Recognizing The Crucial Role Of Women In Family Finances

Jeff Green |

When working with affluent families, the significance of collaborative financial decision-making cannot be overstated. And as we commemorate Women's History Month, I want to pause to acknowledge the pivotal role women play in shaping the financial landscape of their families. Especially since they often get overlooked and underserved in the wealth management world.

Gone are the days when financial decisions rested solely on one individual's shoulders. Today, a collaborative approach is not only practical but also yields better outcomes. Research consistently indicates that involving women in financial planning discussions enhances the overall financial well-being of the family.

Both Men & Women Bring Distinct, Valuable Perspectives To The Table

Women bring a unique perspective to the table, considering various aspects of family life and future goals. I have found that the women whom we work with at Green Financial Group consistently bring valuable insights into specific areas like long-term planning, risk management and budgeting, which helps contribute to a more comprehensive financial strategy.

Women Tend To Be Big Picture-Focused, An Asset When Making Financial Plans

Collaborative financial decision-making between partners and spouses allows for a balanced consideration of both short-term and long-term objectives.

In my experience, I tend to see our women clients prioritize big picture items a bit more than their male counterparts. They tend to focus on family security, education and legacy planning, which can help provide a more holistic view that goes beyond immediate financial concerns.

This is incredibly valuable because preserving and growing wealth requires a strategic and forward-thinking mindset. Women, often the stewards of family wealth, play a crucial role in creating a legacy that spans generations. Their involvement helps ensure a thoughtful and sustainable approach to financial planning.

We Need To Support Our Women Clients To Feel More Financially Empowered

Although women generally feel confident being the CFO of their household, managing the day-to-day finances like balancing checkbooks, budgeting and making large purchases, studies show they are much less confident when it comes to long-term planning and investing (Source: Fidelity Investments). But we as financial advisors need to help provide better financial education and empowerment to our female clients to bridge this gap. According to that same Fidelity study, 64% of women would like to be more active in their finances, including investment decisions. So let’s give them the tools to do so.

In the spirit of Women's History Month, let us celebrate the collaborative spirit that enhances financial decision-making between both partners within a relationship. By embracing diverse perspectives and experiences, families can navigate the complex financial landscape with confidence.

As a financial advisor committed to serving high net worth individuals and families, I encourage you to recognize and leverage the invaluable contributions of the women in your financial journey. Together, let us build a legacy that stands the test of time through collaborative and strategic financial decision-making.