Parenting Pointers: Women and Financial Influence.

I recently had a chance to interview Jennifer Openshaw, executive director, Financial Women’s Association, and columnist, Dow Jones’ MarketWatch. She also serves as chair of Consumer Action’s Corporate Advisory Board. She is the author of three books, including The Socially Savvy Advisor: Compliant Social Media for the Financial Industry (Wiley), due out this fall.

 

Are there any particular challenges women face in the financial industry?

Just as in any industry, women want to rise to the top and reach their potential – not just in the positions they hold but in the income they earn. The odd thing is: Women make up only 19% of senior positions and only 2% of CEOs in the financial industry (PwC), despite the fact that women control half of the wealth in our country.  So helping women succeed and reach their potential in this industry – from insurance to banking to wealth management – is what the FWA is all about. We do this through networking, access to industry leaders, and events that keep them ahead of the game.

Why is it important to recognize the financial influence of women?

Women hold enormous collective and individual power.  Stop and think about it: Who’s making the buying decisions – whether it’s cars, cameras or coats? Women. Who’s taking on the family wealth after the first spouse passes on? Women. And who’s increasingly the chief financial officer in the home? Women.

Women may not realize the financial power they wield, but together -- whether they’re single, married or divorced -- they are quite a force. Women control over 51% of US stocks and they contribute $7 trillion towards spending overall. They are starting businesses, creating jobs and doing it quite successfully. That doesn’t mean it’s easy but it does mean we have influence, and companies are paying attention as a result.

How can parents encourage their daughters to gain a solid background in STEM, which prepares them for careers in not just finance, but any tech-, science-, or math-related field?

That’s a great question because I have a four-year-old and I’ve been focused on that. Last year, at just three, I watched my daughter on the playground play banker and customer with another girl standing behind what looked like a mock desk (it was part of the playground equipment). I went up to them and asked what she was going to do with the money the banker was giving her. “It’s for my piggy bank,” she answered. The other girl said she was going to “buy dresses.”

Here’s my advice:

•       First, you don’t have to wait until your kids are 10 or even 5 to start teaching them money and math. Counting with cheerios or engaging them in buying decisions at the grocery store can turn into wonderful financial lessons.
•       Second, consider supplemental educational programs. We tried a local program with young tutors to take my daughter’s math to another level, and she’s enjoyed it. Parents need to remember that sometimes it’s about making it fun and investing the time to engage them. If you’re not able to provide this, look to the community or other programs that can help. This is what the FWA is now doing with working women: providing education specifically devoted to technology and career skills that will build her worth on the job. We’re all about having impact on the financial industry – one woman at a time.
• ·     Finally, proactively select games and movies that are in the field of math and science. There are plenty that are both fun and educational. Even letting your child experience with their own hands what it’s like to build something or to create their own video is teaching them early STEM skills.

Would you like to share a little bit about your book on industry-related social media?

If you have a financial advisor, chances are they’re trying to figure out how to use social media – Twitter and Facebook, for example – to communicate with you.  With millions of people – women especially – on social media, they’d be silly not to think of social media, right? The challenge is that the financial industry – unlike fashion and many other industries – has very strict laws that make it tough for an advisor to just leap into the social world. So this book – The Savvy Advisor – is designed to help them understand the rules of the game so that they can talk to investors while still remaining on the right side of the law.  It’s ideal for any financial professional who wants to understand how to use all the primary social media channels – whether to educate or provide customer service – and still remain compliant.