Financial Planning for Women

Over the past five years, the market has grown for financial advice directed specifically at women. Independent women are financial planners’ newest target.

But what makes women different? Elda Di Re, a partner in Ernst & Young’s Personal

Financial Services group says she thinks women, even if they work, often still imagine that a “white knight” with money will come and carry them away. In anticipation, “they worry about having the right kind of clothes, the right kind of shoes, the right handbag.” Women also live longer and are more likely to die alone, than men. And Ms. Di Re agrees with the idea that they find conventional financial planning advice unappealing.

Around 40% of the women who participated in a study released today by Allianz Life Insurance Company of North America said they found information on financial planning and investment either too complicated to understand or too boring to follow.

Solutions to this problem vary. Ms. Di Re says women should start paying more attention to their companies’ benefits. This goes for her own employees, too. “Every time I give out raises I ask: ‘Are you contributing to your 401(k)? Are you contributing as much as you can get matched?’ I am surprised by the answers.” She also recommends sitting down at least once a year and mapping out a balance sheet to figure out assets and liabilities, cash flow and net worth. Other financial planners have found women respond better to an entirely different format.

Ameriprise Financial tries to get women engaged by using fewer numbers and more emotional language. “It’s not just about finances,” says Elda Macias, director of market segment at Ameriprise. It’s about: “What do you want to do? What do you dream?” One tool Ameriprise uses is the “Dream Book,” a booklet given to women and couples containing questions like “If you could do anything, time and money aside, what would it be?”

“Men think about money like a river,” says Arika Larson, who runs a firm called Women Be Wise and helped Allianz with its focus on women. “It’s always flowing in their mind. Sometimes it’s just a trickle but they know the rains are going to come.” By contrast, Ms. Larson says, “Women think about money more like a lake. This is what I’ve got, this is how much I’ve got and if I give you some I’ll have less.”


**I've read finance books and I do not agree that women think some prince is coming to save them. Women think and feel differently about money in general. One big reason for women is that t scares some - all of the numbers/math/definitions of funds. They are worrying about other things like their kids & school. They will gladly give the finances over to a Husband if they can. However, some are completely different and have a firm grasp on finance. Suze Orman is one of the money masters and she says NO MATTER WHAT, if you have a husband who is a millionaire....the woman in the house should know exactly what the family finances are from the mortgage to the light bill. It is NOT OK to be in the dark about these type of things. I agree with Suze on that one for sure. ***