The relationship and views that women and men have towards money can differ due to a combination of sociocultural, psychological, and economic factors. What I am sharing in this article, around money and gender, might be controversial, but I think its an important topic. My view is if you have children, your duty is to help to educate them equally about money regardless of gender.
Your childhood shapes your views about money
From a young age our views around money are formed. People born between 1950 and 1980 will have potentially experienced more traditional gender roles regarding money. Women faced financial discrimination until recently and were seen as a high-risk investment by banks as little as just 50 years ago. It wasn’t until 1975 that women could open a bank account in their name, get a mortgage, loan or credit card without their father signature or male guarantor. So, for this reason it was common for the man of the house to manage the money! And if as a child this was what you saw then you are more likely to have fallen into those gender roles.
Gender Roles
As children, lots of men have been raised to be assertive, take risks, and pursue high-paying careers, whereas women were being given the message that they would be the homemakers! Traditional gender roles often place men as the primary breadwinners and women as housewives. These roles can influence how each gender views earning, spending, and saving money. Men often automatically take control of the money because that was the role model they saw growing up.
The good news is more women are increasingly taking charge of their joint finances, understanding the importance of financial literacy and not leaving it all to their partners as their parents did.
Times have changed, but many people are still stuck in these traditional patterns and mindsets, and I see this all the time.
Thankfully, there is now more equity, but there are still disparities, and in the main, this comes from what we were exposed to as children.
Attitude to risk
Studies have shown that men tend to have a higher risk tolerance regarding investments and financial decisions, while women may be more risk-averse and prioritise financial security. Again, this is not always the case!
Men often report higher confidence in managing investments and financial planning compared to women, who may experience financial anxiety and a lack of confidence, even when they have comparable financial knowledge. My experience working with men and women over the past 30 years confirms this.
Research suggests that men and women might spend money differently, with women possibly focusing more on household and family needs and men on personal and investment expenditures.
Longevity
Women generally live longer than men, which impacts their financial planning. Women may need to save more for retirement and be more cautious with their finances to ensure long-term stability.
Income disparity
Women still, on average, earn less than men due to gender pay gap, career breaks for childcare, and there are more women in lower-paid jobs.
This disparity affects their financial priorities and strategies. Men often have more opportunities for career advancement and higher-paying positions, influencing their approach to money. Women might prioritise job security and flexibility over higher pay due to responsibilities like childcare.
Gender roles are evolving, and there is an increasing number of women in high-paying jobs and leadership positions, gradually changing traditional views and relationships with money.
Things are changing. The rise of financial independence among women is altering traditional dynamics, leading to more shared financial responsibilities and decision-making in households. This shift is a positive sign of evolving gender roles and changing relationships with money.
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