They just don't believe in themselves enough to realize it
Anything men can do, women can do better — at least when it comes to handling money.
Fidelity says women are not only better at saving, but also at investing. The investment group’s more than 8 million customers prove this. However, less than 10 percent of women believe they are better than men at money management.
Despite earning less than their male equals, women are saving 9 percent of their annual salary, compared to men’s 8.6 percent average annual saving. Fidelity says the number of women investing has grown 19 percent in the last three years and now exceeds 12 million. What’s strange isn’t that women are saving more or are more knowledgeable about money, it’s that they don’t believe the evidence they are smarter than men when it comes to the same money topics.
The study compared women and men at the same ages and salaries. For men starting to invest at 22 years old and making $50,000 a year, they are set to make 15.4 percent less than their women equals, or more than $276,000 over their lifetimes.
What women are doing right
Even though they don’t believe they are as successful as they are, women are doing great when it comes to money management.
“Women often build financial plans in terms of life goals for themselves or their families, rather than focusing on performance alone,” the study says. “Fewer women have their savings fully invested in equities than men, which could represent too much risk and not enough diversification.”
Fidelity senior VP Alexandra Taussig says women are doing better than they think and should recognize it.
“The results of Fidelity’s latest analysis reinforces that women too often underestimate their strengths as savers and investors,” Taussig says. “It’s time to celebrate our abilities and maximize them by making a commitment to get more involved with our money.”
It starts with education
Even if women prove to be superior investors, that doesn’t mean they can’t be better. The Fidelity study says more than 90 percent of female respondents want to know more about financial planning. Most say they’re upset they didn’t learn more about money early on in their lives.
This isn’t a new problem. Most Americans agree with the data out there that we aren’t financially literate. It begins in the home, and we tend to blame our upbringing for our lack of education. Since parents don’t know enough about finances to educate their children, those kids grow up ignorant about basic money knowledge. This lack of money smarts holds everyone back, and many experts know it. There isn’t a state in the nation that has an “A” in financial literacy. Mississippi is the lone state that has a failing grade.
Even though many women admit to wanting help, and stats back up that we all need it, ladies still hold back from reaching out for help. Fidelity says 60 percent of women have never consulted a financial professional. This isn’t the first time we read this. More women believe money topics are taboo and tend to put off talking about money. Now, more than ever, women (and men) have plenty of financial resources they aren’t taking advantage of but may not even know they exist.
Article last modified on June 27, 2017. Published by Debt.com, LLC .