Who Run the Financial World? Girls! How They’re Shaping the Future and Why You Should Take Note

A question I’ve been asked many times during my career is why I focus solely on women. Don’t get me wrong, men are great, and I definitely have male clients sprinkled into the mix, but there’s a reason I prefer to work with women. Actually, there are two reasons. The first and more personal answer is that I can relate, right? I know what it’s like to be a working mom (single and not single). I understand moms that work 8-9 hours, go home and work for their families for another 5-7 hours before they go to sleep, wake up, and rinse and repeat. I also know what it’s like to try to grow a business as a female entrepreneur, and I know what it’s like to work for the man…in a skirt. I have shown up to jobs only to be treated as less than because of my gender. I know the joys and struggles with all these things because I’ve done it, or I am currently doing it. If I can take one thing off the plate of another woman like me, I want to do it. I want to make her life easier. I want to help.

The second reason lies in the data. The truth is, we should all be marketing towards women to some extent. There has been a significant shift in finances in recent years. Back in 2012 only 42% of women engaged in spending and investing decisions in their home. Today, it’s up to 90%. That’s a dramatic difference in 10 years. The rising economic power of women in our country stands as one of the most remarkable financial shifts in recent decades. Women are not only generating but also managing an increasing amount of wealth in the United States, signaling a transformational change in the financial landscape.

Currently, women exercise control over more than $10 trillion – that’s almost 33% of total U.S. household financial assets. Astonishingly, within the next three to five years, an unprecedented wealth transfer will place a staggering $30 trillion into the hands of U.S. women by the end of the decade. This transfer is primarily due to women inheriting assets as men pass away since women tend to outlive men. As women gain more control over finances and make more financial decisions, they are challenging the status quo and forging new paths.

For example, as women continue to make more financial decisions for their households, an increasing number are becoming involved in investing. Notably, women are leading the charge in environmental, social, and corporate governance (ESG) investing. They demonstrate a higher interest in ESG investing compared to men, with a significant 53% currently engaged in this type of investment, according to Fortune magazine.

With women making financial choices that have far-reaching societal and environmental impacts, both small businesses and major corporations must step up to support social issues such as climate change, racial and gender equality, and social justice. According to a McKinsey & Co. report, businesses that prepare for the transition of wealth to women could experience four times faster revenue growth. Understanding the unique needs, preferences, and behaviors of women in managing their finances will be essential for businesses to thrive in this evolving landscape.

If you are a brand-name consumer products company or in the services industry, it is vital to recognize that women will be the driving force behind the majority of these decisions in the years to come. Attracting and retaining female customers will be critical for growth and success. To thrive, businesses of all types must truly understand the needs, preferences, and behaviors of women when it comes to spending and managing their money.

Momentous shifts are occurring within households, reshaping the way money decisions are made. This transformative change, unfolding over the next 10 years, will redefine our perspectives on money, with women at the forefront, shaping the future of the United States through their financial choices. And as wealth transitions to women, it is vital for businesses to adapt and commit to better meet the needs of female clients and consumers. By recognizing and embracing the economic power of women, companies can position themselves for long-term success while contributing to a more equitable and prosperous future for all.

So again, why do I focus on financial planning and advising for women? As the great Beyonce once said, “Who run the world? Girls.” I just want to be a cog in the wheel to help facilitate it. 😊 If you know a female entrepreneur or a working mom that could use financial help and would like to work with someone who can empathize and understand her situation, please feel free to reach out to me – Jennifer.jenkins@bluestonewp.com.

_{The opinions voiced are for general information only and are not intended to provide specific advice or recommendations for any individual.} 

_{Environmental Social Governance (ESG) investing has certain risks based on the fact that the criteria excludes securities of certain issuers for non-financial reasons and, therefore, investors may forgo some market opportunities and the universe of investments available will be smaller}