As a financial advisor with Ciccarelli Advisory Services, I’ve had the privilege of working with countless families to build and secure their financial futures. One of the most striking trends I’ve observed over the years is the increasing role women are playing in family financial planning. Whether managing day-to-day budgets, making investment decisions, or preparing for long-term financial security, women are taking the lead. This shift is not just a matter of preference - it reflects deeper societal and economic changes that have placed women in a more prominent financial decision-making role.
There are several key reasons why women are playing an increasingly dominant role in their families’ financial planning.
1. Greater Workforce Participation and Earnings
Over the last few decades, women have made significant strides in the workforce. Many women are earning more than ever before, with a growing number out-earning their spouses. As their financial contributions to the household increase, so does their influence over how money is managed, saved, and invested.
2. Longer Life Expectancy
On average, women live longer than men. This means they are more likely to be responsible for managing family wealth later in life, making estate planning and long-term financial security even more critical. Women who take an active role in financial planning early on are better prepared for the years when they may need to manage assets independently.
3. A Shift in Family Dynamics
Traditional gender roles in financial decision-making have evolved. While previous generations often saw men as the primary financial planners, today’s families take a more collaborative approach - or in many cases, women take the lead. Whether it’s due to personal interest, confidence in financial management, or a need to step up in the absence of a spouse or partner, more women are taking control.
4. A Focus on Security and Legacy
Women often prioritize financial security and long-term family stability. Studies suggest they tend to take a more risk-conscious approach to investing, focusing on steady, long-term growth rather than short-term gains. They also tend to be more proactive about ensuring their families are protected through proper insurance, retirement planning, and estate planning.
Beyond Managing Wealth - Women and Estate Planning
With higher earnings, longer life expectancy, evolving family roles, and a focus on security, women are increasingly leading financial decisions. Yet one critical area often overlooked is estate planning. Managing finances is essential, but ensuring wealth is preserved and passed down efficiently is just as important. Given their growing financial leadership, women should be at the forefront of these conversations to protect their family’s future and to hopefully avoid legal challenges, financial disputes, and emotional stress.
Women, in particular, should take an active role in:
· Creating and updating wills to ensure their estate is distributed as they intend.
· Establishing trusts to protect assets and provide for loved ones, especially minor children or dependents.
· Assigning powers of attorney to designate who will handle financial or medical decisions in the event of incapacity.
· Reviewing beneficiaries on retirement accounts and insurance policies to ensure they align with their current wishes.
Taking these steps doesn’t just provide peace of mind - it safeguards the financial future of the entire family.
I encourage women to take an active role in all aspects of financial planning, especially estate planning. Being proactive today can prevent challenges down the road and ensure a smooth transfer of wealth. By stepping into leadership roles, women are not only securing their own futures but also shaping a lasting financial legacy for generations to come. Their growing influence isn’t just a trend—it’s a transformation that will define family wealth management for future generations.