Right now, only 30% of Financial Advisors are women out of 300,000+ advisors in the United States, yet 60% of all working women are responsible for making major financial decisions at home.
More and more women are receiving a Bachelors degree and over a third of these women are earning their MBA, according to a recent Harvard Business School study. This educational accomplishment serves as the solid foundation for women to establish themselves as independent thinkers and prepares them for any career field they choose whether it’s a teacher, a Financial Advisor, or an entrepreneur.
Today, women continue to excel in the professional space receiving compensation and, more important, a feeling of independence. They have pride and the security of being able to support themselves and contribute to their family’s wealth. Even roles at home have shifted as many women now “hold the purse strings” and carefully oversee the family’s finances. Until about the mid-seventies, women could not even get a credit card or open a bank account without their husband co-signing! What we’re seeing now is more of a partnership and more communication between spouses when dealing with household finances with more than 60% of all working women responsible for making major financial decisions at home.
So why do we not see these financial skills at home translating into the working world? Isn’t this proof in itself that women even outside the professional financial world are making important rational financial decisions for both themselves and others?
As a Wellesley College grad myself, I would consider myself definitely among a generation of educated women determined to have a successful career as well as a family. Yet, is it that certain careers such as those in finance are more limiting for those women trying to juggle both family and work? If we take a look at the real estate industry for example, where women make up 50% of brokers/sales agents, it comes as no surprise that women in this field enjoy having the luxury of designing their own schedule, sometimes working nights and weekends. Their salary is all based on commission directly tied to their motivation and determination to succeed in their career which can be very rewarding for many. Similar to the real estate field, a career as a Financial Advisor may offer more work/life flexibility, which appeals to women balancing a career and family and also offers compensation directly tied to performance.
Given this shift in gaining higher levels of education, the financial world might be ready for a change with more women entering careers as Financial Advisors and managing investments for their clients --and not just the “clients” inside their home.