A new study has found that younger wealthy women are taking on a big role in terms of family financial planning. Among younger women recently surveyed, nearly 72% said that they were the primary financial planning decision makers in their individual households. That’s a result of a study conducted by the Economist Intelligence Unit.
They looked at perceptions around wealth by speaking with more than 1,000 individuals who had at least a million dollars in investments. Those respondents were sorted into three specific categories; baby boomer women, millennial women and men of all ages. Young women with money are far more idealistic and entrepreneurial than their mothers’ generation and they have more control of the family estate than ever before, according to the results of the study.
A number of different areas yielded clear differences of opinion. For example, younger women were most interested in directing their wealth to social causes, even if this meant minimizing their children’s inheritance. Approximately 22% of older women were more inclined to keep investment and charity decisions separate. Only 7% of younger women who responded to the study would say the same. They chose to invest based on their principles and younger women were more likely to bequeath some of their wealth to charities. This reflected a bigger sense of obligation to society as a whole. Younger women were more likely to claim ownership of making the financial decisions within their household in direct comparison to older women. Many of the women who were included in the study amassed wealth prior to meeting their spouses, which led many financial advisors to comment on the study to state that this seemed natural that those women will want to maintain some control over their finances. Approximately half of the time, older women self-identified as the key decision maker. However, they couldn’t name any particular area where they had more influence than their spouse. If you’re interested in estate planning, financial planning and retirement planning, you need the support of an attorney.