Lilah Raynor, Founder & CEO of Logica Research and WBENC-Certified WBE, has analyzed how the demands of balancing professional responsibilities, family care, and societal pressures often lead to increased stress and burnout for women. Logica’s recent Future of Money Study underscores this issue, revealing that women lag behind men in financial stability, carry more debt, and are less likely to invest.

This article delves into the profound impact of stress on women’s financial success and security, emphasizing the unique challenges faced by working women, including business owners and entrepreneurs. By examining the interplay between stress and financial growth, this article aims to guide financial institutions and advisors in developing tailored services, products, and education to effectively support women, especially those running their own businesses.

Stress impacts how women succeed and manage their financial lives. All working women, including women business owners and entrepreneurs, encounter challenges in balancing work and life. The demands of managing a business, caring for family, and societal pressures often culminate in stress and burnout. Logica’s recent Future of Money Study, which is among the U.S. general population, underscores areas where women trail behind men in establishing financial stability, crucial for alleviating stress. Our study shows women have more debt than men (average of $20,000 versus $13,000 excluding mortgages), and that women are significantly less likely to invest and secure their financial futures than men. Examining stress on women and its impact on financial growth and security can help financial institutions and advisors in creating services, products, and education that effectively support women, especially women business owners.

Beyond the demands of managing a business and navigating societal pressures, women can also bear the primary responsibility for domestic tasks, childcare, and elder care while working. The concept of the “mental load” has gained traction in recent years, highlighting the invisible workload that women often carry in managing household and family responsibilities.

These cumulative stressors can have a negative impact on women’s physical and mental well-being, increasing the risk of burnout. When combined with the rollercoaster ride of being a business owner, it becomes evident why these stresses can impact women’s ability to engage in effective financial planning and attain security.

A gap in financial literacy could be a contributor to stress in women’s personal and business finance. Women lag behind men in financial literacy, according to Bankrate, which could put them at risk for excessive debt, inadequate emergency funds, or insufficient retirement savings. And it’s not just lack of financial literacy that is impacting women’s financial health, women workers earn only 83 cents for every dollar earned by men in the United States. The wage gap poses challenges for women, making it difficult to cover basic living costs such as housing, let alone devise an investment strategy. There is also a notable gap in funding for women entrepreneurs, with the World Economic Forum sharing that “The finance gap for women entrepreneurs is $1.7 trillion.” A disparity that makes it hard for women business owners to get ahead as well. Credit Suisse reports that fewer women even apply for venture funding, indicating a need for networking and knowledge in this area. Bridging this gap through financial education and fair wage practices can empower women financially.

For women business owners, financial literacy is paramount for short and long-term success. According to Intuit, “74% of small business owners who identify as female say that financial literacy was the biggest financial barrier to overcome when setting up and running a business.” Additionally, 90% say that financial literacy affects their ability to scale their business.

Improving financial literacy not only enhances daily decision-making but also aids in strategic planning for greater success. And women, according to our Future of Money study, have less awareness and familiarity with the scope of banks and brokerage firms available, suggesting that their provide exposure and knowledge is lacking on the money management front.

While savings can serve as a buffer against the financial stressors women face both personally and in running a business, implementing strategies to build up savings, retirement funds, and other investment accounts is not easy. According to Experian, the average woman’s retirement income is 70% of a man’s, yet it must endure for a longer duration, given that women typically outlive men by four to five years—a source of considerable stress. Recent data from the Logica Research Future of Money Study also reveals a concerning trend among women respondents: a decline in participation in various financial security activities compared to the previous year. Compared to the prior year, women are now less likely to save, contribute to their 401(k) accounts, or invest in stocks. One notable shift is the decline in mutual fund ownership, which has fallen from 17% in 2020 to just 10% in 2023 among women respondents. These shifts in financial behavior underscore the importance of addressing the underlying factors and barriers, aiming to empower women to maintain and enhance their financial well-being.

To achieve financial security, women must find empathetic financial partners, advisors, and institutions that understand their unique requirements and preferences, especially women business owners.

According to our study, many Americans are looking for an understanding of the basics of how to invest (61%), selecting investments that align with financial goals (61%), and managing money during uncertain times (60%). It’s important not to tackle these challenges alone—seek educational resources and reliable partnerships to build wealth!

Historically, the majority of financial advisors have been men, as noted in a McKinsey report, but there is a growing number of women advisors available. Forbes offers a checklist for finding the right partner and highlights that female investors often demonstrate better results and more disciplined investing habits, such as avoiding panic selling during market downturns. Additionally, studies have shown that women tend to be more emotionally intelligent than men, which can translate into an advisor with stronger soft (and vital) skills such as better communication, listening, empathy, discipline, and resiliency.” Finding the right financial partner can alleviate financial stress, secure your future, and grow your business if you’re an entrepreneur.

Ultimately, the relationship between stress and financial success for women underscores the importance of addressing stressors—from domestic responsibilities to the financial literacy gap—as these challenges significantly impact women’s ability to engage in effective financial planning, attain security, and build long-term stability.


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Lilah Raynor
Founder & CEO, Logica Research

Lilah Raynor, CEO & Founder, Logica Research As founder of Logica Research, Lilah is driven to help organizations use research to improve people’s lives and drive business growth. She is a speaker and writer on the Future of Money, customer engagement and insights communication. Lilah is a member of Women in Research and Logica® is a certified women-owned business. Logica excels in creating customized research solutions that spark brand engagement, launch products and services, and establish thought leadership programs. The company’s ongoing Logica® Future of Money Study highlights the consumer mindset around how we make, spend, save, and invest.