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Thursday, Mar 28, 2024

Women on Purpose: How Women are Using Their Financial Power to Impact Change

The social and economic unrest that erupted during the pandemic caused many of us to reevaluate our life goals and what matters most, especially women. The pandemic has had a disproportionate impact on women, but it has also been a catalyst for reevaluation on every level, including how women are thinking about what’s most important to them and in how they participate in financial decisions.

This decade is set to be transformational for women’s wealth and, with it, the entire global economy. Women’s wealth is accelerating, women entrepreneurs and women-led businesses are on the rise, and there is unprecedented wealth transfer to women.

UBS regularly takes the pulse of women investors to understand how and for what purposes women are using their financial power, and at the beginning of 2022, UBS surveyed almost 1,500 women investors for the latest Own Your Worth report, Women on purpose. The research found three key themes that provide a much-needed glimpse into how this reevaluation has stirred a greater sense of purpose among women, how women are impacting change and the issues they are most focused on.

WOMEN WANT TO LEAD A LIFE OF GREATER PURPOSE
Seven in 10 women said they want to make more of a difference in the world, and nine in 10 women agreed that money is a tool to help them achieve their purpose. Over the last 12 months, 94% of the women UBS spoke to were involved in charitable giving and volunteering, and 73% of women made purchases that were aligned with their values. From disaster relief to the arts, women significantly increased their philanthropic support through time, money, and expertise within the last two years, according to the survey.

WOMEN ACROSS GENERATIONS ARE FOCUSED ON A VARIETY OF DIFFERENT ISSUES
Not all women have the same level of focus on specific issues that impact the world. The report highlighted the biggest differences among Baby Boomers, Generation X and Millennials in the causes they support. Baby Boomers were more drawn to helping religious organizations and fighting poverty. Millennials and Generation X showed more interest in supporting causes that address inequality and social justice. There was more equal focus, however, among all three generations in supporting environmental causes and educational programs.

The research also analyzed where women stood on ESG (environmental, social and governance) investing, which became an area of heightened focus for many organizations throughout the pandemic following a worldwide call to action. While the report found that ESG investments were highly appealing to many women who acknowledge their value over traditional investments, less than half of women said they currently hold these investments in their own portfolios.

Millennial women, more than Baby Boomers and Generation X, were heavily influenced by the turbulence of the last two years to use their money to create positive change. In fact, Millennial women were twice as likely to buy from companies that make a positive environmental or social impact. The call to a higher purpose not only affected where women chose to invest and spend their money, but it also encouraged some women to find a job more aligned with that purpose. Four in 10 Millennial women changed career paths to find more meaningful work.

WOMEN WHO LEAD ON FINANCIAL DECISIONS ARE ON THE RISE
The percentage of women who lead on financial decisions, according to UBS’ research over the last five years, increased from 21% in 2018 to 26% in 2022 as more women discover alternative ways to put their money to good use. These women are prioritizing philanthropy, ESG and charitable efforts and leading the way when it comes to making those financial decisions that will have a positive impact on the world.

More broadly, nine in 10 women believe that financial planning is the key to ensuring their investments are directed toward making the world a better place. Even women who don’t lead on financial decisions are finding ways to give back. While half of married women over the last five years said they deferred long-term financial decisions to their spouses through the Own Your Worth research, nine out of 10 women were still actively engaged in charitable giving, according to this latest report.

CREATING DIALOG AROUND WOMEN AND WEALTH
Times are changing, even from just a few years ago, as more women are taking advantage of opportunities to build wealth. According to Boston Consulting Group (BCG), women control 32% of the world’s wealth, and that number is expected to rise over the next few years. Another study revealed that women are expected to inherit 70% of the wealth that will be passed down over the next two generations, allowing them to wield great influence on money, investments and legacy—as well as the next generation.

UBS is dedicated to helping women embrace their financial power and bringing more women to the financial table through purpose-driven engagement. That commitment to supporting women on their financial journeys is even more critical now than ever before as women seek to fulfill a renewed sense of purpose in the aftermath of the pandemic. Imagine the collective power of more women taking their rightful place at the investment table and connecting with others who share their sense of purpose. What a better world they will make.

Dedicated resources and the right support put women on the course toward stepping into their own purpose. When women build wealth, they have the potential to create change for themselves, their families, women of the next generation and everyone that follows. That’s truly living a life of purpose.

Information for this article was provided by UBS. For more information, see the client relationship summary provided at ubs.com/relationshipsummary, or ask your UBS Financial Advisor for a copy.


As a firm providing wealth management services to clients, UBS Financial Services Inc. offers investment advisory services in its capacity as an SEC-registered investment adviser and brokerage services in its capacity as an SEC-registered broker-dealer. Investment advisory services and brokerage services are separate and distinct, differ in material ways and are governed by different laws and separate arrangements. It is important that you understand the ways in which we conduct business, and that you carefully read the agreements and disclosures that we provide to you about the products or services we offer.

ESG/Sustainable Investing Considerations: Sustainable investing strategies aim to consider and in some instances integrate the analysis of environmental, social and governance (ESG) factors into the investment process and portfolio. Strategies across geographies and styles approach ESG analysis and incorporate the findings in a variety of ways. Incorporating ESG factors or Sustainable Investing considerations may inhibit the portfolio manager’s ability to participate in certain investment opportunities that otherwise would be consistent with its investment objective and other principal investment strategies. The returns on a portfolio consisting primarily of ESG or sustainable investments may be lower or higher than a portfolio where such factors are not considered by the portfolio manager. Because sustainability criteria can exclude some investments, investors may not be able to take advantage of the same opportunities or market trends as investors that do not use such criteria.  Companies may not necessarily meet high performance standards on all aspects of ESG or sustainable investing issues; there is also no guarantee that any company will meet expectations in connection with corporate responsibility, sustainability, and/or impact performance.

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