Did you know women are great with money and do better than men in many financial areas?
If you didn’t, you’re not alone.
Money has a PR issue with women.
Many have believed that men are just better at managing and investing than women.
I’m a believer in focusing on strengths and what is going well, as opposed to worrying about the prevailing headwinds, when it comes to money. This positive approach helps build resilience and confidence for anyone.
Here are 7 ways women are rocking it in their financial lives:
- Women carry less debt than men – We know that credit card debt can be a drag on your financial security over the long run. Turns out women are doing better than their male counterparts in having slightly lower balances. They also have lower personal debt balances and car loans. Women do have higher student loan balances but if you are taking on debt then it seems like investing in your education might be a good place. Women also manage their debt better, with women having slightly higher credit scores.
- Women save more than men – A Fidelity Study found that women save a higher percentage of their income into retirement accounts and added more to their investment accounts outside of work too.
- Women spend less money than men – Perhaps one of the reasons they save more is that women spend less money than men. This is particularly impressive given that men earn on average $10,000 more per year than women according to the bureau of labor statistics Consumer Expenditure Study. Women are also better at finding sales and deals as they are more price conscious.
- Women give more to charity than men – A US trust study of high-net-worth women found that 93% gave to charity compared to 87% of high-net-worth men. They also were more likely to volunteer their time with 56% compared to 41% of men. During Covid women’s giving has been impacted (as we know they have been disproportionately affected) but giving is still alive and well. Why does women’s generosity make them better with money? Well, generosity precedes prosperity.
- Women’s investment results are better than men’s – Women aren’t necessarily more confident investors than men, but they should be. A Fidelity study found that women achieve better investment returns than men. The difference might not seem great, but over time this compounds to be significant. Why? Well, it could be that women are more patient investors, take more time before making their decisions, and take less risks (see #6). All of the reasons that they have typically been criticized in their investment approach … by men.
- Women are more patient investors – Men can be over confident in their investment prowess and this can lead to bad decision making according to a Money Crashers study. They looked at a University of California-Berkeley study which found men traded 45% more than women. Why is this detrimental? Well, this behavior hurt the men’s returns because it caused overtrading and brought on higher transaction costs.
- Women are more likely to get professional advice than men – You know how the old saying goes – men won’t stop for directions? Why not? Don’t say because they have GPS on their phones … I said it was an old saying! Because, it makes them feel dumb. Why do women ask? Because they know it will make them smarter. Women look for professional advice more often and this may help in all areas of their financial lives.
What you think, say, and believe about your money makes a huge impact in your financial life. You have everything you need to be great with money!
Every good wish,
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