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[Applause] the year 2023 was dubbed the power of women. It's where we saw women's economic power explode into the public consciousness with the triple punch of the Barbie movie, Taylor Swift's Eras Tour, and Beyoncé's Renaissance Tour and their respective concert films. Three female-led mega hits that broke records and upended several assumptions about women's economic clout. Female spending became a powerful force, impacting the economies of cities and countries around the world.
But that is just the beginning, because women are on the threshold of an opportunity of such magnitude that's never been seen before, and it's been dubbed the great wealth transfer. According to Global consulting firm McKinsey and Co, women, by the end of this decade, will be inheriting or controlling $30 trillion. That's almost the entire gross domestic product of the United States for one year.
So where's all this money coming from? Well, the baby boomer generation has amassed an unprecedented amount of wealth. They've benefited from robust economies, booming stock markets, and the price appreciation of their homes. And as these men die, that wealth is being passed on to their wives, who are typically younger, with several years ahead of them, quite possibly a decade or two. And while it's in the hands of these Boomer women, because of the differences in the way they use their spending power, it has the potential to reshape society and society's beliefs about all women and wealth. Because these women tend to be more generous with their charitable daughters, and they focus more on environmental and socially responsible causes.
But all that can only happen if women take charge of their financial destiny. And sadly, not enough are. According to a recent UBS report, 56% of married women still pass on the responsibility of investing and financial planning to their husbands. And it's not just the Boomer women; over half of the Millennials are doing the exact same thing. If we do not change this behavior, we risk losing an opportunity to change the world for the better.
So why is it that women, who are more educated, more successful, more outspoken than ever before, are leaving important decisions about money to somebody else? Number one reason cited: women feel that men know more about finance than they do. And surprise, the men agree. But over the course of my 40-year career, I quickly came to realize that it was due more to an unfounded lack of confidence and less that these women were married to financial geniuses.
Women say there is not enough room to do one more thing in my life. And ladies, none of you are going to be surprised when I tell you that the research says you pick up at least two hours more each day than your husbands when it comes to household chores and caregiving responsibilities. And if you grew up seeing your father do it all, you're very comfortable to continue that tradition with your husband.
Now, my father, he was the master of the house. And I will never forget the day that he reprimanded my mother for spending too much at the grocery store. She always had to come in and check in with him with how much she had spent. And this time, he was screaming at her because she had so little left over. My mother threw the change in his face and walked out the door.
So don't think I haven't had my issues with money. In fact, when I went off to university, I was going to be a journalist. Now, that didn't come to pass, but I was lucky to have met role models and mentors who introduced me to the world of finance, and it changed my life. And I realized that I could change the lives of others.
Shaking off gender roles is difficult. After 32 years, I still believe my husband cannot make a bed or put dirty dishes in the dishwasher. But the first step to getting involved can be as easy as taking out a bottle of wine and saying to your partner, "Let's have a drink or two and talk about money." You might be pleasantly surprised, because most men say they want their wives more involved. And why would you want to be left out of decisions that impact your life?
Women have accomplished so much in so many other areas of their lives, from fighting and winning the right to vote in 1920 to today. Women hold more decision-making political posts than ever before. We've walked in space, we've won Nobel Prizes. We can break the cycle of abdication when it comes to money.
Now, I have some good news. 44% of women have succeeded in moving from behind their husbands and are managing their own investments or working in tandem with their spouse. I have had a front-row seat to women gaining more confidence, not just in managing their money, but in all aspects of their lives. And I've seen men become less stressed because they no longer have to do it alone.
This great wealth transfer, it's happening before your very eyes with the likes of women such as MacKenzie Scott, who since her divorce from Amazon's Jeff Bezos, has donated $16.5 billion to 1,900 charities. But you do not need billions to make a difference. Let me tell you about a very special client. We had a meeting recently where her husband had passed away, and she shared with me that all their married life, he had been in charge of their charitable dollars and where they went. And she said, "This time, it is now my turn." So we created two scholarships for women entering into the engineering program at her alma mater, and we made sure that they would be funded long past her time on Earth.
She went on, though, to do more. And about a year ago, she has been speaking to small groups of female alumni in a similar situation. And recently called to say that the university had let her know for the very first time, they are receiving more bequests and endowments from women than men.
Now, up until now, I have really focused on Boomer women and Millennial women. But taking charge of your finances is important to everybody in this audience, regardless of age or gender. You can all benefit from these five steps that will get you well on your way.
Step one: Take inventory. List assets and liabilities and ask yourself, "What's my main money concern?" For most of you, it will be as simple as, "Will my money last as long as I do?"
Step two: Create a financial plan. Think of it as a road map. You cannot get to where you want to go unless you know how to get there. And I can attest, the main differentiator between those who achieve long-term financial security and those that don't, is creating a financial plan.
Step three: Consider working with a financial advisor. Think of any elite athlete. And if you love golf, you'll know that most pros have more than one coach because they know they can't do it all alone.
Step four: If your spouse is working with an advisor, get yourself to that next meeting. You will become knowledgeable over time. You ask questions, you listen, and you will be so glad you did.
And step five: Keep it simple. Think of wealth along three dimensions: liquidity, anything that you need to spend within the next five years, keep it safe and keep it accessible; Legacy, for money that you want to give to your children and pass on to charity; and Longevity, this is money that you can invest for the long term to fund your retirement.
The great aviator Amelia Earhart once said, "The most difficult thing is the decision to act. The rest is merely tenacity." Imagine if we had a groundswell of women awakening to the power that money endows. Just think what could be accomplished. I know that you can do this because your superpower is that you're a woman. Thank you. [Applause]