Young Women Have Lofty Goals for Reaching Financial Independence
However, they have less saved than young men, and twice as many young men as women reported having investment accounts, according to a Schwab survey.
In a survey of young adults between the ages of 16 and 25, Schwab learned that 67% of the young women are driven to reach financial independence, versus only 58% of the young men.
Seventy-six percent of the young women said they see value in creating a financial plan to reach their goals. By comparison, only 64% of the young men said the same.
Almost half of the young women (49% versus 39% of the men) have a goal of paying off student loans, and 41% of the young women, compared to 32% of the young men, have a goal of paying off their credit card debt.
While the women said they spend 36% less than men, they have only an average of $1,267 saved, versus $2,000 among the men. In addition, twice as many young men as women said they would invest spare cash, and almost twice as many young men as women reported having investment accounts. Further, women were slightly more likely to carry a credit card balance, miss a bill payment and ask their parents for money to cover necessities.
“Despite their good intentions, young women start to fall behind their male counterparts in savings and investing early in life. There is still room for further education, when it comes to managing their day-to-day finances,” says Carrie Schwab-Pomerantz, president of the Charles Schwab Foundation and senior vice president at Charles Schwab & Co., Inc.
Logica Research conducted the online survey among 2,000 young people for Schwab in June.