‘No wonder consumer confidence has been falling’: Women’s financial well-being sinks to five-year low, study finds

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Women’s financial well being took a success all over the pandemic, and regardless of a temporary rebound, it’s at the decline once more, leaving many ill-prepared for a conceivable recession.

That’s in accordance to a brand new measure of girls’s financial well-being from Ellevest, an making an investment platform geared toward girls.

Ellevest’s Women’s Financial Health Index discovered that girls’s financial well being has sunk to its lowest stage in 5 years and is underneath pre-pandemic ranges.

Women left their jobs in record numbers on the peak of the pandemic, both as a result of they have been much more likely to be in jobs that have been minimize or as a result of they’d to tackle kid care or different home tasks as daycare facilities and colleges closed. They regained a few of that misplaced floor because the exertions marketplace recovered “and access to paid family leave began to expand,” mentioned Kate Sullivan, Ellevest’s head information scientist, in a commentary saying the study effects.

But even so, a lady’s financial well being has been “driven further down as high inflation impacts her spending power and the overturning of Roe v. Wade clouds her economic future,” Sullivan mentioned. “No wonder consumer confidence has been falling, even as women return to the workforce.” 

To measure financial well-being, the study tracked 12 indicators, together with some that best not directly have an effect on how much cash a lady has in her checking account or retirement financial savings. They incorporated employment, inflation, consumer confidence, the gender pay hole, the space between girls’s and males’s student-loan debt, the collection of feminine CEOs in Fortune 500 corporations and get entry to to paid circle of relatives depart.

Read: ‘I had to give up my career, in a sense’: With a potential recession looming, many women are financially vulnerable

In a separate survey, Ellevest polled just about 2,500 U.S. adults on their emotions about cash and their spending behavior and located that two-thirds of girls mentioned they’d reduce on spending. 

But that survey additionally confirmed that many ladies are nonetheless making an investment in themselves: 75% of girls “who are actively investing for retirement say they’ve continued their contributions despite market volatility — that’s compared to just two-thirds of men,” the survey discovered.

“The retirement savings crisis is a gender crisis. It’s a woman’s crisis,” Ellevest founder Sallie Krawcheck mentioned at MarketWatch’s Best New Ideas in Money competition this week. “If we don’t have enough money as a country for retirement — 80% of women die single and … we live six to eight years longer than men do — we are the ones that tend to suffer.”

Read: Here’s why more millennials are getting prenups

Money is girls’s No. 1 stressor, the Ellevest survey discovered, with 59% of girls reporting that they concern about cash once or more per week. And whilst 30% of guys mentioned they felt financially keen for a recession, best 14% of girls felt the similar.

The Ellevest analysis echoes different contemporary research suggesting many women are in financially precarious positions. Women are much less most probably than males to pay all in their expenses on time, to document that their money owed are manageable or to have rainy-day financial savings tucked away, according to a survey from the nonprofit Financial Health Network.

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