Some women can walk into a boardroom, negotiate a six-figure salary, manage a household, raise children, and handle just about anything life throws at them. But ask them whether they’re confident about their investments, and suddenly they’re not so sure.
Sound familiar?
According to a recent HSBC study, fewer than half of the affluent women surveyed said they felt “extremely confident” in their financial plan. Even more concerning, only 32% felt prepared for their long-term care needs.
Here’s what I find interesting about those numbers: These aren’t necessarily women who lack financial resources. They’re women who may have significant assets but still aren’t entirely comfortable making decisions about them.
Having money and feeling confident about money are two very different things.
And the good news? Financial confidence isn’t something you’re born with. It’s something you build.
You Don’t Have to Become a Financial Expert
Somewhere along the way, women got the message that being financially confident means knowing everything about investing. In reality, financial confidence doesn’t mean knowing everything. It means knowing enough to make informed decisions, recognizing when something doesn’t make sense, and asking questions without feeling intimidated.
And women seem to recognize the value of learning. That same HSBC study found that 70% of affluent women believe financial education tailored to their stage of life would help them make better financial decisions. That’s an important distinction. Women aren’t necessarily asking for more financial information; they’re asking for information that’s relevant to the decisions they’re actually facing.
The bottom line is you don’t need to become your own financial advisor. You need to become an active participant in your financial life.
Three Ways to Build Financial Confidence
1. Learn What Actually Applies to Your Life
One reason financial education can feel overwhelming is that there’s just too much of it. You can spend hours reading about cryptocurrency, options trading, and the Federal Reserve without learning a single thing that helps you decide whether you can retire at 62.
Instead, start with the questions that matter to you. I mean, if you’re a single woman in your 50s, understanding how your investments will eventually replace your paycheck is probably more valuable than learning how to pick individual stocks. And if you’re considering a career change, understanding your cash reserves and retirement savings options may be more useful than following daily market movements.
The goal isn’t to know more about money than everyone else. It’s to know more about your own money.
2. Build Confidence Through Small Decisions
Think about the first time you drove a car; you probably weren’t particularly confident. You checked every mirror, gripped the steering wheel, and treated merging onto the highway like an extreme sport. But eventually, driving became second nature.
Financial confidence develops the same way.
- Start by making small, informed decisions.
- Review your investment allocation and understand why you own what you own.
- Increase your retirement contribution when your budget allows.
- Ask your financial advisor to explain something you’ve never quite understood.
Each time you make a decision and understand the reasoning behind it, you build confidence.
And remember: A successful financial decision isn’t necessarily one that makes you money immediately. Sometimes it’s one that helps you avoid unnecessary risk, reduce taxes, or simply sleep better at night.
3. Have a Plan That Answers Your Actual Questions
There’s a big difference between having investment accounts and having a financial plan.
An investment statement tells you how much money you have. A financial plan helps you understand what that money can do for you.
Can you afford to retire early? What happens if you lose your job at 58? How much can you spend without worrying about running out? What if you eventually need long-term care?
A good financial plan doesn’t eliminate uncertainty. But it gives you a framework for making decisions when life doesn’t go exactly as expected. And when you’re a single woman making those decisions without a second income or financial partner to fall back on, that framework becomes especially valuable.
Your Financial Confidence Can Grow at Any Age
One of the reasons I love working with single Gen X women is that we’ve already spent decades figuring things out. We’ve adapted to changing careers, changing relationships, changing technology, and more than a few questionable fashion trends.
We can absolutely learn to feel more confident about our finances.
That’s also one of the reasons I wrote You Can Go Your Own Way: The Single Gen X Woman’s Guide to Money, Midlife, and Meaning. The book explores the financial decisions, assumptions, and challenges that come with building a life on your own terms. A big part of that journey is learning to trust yourself, understand your options, and stop measuring your financial success against someone else’s roadmap.
Ultimately, financial confidence isn’t about having all the answers. It’s about knowing that when the next big question comes along, you’re capable of figuring it out.
And that’s a skill worth investing in.
