Millennial and Gen Z women feel unprepared and lack confidence
March 27, 2019 — NEW YORK–(BUSINESS WIRE)–E*TRADE Financial Corporation (NASDAQ:ETFC) today announced insights from its signature event focused on female investing trends. The event featured a panel of industry experts discussing recent trends pulled from E*TRADE’s quarterly tracking study:
Young women feel underprepared
More than 75% of young women (76%) say that despite their current income and savings they feel they could be doing better—compared to 69% of the total population.
Social media magnifies their lack of confidence
Almost seven out of 10 young women (69%) say images of exaggerated wealth on social media and television make them feel less successful, compared to 47% of the total population.
Financial jargon is a critical barrier
Three out of five young women (60%) say financial jargon hinders their ability to understand how to invest on their own, compared to 51% of the total population.
Financial worry compromises their health and relationships
More than half of young women say worrying about finances negatively affects their relationships (57%) and their health (51%), compared to 41% and 40% of the total population, respectively.
They’ll tap into retirement savings to alleviate financial pressure
Almost 60% of young women (59%) said they have taken an early withdrawal from their retirement account, compared to only 38% of the total population.
Women & Investing
The Women & Investing event featured thought leaders from Matthews Asia, Virtu Financial, Dress for Success, and E*TRADE, and was moderated by Bloomberg News. More than 120 attendees from across the industry attended the panel at E*TRADE’s Manhattan headquarters to learn about female investing trends and solutions to help young women meet their financial goals.
“It’s important for female investors to take the emotion out of investing, create a long-term investment plan, and really stick with it,” said Teresa Kong, Portfolio Manager at Matthews Asia. “A critical question to ask when crafting that plan is, ‘How much am I willing to lose?’ Is it five percent, ten percent? It’s not the upside, it’s really about knowing the downside—and that is actually what your risk tolerance is. Investors should understand their level of comfortability with this question, which will ultimately help identify their asset allocation.”
“One of the biggest takeaways from the panel was how we can help young women eliminate the taboo of talking about money,” said Mary Ryan, Senior Equity Options Strategist at E*TRADE Financial Corporation. “We can start by discussing finances with children and teens and then continue that education through adulthood. Financial services firms like us, that lead with a digital experience, can also help do our part by offering a variety of educational tools for investors regardless of their experience level.”
|Please rate how much you agree or disagree with the following statements: (% = Top 2 Box)||TOTAL||WOMEN|
|Despite my current income and savings, I feel I could be doing better.||69%||76%|
|Financial jargon is a hindrance to my ability to understand how to invest on my own.||51%||60%|
|Images of exaggerated wealth seen on social media and television makes me feel less successful.||47%||69%|
|Worrying about finances negatively affects my relationships.||41%||57%|
|Worrying about finances negatively affects my health.||40%||51%|
Have you ever taken out money from an IRA or 401(k) before the age of 59.5? (% = yes)
“Gen Z” defined as age 18–24 // “Millennial” defined as age 25–30
E*TRADE aims to enhance the financial independence of traders and investors through a powerful digital offering and professional guidance. To learn more about E*TRADE trading and investing platforms and tools, visit etrade.com.
For useful trading and investing insights from E*TRADE, follow the company on Twitter, @ETRADE.
Bloomberg, Dress for Success, Matthews Asia, and Virtu Financial and separate and unaffiliated companies from E*TRADE Financial and its affiliates (“E*TRADE”).
E*TRADE Financial and its subsidiaries provide financial services including brokerage and banking products and services to retail customers. Securities products and services are offered by E*TRADE Securities LLC (Member FINRA/SIPC). Commodity futures and options on futures products and services are offered by E*TRADE Futures LLC (Member NFA). Managed Account Solutions are offered through E*TRADE Capital Management, LLC, a Registered Investment Adviser. Bank products and services are offered by E*TRADE Bank, and RIA custody solutions are offered by E*TRADE Savings Bank, both of which are national federal savings banks (Members FDIC). More information is available at www.etrade.com. ETFC-G
E*TRADE Financial, E*TRADE, and the E*TRADE logo are trademarks or registered trademarks of E*TRADE Financial Corporation.