For too long, the myth that women and money are bad together has perpetuated our media, marketing, and minds. Counseling based on these false assumptions conveys that women are to blame. If they only negotiated harder, assumed more risks and (in short) acted more like a man, then they would succeed.

Myths We Believe About Women and Money

If We Follow All the Rules, We’ll Be OK

We are often led to believe that if we configure our 401 (k) for our target retirement date, we will be saving everything we will need later. It is not true. I am ashamed to admit that before reading Pound Foolish, I did not know how recently Americans turned to DIY retirement accounts (IRA and 401 (k) s) to meet all of their financial retirement needs. I mentioned it to Olen, who added: “They are completely new and started as supplements to the pension system. They never intended to be the main source of retirement income. Now we have seen them as a retirement savings vehicle for approximately 30 years, and we know how well they work, and the answer is that they haven’t.”

Also Read: Most Effective Money Tips for Women

Personal Finance is Just Personal

When it comes to giving specific financial advice, “I feel that the best way to give advice is to explain the world and how it works, and in fact, this world does not work for many, many people,” “we can not afford to save to work, save for college, save for emergencies and everything else, in an environment where the cost of housing, education and medical care is skyrocketing. ”Instead of more education, we need stronger legislation to make a real difference in the financial challenges we face today, including the wage gap, wage stagnation and complicated documentation and complicated disclosures related to obtaining a mortgage or creating a retirement account. financial services is so worried about our financial well-being, she asks: “Why would they try to educate 300 million people about c mo avoid a mortgage of 100 pages with a single space and a trap?

Women are Worse Investors

A survey conducted by Fidelity on women and money reported that only 9% of women thought that women’s portfolios would exceed those of men. In fact, the opposite is true. Women’s wallets consistently outperform men year after year. A study of 35,000 households showed that women adhered to their investment plans while men traded more. Fidelity compared the investment behavior of 8 million retail clients and discovered that women outperformed men by 40 basis points. As the study explains, “at first glance, this may seem like an insignificant difference, but it can have a significant impact over time.” It is terrible that 91% of women doubt the competition of their own gender, but it is not surprising when one takes a look in the financial industry.

Women Are Spending Too Much To Save

You don’t have to look far to see a woman in a movie swiping her credit card and glorifying purchases. Combine aggregate expenditure data by gender of the US government. UU., Citi expense transactions and third-party services such as Venmo. They discovered that, apart from clothing and personal care, men spend more on almost everything else.

Financial articles define women as “excessive wastefulness,” which then advises women to limit their “waste.” Meanwhile, articles aimed at men use words like “dare” to “invest” to have “power.”

The advice columns direct men to invest while encouraging women to look for bargains to save. Women are not the experts in meaningless purchases that are supposed to be in the media, and they are making big money movements.

Also Read: Creative Ways To Make Money From Home

Women Don’t Make The Main Money Decisions

Until as recently as 1974, women had to have a man to sign a bank loan. Your income and reputation did not matter. The bank considered any man more responsible than a woman to handle a loan. Among parents with children under 21, 69% of fathers and 52% of mothers are fine with the future spouse of their daughter taking the lead in financial matters. This is a problem since many women will have to manage their own finances at some point in their life. Money has been considered a domain only for men for too long. Now that women can legally have their own credit cards and have marital property rights (that happened in 1981), they are flexing their own financial muscles.

No Comments Yet

Leave a Reply