The good news: Today, Canadian women have more economic power, however, as they gain more influence in household financial decision making, research from Mintel a market intelligence agency, reveals 32% of women fear making financial decisions due to a lack of financial knowledge. The study also reveals that 36% wish they were more confident in making these decisions.
So, even though women hold more financial power than ever before, they are still uncomfortable discussing finances, making important financial decisions and even being a key player in making financial decisions that pertain directly to them and their money. Many say that they’re intimidated by the financial industry.
Why is this so? Traditionally, financial planners and advisors are used to dealing with men and they are accustomed to doing business a certain way. Women are not able to relate to that style of business. It’s as if some financial advisors have not learned to adjust their style of communicating and so in that regard there’s a disconnect between the financial industry in general and how women like to do business.
When it comes to conversations with financial planners some women say that they:
- Are intimidated
- Feel uncomfortable
- Feel like they’re being talked down to
- Don’t feel respected
- Are easily overwhelmed
What are some steps a woman should take to engage with a planner? Well, to begin with, women should know that a relationship with their financial planner is like every other relationship. There needs to be mutual respect and easy communication.
Before selecting your financial planner, ask, “What am I looking for? What outcome do I want to get out of it? What type of person do I want to work with? Someone nurturing or all business? Someone who will ask a lot of relevant questions and who takes the time to explain? Or someone who takes the lead and provides recommendations?”
There should be a level of comfort and a connection. No woman (or man for that matter) should ever feel intimidated by what the industry is offering. When they don’t understand something they should feel free to ask questions. If the answers come in a stream of industry jargon, ask your financial planner to explain it to you in simple terms.
By taking control and asking the right questions, you become empowered about the financial planning process. Women are no longer bound by the old standards and can prioritize their financial future.