Women and wealth: A look at generational differences

Before the pandemic, women were outpacing men in earning college degrees,¹ and made up nearly 47% of the labor force.² Yet these past couple of years have created new pressures for women, many of whom left the workforce to care for children or elders. Women lost jobs at a higher rate than men, especially young women.³ And college enrollment – among all genders – has dropped by more than a million students in the U.S.⁴

While future studies may reveal the long-term effects of the pandemic on women’s careers and finances, the U.S. Bank Women and Wealth Insights Study, conducted August to September 2021, found much to feel positive about among younger generations, including high levels of confidence in managing finances.

Confidence is growing – especially among younger generations

Women across generations report feeling more confident in their ability to manage their family’s finances than in the prior year’s study, with a remarkable 71% of Gen Z and millennial women expressing confidence. 

These younger women are also overwhelmingly in charge of managing their family’s finances – a big change compared to boomer women.

Part of what’s driving younger women’s confidence is the amount of financial education they’ve been exposed to. About half (51%) of Gen Z and millennial women began learning about finances in their 20s, in comparison to 27% of Gen X and 18% of boomer women.

Perceptions of women and wealth by generation

Gen Z and millennial women’s confidence exists even though many haven’t saved enough to cover their short-term expenses in the event of a job loss or other unexpected situation. Only 50% have saved enough to cover 3–6 months’ worth of expenses, compared to 80% of Gen X women and 84% of boomer women. 

Despite this lack of emergency savings, Gen Z and millennial individuals consider themselves wealthy at a higher rate than older generations.

Gen Xers worry most about retirement

Notably, Gen X women feel the least confident in their ability to afford retirement and identify this as their greatest fear in relation to achieving wealth goals. 

That Gen X women have less confidence about retirement is due, in part, to the high levels of debt they’ve faced, including student loans, mortgages and credit cards.⁶ Gen Xers have also taken on significant caregiving responsibilities – often while balancing careers. Often referred to as the “sandwich generation,” many of these women have cared for children and aging parents at the same time.

Generations reacted differently to pandemic savings

While Gen X and boomer women are less inclined to change their financial habits because of the pandemic, women from younger generations report that it has made them more likely to save more money in the future. 

Younger generations embrace digital tools

Gen Z and millennial women are significantly more digitally engaged when it comes to finances. These women’s use of personal finance or budgeting apps is nearly on par with their male counterparts. 

Learn more about this year’s findings.