The future of financial planning is women.

A person's capacity to attain long-term financial security and reach their financial objectives is influenced by their financial planning, which is an essential component of their lives. The significance of gender diversity and inclusion in a number of industries, including financial services, has come to light in recent years. ?

The Financial Empowerment of Women

1.1 Financial Inclusion

Promoting financial inclusion and guaranteeing that women have access to financial services, resources, and education are all part of women's financial empowerment. The World Bank's 2019 research demonstrates that there are still gender differences in access to financial services across a wide range of global regions. Better financial planning results for families and communities can result from promoting financial inclusion for women.

1.2 Studies on Financial Literacy

The gender disparity in financial literacy is brought to light by Lusardi and Mitchell (2014) and other researchers. In order for women to make wise financial decisions, investments, and long-term planning that will benefit their financial future, it is imperative that they become more financially literate. When working with women, financial planners should be receptive to their clients' needs and cognizant of their aspirations, objectives, and necessities. Additionally, they should be willing to put on the "educator" hat and assist customers in developing the confidence to invest in non-traditional assets. Additionally, goal setting is critical, as women are more conscientious and dedicated to achieving their investment objectives (Bose, 2023).

?Diversity of Gender in Financial Planning

2.1 Representation of Women in the Sector

It is critical that there be a significant representation of women in the financial planning sector in order to ensure a financially secure future for women. Catalyst (2016) found that businesses with a higher proportion of female leaders typically have better performance than those with a lower proportion of women, suggesting that gender diversity in leadership could have positive effects on financial institutions.

2.2 Women-Centered Financial Planning

Research by Mersereau and Sorescu (2018) indicates that more successful financial strategies may arise from women-centered financial planning, which considers the particular financial demands and goals of women. Providing women with specialised financial planning services can help them become more financially empowered.?

Opposing viewpoints

3.1 The Gender-Neutral Method

Some contend that gender-neutral strategies ought to be the main emphasis of financial planning in the future. Although men and women may have distinct investing habits, gender-neutral financial methods can benefit both sexes, according to research by Barber and Odean (2001).

3.2 Inherent Barriers?

Critics contend that structural obstacles preventing women from advancing economically should be the focus of financial planning in the future. Alon, Doepke, Olmstead-Rumsey, and Tertilt's (2018) research highlights the significance of societal shifts and policy initiatives in promoting women's financial empowerment.?

In summary

Financial planning has a great deal of promise to empower women in the future, but a diversified strategy is needed. Important measures include financial inclusion, literacy, industry representation, and women-centered planning. Counterarguments, such as the advantages of gender-neutral strategies and the necessity of addressing structural impediments, must also be acknowledged, though. We can actually design a future where women play a major role in protecting their financial well-being by taking these viewpoints into consideration and working towards a more inclusive and equitable financial planning landscape.

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References

Alon, T. M., Doepke, M., Olmstead-Rumsey, J., and Tertilt, M (2018), The Effects of Education and Career on the Employment and Marriage Markets for Women. American Economic Review.

Barber, B. M., and Odean, T. (2001). Gender, Overconfidence, and Common Stock Investment: Boys Will Be Boys. Quarterly Journal of Economics.

Bose, A. (2023). Inclusion of women in Financial Planning to have a future-ready society.

Catalyst. (2016). The Bottom Line: Corporate Performance and Women's Representation on Boards (2004-2013)

Ismaanzira Ismail, Rohami Shafie, & Ku Nor Izah Ku Ismail. (2020). Current Trends and Future Directions on Women CEOs/CFOs and Financial Reporting Quality. The Journal of Asian Finance, Economics and Business, 7(11), 679–687. doi:10.13106/jafeb.2020.vol7.no11.679

Kumar, Tanya & Satveerkaur, & Kaur, Satveer. (2022). Contribution of women 's financial literacy towards financial planning.

Lusardi, A., and Mitchell, O. S. (2014). The Economic Importance of Financial Literacy: Theory and Evidence. Journal of Economic Literature.

Mersereau, A. J., and Sorescu, A. (2018). Consider the Gap: How Women's Lifetime Earnings Are Affected by the Gender Investment Gap. Journal of Retailing and Consumer Services.

World Bank (2019). 2017 Global Findex Database: Tracking the Fintech Revolution and Financial Inclusion.