According to numerous reports surrounding women and our relationships with money, one suggestion appears to be a main stay across most reports. It has been suggested for years that women, and our lack of confidence and risk aversion when dealing with money, are not up to par with men’s negotiating for and understanding stock and retirement benefits. However, as many women are now competing with men in regards to positions with increased pay and benefits, the tide may be changing in this area.
As reported in a 2012 Forbes.com article, the following are key differences in attitudes about money between the sexes:
1) Women avoid risk more than men, which can prove damaging in the long haul. As women tend to mitigate risks more than men, it is suggested that we do not take full advantage of all of the rewards that may be reaped from investing in the sometimes volatile stock market.
2) Women worry more about the effect of money on relationships. According to a survey by Campden Wealth and Morgan Stanley Private Wealth Management, 79% of younger “ultra wealthy” women are concerned that their wealth will complicate relationships with spouses, friends and colleagues. It was assumed in this article that the same conclusions can be drawn for women and men in all income and net worth brackets.
3) Women worry more about their financial health but lag in decision-making and self-confidence. An LPL Financial “WomenInvest White Paper” survey shows that 67% women want an equal role in financial decision making and only approximately 20% want their husbands to make all the decisions. Only 29% of women are confident their investments are “allocated appropriately between cash, bonds and stocks.” By comparison, 45% of men are confident in this area.
4) Women may expect different things from advisors than men. Financial “peace of mind” is seven times more important to women than wealth accumulation.
Though some of the previously mentioned sentiments may ring some sort of truth, there are several others who are seeking to debunk these “myths” about women and money.
It is safe to say that regardless of past assumptions, myths and findings about the relationship between women and money, as professional women with increasing pay and offered benefits, it is imperative to remain 100 percent aware and in full control of our financial futures, which may call for a reassessment of antiquated thinking and fears.