Key takeaways

  • In contrast to our March 2020 study, women across all generations are now feeling more confident in their ability to manage their family’s finances.

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

  • Gen Z and millennial women are significantly more likely to use personal finance and budgeting apps in managing their finances.

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.

Generations defined5

Year of birth

Generation Z

1997-2012

Millennials

1981-1996

Generation X

1965-1980

Baby Boomers

1946-1964

Year of birth

Generation Z

1997-2012

Millennials

1981-1996

Generation X

1965-1980

Baby Boomers

1946-1964

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. 

Confidence in managing finances

2020

2021

Gen Z & millennial

56%

71%

Gen X

50%

53%

Boomer

41%

46%

Gen Z & millennial

2020

56%

2021

71%

Gen X

2020

50%

2021

53%

Boomer

2020

41%

2021

46%

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

Decision maker for family finances

Women

Gen Z & millennial

95%

Gen X

82%

Boomer

64%

Women

Gen Z & millennial

95%

Gen X

82%

Boomer

64%

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.

Consider themselves wealthy

Women

Men

Gen Z & millennial

43%

48%

Gen X

22%

31%

Boomer

8%

8%

Gen Z & millennial

Women

43%

Men

48%

Gen X

Women

22%

Men

31%

Boomer

Women

8%

Men

8%

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. 

Confident they’ll be able to afford retirement

Women

Gen Z & millennial

65%

Gen X

48%

Boomer

55%

Women

Gen Z & millennial

65%

Gen X

48%

Boomer

55%

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. 

“Given what I learned during the pandemic…”

I will save more money

Nothing will change

Gen Z & millennial

50%

10%

Gen X

38%

27%

Boomer

21%

53%

Gen Z & millennial

I will save more money

50%

Nothing will change

10%

Gen X

I will save more money

38%

Nothing will change

27%

Boomer

I will save more money

21%

Nothing will change

53%

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. 

Use personal finance and/or budgeting apps

Women

Men

Gen Z & millennial

40%

43%

Gen X

21%

34%

Boomer

9%

15%

Gen Z & millennial

Women

40%

Men

43%

Gen X

Women

21%

Men

34%

Boomer

Women

9%

Men

15%

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Disclosures

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  1. Parker K. What’s behind the growing gap between men and women in college completion? Pew Research Center. pewresearch.org/fact-tank/2021/11/08/whats-behind-the-growing-gap-between-men-and-women-in-college-completion/. November 8, 2021.

  2. Fry R, Stepler R. Women may never make up half of the U.S. Workforce. Pew Research Center. pewresearch.org/fact-tank/2017/01/31/women-may-never-make-up-half-of-the-u-s-workforce/. January 31, 2017.

  3. Parker K, Igielnik R. On the cusp of adulthood and facing an uncertain future: What we know about Gen Z so far. Pew Research Center. pewresearch.org/social-trends/2020/05/14/on-the-cusp-of-adulthood-and-facing-an-uncertain-future-what-we-know-about-gen-z-so-far-2/. May 14, 2020. 

  4. Nadworny E. More than 1 million fewer students are in college. Here’s how that impacts the economy. NPR. npr.org/2022/01/13/1072529477/more-than-1-million-fewer-students-are-in-college-the-lowest-enrollment-numbers-. January 13, 2022. 

  5. Generations: Where Millennials End and Generation Z Begins.” Pew Research Center, January 17, 2019.  https://www.pewresearch.org/fact-tank/2019/01/17/where-millennials-end-and-generation-z-begins/

  6. Eisenberg R. Why Gen Xers are way more worried about money than boomers. Forbes. forbes.com/sites/nextavenue/2021/01/04/why-gen-xers-are-way-more-worried-about-money-than-boomers/?sh=2e2a83d850b9. January 4, 2021. 

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