Sorry men, we were just passed by women as the better manager of family finances. Recent studies are showing that personal finances are shifting from a primarily male dominated responsibility to one now being managed (effectively) by females. We all know that money problems can ruin a marriage. Conversely, having joint involvement and ownership of accounts decreases the chances of miscommunication and misinformation – transparency in family finances is essential.
Yes (OF COURSE!), there are exceptions to all of these somewhat sexist statements, but until societal norms diverge toward equality, these reasons apply to more situations than they do not. If you’re a woman who isn’t currently involved in family finances or a man too proud to ask for help, maybe the following will persuade you to try a new approach. Here are 9 reasons why a woman should be involved in the management of your family’s personal finances:
- Women run the day-to-day of the household. Whether working full time or not, most women oversee the daily operations of the household. Subsequently, amounts spent on some of a family’s biggest expenses such as groceries, maintenance and entertainment are left to them. It only makes sense that the overseer of these matters be exposed to and involved in the budgeting/financial aspects.
- Women are more afraid of debt. The latest studies tell us that women are more intimidated by debt than men. Women tend to save up for big purchases instead of putting them on credit. Debt is the #1 killer of family finances, it’s good to put someone who is leery of debt in charge of spending/budgeting. Avoiding debt is also one of the 18 Financial Tips I Wish Someone Told Me When I Was Younger.
- Women have less of an ego when it comes to investing. Any successful investor must exercise both patience and discipline when seeing investments go up and down – especially in today’s market. Ego, pride and over-confidence (traits more likely found in males) must be removed from the equation. Women are typically less likely to show these emotions and panic sell if an investment goes down.
- Women are better at finding value. U.S. News reports that, on average, men dramatically outspend women on things like holiday shopping. Being able to identify value and needs (as apposed to wants) is valuable in both investing and budget management. A dollar saved at Target is a dollar earned!
- Women bring a unique perspective. A family unit should be a partnership with each spouse having an equal say. Women need to be equally involved in spending and investing decisions, offering a checks and balances approach to the partnership.
- Women are better organized. The cornerstone of any family’s financial success is their ability to follow a budget. Organizing expenses into easily trackable and ascertainable goals is key. The better organized everything is, the higher the chances your budget will be successful. A New York Times best seller on point: The 7 Habits of Highly Effective People.
- Women identify problems more quickly and accurately. Most family finances are in shambles. I’ve seen several couples benefit from a financial role switching from man to woman. A new perspective can better help to identify obvious budget issues which need to be resolved – remember that you’re in this together.
- Men are more prone to forgetting to pay bills. It’s true… 25 percent of men admit to paying bills late, with 17 percent of women admitting to the same thing. Paying your bills late can result in a lower credit score and higher future borrowing costs. Do your family a favor, stay on top of your bills – schedule automatic bill pay if you have to!
- Women have a greater desire for financial independence. In a current survey of men and women, women rank a desire to be financially independent higher than men do. The study indicates that most middle aged men have worked their job for years and have become accustomed to financially depending on their employers – women, even if in the same work environment, are shown to be less accepting of this dependence.
Tags: Advice for Women
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