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Money Management Differences Between Men and Women

by Delarno
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Money management

Money management is a critical aspect of personal finance that plays a significant role in shaping our financial well-being and future goals. When it comes to managing money, there are often noticeable differences between men and women. These differences can be attributed to various factors, including societal norms, cultural influences, and personal experiences.

Historically, men have been perceived as the primary breadwinners and financial decision-makers within families. This traditional gender role has influenced how men approach money management. They may prioritize investment opportunities, long-term financial planning, and taking risks to generate wealth. Men tend to focus on accumulating assets, seeking higher returns on investments, and pursuing career advancement to boost their income and financial security.

On the other hand, women have often faced unique challenges and obstacles that have shaped their approach to money management. Traditionally, women have been more likely to take on caregiving responsibilities, including raising children and caring for aging parents. This can result in lower earning potential, career interruptions, and reduced financial independence. Consequently, women tend to prioritize financial stability, budgeting, and managing day-to-day expenses effectively.

Furthermore, studies have shown that women generally exhibit more cautious and conservative financial behaviors. They are inclined to prioritize saving, emphasize long-term security, and make informed financial decisions based on thorough research. This approach is often influenced by factors such as a desire for financial independence, concerns about economic instability, and a tendency to consider the well-being of their families and loved ones.


Money managementIt is essential to note that these differences in money management between men and women are not universally applicable to all individuals. Many men exhibit financially cautious behavior, just as many women pursue investment opportunities and take on entrepreneurial ventures. Additionally, societal norms and gender roles have been evolving in recent years, contributing to a more inclusive and diverse financial landscape.

In this article, you will learn about women versus men in managing money. Here Are 9 Ways That Women Manage Their Money Differently Than Men:

  1. Savings

Men that were nearing retirement age had an average of $118,400 in their retirement fund which was significantly more than women nearing retirement age. According to a BlackRock survey women nearing retirement age had an average of $81,300 in their retirement funds. There’s a reason why men usually have more accumulated savings. The average man usually earns more than the average woman so the men walk away with more savings. A Vanguard study found that men put up 8% less than women towards their retirement plan. Since they’re earning more money than women but put up less money than women towards their retirement, they still end up ahead of women in this category.

  1. Financial Goals

According to a survey completed by The Motley Fool, men’s top financial goals are to save for a vacation and second to pay off credit card debt. Women just reverse the priorities by paying off credit card debt ahead of saving for a vacation.

  1. Investing

Studies  have found over and over again that women are more cautious investors and men are more open to risk when it comes to investments. These studies also show that most women use an investment strategy that’s more stable than the average man’s.

  1. Shopping

I don’t think we need a study when it comes to this one however, the Wharton School of Business found that men want to make their purchases as quickly as possible and then leave the store as opposed to women view shopping as a recreational activity. Women can literally shop all day without ever buying one item. Have you heard the saying “Men buy, women shop?” It is so true. Men focus on the goal to purchase what they came for and don’t really care about anything else. For women, shopping is an experience. They will tell you everything from the nasty bathroom, lack of sizes to how they were treated by the salesperson.

  1. Food

The average annual food bill for a woman is $3,680 whereas the average annual food bill for a man is $4,173. This could possibly be due to the fact that women cook more often than men.

  1. Alcoholic Beverages

On average women spend $234 annually on alcoholic beverages while men spend $537 a year. Who knows, maybe men hold their liquor better so they can drink more or it could just be due to the longer urethra tube that men have so they can hold more liquor in their system. Either way men are spending about double of what women spend.

  1. Clothing

It’s pretty much a no-brainer that women spend more money on clothing than men. Women spend on an average $1,140 a year while men spend $813 per year according to the study. I’m pretty sure they are missing items purchased by women like red bottoms shoes or the designer clothes they mixed in to hide with the dry cleaning.

  1. Transportation Costs

Women spend $4,273 per year on personal transportation costs while men spend an average of $5,507 a year.

  1. Spending Overall

Overall men spend about a couple thousand more annually than women. Although men spent more, they spent a lower percentage of their income than women because they made more.

Remember that this study was conducted based on men and women that were single. Spending habits of men and women may differ a lot when individuals are married couples because they often have common goals, put their earnings together, and can save more, or they have a family that they are responsible for.

5 Fun Facts and Assumptions 

  1. You may have heard women talking about their “rainy day fund” which may be used for emergencies such as a new furnace, a night out with the girls, to leave the husband or just a good bottle of wine. As you can see, it can “rain” at any given time. Turns out that men keep one also, but they just don’t talk about it. Studies have shown that men have nearly twice as much money stashed away and over their lifetime they save three times more money than women.
  1. Men and women will often say women are smarter than men. News flash, men are smarter than women when they are interested in the subject. Men know more about investing than women. If you want to see how smart a man is or how much they know, talk about a subject they are interested in and that certainly is not shopping!
  1. Can you believe that men are more likely to get into debt for a luxury item that they could not afford otherwise? Women tend to get into debt to “make ends meet.”
  1. Remember that saying “Men are from Mars, Women are from Venus?” Men and women think and act differently but can come up with the same result. For instance, when it comes to paying off debt women will figure out how to reduce the expenses in their household while men will focus on increasing their income. They use two different approaches for the same problem but can achieve the same result.
  1. Men and women have financial fears the same as they have financial goals but again, their views differ. Women’s biggest financial fear is always having to live paycheck to paycheck. Men’s biggest financial fear is always having to work and never being able to retire.

Understanding the differences in money management between men and women can help us recognize the unique challenges and strengths each gender brings to financial decision-making. By promoting financial literacy, equal opportunities, and empowering individuals to make informed choices, we can work towards a more equitable and prosperous future for all.


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