While women have made gigantic strides toward equality in recent years, their relationship with money is still judged largely based on stereotypes. By Numbers Accounting has decided to bust some of the myths that plague the modern woman.
Women spend too much money
Society and media lead many to believe that women spend all their money on clothing and shoes, leaving very little left for the essentials. This is not true. Women spend more than men on apparel, according to Smartasset, a financial technology company. However, men spend more on other things, like takeout, and, according to the Bureau of Labour Statistics, alcohol and cars.
This myth may have a hint of truth, but with good reason. Women generally run their households. This means they are most likely to shoulder the responsibility for things like household purchases, grocery shopping, and meal preparation. If there is spending to be done, women are usually the ones to do it.
Women don’t want to learn about money
There have never been more books written by women and aimed at women that discuss the importance of women understanding how to manage their money. There are a growing number of resources online that are geared towards educating women about money management, investing money, and building their personal wealth. Women and money is a vital topic for the growth of the economy. When more women work, the economy grows.
Women are not good savers
According to data, women generally shop smarter with an eye toward savings. Roughly two-thirds of women surveyed by Insider Intelligence said they compare prices before making a purchase, versus 54 percent of men. Roughly 70 percent of women said they frequently use their mobile devices to compare prices while in a physical store, while only 21 percent of men did the same. A study found that women are more likely to participate in workplace savings plans and that when they do, they also contribute in higher amounts than their male counterparts.
Women are too timid to invest successfully
Research reveals that women are often better long-term investors. According to a survey by Fidelity Investments, female investors outperform male investors by an average of 40 basis points, or 0.4 percent. This is a seemingly negligible difference but accumulates a noticeable difference over time.
Female investors tend to buy and hold, which reduces trading costs and can lead to higher returns. By contrast, men trade more frequently and are statistically more likely to be overconfident in their ability to beat the market. Women are also more likely to readily seek guidance from a financial professional. This helps them stay the course during periods of volatility and avoid costly knee-jerk reactions that perpetuate a cycle of buying high and selling low.
Most women rely on their partners for financial support
Women today prioritize financial independence, perhaps because of the challenges they face. In late 2015, a new fashion trend hit: t-shirts with the phrase “The Future Is Female.” It’s no surprise that these four words resonated with millennial women. Feminism is on the upswing. From career progression to child rearing, millennial women are taking on the world. They are making themselves the new future.
Today’s twenty and thirty-somethings are living in a completely different world relative to where women were financially in the mid-70s. In fact, today’s young women could become some of the most financially independent women in history. On average, women live more than five years longer than men, leaving them far more vulnerable to longevity risk, or the threat of outliving their savings. This means that women are forced to be proactive when it comes to securing their financial future, establishing their own credit, and providing for their families.
Now that these myths have been busted and light has been shed on the truth, hopefully, women are given the credit they’re due. The world is changing and more and more women are coming to the forefront of that change. Take control of your journey to financial freedom. Schedule a coaching session with By Numbers Accounting expert, Nadine Moses to explore your past, current, and future financial position and start the journey to financial success.