Men and women traditionally have had different roles which is often reflected in how they view money.
Historically men went to work and supported the family. While women stayed at home, brought up the children and kept the family budget.
Most women depended on a man to support them, pay the bills and cover the living expenses.
Today things have changed and most women are no longer dependent on the men in the family to support them or pay the bills. In many homes both partners work and in many cases the woman is the main bread winner.
Financial experts say the way men and women view money is shown in how they each manage their finances. Studies show that women are more anxious about money management and less confident about savings. They also show that before accepting a job men are more likely to negotiate their salary and bonus payments than are women.
WHAT ABOUT INVESTMENTS?
When it comes to investing, women are prone to take fewer risks than men.
And women often take more time in making investment decisions. They also prefer to consult with a financial planner or a family member before investing. While men act more independently and take greater risks in their investment portfolios.
Women are more patient and happier to wait things out. Men prefer a quick return and often panic faster when there is a drop in markets.
Men focus on the short term while women take a longer term view.
Women build relationships with their Financial Advisors and work with advisors they can trust.
Men prefer to work with advisors who have made money for their friends.
Women are more likely than men to participate in employer sponsored retirement plans and save a greater percentage of their income.
Men invest in property and other “real” assets to a larger percentage than do women.
Women prefer to invest in family, children and their lifestyles.
Men are generally more confident when making their investment choices. They also tend to trade more frequently than do women. While women tend to be more goal oriented in their investment choices.
THE GOOD NEWS:
However these differences are becoming less pronounced as women become more independent and better educated when it comes to making independent investment decisions.
Written by Katherine Lapidoth. Senior Wealth Manager. Pioneer Wealth Management.