Millennial women are keen to learn about personal finance but have trouble transferring that knowledge into an actionable plan.
The finding, among others, was uncovered in a recent Allianz Life Insurance Company of North America (Allianz) study, the “2013 Women, Money & Power Study.”
Allianz — which surveyed more than 2,000 women ages 25-75 with a household income of $30,000 or higher — found that the youngest contingent of women (those between the ages of 25-34) indicated the highest level of interest among all age groups in learning about financial planning.
Perhaps due to successful messaging on the part of the industry or the devastating effects of the financial crisis on older peers or perhaps because this group has come of age in an era where the empowerment of women has been nearly fully realized, Millennlia women are eager to learn about personal finance and take responsibility for their financial future.
Sixty-nine percent of Millennial women reported that they were interested in learning about “financial planning and investing” and 65 percent of the next age bracket (women ages 35-44) reported they were also interested in the subject. This indicates that, generally, the younger women are, the more likely they are to express an interest in personal finance and financial planning.
Respondents even displayed interest in learning about more complex financial topics such as compound interest, market capitalization, debt ratios and bond ratings. Again, Millennial women showed the highest level of interest, 57 percent, while women ages 45-54 showed the next highest level of interest at 56 percent.
Again, perhaps because they have seen older generations’ retirement income wiped-out by the financial crisis, Millennial women had a significantly higher interest in retirement planning than those between 35-44 (77 percent versus 66 percent, respectively).
Despite the fact that they are eager to learn about personal finance, Millennial women reported the lowest level of professional guidance with 84 percent reporting that they do not work with a financial professional. The percentage is notably higher than women ages 35-44 — 68 percent of whom do not work with one. One reason for not working with a financial professional coould be that Millennial women reported they “don’t know what to ask for” when seeking financial information.
“It’s encouraging to see younger women so interested in personal finance, but these women really need to follow up that curiosity with an action plan that will help them feel more secure,” said Katie Libbe, vice president of Consumer Insights for Allianz Life.