'Sandwich Generation' Women Want Financial Advice: Study

Forty-eight percent of American women in the so-called sandwich generation, those who care for both children and parents or relatives, report feeling under financial strain, Edward Jones reported Monday.

Some two-thirds of women in the sandwich generation said caregiving responsibilities have inhibited their ability to save for their financial goals, and 57% have had to take on fewer professional responsibilities because of these duties, resulting in loss of potential income.

The caregiving burden can also affect women’s personal health and sense of purpose, Edward Jones said.

“While many women want the choice and ability to have careers, be caregivers and be the CFO of their families, balancing the responsibilities of health, family, purpose and finances have significant trade-offs,” Vanessa Okwuraiwe, principal at Edward Jones, said in a statement. 

Okwuraiwe noted that those responsibilities often fall on women, as half of all U.S. households are now headed by women, according to the Urban Institute.

Edward Jones, in partnership with Morning Consult and NEXT360 Partners, conducted a mixed-methods study, combining a nationwide online survey in June by Morning Consult among a national sample of 5,998 adults, combined with interviews in June and discussion groups in July with 43 women ages 25 to 71.

Sole Caregivers

Forty-six percent of female respondents in the sandwich generation reported that they are the sole caregiver for their children, while 54% said the same for parents or relatives. More than half said they do not feel they have enough savings to support those for whom they are the primary caregiver. 

As such, women in the sandwich generation said that over the next five years, they will remain focused on saving and prioritizing long-term expenses such as caregiving, child education and health care.

While women report they are responsible for most household spending decisions, far fewer say the same for investment decisions, Edward Jones found. The research showed that 42% have sole responsibility for investments in their households, and 26% share that responsibility. 

Female respondents cited the many daily demands they juggle as the reason they do not step into the investment manager role. Sixty-five percent said that if they had more time with fewer caregiving responsibilities, they would be more confident in planning for their financial future. 

Fifty-one percent said working with a financial advisor would make them feel more confident.

“Working with a financial professional can help women set their short- and long-term financial goals with a clear path to achieve them,” Mona Mahajan, principal and senior investment strategist at Edward Jones, said in the statement. “Women want a financial professional who gets them, guides them and can make things easier.”

Sixty-four percent of women in the survey said the top quality they look for in a financial professional is understanding their financial goals and priorities. Fifty-eight percent want transparency about fees and charges, and 57% look for experience in financial markets.