Principal Foundation: Young Women More Anxious, Less Confident Discussing Money Than Men

A national survey from the Principal Financial Group Foundation revealed a significant gender gap in how young Americans talk about and engage with money—one that may have long-term implications for financial well-being and economic participation. The study, which surveyed 3,000 Generation Z and Millennial adults in August, found that women reported markedly higher levels of anxiety and lower confidence than men when discussing personal finances.

Only 38% of surveyed Gen Z and Millennial women said they feel confident talking about money, compared with 56% of men. Nearly half (44%) of women said financial conversations make them anxious, and 45% reported avoiding money talk altogether for fear of being judged, whether for spending habits or income. In contrast, just 33% of men expressed similar concerns.

Similar reporting in a study released in March by digital banking platform Laurel Road found that 65% of women surveyed ranked personal finances as a top source of stress and anxiety. Nevertheless, fewer than one in five reported seeking professional financial counsel through an adviser. In fact, 44% of women told Laurel Road they relied on personal networks to discuss finances, with Generation Z (50%) and Millennial (47%) respondents, in particular, leaning on people close to them.

Widening Gaps in Access, Knowledge

The Principal Foundation survey findings shed new light on how deeply personal—and often fraught—money conversations can be, particularly for women. It comes at a critical moment: According to the U.S. Bureau of Labor Statistics, more than 100,000 women aged 20 or older left the workforce between May and June, even as 160,000 men entered it.

According to the Care Board’s Labor Force Participation Tracker, mothers experienced this year the sharpest January-to-June employment decline in more than 40 years of data, with labor force participation falling 2.8 percentage points in six months. These departures may further limit access to employer-sponsored financial tools and retirement planning resources, exacerbating existing gaps in knowledge and confidence.

According to Principal Foundation survey data, women were less likely to be aware of financial products. For example, nearly 20% of Gen Z and Millennial women said they did not know what a private investment account is, compared with just 10% of men. Meanwhile, both men and women cited income as a major barrier to long-term saving, with 39% saying they did not have a 401(k) or individual retirement account because they thought they did not make enough to contribute.

The survey also highlighted the lasting impact of early financial exposure. Among men, 53% said their budgeting skills stem from habits learned in childhood, but only 44% of women said the same.

“These insights reinforce the need for more open conversations about money and better access to financial tools,” said Jo Christine Miles, the Principal Financial Group’s director of the Principal Foundation and of community relations. “People develop narratives around money based on their lived and family experiences, and we need to create spaces—both social and structural—where women can feel empowered to explore those experiences and use them to build financial security.”