Women Are Better Than Men at Financial Planning
As a guy, I’m not afraid to admit that women are better than men when it comes to financial planning.
Despite my male readers waving their vehement disagreement to this statement, the stats are against us.
If you're married, you already know your wife controls the budget. In fact, 85% of women control their families’ day-to-day finances according to the 2019 UBS study of women investors globally.
When it comes to investing, Fidelity Investments’ 2021 Women and Investing Study of 8 million accounts in the US shows that their women investors' returns were 0.4% higher than men's on average.
Studies have also shown that women tend to exhibit certain financial behaviors and tendencies that can be advantageous for financial planning.
Still not convinced? I did some further digging and here are some studies in Singapore, Australia, UK and the US in favor of the ladies.
A survey conducted by the Singaporean government's Ministry of Social and Family Development (MSF) in 2019 found that women in Singapore are more likely to engage in financial planning than men.
The survey found that 71% of women in Singapore have a savings plan in place, compared to 64% of men. Women were also found to be more likely to regularly review their finances, with 66% reporting that they do so compared to 60% of men.
In addition, the survey found that Singapore women are more likely to seek professional financial advice, with 56% of women reporting that they have consulted a financial advisor compared to 46% of men.
The stats point in the same direction downunder.
A study by ANZ Bank found that women in Australia are more likely than men to save money on a regular basis, with 57% of women reporting that they save regularly compared to 50% of men.
The study also found that women tend to be more goal-oriented and disciplined in their approach to financial planning. They are more likely to have a specific financial goal in mind and to actively take steps to achieve that goal, such as setting a budget.
Additionally, Aussie women were found to be more likely to seek advice from financial professionals, with 39% of women reporting that they have consulted a financial advisor compared to 32% of men.
Guys are also behind the gals in the UK.
A study by Scottish Widows, a UK-based financial services company, found that women in the UK tend to be more risk-averse than men and focused on building a secure financial foundation.
This approach includes planning for the future with 70% of women reported having a long-term financial plan compared to 63% of men. 63% of women were reported saving for retirement compared to 56% of men, and 44% of women reported seeking financial advice from a professional compared to 39% of men.
The 2021 study by Fidelity Investments found that women tend to save more than men, with an average 12.4% of their salary saved for retirement compared to men's average of 9.8%. The study also found that women are more likely to make a plan for their financial goals and to stick to that plan, even during times of market volatility.
Another study by Vanguard found that women are more likely to seek advice from financial professionals and to follow that advice, which can lead to better investment outcomes. Additionally, the study found that women tend to trade less frequently and hold onto their investments for longer periods of time, which can reduce investment costs and improve returns over time.
Sorry guys, but studies after studies are showing that men are not better at managing money and investing than women. So the next time, you're planning your finances, it can pay off to have a woman in your corner.