Women Are a Dominant Force in Wealth Building

Women Are a Dominant Force in Wealth Building

By Dr. Gerald House

Behavioral finance is the new genre in the financial service profession these days. Building a closer client relationship is the best way to retain and keep generational planning within the advisor’s purview. Additionally, the ability to relate with female clients without showing favoritism towards male-dominant traditions is finding its way into financial circles. So, what does all this mean? Simply put, women are becoming more of a dominant force in the decision-making process regarding financial matters.

In my first book, “Investing in a Secular World: Discovering Biblical Truths About Money,” I mentioned the changing environment in which women have more wealth than their male counterparts and are better investors. How did all of this come about? First, women live longer than men; according to the Worldometer, 77 years for men and 82 years for women in the United States, respectively. Women control over 50% of the personal wealth and will inherit over 70% of the assets of the baby-boomer generation (Fitzpatrick, Reichmeier, and Dowell 2017). Second, according to a recent Fidelity report, women are not only better savers than men, something men conceded a long time ago, but women are also better investors.  Women assume less risk and do not trade as often as men. The Wells Fargo Investment Institute reported that women achieved higher returns from 2010 to 2015. Men need to heed the advice of many financial advisors, trade less often, and take fewer risks.

The Bible does not explicitly say that women are better suited for financial matters. However, we must look no further than the Old Testament to discover that God created man and woman in His image, not as unequal partners but as one flesh (Genesis 2:24).

Therefore, a man shall leave his father and mother and be joined to his wife, and they shall become one flesh (NKJV).

Therefore, married couples should always make significant decisions together, not separately— that includes money-related choices. Many men want to point out the Bible verse in Ephesians 5:22-23 as the definitive answer regarding men having supreme authority over women. Of course, this passage is often misquoted and not taken in the context in which it was written. The Apostle Paul reaffirmed God’s hierarchy established in the Old Testament—not that women are inferior to men (Roberts, 2012). In his book God’s Big Picture: Tracing the Storyline of the Bible, Vaughan Roberts states, “Man is the leader in the relationship, but his authority is not abused, and the woman does not resist it.” (Roberts, 2022) Here, Vaughan restates what the Apostle Paul tells the people in Corinth and Timothy. In Genesis 2:18, God states that He wanted man to have a “helper.” Therefore, He created a woman comparable to him.

And the Lord God said, “It is not good that man should be alone; I will make him a helper comparable to him.” (NKJV)

Again, not to be misinterpreted, helper in this context, the Hebrew word “Ezer” denotes strength and is often used in the Old Testament to refer to God. For instance, “The Lord is my helper” is used in several passages in the Bible. In this reference, helper means man’s reliance on God. A woman as a helper more closely aligns with an ally or someone who rescues. I am incredibly thankful for my helper, who has rescued me from myself over the last 40-plus years. Forrest Gump stated that “stupid is as stupid does.” Well, suffice it to say, I am glad my helper was there when I needed saving.

The Lord is my helper; I will not fear. What can man do to me?” (Hebrews 13:6, NKJV)

I am also reminded of the virtuous wife in Proverbs 31. From Proverbs 31:10 through 31, King Lemuel describes the virtuous wife. Someone, possibly his mother or wife, left an impression on him. Several strong women are mentioned in both the Old and New Testaments. Think of Ezra, Esther, Ruth, Mary, the mother of Jesus, and Mary Magdalen, to name a few. In my time, I will never forget British Prime Minister Margaret Thatcher. She reminded me of one of my schoolteachers in 4th grade. She was scary at times. Margaret Thatcher served three consecutive terms as prime minister. She was a very dominant conservative voice for Great Britain.

A New York Life study by R. J. Shook, “Women Feel Ignored by Advisors,” discovered that 40% of females felt ignored by advisors who treated them differently than their male partners (Shook, 2020). It is a mistake to underestimate the value of women in our client meetings. While men may want to dominate the conversation, an advisor will serve himself and the clients well by including the spouse in the decision-making process. Proverbs 31:26 tells us:

She opens her mouth with wisdom, And on her tongue is the law of kindness NKJV.

Your servant

References

Fitzpatrick, B., Reichmeier, J., & Dowell, J. (2017). Back to the Future: The Landscape of the Financial Services Industry 2020 and Beyond. Journal of Advances in Economics and Finance, 2(1), 40-53. doi:10.22606/jaef.2017.21004

Hebrewwordlessons. (2021, May 25). Helper: Defining the ezer woman. Hebrew Word Lessons. https://hebrewwordlessons.com/2018/05/13/helper-defining-the-ezer-woman/

Roberts, V. (2012). God’s big picture: Tracing the storyline of the Bible. IVP.

Shook, R. J. (2020, August 10). Women feel ignored by advisors, study says. Forbes. https://www.forbes.com/sites/rjshook/2020/08/07/woman-feel-ignored-by-advisors-study-says/

The Holy Bible: NKJV New King James Version. (2016). Nashville, Tennessee: Holman Bible.