How Women Can Develop More Financial Confidence

Summary

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WSJ Your Money Briefing: How Women Can Develop More Financial Confidence

Date: November 5, 2019
Host: JR Whalen (The Wall Street Journal)
Guest: Susan Neely (CEO & President, American Council of Life Insurers)

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Episode Overview

This episode of “Your Money Briefing” dives into a crucial personal finance issue: why many women lack confidence in managing money despite their increasing role in household financial decisions, and what steps can foster financial literacy and empowerment. Wall Street Journal's JR Whalen interviews Susan Neely, CEO and president of the American Council of Life Insurers, about actionable ways women can take greater control over their financial futures, address unique challenges, and build financial confidence for themselves and the next generation.

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Key Discussion Points & Insights

The Shifting Landscape of Women and Money

• Increasing Involvement, Persistent Confidence Gap
  • 73% of women are now actively involved in managing household finances, dispelling the old stereotype of financial passivity ([03:33]).
  • However, about half of women surveyed still say they aren’t confident making financial decisions ([03:02]).
  • Quote:

    “That blows the outdated stereotype that we don’t have a seat at the table and we’re not concerned about these things…we have a seat at the table.”
    — Susan Neely ([03:40])

The Importance of Financial Education and Literacy

• “No Dumb Questions” Approach
  • Women should not hesitate to ask questions about money—even what they consider “dumb questions”—to truly understand their finances.
  • Quote:

    “Lean in on money talk... There’s no dumb question when it comes to talking about your family’s finances and what’s good.”
    — Susan Neely ([04:20])

• Key Components of Family Financial Plans
  • Retirement savings, life insurance, short- and long-term disability, and long-term care should all be part of a robust financial plan ([04:30]).
  • Emphasizes that income level is less critical than planning:

    “A quarter of the most financially secure households with strong plans make less than $50,000 a year. It’s all about the plan.”
    — Susan Neely ([05:02])

  • Consulting with a financial professional is key, and such expertise is more accessible than most realize ([05:45]).

Unique Economic Pressures on Women

• Breadwinner Status and Pay Gap
  • Women are the lead breadwinner in 40% of U.S. households ([06:14]).
  • However, women face a persistent pay gap—averaging 85% of men’s earnings ([06:23]).
• Career Interruptions and Student Debt
  • Women are more likely than men to take time off for family reasons, leading to lost wages and less time for retirement savings.
  • Women hold two-thirds of all student loan debt, which can slow progress toward financial goals ([06:30]).
  • Quote:

    “Women hold two thirds of the student loan debt out there, which means we’re paying off our loans longer, which prevents us from saving for retirement…”
    — Susan Neely ([06:37])

Generational Impact: Raising Financially Confident Children

• Start Financial Education Early
  • Encourage open financial discussions with both sons and daughters ([07:14]).
  • Many states now mandate financial education in schools (at least 20 as of the episode), which Neely and ACLI strongly support.
  • Quote:

    “Make sure your children are getting that financial education early…so that they can be confident, they can make the decisions early in their lives that will lead them to have family financial security.”
    — Susan Neely ([07:20])

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Notable Quotes & Moments

• The Good News and Persistent Challenges

  “We are less confident, as you say. And that could be for a variety of reasons. But what that tells us we need is more financial education and more financial literacy for women…”
  — Susan Neely ([03:55])

• Accessible Expertise

  “There are financial planners all around you. They may be in your book club, they may be going to the PTA meeting…”
  — Susan Neely ([05:48])

• Multi-Faceted Money Management

  “The money management is extensive. But in addition to being the primary breadwinner…there’s a clear pay gap out there…”
  — Susan Neely ([06:23])

• Generational Financial Education

  “We want all of our kids to, to be well protected.”
  — Susan Neely ([07:56])

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Important Timestamps

• 03:02 – Context: Women’s lack of financial confidence and the need for improved literacy
• 03:33 – Good news about women's involvement in finances; stereotypes debunked
• 04:17 – Actionable tips: Leaning into “money talk,” essentials of a strong financial plan
• 05:35 – The crucial role of financial planners and how to seek them out
• 06:14 – Discussion of women as breadwinners, the pay gap, and student debt burdens
• 07:08 – Strategies for raising financially confident children and the value of early financial education

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Conclusion

This episode emphasized that while women have gained a seat at the financial table, they still face confidence gaps and unique pressures—from wage disparities to student debt. The solution centers on proactive financial education for women and their families, building a comprehensive financial plan (with or without a high income), and seeking out accessible financial expertise. Ultimately, by openly engaging in conversation and modeling good practices for children, women can achieve and pass on financial confidence.

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Transcript

[A]

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[C]

Here's your money briefing. I'm Ann Marie Fertoldi at the Wall Street Journal in New York. Women tend to live longer than men, but they aren't saving enough for retirement. In a recent study, about half of women surveyed say they aren't confident about their finances. The Wall Street Journal's JR Whalen talks with Susan Neely of the American Council of Life Insurers about how women can get better at managing money. Coming up first, here are some top money and market stories. A new study finds that a single large player manipulated the price of bitcoin as it ran up to a peak of nearly $20,000 two years ago. In a study published online this week, John M. Griffin, a finance professor at the University of Texas with a background in forensics, and Ohio State University finance professor Amin Shams, traced the movement of the two currencies between March 2017 and 2018, when the price of bitcoin soared and its total market value rose to $326 billion. They found that about half of that increase was due to the influence of an unknown manipulator who operated from a single account at Bitfinex, the largest cryptocurrency exchange at the time. The manipulator used the cryptocurrency tether to boost demand for bitcoin, leading to the price surge. If you have hardwood floors in your home, there's a good chance that wood may have been harvested illegally. A recent study done by the World Wildlife Fund, World resources Institute and U.S. forest Service found that as much as 62% of U.S. wood products, mostly imports, were mislabeled. The World Wildlife Fund said wood is considered illegal if it was harvested, transported, processed, bought or sold in violation of national or international laws. Illegally logged timber is a problem for industries, making everything from furniture and flooring to musical instruments and sporting goods. Experts aren't sure how much wood in US Stores is mislabeled, but the US Is by far the world's largest importer of wood and wooden furniture by value. And finally, if you're wondering whether Apple's new AirPods Pro are worth the $250 price tag, our personal tech columnist Joanna Stern has a new video out where she tests how the earbuds hold up against their non pro competition. There's also a mechanical bull involved. You can watch the video up on our website, WSJ.com coming up, how women can develop more financial confidence.

[D]

Women live longer than men, but women save less for retirement. In recent surveys, about half of women say they are not confident about making financial decisions. So how can women develop confidence and take control of their financial lives? American Council of Life Insurers CEO and president Susan Neely joins us to discuss. So Susan, you know, in the past, lower retirement investment by women, that could be chalked up to the fact that there were significantly more men in the workplace than women. But that's not the case anymore.

[E]

First, let's focus on the good news here that 73% of women at least, are actively involved in managing their finances and their family's finances. So that blows the outdated stereotype that we don't have a seat at the table and we're not concerned about these things. Obviously, we're concerned and we have a seat at the table. So that's the good news. We are less confident, as you say. And that could be for a variety of reasons. But what that tells us we need is more financial education and more financial literacy for women so that if we got the seat at the table, we know we're making the right decisions for ourselves and our families.

[D]

So how do women go about developing more financial literacy?

[E]

Well, there's several things we can do. One is just to lean in on money talk. I know it sounds simple, but I can't tell you how many women say, oh, this is a, I know this is a dumb question, but get that out of your mind. There's no dumb question when it comes to talking about your family's finances and what's good. There's a whole range of things you need to be considering. Retirement savings. Is one of them protecting your family should the worst happen? Life insurance policy, short term disability policy. That's the way a lot of us have income replacement when we take time off to have a baby or deal with some other medical issue. So those are the kind that they long term care insurance. Those are all things to consider as you're putting your family financial plan together. But here's the thing that women should know. You don't have to have an extraordinary income to have a solid financial plan. We actually have research that says 25% of the most financially secure households with strong plans make less than $50,000 a year. It's all about the plan and going through the checklist and decisions, ideally with a financial professional who can guide you through this and making the choices that are right for you and your family.

[D]

Now, you've mentioned things that you have written that a financial planner and is a very, very important part of developing a plan and developing confidence about women's financial lives.

[E]

A financial planner can be critical, vital, and there are financial planners all around you. They may be in your book club, they may be going to the PTA meeting. You don't, again, have to have an extraordinary income in order to access a strong financial professional who can help you sort out all the decisions you have to make. Retirement's one important one, but so are other things that are part of having a good, solid financial plan.

[D]

And you know, women are the lead breadwinner in 40% of U.S. households, but their money management goes far beyond just handling household expenses.

[E]

That's exactly right. The money management is extensive. But in addition to being the primary breadwinner in 40% of households, there's a clear pay gap out there. Women make 85% of what men do. On average. We take time off. More likely, we're the ones who take time off to care for a child or a sick family member. So that results in lost wages, lost retirement savings. And here's an interesting one. Women hold two thirds of the student loan debt out there, which means we're paying off our loans longer, which prevents us from saving for retirement and being able to invest and do other things that can add to our financial security. So there's some complexity in there for women. Find that financial planner that can help you sort through all of this.

[D]

And what can women do to ensure the next generation is more confident with women than they are?

[E]

Women should lean into financial discussions with our children, your daughters, of course, and your sons as well. Make sure your children are getting that financial education early. The schools are stepping in to help. It's kind of a trend among states right now that there are at least 20 states mandate some kind of financial education in the schools. And we are very supportive of that here at acli, the life insurance industry, because it's another important way our kids get the information they need so that they can be confident they can make the decisions early in their lives that will lead them to have family financial security. Regardless of whether that's the male or female in the household, we want all of our kids to, to be well protected.

[D]

All right. That's American Council of Life Insurers, CEO and president Susan Neely on the line with us. Susan, thanks for coming on the show.

[E]

My pleasure. Thank you so much.

[C]

And that's your money briefing. I'm Annemarie Fertoldi in New York for the Wall Street Journal.

[F]

This episode is brought to you by Charles Schwab. Decisions made in Washington can affect your portfolio every day. But what policy changes should investors be watching? Washington Wise is an original podcast from Charles Schwab that unpacks the stories making news in Washington right now and how they may affect your finances and portfolio. [e-mail] WashingtonWise.