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By Tammie Lynne Smith
Not surprising, the answer is both yes and no! However, the real news story lies not in whether faith drives women's financial and giving decisions, but in the manner women of faith approach money,
wealth, and stewardship.
Royal Treasure associates recently participated in a nationwide study of affluent women to determine if faith, spirituality, or ethics influence women's financial and
giving decisions. The study, underwritten by Gary L. Rathbun of Private Wealth Consultants Ltd., and conducted by Karen Maru File of Prince & Associates, explored women's concerns and attitudes
regarding financial management, financial advisors, and charitable giving.
The Royal Treasure survey audience represented women of faith, women whose religious beliefs and values were presumed to
impact personal financial management. The National Study survey targeted and screened only for women who are solely responsible for their personal financial matters.
The survey responses
indicate that both audiences want to be involved with their personal financial planning and decision-making. These women are likely to research financial issues, they prefer to have a well-constructed
plan, and they are willing to ride the market ups and downs with a long-term perspective. Both survey groups feel strongly that managing their personal financial matters gives them independence and are
confident in their financial abilities. The women surveyed exhibit a firm understanding, yet a continued desire to learn, of financial, investment, and charitable giving tools and appear well
diversified.
The survey responses also indicate significant differences between the women of Royal Treasure and the National Study women. The Royal Treasure woman is slightly older than the
National Study woman. The Royal Treasure woman feels secure with $1-$5 million and considers 5-20 years long term for financial purposes. The National Study woman feels more secure with $3-$10 million
and views financial long term between 3 - 10 years.
However, with this greater need for wealth, the National Study woman reveals a considerable increase in her fear of making financial
decisions and of losing money.
In addition, less than 15% of the National Study group makes financial decisions based on ethics, values, religious beliefs, or social responsibility. The Royal Treasure woman needs less wealth to feel secure, bases 60% of her financial decisions on values and beliefs, and is unafraid of making decisions or losing money.
Royal Treasure women were highly focused on an advisors' personality and the emotional relationships that are built between the client and professional. Personal skills such as listening,
communicating concepts, conveying trust, and a shared sense of values and beliefs were more important than the cost of services or even the quality of proposals and presentations.
Further,
the typical Royal Treasure woman is more satisfied with her primary advisor in terms of the advisor's understanding of and working to meet her financial and charitable giving goals, their ability to be a
real friend, their knowing how much control the client wants to feel, and their willingness to invest time in the client's education.
The National Study woman is the opposite. She focuses
on advisors' technical expertise and knowledge, is unconcerned with advisors' personal beliefs, reputation with a firm, issues of discretion or personal investment philosophy, and yet demands that the
advisor be fully aware of her personal and financial goals. Not surprising, the National Study woman is far less satisfied with her primary advisor not only in the areas of investment expertise and
performance but also in her personal relationship with the advisor.
Charitable giving and planned giving play an interesting role in financial management of both the Royal Treasure and the
National Study woman. Only one third of the National Study women, compared to 90% of Royal Treasure women, consider charitable giving an integral part of their financial plan. Motivations to give and the
types of charitable gifts differ significantly between the groups. Although these statistics are not surprising, the indication that the National Woman considers herself to be philanthropic, and desires
to be more philanthropic, proved worthy of note.
Does faith influence women's financial and giving decisions? Do values and ethics have a role in financial and charitable giving matters? Do strong
religious beliefs impact women's financial concerns and philanthropy? The simple answer is yes.
Does trust in God for our financial matters set the course of our financial plan? Does a Christian
woman consider her giving first, and prudent planning of what God provides second? Does wealth provide emotional freedom, or does faith release us from bondage of financial worry?
What do you believe…?
The data from the National Study of Faith, Women and Money is used with permission from Private Wealth Consultants, Ltd., Toledo, OH. Data from the Royal Treasure Study of
Faith, Women and Money is the property of Royal Treasure and cannot be reprinted in any form without persmission from Royal Treasure.
Survey Highlights
(This file is in .pdf format, click here if you need an Adobe Acrobat Reader)
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