Women are setting their sights on future financial wellness and adopting frugal money habits to help them get there, according to research that Fidelity Investments released this week.
Forty-two percent of female participants in a survey reported that they have cut their spending on nonessential activities over the past year. Three-quarters of them said this was because of economic uncertainties.
In the year ahead, nearly half of these respondents said they are committed to saving more, and upward of a third plan to reduce or pay off their debt, with a majority confident they can do so.
“We’re seeing women prioritize long-term security over short-term gratification, and that level-headed approach to finance is so important in any economic environment,” Alex Roca, host of Women Talk Money at Fidelity Investments, said in a statement. “This generally aligns with what we’re hearing in client conversations as well — people want actionable plans that fit their personal goals and life stage. Taking simple, thoughtful steps today can make a significant impact in the future.”
The national online survey was conducted from Aug. 27 to Sept. 10 among 3,000 adults, equally divided by gender.
Women Prioritize Budgeting and Spending Cuts
The survey found that Generation Z women are especially focused on creating a budget. In contrast, Gen X and baby boomer women are more focused on reducing everyday expenses, including nonessential activities, as well as groceries and travel. Millennials show patterns similar to those of Gen Xers and boomers in most spending categories.
Economic uncertainty continues to be a factor influencing women’s decision-making across all generations. Some 80% of female respondents reported that they had taken financial action in the past year because of factors like inflation, tariff-related price increases and changing interest rates.
Even though many women in the survey prioritized building their savings this year, they fell behind male counterparts in setting aside emergency funds. Nearly a quarter of women said they have less than $1,000 saved for emergencies, and a fifth have no emergency fund at all, compared to just a tenth of men.
Women’s financial stresses reflect that, according to the survey. A third of the 81% who said their financial situation keeps them up at night put this down to worries about having to pay for an emergency.
Women Want Career Stability
Job consistency and security is a priority for many women who participated in the survey. Only 15% anticipated looking for a new position in the coming year. Among women who do plan to make a switch, these were the top reasons:
- More money — 54%
- Better benefits — 24%
- More meaningful work — 19%
- Feeling overworked — 16%
- More flexibility on hours worked — 14%
Although 56% of women said their current job meets most of their requirements or is their dream job, opportunities still exist to help women cultivate more meaningful careers.
Fewer than a third of women said they have an advocate/mentor in the workplace, compared with 44% of men. Similarly, less than half of women said their contributions at work are recognized and valued.
Inheritances Open Financial Possibilities
With the “great wealth transfer” on the horizon, many women see this possible influx of money as a potential game changer.
Among those who expect to receive an inheritance, 45% said they would not worry as much about how to pay their bills after they receive the money, and 41% said they would be able to think about changing careers, save less for retirement and possibly even retire earlier than previously thought.
Regardless of their inheritance expectations, two-thirds of women reported that they have a plan to reach their financial goals, although most have yet to take additional steps to plan for their needs later in life:
- 30% have created a will and/or estate plan
- 30% have documented their health care wishes
- 27% have assigned a health care power of attorney
- 24% have assigned a financial power of attorney
- 16% have planned for their future care needs
Although boomer women were likelier to say they have completed these tasks, more than half still have not assigned a health care or financial power of attorney, and only 21% have planned for future care needs.
On a more positive note, 75% of women in a relationship and living with their partner said they feel confident they could manage financial decisions if their partner were to die before them, rising to 87% among boomer women.
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