since then, however, it's been driven further down, as high inflation impacts her spending power and the overturning of Roe v. Wade clouds her economic future. No wonder consumer confidence has been falling, even as women return to the workforce."

The Ellevest Financial Wellness Survey 2022 gives further insights into women's money mindsets. Highlights from the findings show:

• Women are prioritizing their financial goals differently than men: There are stark differences between men and women's top financial priorities. The top priority for men? Growing retirement savings (supporting family was #4). The top financial priority for women? Supporting their family (retirement was #4).
• Women are worried about climate change: 62% of respondents cited climate change as one of their top financial concerns, more than retirement planning (51%), credit card debt (46%), the stock market (38%), and child care costs (30%).
• Women are less likely to invest, but when they do they keep their cool: Women are roughly half as likely to invest as men are. And just 30% of women have met with a financial advisor or planner. That said, when women do invest, they make many of the right moves. Only 38% of women reported feeling concerned about market volatility vs 58% of men — which explains why more men than women have paused their retirement contributions and withdrawn money from the stock market.
• Women expect more from their employers: 44% of women (and 56% of millennial women) would leave their current company if its values on reproductive rights did not align with their own. The Ellevest Financial Wellness Survey 2022 gives further insights into women's money mindsets. Highlights from the findings show:
• A higher salary does not mean less financial stress: Surprisingly, wealthy women are feeling financial stress just as much as non-wealthy women: Some 75% of women making more than $250,000 in annual income report that they do not feel in control of their money.

"We've seen again and again that taking stock of your financial health — and then taking concrete actions to improve it — can turn money from a source of stress to a source of strength for women," said Ms. Krawcheck. "That's why Ellevest is providing a guide to improving your financial wellness and a package of actionable, customizable financial health workbooks to help guide our community toward stability and control. We will continue to update and publish the Ellevest Women's Financial Health Index, monitor women's relationship with money, and provide best-in-class resources in the months and years to come."

Source: Ellevest