2020 Women and Investing Study: Confidence and Concerns for Female Investors
The pandemic has had negative impacts on investments for most affluent women this year, according to new research from J.P. Morgan Wealth Management. But affluent Black and Latinx female investors were more likely to take matters into their own hands, seize opportunities presented by market volatility and feel confident about their goals.
The J.P. Morgan Wealth Management Women and Investing Study reviewed the investing habits of affluent women in 2020. The survey polled women across races and took a deeper look to examine the factors that help Black and Latinx women build lasting wealth.
“Women are already the majority in controlling wealth and that number will only grow,” said Kristin Lemkau, CEO of J.P. Morgan Wealth Management in the U.S. “We see a huge opportunity to help women build their wealth for the long term – however they choose to do it. And that starts by actually listening to them.”
Despite being more confident than their white counterparts about their financial future, more than half of affluent Black and Latinx women surveyed said they faced more challenges to investing, including finding financial advice that fits their needs. And they were more likely to financially support friends and family in 2020.
“Closing the racial and gender wealth gaps demands work across communities,” said Byna Elliott, Head of Advancing Black Pathways for JPMorgan Chase. “What’s interesting to me about this study is that Black girls get a clear head start on building wealth when their parents talk to them about money and set up a savings or investing account.”
The survey polled 1,375 women investors with at least
Most affluent Black and Latinx women found their own path to investing
The study includes the following significant findings about investing behaviors:
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19% of affluent Black and Latinx women surveyed started investing in 2020 to capitalize on this year’s market volatility, compared to5% of affluent white women. -
75% said they were confident about their financial goals looking ahead to the next 12 months, compared to50% of white counterparts. -
When starting to invest,
78% of affluent Black and Latinx women used self-directed educational resources, including online educational resources, apps or TV shows, compared to47% of affluent white women. -
55% of affluent Black and Latinx women agree that investing is more challenging for people of their race. -
62% felt confident about achieving their financial goals when they started investing.
When asked what challenges or barriers affluent Black and Latinx women faced that made it difficult to start investing,
In addition, nearly
“We have to appreciate how experience, education, wealth level and family dynamics impact a person’s view on investing,” said Dr. Kelli Keough, Head of Digital & Client Solutions at J.P. Morgan Wealth Management. “It’s clear affluent Black and Latinx women are working harder to sustain their wealth, but they’re also confident about their financial futures.”
Financial education helped Black and Latinx women make smarter financial decisions
The findings also show a correlation between education and inherited wealth and current financial decisions:
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84% of affluent Black and Latinx women had savings or investment accounts established for them as a child. -
61% reported that their parents or caregivers discussed the importance of investing when they were growing up. -
68% of affluent Black and Latinx women make monthly contributions to their investments as adults.
Among all affluent women regardless of race,
Looking Beyond Affluent Communities
While this study examined affluent women, making progress in the racial and gender wealth gap still demands a lot more work across communities. Economic challenges for people of color stretch far beyond investing: according to past research from the JPMorgan Chase Institute, Black and Latinx families have 32 and 47 cents in liquid assets for every dollar held by white families. In addition, homeownership rates are
To learn more about the J.P. Morgan Wealth Management survey findings, visit: https://www.chase.com/personal/investments/learning-and-insights/article/women-and-investing. To learn more about JPMorgan Chase’s work for communities of color visit The Path Forward.
Methodology
The 2020 Women and Investing Study was an online survey of 1,375 women investors (779 White/Caucasian and 596 Women of Color). J.P. Morgan Wealth Management was not identified as the survey sponsor. The survey was conducted during the month of October 2020. Respondents were identified as having primary or shared responsibility for their households financial and investment decisions. All participants confirmed investable asset levels of
About J.P. Morgan Wealth Management
J.P. Morgan Wealth Management is the U.S. wealth management business of JPMorgan Chase & Co. (NYSE:JPM), a leading global financial services firm with assets of