Survey: Women Are Confident Money Managers Who Crave Shame-Free Support

Investopedia & REAL SIMPLE research reveals how women are thinking about, talking about, and engaging with money.

As women are poised to inherit $30 billion of assets from older generations by 2030, a joint survey from Investopedia and REAL SIMPLE found this demographic needs more wealth-building guidance and shame-free support, even within friendships.

The 2024 Her Money Mindset Survey polled a representative sample of U.S. women to learn how women across generations and income levels are thinking about, talking about, and engaging with money. 

Key Takeaways

• On average, 63% of women’s income is directed to necessities and 64% of women have under $500 at the end of each month after their necessities are paid. 
• Only 39% of women are invested, and participation varies based on age, income level, and financial literacy.
• 1 in 5 women have helped someone cover a significant expense and are currently struggling to meet at least one expense of their own.
• While money talks between friends are fairly common, the level of detail shared (and how truthful those details are) varies.
• Overall, women are confident financial decision makers and want to learn about saving money and investing. 

“Too often, we’re discouraged from talking about money. We worry it might seem crass, impolite, or inappropriate. But experts agree that open conversations around our finances help normalize the topic, motivate us to save, and make complex situations less confusing,” said REAL SIMPLE Editor in Chief Lauren Iannotti. “Collaborating with Investopedia, we set out to uncover the barriers hindering women’s financial confidence because when we determine what’s holding us back, we can set a plan to move ahead.”

The study, which was conducted during a period of high inflation and ongoing economic uncertainty, found that even on a tight budget, women are generous, and actively seek out more information. They have more to learn—and talk about—but overall, women are resilient, confident money managers. 

Women Are Focused on Short-Term Finances

One thing that U.S. women have in common across generations and income levels is that the majority of monthly income (63%) is spent on necessities, including housing, transportation, healthcare, education, and child care. Another 20% goes to flexible spending, and approximately 17% helps fund their financial goals. 

Monthly bills are eating up a lot of dollars, too. The 2024 Her Money Mindset Survey found that 64% of women have just under $500 left each month after covering the necessities—$422 on average. Another 44% have less than $250 left each month. 

Overall, although most women are able to cover monthly expenses, 54% said they are currently struggling to cover at least one type of monthly expense. 

Most women surveyed (67%) carry some debt, too. Credit card debt is the most common, followed by mortgages and car loans. 

While stretching dollars, women are very aware of where their money is going, and have big short-term goals, too. More than ¾ of women (76%) keep an eye on where their money goes every month, while 72% are saving for short-term goals. 

In addition to covering bills and other necessities, the most common three-year financial goals include saving for retirement, buying a car, and paying (or paying down) credit card debt. 

Some Women Are Investing, But Mindset Varies 

The narrative surrounding women investors is often one of underrepresentation and hesitance, but that is not the whole story. Women’s investment behavior is nuanced, and The 2024 Her Money Mindset survey highlights the interplay of age, income, and financial literacy in how women see themselves as investors. 

Overall, 39% of women surveyed currently hold investments. When you break that down further, the rate of women investors is higher among those in Generation X or older (42% of which currently hold investments). Women who make more than $75,000 annually are also more invested (58%), and are more likely to hold multiple types of investments.

Retirement accounts, stocks, and mutual funds are the most common types of investments held. Cryptocurrency is more popular among women who are millennials or younger, too.  

Important

51% of invested women are proud of an investment decision they have made. 

The survey asked women to share more about their investing decisions, and four main themes emerged from the anonymous responses: Women take pride in seeking professional help from financial advisors, teaching themselves about investing, discussing their strategies, and detailing the habits they have developed along the way. 

For example, one Gen X survey respondent said: 

“I am most proud of myself for investing part of my savings into the stock market and learning about everyday trends within the market.” 

What’s Holding Some Women Back?

Despite positive investing sentiment, knowledge gaps are hindering some women from investing—or even just thinking of themselves as investors. 

For example, a little over half of the women told Investopedia & REAL SIMPLE that they are not invested (53%), but 10% of those respondents went on to say they have a retirement account, such as a 401(k) or IRA. 

The reality is, if you hold such an account, you are in fact invested. 

Why aren’t more women investing? The most common reason reported was that women don’t feel like they have enough money to invest. Perhaps unsurprisingly, women with lower household incomes are more likely to cite this reason.  

Another reality? You don’t need thousands of extra dollars to start investing.

“Think about putting aside money to invest every month as another way you are actually paying yourself. Just like you wouldn’t work without getting paid, pay your future self—even if it’s just a little bit—every month,” said Investopedia Editor in Chief Caleb Silver. “Investing something as small as $50 a month can grow into tens of thousands of dollars by the time you retire. Start simple with index funds or ETFs, and watch your initial investments and their dividends compound over time.”

Aside from feeling like money may not spread far enough to pay bills and invest, fear and uncertainty impact women’s willingness to jump into investing with both feet: 29% of those who aren’t invested say it’s because they fear losing money, and 25% don’t know where to start. 

Women with higher household incomes are actually more likely to cite a lack of knowledge or a fear of losing money as their primary reason for not investing. 

There is curiosity, though: nearly 1 in 4 women say they want to learn more about investing. 

Women Are Financially Generous, Despite Own Struggles

Most women surveyed (67%) have acted as a financial supporter for someone in their life. That rate jumps to 73% for younger women, too.  

This level of generosity extends to smaller purchases, too. On an ordinary day, almost all women say they would pay for a friend’s meal, which has an average cost of $24. 

For many, generosity is not dependent on a woman’s financial well-being, either: 1 in 5 women said they have at one point helped someone cover a significant expense and are also currently struggling to cover housing expenses. 

If they need financial help themselves, women are actually more likely to have asked a friend for a loan before asking a significant other or family member. 

Money Conversations Are Complicated

When it comes to communicating about money, women have ambivalent feelings. The 2024 Her Money Mindset survey found that while there is often some degree of money talks happening between friends, the level of detail shared—and how truthful those details are—are a mixed bag. 

Overall, 70% of women say that they sometimes talk to their friends about money. Younger women (millennials and generation z) tend to be more comfortable talking about money matters with friends and those with household incomes above $75,000 are most likely to broach these topics with their friends.

The women we surveyed told us that talking about money with friends can lead to bonding, and a greater support system. Among those who talk to their friends about money, budgeting and planning for the future are the most common money conversation topics, and 1 in 3 have also discussed investing decisions with their friends. 

However, while the women we surveyed told us that talking about money with friends can lead to bonding and more support, sharing details is rare. Half (51%) of women who talk to their friends about money say they share very little about their own financial situation. 

Note

Fewer than 1 in 4 women who talk with their friends about money have shared with their friends how much money they make. 

Of those who will not discuss money with friends, most (54%) say it is because they feel it is not appropriate. This response is more common among women who are Gen X or older, while younger generations are more likely to avoid talking about money because it’s too awkward. 

Income differences and financial financial situations play the biggest role in women avoiding money conversations with friends. Fear of judgment and shame are common, especially among women with household incomes below $75,000 a year, and those in different financial situations than their peers. In some cases, these feelings result in lies or omissions. 

Here’s what some Her Money Mindset survey respondents across generations told us anonymously when asked to share a time they lied about money:

“I was embarrassed to share how much debt I had or how little I had in my bank account, so I lied.” -Gen Z woman (18-26 years old)

“I felt ashamed that I couldn’t pay off my student loan and credit card debt compared to some of my friends. The financial burden of helping out my parents (sharing expenses under the same roof) seemed to be the differentiator, since many of my friends had younger parents who were working and supporting them.” -Millennial woman (27-42 years old)

“I was asked by a friend if I had any debt and I said no even though I have medical debt. I was embarrassed.” -Millennial woman (27-42 years old)

“I didn’t want to let on how difficult of a financial situation we were in when both me and my husband were laid off around the same time so downplayed it and said we had enough in savings to live on, which was untrue.” -Woman age 59 or older

Overall, Women Are Confident Financial Decision Makers

Tight budgets, knowledge gaps, and uncomfortable conversations aside, the 2024 Her Money Mindset survey found that women are taking charge of their finances. 

More than half of all women (58%) told Investopedia and REAL SIMPLE that they feel somewhat or very confident in their ability to make good financial decisions, and that confidence increases with age and income.

Important

The 2024 Her Money Mindset Survey found 66% of women have made at least one financial decision they’re super proud of.

When comparing their financial know-how to friends and partners, 40% of women feel confirmed they know more than their friends, and 36% feel they know more than their partner and are able to make more responsible decisions. 

Ahead of a great wealth transfer that will put more wealth in women’s hands than ever before, women are directing this confidence into action and leading, or in some cases owning, financial decision-making for their household.

Our survey found 60% of all women make decisions about their finances independently, and the other 40% share financial decision-making with someone else. Half of the women surveyed are married or living with a significant other, and in that citation, women said they are talking about money with their partner, sharing finances, and sharing responsibilities, despite often earning less than their partner. 

Women are taking an active role in learning more about managing finances, too: 39% of women said they look for financial information at least monthly. That rate is even higher for millennials and younger women (48%). The preferred sources of education? Financial information websites, online searches, and talking to friends and family. 

Methodology

For the 2024 Her Money Mindset Survey, REAL SIMPLE and Investopedia surveyed 2,002 American women (aged 18+) from January 9th to 22nd, 2024. The survey was fielded online via a self-administered questionnaire to an opt-in panel of respondents from a market research vendor. 

Quotas were implemented in sampling using benchmarks from American Community Survey (ACS) from the U.S. Census Bureau for region, age groups, race/ethnicity, and household income. Respondents must have reported at least partially managing their own finances in order to qualify.

Read the original article on Investopedia.