Men vs. Women: Who’s Better at Managing Money?
When it comes to money management, men and women seem to come from two different planets. While women prefer to save and learn about finances, men are more interested in investments and entrepreneurship. The question is: who is better at managing money, men or women?
There is not an absolute answer to this question, but several surveys show that women are more likely to seek guidance, make better investments and save more money than men.
Women are big savers: Even though many women are portrayed as shopaholics, a survey conducted by global Reuters Synovate revealed that 79 percent of women are interested in living a frugal lifestyle. The survey also showed that 83 of men are focused on investing rather than on saving. Fifty-four percent of men spend more on technology and electronics compared with 23 percent of women. Women may shop more often than men and purchase several items, but it doesn’t mean they spend more. Women look for coupons and deals, reducing purchasing costs considerably. Men usually buy fewer but more expensive items than women, and don’t take advantage of coupons.
Women seek more financial guidance than men: A study conducted by 60daystochange.com revealed that women are more likely to seek financial guidance than men. Men are usually too proud to seek help when faced with financial difficulties. Women are wired differently, and when they can’t handle credit card payments or spend more than what they make, they seek financial help. Women’s ability to ask for help is related to listening skills. Usually men are more likely to follow their instincts without listening to others, while women place greater value on experts’ advice. Also, women are better communicators than men. Women tend to express their concerns to professional counselors and accept help, but men avoid talking about their problems with strangers.
Investing more doesn’t mean investing wisely: Men are more likely to invest than women, but different studies show women make better investors than men. A study conducted by Richard L. Peterson, a psychiatrist who studies the role of emotions in investing decisions, concluded that women are better investors because they are able to tap into their emotions. When making investing decisions, men are driven by impulses that lead them to make mistakes, the study showed. Investing mistakes are also associated with pride and overconfidence. In many cases, men feel too confident about certain investments and risk too much. Women, by contrast, are in touch with their emotions, so they are able to manage their impulses, avoiding financial mistakes.