The Growing Power of Women in Wealth: Why Inclusion Must Start Early
- 3 days ago
- 3 min read
By Nancy Conte
VP at Strata Alliance, a New York-based Family Office
In my work with high-net-worth families navigating complex finances, the most perceptive voice in the room is often the one who was last invited to it. Many of our clients own multi-generational family businesses, and I’ve seen an increase in the number of women taking leadership roles within these businesses that were historically male led. When it comes to managing the family finances, I don’t think it will surprise anyone that women often have a better handle on expenses and cashflow needs to keep things running smoothly.
I’m fortunate enough to work with a number of women in executive roles, both within my organization and through external strategic partnerships.
One thing we all struggle with is caregiving economics. While the majority of my colleagues and my high-net-worth clients are privileged enough to be able to cover the expense of childcare, there is an emotional toll many of us pay resulting from societal pressure to balance family and professional responsibilities. I think there’s a perpetuating cycle that globally reduces women’s earning capacity as women spend on average 2.5 times as many hours per day on care and domestic tasks as men spend, reducing time for paid work, networking, and other professional development opportunities.
I’ve been pleased to see both spouses within the majority of our families actively participating in the financial planning process, with women taking a more active role in understanding the investment strategy and weighing in on areas such as risk tolerance. There is a lot of talk about The Great Wealth Transfer shifting assets from Baby Boomers to Gen X and Millennials, and it’s important to remember that before the generational transfer, the asset shift will occur between spouses, with women historically outliving men. At Strata Alliance, we believe it’s of vital importance for all of our clients, especially women, to be financially educated and informed so that their wealth can be protected, managed, and grown over generations.
In an industry laden with jargon, financial professionals have an obligation to improve the way information is communicated to clients, especially women who statistically score lower in financial literacy measures. Making financial concepts more accessible will allow female clients to feel more knowledgeable, confident, and engaged, which should be a priority for any finance professional looking to maintain long-term client relationships. Seeing more women enter high powered financial roles should also help spark interest in confidence to encourage women to participate in conversations that previously may have felt intimidating.
The solutions to inclusion don't require reinventing finance. They require including the people who've been left out of designing it.
Financial education should be introduced to women at earlier ages, with women encouraged to enter the field and carve a path for future generations.
Progress is already happening. Firms are actively hiring more women advisors, families are collectively engaging in financial planning conversations, and founders building products that actually reflect the financial realities of women's lives.
Women are deeply involved in financial decision making, as earners, inheritors, caregivers, and more. The best strategies are sometimes the simplest: women need to be involved from the early stages of financial conversations, stop treating financial literacy as a ‘nice to have’ skill, and see themselves as an essential piece of the infrastructure.
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