When it comes to managing and making moolah,millennial women are ahead of the generational curve,a new survey shows.But the annualBlackRock Global Investor Pulse surveyalso shows they have a long way to go to close the gap with men their age and to truly grow their wealth.
According to the survey,Generation Y women prioritize growing their wealth almost as much as millennial men,but they lag behind in when it comes to—excuse the pun—putting their money where their mouths are.For example,53 percent of millennial women have startedsaving for retirementcompared with 71 percent of millennial men.And while these women report feeling more knowledgeable about investing their money than any other generation,that knowledge is only slightly better—with 30 percent of millennial women saying they feel knowledgeable about investing compared with 25 percent of baby-boomer women.
Because millennial women are not as engaged with investing as millennial men,they're also worried about their financial futures.Just 44 percent of young women think they'll achieve their retirement goals,compared with 70 percent of young men.And just 31 percent of millennial women don'tstress about their finances—while 53 percent of millennial men think money isn't an issue.
This particular gender gap could be because of how parents teach their children about money,the survey speculates."Young boys are more likely to learn about investing in financial markets than girls," the survey says,while "millennial women who learned financial responsibility from their parents were more likely to engage in and enjoy investing."
There is really good news,though: young women are more committed topaying down their debtsthan men,with 57 percent of women naming this as their top priority compared with just 40 percent of men—and just 40 percent of baby-boomer women.
This generation's female faction also is focused on reining in its spending,with 54 percent of millennial women saying they avoid overspending compared with just 40 percent of men.These women—31 percent of them—also regularly review their interest rates on their debts to see if they can get a better deal.
The survey concludes that "as women take an increasingly active role in managing finances,it is essential for young investors to understand the habits of engaged and effective investors." And one easy way they can do that,the survey says,is to set up a direct deposit into your company's 401(k)—taking advantage of any company match—or into an IRA you set up yourself.