Women are building their own financial legacies by earning more money than ever, as well as running their own businesses and owning homes that can lead to wealth creation. Also, over the next 23 years women are estimated to inherit over $50 trillion in what’s been called “the great wealth transfer,” according to a report from Cerulli Associates.

Simply put, we are entering an era where more money than ever will be controlled by women.

The Austin Chamber recently connected with Michelle Graham, an Austin– based wealth management advisor at Merrill Wealth Management about these exciting trends.

Q: How are women gaining wealth today?

A: It’s an exciting time as a female wealth advisor to witness the growing economic power of women. They’re earning more in general, and younger women often have side gigs creating multiple income streams. Also helping to boost pay is the fact that women continue to graduate with postsecondary degrees at higher rates than men. Roughly 58% of bachelor’s degrees earned each year go to women, while the percentage for master’s degrees is even higher—62% of the total, according to research compiled by Merrill. In our backyard, The University of Texas is on trend, holding down the majority with 57.9% of bachelor’s degrees and 55.5% of master’s both earned by women.

Women are definitely controlling the purse strings more than ever and will continue to do so. Also, as women tend to outlive men, we advise many women who inherit wealth – and for some, it’s the first time they’ve had to learn about managing finances.

Q: What are some trends you have observed in how women are investing?

A: Did you know that 75% of women under 45 now manage their own finances? There’s a clear generational shift happening. Women are increasingly taking charge of their financial futures, showing growing confidence in managing their investments compared to previous years. According to one of our recent Merrill studies, 53% of women now feel confident managing their investments, up from 49% in 2018. It’s also important to understand that women tend to have distinct investing habits. A Bank of America Research Institute study in 2024 showed women tend to be more risk-adverse, meaning they are focused on protecting capital for the long term.

In our market, we see people taking advantage of two core options when investing: doing it themselves through a self-directed digital platform or working with a financial advisor to craft a personalized financial plan and investment approach based on their short- and long-term goals. An important piece of this is finding an advisor who is a good personal fit.

Q: What can women do to take greater control of their finances?

A: Statistically, women tend to outlive their husbands. So, it is important for wives to talk money with your spouses, get actively involved in your family’s investments and financial planning and to ensure you have access to all records and accounts. It also is important for a financial advisor to establish a relationship with all members of a family. When a spouse passes, the last thing you are concerned about at the time are finances. Life happens – so it is best to be prepared for anything, such as divorce or a spouse passing away at an early age.

There are also investment clubs and seminars designed for women, as well as having basic financial planning discussions with an advisor who can offer direction – things ranging from researching your employer’s benefit offerings to ensure you’re maximizing retirement and 401(k) contributions to understanding how various financial vehicles can earn you money based on your short- and long-term goals. It’s also important to push for what you are worth at your place of employment. There are other free tips we offer here.

Q: What advice do you have for women who are just returning to the workforce after raising their children?

A: Career interruptions can cause women to lose out on potential raises and reduce how much they’ll save in their employer-sponsored savings plan and collect from Social Security. One recent study found that breaks for caregiving cut women’s lifetime earnings by 15%. There are ways to compensate for this, including funding a health savings account or IRA, as well as making an informed decision about when to claim Social Security.

Q: What else should women consider when it comes to money?

A: Consider building a lasting financial legacy for the next generation. Start by educating your children and grandchildren early, regularly talk about money with them to demystify wealth and investing.

It also is worthwhile to create a charitable giving strategy that aligns with your values. Decide how you want to give (e.g., monetary donations vs. volunteering), to whom (e.g., local vs. national organizations and causes) and, perhaps most importantly, why. Also, consider different financial planning strategies depending on your age. There are some free tips through Merrill’s website.

Q: Social media is everywhere and there are lots of influencers offering investment tips, for example – is that helpful?

A: There are plenty of tips and ideas you can find on the internet. What we find is that someone will come to our office and say, “Hey, I heard this on TikTok, what do you think?” So, yes social media can be a starting point to spark interest and conversation around finances. But for a broader and more focused discussion about investment goals, retirement goals and individual situations, do that with an experienced advisor. Merrill has an easy, online tool to help connect you with an advisor – you don’t need to do this alone.

Q: What other tips would you have for women?

A: Be aware of your own Social Security benefits and other resources you are eligible for. Depending on your age, whether your spouse is working or has passed, there are different strategies as to when to start collecting Social Security. Have the blunt conversations around life and death and prepare for all scenarios; do not forget to cover the basics around home insurance and auto policies for accident protection.