Who is better at finances? Women or men?
Of course, each gender has their reasons why they believe they’re better than the other.
From being more cautious with money to comparing phone plans to make sure they get the best deal, women and men generally do have different attitudes to finance.
So rather than generalise about each gender’s financial pros and cons, let’s hear what they think directly.
Why women are better than men at handling finances – according to Hanna Becker
1. Compared to men, women are more cautious with their money
We tend to take less risks, therefore we won’t make as many mistakes as men do and won’t lose as much money as men do!
2. Women are less likely to take on large amounts of debt
According to a recent BMO poll, men are more likely to get into debt.
About 33 per cent of the male respondents had more than $100,000 in debt as opposed to only 22 per cent of the females. Need I say more?
Frank – More likely to be necessary debt i.e. living expenses. In general, men assume that responsibility.
Hanna – Why the need to assume?
3. Men are overly optimistic
Optimism can be very good if it’s based on facts, but is it just wishful thinking?
A positive attitude is key to investment success, but it must be grounded in reality.
Frank – And sometimes reality just won’t allow your dreams to take flight – ever been grounded at an airport?
Hanna – True, but staying grounded can also help define us as women, and separate us from those with their heads in the clouds.
4. The cliché is true – women are not scared to ask for help
Women are more likely to stop and ask for directions than men, right? Same goes for debt.
Women are more likely to do whatever it takes to keep the household afloat than men.
According to a report by Fidelity, 53 per cent of women against 44 per cent of men were more likely to seek information and advice from professional financial planners.
Frank – But is that after financial trouble hits?
Hanna – Maybe because they are in control of their finances for the first time in years?
5. Women are better at goal-setting
When it comes to managing money, it’s important to have specific, crucial and measurable goals. Without them, focus will be lost.
When was the last time you saw a man at the supermarket with a shopping list ensuring he didn’t go over budget? Chances are the list was written by his wife or girlfriend!
Frank – That’s so old school – we’re not talking about our parents era when the lines of responsibility were “his” and “hers!” I’d like to think we’ve moved on from those dark old days!
Hanna – Sad but true. No man can survive the supermarket experience and leave with just what is asked of him. It isn’t in his DNA.
6. Women live longer and this puts money in our pockets
We are also less likely to smoke, abuse alcohol or take drugs.
We are also less susceptible to diseases and generally lead much healthier lives than men.
Hanna – Now we just need to change the gender pay gap.
Why men are better at finances than women – according to Frank Dalzotto
1. Cost-effectiveness and practicality
We make more cost-effective and practical purchases e.g. Bunnings vs. Boutique.
Why spend a fortune on an expensive brand when a home brand will do the job?
Hanna – Practical may not be so cost-effective in the long-term. Ever heard the saying “you get what you paid for?”
2. Men hunt for the best deal
When it comes to utilities/insurances/phone and internet, we always compare deals and ‘’bang for buck’’ before committing and then follow up with a review every 12 to 24 months.
3. We’re not big on shopping
With clothing and accessories, we will exercise patience and shop around for a better deal rather than be lured by a visual “wow” factor.
This is not limited to fashion, for example, purchasing a car should be about performance, comfort and price and not solely based on a “let’s get the red one” criteria.
4. We are big on advance planning
We plan our spending in advance, for example, when eating out, avoid ordering the entrée, but if you do, make sure that agreement is mutual (although if you do care, it should lean slightly towards her choice).
We might select a BYO establishment, but we don’t want to buy the wine there as it’s probably twice the price that Dan Murphy is selling it for, and again, make sure it’s a wine of mutuality (that suits her palate).
It’s not always about price, it’s about preserving the life of my children’s father!
Hanna – So basically at the end of the day, it’s probably a wise idea to leave the choices up to her. A woman knows what she wants anyway, right ladies?
5. We are all about the “Big Picture”
This means planning for a sizeable retirement nest egg is front of our minds.
We look to the future and that means investing now for the years ahead, including life and income protection insurances.
We want to make sure our families are provided for financially if we’re seriously ill or we’ve departed this mortal coil sooner than expected.
6. We love technology
When we think we’ve found something that will revolutionise the way we do things, we feel a little bit smarter than the next guy (it’s a primeval competitive thing).
And as history shows, men are the more hands-on gender, we prefer to let our fingers do the negotiating.
There is a reason why that book “Men are from Mars, Women are from Venus” was so successful.
That’s because women and men are fundamentally different in many ways.
But when it comes to finances, it doesn’t matter who is “better”.
What really matters is that both women and men work together towards a common investment goal, with each using their specific skill-set to their mutual advantage.
Using that strategy will help to create a harmonious financial future – not one where you’re single and broke because one person thought they were “better” than the other.
The information provided in this article is general in nature and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information you should consider the appropriateness of the information with regard to your objectives, financial situation and needs.