Survey: women’s money confidence will continue to surge in this decade

Jana Hlistova

Mar 03, 2024

Transcript

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Welcome to our #226 weekly newsletter.

“For women taking control of their financial future”

-Jana Hlistova

From The Purse

It’s good to be back!

In this week’s newsletter, we focus on a recent survey by Ellevest (US) which centres on women being the beneficiaries of ‘The Great Wealth Transfer’ in this decade.

In the UK, women will own the majority of private wealth by 2025-which is less than one year away.

And don’t forget to listen to The Purse Podcast interview with Chloe Lin. We talk about how to start investing and the secret of building a rich life.

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And you can review the news in brief so you stay on top of global financial, economic and investing trends.

I hope you enjoy this week’s newsletter.

Until next week,

Jana

Survey: women’s money confidence will continue to surge in this decade

According to a recent survey by Ellevest, the imminent transfer of wealth to women will not only make them more affluent, but women will become more confident about money.

This goes against outdated money myths and stereotypes which claim women lack money confidence and ‘find investing too risky’.

Crucially, women will continue to reshape our society in ways which reflect their values and goals.

What is the Great Wealth Transfer?

Baby boomers have built historically unmatched wealth. The good news is that women will be the primary beneficiaries as they outlive their partner, followed by Millennials and Gen Z.

By 2030, it is estimated that women will manage $30 trillion of private wealth, which is more than the GDP in America.

In the UK, women will own the majority of private wealth by 2025, which is now less than one year away.

And according to the Ellevest survey, women will experience a significant boost in their financial confidence.

Here is a summary of the key findings:

Receiving a financial windfall increases women’s confidence 1.8 times — from 45% reporting that they’re confident with money, to 81%.
And it means that they become more confident about their ability to manage their money than even men are (at 77%).
77% of women giving or receiving a financial windfall say they're comfortable talking about money with their families.
About 1/4 of women who have received or expect to receive a financial windfall say they're likely or very likely to leave their partner when or if they receive a financial windfall. That’s ~2x more than women who don’t expect to get a financial windfall.

What is interesting to note is that ‘more Gen Z and Millennial women stated that receiving a financial windfall would make them (or made them) feel “powerful” versus women from older generations’.

What next? (Re) listen to:

News in Brief

Financial news

“The Casino Crowd” is back across markets with soft echoes of 2021. Speculative stocks, crypto rise as retail traders embrace risk. Bearish investors get punished as most-shorted companies rally.
S&P 500 makes history. It has now advanced for 16 of the last 18 weeks. The last time that happened was in 1971, shortly before the end of the Bretton Woods system. Achieving 16 out of 18 positive weeks is also be a joint record since the index’s creation. (via DB)
Global debt surged by $15tn+ in 2023 reaching a new record high of $313tn. 55% of this rise originated from mature markets, mainly driven by US, France, & Germany. BUT global debt-to-GDP ratio saw a decline of ~2ppts to 330% in 2023, acc to IIF. This marked the third consecutive annual drop.
Eurozone CPI slowed less than anticipated in February, highlighting stickiness in inflation. Headline inflation eased to 2.6% YoY in Feb, above 2.5% consensus estimate in BBG survey.
Bonds are “safe”? Think again, they have also had large, extended drawdowns, UBS Yearbook shows.
UK interest rate cut ‘remains some way off’, says Bank of England chief economist. Huw Pill needs to see more compelling evidence that the underlying persistent component of UK CPI inflation is being squeezed.
UK house prices rise for first time in more than a year as mortgage costs drop. Average cost of a home increased to £260,420 in February, up by 1.2% on a year earlier, says Nationwide.
The UK stocks to watch ahead of Chancellor Hunt’s Spring Budget. Retail and leisure, homebuilders, NatWest shares in spotlight. And British ISA could boost demand for wider London stock market.
There is no better teacher than history in determining the future, Charlie Munger once said. If that is the case, investing is a no-brainer. Just put your money into an S&P 500 ETF. The US has been the best-performing of the major stock markets over last 124yrs. After inflation, it's generating returns of 6.5% per annum, according to UBS Yearbook 2024. Globally, stocks over 124 years have generated an inflation-adjusted return of 5.1%.
Berkshire’s cash hoard jumped to a record at $167.6bn in Q4 as Warren Buffett struggled to find deals at attractive valuations: “There remain only a handful of companies in this country capable of truly moving the needle at Berkshire, and they have been endlessly picked over by us and by others.

Crypto: bitcoin, ethereum, DeFi & NFTs

The combined value of the cryptocurrency market has jumped to around $2 trillion for the first time on almost two years on the back of the ETF-fueled rally in Bitcoin.
The price of Bitcoin reached as high as $64,000 on Tuesday, (currently, it is trading at $61,666): a seven-day jump of more than 21%+. The newly approved Bitcoin funds trading on Wall Street are wildly popular - especially BlackRock's- and are experiencing record inflows and trading days.
Ethereum also surged in price. ETH is now priced at $3,400. It's up 18% over seven days as its network approaches its long-awaited Dencun upgrade.
Solana jumped to a 22-month high on Thursday but is now slightly below that level, trading for $126.92, a seven-day rise of 30%.
Shiba Inu, the 19th biggest digital asset, has shot up by nearly 50%.
Smaller memes stole the show, though, with Pepe in particular making astronomical gains—the Ethereum-based coin has shot up by 200% over seven days and is just 14% below its all-time high.
Dogwifhat outperforms memecoin market after Robinhood Europe listing. The Solana-based dog-themed token is up nearly 30% over the past 24 hours.
Minecraft-based crypto project NFT Worlds charts comeback with node sale and rebrand.
SEC Commissioner Hester Peirce slams regulator's 'unproductive' approach to overseeing crypto.