Journal of Financial Planning: April 2025
Barbara Kay, LPC, RCC, TIPC, is a business psychology and productivity coach specializing in growth, productivity, teams, client relationships, behavioral finance, communication, change, and leadership. She serves financial services leaders, teams, and professionals nationwide. Barbara is the author of numerous articles and two books, Top Performer’s Guide to Change and The $14 Trillion.
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Half the population is waiting for your help. Which half? The 51 percent of college-educated women in the workforce who are among the nation’s top earners. Women are 60 percent of the pharmacists, 40 percent of all doctors and lawyers, and 30 percent of all C-suite executives. In addition, 45 percent of married women earn equal or more than their husbands (Schaeffer 2024). In contrast to Gen X women, wives under 40 are likely to be the primary financial decision-maker, highlighting just how much has shifted in one generation.
Unfortunately, the financial services arena is behind the rest of the marketplace. Women are only 18.5 percent of financial advisers (Garmhausen 2024), and only 18 percent of advisory firm owners. Notably, this is a decrease from 2013, when 25 percent of advisory firm owners were women (Greenberg 2023). I’ve been researching women in financial services for 15 years, and the industry has not changed much.
What has changed is the increasing financial power of women and their decreasing tolerance for the old ways of working with them. The 2024 Advisor Advancement Institute (AAI) study found that satisfaction with financial professionals has dropped significantly since 2019. Today, roughly half of women feel patronized and treated differently from male clients. Forty percent feel that advisers don’t listen to them and push them out of the conversation. The level of dissatisfaction rose among women of all ages, married, single, divorced, or widowed. One investor noted, “I didn’t like how I was talked down to; when I asked questions, I didn’t feel like I got a straight answer.”
There is no doubt the market shift looming 15 years ago has arrived. The breadwinning women financial decision-makers are running the show, and they’re taking over the marketplace. There is huge opportunity for financial professionals to grow their client base and serve women well. The key is to focus on building relationships as women do. It’s straightforward, but differs from how many men form connections.
Be a Partner
Women tend to be collaborative. They want to understand what is happening and feel like an equal partner. That doesn’t mean they’re overconfident or overbearing. In fact, women’s investment confidence has dropped as their dissatisfaction with advisers has risen. In 2019, 65 percent of married breadwinners felt confident; now only 24 percent feel confident (AAI 2024). Single women’s confidence dropped more dramatically. Today only 11 percent of single breadwinners feel confident, compared to 55 percent in 2019.
I believe these statistics are directly related. Women know they need professional help, but they don’t like the way advisers are doing it. One woman noted, “In the past, it seemed my financial adviser did whatever he wanted and ignored my wishes, needs, and goals. He made decisions based on what he thought was right and did not engage in a conversation with me” (AAI 2024).
Ask and Listen
The traditional authoritative approach does not work with women. Rather than inspiring confidence in the adviser’s expertise, it leaves women feeling ignored and patronized. A better way to engage women is to start a conversation with open-ended questions, then listen intently. For example, you might ask a female prospect:
- What prompted you to seek advice?
- What’s important for you?
- What would you like to know more about?
- What are you looking for in your relationship with a financial professional?
- How can I best help you feel informed and confident?
Then after listening intently, summarize what you heard, and ask if you understood. This active listening technique quickly builds trust. It also opens the prospect to listen to you since you have listened to her. The fastest and most effective way to engage women is to ask, listen, and reflect back their interests.
Expect a Different Conversation Style
In addition, be prepared for a different conversational style. Women view money as a tool, not an end in itself. As a result, they’re more likely to tell a story about life desires than ask about returns. For example, one investor noted, “I want my financial adviser to know my life story. It’s crucial to not look at me as a sum of money, where they simply tell me where my money should go” (AAI 2024).
This approach is typical when women purchase any product or service. I’ll use myself as an example. Like many women, I’ve been the chief purchasing agent for my family, including the cars. When I talk to a dealer, they typically try to impress me with the size of the engine, the fancy electronics, or the snazzy tires. I frankly don’t care. I want the car to work for my life. I want a car that is comfortable, has enough trunk space, and will seat my family. The wise car dealer eschews the engine talk and asks about my functional needs, then immediately shows me how the car will work for me, in my life.
I tell this story for a reason. Women want a product or professional service to enhance their life and benefit their loved ones. They communicate this by telling you a story. It’s not just small talk. Advisers may be tempted to push past the story to get to the real purpose of the conversation, the finances. But the story is how women communicate their financial needs. Dismissing the importance of their life story is a major reason women feel patronized and pushed out of the conversation. Instead of focusing on just the money, ask broad questions, like:
- What is the bigger purpose for all your savings, investments, and financial planning?
- What does financial success look like for you?
- What are your hopes?
- What keeps you up at night?
- What is the impact you want from our work together?
Once you invite the story, sit back and listen to the financial message that is revealed within it. Women continue to be the last one standing (Mather and Scommegna 2024 ) and are often the primary caretaker of family members (Rogin et al. 2024). When you hear stories about loved ones, you’re hearing the realities of their current and future financial needs. They know that their financial success will impact their ability to raise a family, care for aging parents, and have enough resources as they age alone. The story is the list of their financial goals.
The good news for advisers is that women need and want your help. Women are much more likely than men to be intimidated by investing and stressed about money. Even more, 87 percent of women rely on financial advisers for financial information (AAI 2024), with 73 percent rejecting a robo-adviser (Cutts 2024). Moreover, as they’ve gained financial power, they’ve become much more engaged in investing. Today, seven in 10 women have investments in the stock market, and 71 percent now believe that investing is the way to build generational wealth. Gen Z women are leaders in investing beyond their retirement accounts and regularly allocate income into their investments (Fidelity 2024). Women are waiting for your help and their interests are consistent. The sentiments women express now are the same they’ve expressed for the 15 years I’ve been studying women and financial services. The savvy advisers, leaders, and firms who meet these needs will achieve success.
Finally, the effort for women will elevate growth among all clients. A 2024 Morningstar study found that today all clients want a supportive relationship. In addition, poor communication is the primary firing offense, superseding concerns about investment returns (Labotka et al. 2024). Clients no longer seek an adviser just for financial tools. Instead, they seek an adviser for emotional and behavioral support. The skills that attract women are essential for all clients and will help you stand out in today’s competitive landscape.
References
AAI (Advisor Advancement Institute). 2024. Inspiring Women by Partnering in Their Financial Growth. New York Life Investments. www.newyorklifeinvestments.com/assets/documents/lit/women-and-investing/women-investing-research-report-2023.pdf.
Cutts, Amy Crews. 2024. “Empowering Middle-Income Women’s Financial Decisions: Navigating Confidence, Opportunity and Representation in the Financial Services Industry.” Primerica. www.primerica.com/public/White_Paper_Primerica_Financial_Security_Monitor_September_2024.pdf.
Fidelity. 2024, October 3. “New Research From Fidelity® Shows 71% of Women Own Investments in the Stock Market.” https://newsroom.fidelity.com/pressreleases/new-research-from-fidelity--shows-71--of-women-own-investments-in-the-stock-market/s/db3a5765-9b69-4e51-a315-66ecc51e0066.
Garmhausen, Steve. 2024, July 19. “The Top 100 Women Advisors for 2024: A Growing Force in Wealth Management.” Barron’s. www.barrons.com/articles/top-100-women-advisors-2024-a-growing-force-in-wealth-management-e8d6c9c3.
Greenberg, Gregg. 2023, November 6. “Behind the Business Case for More Female Advisors.” InvestmentNews. www.investmentnews.com/women-advisor-community/behind-the-business-case-for-more-female-advisors/245295.
Labotka, Danielle, Samantha Lamas, and Ryan O. Murphy. 2024. “Navigating the Client Lifecycle in Financial Advice.” Morningstar Research. https://assets.contentstack.io/v3/assets/blt4eb669caa7dc65b2/bltac802428916b9e73/6684376f534a9db378addba2/Navigating_the_Client_Lifecycle_in_Financial_Planning_2024.pdf.
Mather, Mark, and Paola Scommegna. 2024, January 9. “Fact Sheet: Aging in the United States.” PRB. www.prb.org/resources/fact-sheet-aging-in-the-united-states/#_edn16.
Rogin, Ali, Claire Mufson, and Satvi Sunkara. 2024, March 30. “As America’s Population Ages, Women Shoulder the Burden as Primary Caregivers.” PBS News. www.pbs.org/newshour/show/as-americas-population-ages-women-shoulder-the-burden-as-primary-caregivers.
Schaeffer, Katherine. 2024, February 27. “For Women’s History Month, a Look at Gender Gains—and Gaps—in the U.S.” Pew Research Center. www.pewresearch.org/short-reads/2024/02/27/for-womens-history-month-a-look-at-gender-gains-and-gaps-in-the-us/.