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Women and Men are Different: Financially Speaking

Written by: Sharon Alderson

Article Overview: Men and women think differently, especially about money. Although both men and women are concerned about security; many women think about what money represents, where men tend to think of what money can buy. There is no right or wrong, we just think differently. Money has no gender, anyone, man or woman can earn, spend, save or invest it. The results of a survey of 1,000 spouses conducted for Money Magazine, found men and women had dramatically different ideas about who does what with the family finances and what is important to their partners. 27% of men believe their wives think having the right investments is very important. Yet nearly half of the women surveyed say it is important. 45% of men say that having cash for emergencies is very important to their spouse, when in reality 67% of women believe it's crucial.

Women and Men are Different: Financially Speaking

This survey shows it is a myth that women don’t care about financial matters. Studies show women are actually more worried about financial security in retirement than men, yet they are more disengaged from the process of investing. Whether you are married, divorced, single, young or old, as a modern woman, there are compelling reasons why you should take your financial future seriously and if you haven't already done so, perhaps it is time to think about it now. Women face unique issues when it comes to preparing for our financial future.

Why do women need financial planning advice?

Statistically women are more financially vulnerable when a marriage ends, a spouse dies, or they become the sole source of financial support for children or an aging relative

Women generally live longer than men and for this reason we will be spending more years in retirement.

Time outs such as childbirth and child care, can cause a woman to put her career on hold and this time away from the job may have a significant impact on a woman’s ability to re-enter the workforce and maintain a growing income stream.

Women are less likely to be part of a company pension plan, because many of them work in a small office environment where there are no company paid benefits or they’ve chosen to work for themselves.

The proportion of employed women contributing to an employer sponsored pension plan has declined in the past decade and currently is at 39%.

Women are less likely to contribute to RRSPs than men and in 2002 only 24% of female tax filers did so. Of the women that did contribute to RRSPs the average contribution was $3,500 about $1,400 less than the average for men.

According to Statistics Canada, employed women ages 55 to 64 had incomes that were half of what men in the same age category made.

Another reason to get financial planning advice is we may find ourselves sandwiched between looking after our children and aging parents and their financial decisions.
Women are relationship oriented. We are very attentive to our relationships with our partners, parents, children, friends and co-workers. If our relationships are not working, we tend to feel responsible, and experience guilt and anxiety. When it comes to financial planning some women take the opposite approach in our relationship with money; we ignore it. We are no longer able to ignore it, because at some point in their lives, women may be the sole financial decision-maker for their households. It is clear, according to the most recent studies that women are interested in their financial futures and are concerned about retirement, so why don’t many women get financial planning advice?

Women are in a time crunch. In 2004 there were 7.5 M women employed outside the home. . In 52% of families in which both partners had full-time paid employment, the female partner was responsible for all the daily housework. Clearly a woman’s plate is full with family and job concerns.

Many women are made to feel inadequate when it comes to financial issues. As a result, some members of society still believe in the old adage, man kill food, and woman keep cave pretty!

Investing and taxes are becoming more complex everyday, and not just for women. In the past, boys took math; girls took Home Economics in high school. That is changing and today girls are encouraged to take math and science, and as a matter of fact doing very well in those areas

Throughout the years, women have rarely been encouraged to interest themselves in financial matters. Money was something that was often taken care of by their fathers and husbands. The vast majority of married couples still divide the family's financial duties along traditional lines, with women handling everyday spending and budgeting decisions while men look after investments and retirement planning.

In many instances, death, divorce, job loss, illness or some other unforeseen event can change a woman's situation overnight. Unfortunately, a lack of comfort in investment and money-related decisions can cause shock and panic for many women should one of these events happen. In short, a lot of women are ill prepared and at risk without even knowing it.

In some instances our past conditioning often leaves us feeling unsure about what steps to take. Have you ever heard it said “we don’t know what we don’t know?”
Given our demonstrated ability to foster healthy relationships in most other areas of our lives, it should be possible, with some help, to develop healthier relationships with money as well. Your financial security is dependent on your attitudes and beliefs about money and your willingness to take your financial future into your own hands. But most importantly remember that financial planning is a journey, so choose a good guide to show you the way or if you want to venture alone be well prepared, as mistakes can be very costly.
For many people, money is an emotionally charged issue. It may represent power or control, especially in relationships. Our beliefs about money, established from messages received from the world around us, and our emotional attachments to it strongly influence the way we spend and handle money.

Knowledge is power when it comes to financial decisions.

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Article Tags: emergencies, familyfinances, investments, womenandmen
Referred by: http://www.womenforwomen.ca



Related Forum Posts
Re: History of Women in Business in the United States - Yes. Women have increasingly made positive economic contributions to society and their position is being recognized more and more as seen on the Forbes List of Executive Women. In general, women can be a bit more practical in their approach as entrepreneurs too.
A ton of Great Women - You might want to profile Teresa Cascioli of LakePort Brewery. She has an amazing story! I met her at at the celebratory luncheon for the Profit/Chatelaine Top 100 Women Business Owners. The Top 100 list is also a great resource for inspirational stories of Women Entrepreneurs.
Re: Are entrepreneur women more organized than men? - Women are generally more organised than men. They have good instincts more than men. Women are generally aggressive when it come to business. You don't want to mess up with them.
Re: Are entrepreneur women more organized than men? - The issue of women being more organized than men is true, start from you home, just see how messy the boys are. Women are also very cautious, unlike men who take any risk, a woman will analyze the risk first. Women are also go getter when it comes to business, once they make their mind, then they go for it.
Re: Why aren't there more women entrepreneurs? - My opinion on this (being a women, and being disabled), is; Women in general like security. Women are the caretakers, in general. In the work environment we are the one to have children. We are the ones who leave work to do this. We deal with a stigma that we are bad mothers if we work, but we are a bad mother if we do not work. I feel there is no way a man could ever understand this. Sure they can try, and some do a good job of it, however they truly do not understand. How could they?? Being a entrepreneur is throwing cation to the wind. It takes believing in yourself. It takes a women who can have someone say no, put us down or just plan old negativity and for us to turn it around. Women who can do this are called names, while men in the business world are just expected to have a thick skin. Studies show in the work environment that women are more apt to be bullies. Women are more apt to turn on each other. We expect more out of each other. Many women also use the work environment to socialize and to find a mate. Men and women are not created equal. Once we understand this and take what we are and "run" with it; the better all of us will be. Women business owners, women entrepreneurs are still considered a minority. Since there are more women then men in this world, some day this will turn around. This too is why men need to protect themselves and keep us under some kind of control. What bothers me to no end is when women give in to the mans world using sex as a selling tool. We need strong women leaders, not those who use their bodies as a step up. This is just my opinion on this subject.


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