Women and Finances: What Utahns Need to Know

Setting the Stage

Throughout much of history, women have been seen as an extension of their male relatives when it comes to finances; American women were not allowed to own property in their names until the mid-1800s, overt pay discrimination was legal until 1963, and women could not access credit on their own until 1974. Hence, it is only in the last half century or so that women in the US have been able to participate fully in the financial matters that affect their everyday lives. This holds true in Utah as well, yet Utah women’s lives in the 21st century look dramatically different from their lives in years past; there has been a marked increase in labor force participation and a decrease in the marriage rate. This means that now, more than ever before, Utah women need to be financially literate and prepared to be financially independent.

This research snapshot focuses on three broad stages within women’s lives and various financial considerations they encounter during those years:

1. Childhood and adolescence (family attitudes and behaviors surrounding money, financial education, first jobs, and planning for college)
2. Young adult years through adulthood (student loans and other debt, workforce participation and income, and home ownership)
3. Retirement and senior years (saving and investing habits, marital status/living situation, and financial challenges, including poverty)

Childhood and Adolescence

While the family setting is perhaps the primary source of financial awareness, attitudes, and behaviors, schools are also becoming important venues for financial education. Utah has taken the lead in state-mandated financial curricula, as the first state to require a financial literacy course for all high school graduates, and the only state to receive an “A+” grade from a national organization committed to improving high school financial literacy (four other states received an “A”). This course is a positive step in supporting financial literacy statewide.

Young Adult - Adulthood

As young adult women transition from college to their next life stage, there are a number of financial matters to manage, not the least of which is how to repay student debt they may have accrued. In the US overall, while women are earning 57% of bachelor’s degrees awarded, they hold an outsized portion of the nation’s total outstanding student debt—almost two-thirds. The discrepancy is attributed to various factors; one recent study indicates that millennial women are much more likely than men to report not understanding financing options when applying to college (35% vs. 11%).

Retirement and Senior Years

As women near retirement, their ability to remain financially viable throughout their remaining years becomes a critical issue. As US women face a gender wage gap, are more likely to work part-time, and experience more career breaks, their lifelong earnings are much lower than men’s, leaving most women with a “gender wealth gap,” (lower overall net worth than men). Yet women have a longer life span than men do, hence their retirement savings need to last longer. Many women keep the majority of their savings in cash (as much as 70%), which lacks the potential to grow as much as other types of investments (stocks) can, and this “gender investment gap” can leave women with a shortfall of funds to support their longer lives.

Conclusion

As evidenced throughout this report, there are myriad financial issues and competencies women need to manage and master throughout their lifetimes, yet research shows that many women either dislike or fear talking about money. It is important to reduce taboos surrounding financial conversations, as women’s quality of life, overall health, and even their physical safety can be enhanced by their knowledge and ability to be financially independent. Hence, it is critical for all stakeholders, including individuals, families, churches, schools, nonprofits, and government agencies to do more to enable women’s lifelong financial literacy and empowerment. By so doing we will not only strengthen the impact of Utah women, but also our neighborhoods, communities, and the state as a whole.

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