But they still fall behind in saving, investing
Young women aged 16-25 have more ‘financial grit’ than their male counterparts according to a new study.
Investment firm Charles Schwab surveyed 2,000 young adults and found that women are more driven to achieve financial independence than men of the same age, are more willing to take on extra work to that end, and more likely to see the benefits of planning to achieve their financial goals.
Despite all that, the survey found that young women are saving and investing less than young men, therefore starting the financial gender gap at an early age.
“The young women we surveyed show greater awareness and loftier financial goals overall, but parents clearly have more work to do in order to teach their kids positive financial habits early,” said Carrie Schwab-Pomerantz, President, Charles Schwab Foundation, and Senior Vice President, Charles Schwab & Co., Inc. “It’s important to expose them to the right money management skills early on.”
Awareness is strong
Young women know what they need to do to become financially independent.
Three quarters say putting together a financial plan is key and almost half cite paying off student debt as a goal. 4 in 10 aim to pay off credit card debt.
Almost three quarters said they will hold off buying something they wanted to save money, compared to 56% of men.
But While the women surveyed report spending 36% less than men, they have far less savings ($1,267 vs. $2,000) – a nearly 60% difference.
And while most respondents don’t have investment accounts at all, men are twice as likely to have an account and twice as likely to invest spare cash.
“Despite their good intentions, young women start to fall behind their male counterparts in savings and investing early on in life,” added Schwab-Pomerantz. “They start off showing a strong financial planning mindset, but there is still room for further education when it comes to managing their day-to-day finances.”
