I am not supporting this fact just because I’m a woman. :-) I have statistical data to prove my point!
A study, conducted by Vanguard on 2.7 million IRS investors in 2009, revealed that during the economic crisis (2008-2009), the accounts led by women lost about 13% whereas the accounts led by men lost about 16%.
Women are also less likely to incur large amount of debt as compared to their counterpart. The study also revealed that about 30% men had $100,000 of debt whereas only about 22% women had the same debt amount.
Another interesting thing were pointed out by a research conducted by the American Journal of Psychiatry in 2006. Women are usually regarded as impulsive buyers, and the study showed that 6% of women were like that, but about 5.5% men belonged to that group. So, men are not far behind.
Let’s discuss about 14 personality traits which make women better money managers:
1 Women are confident, but not overconfident
There is a thin line of difference between being confident and being overconfident, and women know the difference. Overconfidence often leads to holding a stock for too long, whereas sometimes, selling it before, maybe more profitable.
2 Perfectionist - Another good trait of woman
To be a perfectionist, you have to be detail-oriented. It is said that crossing your T’s and dotting your I’s play a significant role when it is all about managing a business. If you’re an entrepreneur, having perfect detail-oriented eyes can help you climb the pillars of success easily.
3 Women love to set their own trend to manage finances
Instead of following the herd, women want to set their own trend. They want to research and plan their own investment strategies.
4 ‘Competition’ is comparatively a man’s personal trait
It is true that competitive spirit is good, but when money management is the issue, it’s better to be less competitive.
5 Self control: Women can do it better
Who are better money managers - Men or women? Studies have pointed to the fact that women have more self controlling power. Therefore, they can hold on to a good investment, and resist the temptation to sell it. As a result, they avoid frequent trading which don’t add much value to the investments.
6 Women like to take risks, but not much
Due to less overconfidence, women tend to be a bit pessimistic about making risky decisions, so they experience loss comparatively less.
7 Collaboration - A trait more common in women
A woman binds the family together. She collaborates with others to make things happen to achieve financial goals. She treats money management as a team affair - collects information from others (family members, friends, colleagues, etc.) and make suitable financial decisions.
8 A woman usually admits her mistakes
When you admit your mistake and are ready to rectify it, you can minimize the loss. So, a woman can sell her investment if she knows that she wouldn't get profitable return.
9 Better student - Men or women?
Everyone knows that women are better students and there’s no exception when it is about managing finance. You need to do research and make thoughtful decisions to manage finances in a better way, and women are good at that.
10 Men are more open to debt, but women are hesitant
Who are better money managers - Men or women? When it is about debt, women win. Most of the men think that debt opens up new opportunities, which is somewhat true. However, incurring too much debt can be sometimes disastrous for your personal finances.
11 A woman doesn’t like breaking rules
Several surveys point to the fact that comparatively women are less likely to get arrested for drunk driving (About 4% less likely than men) and breaking traffic rules. They usually like to follow the rules. So, they like to follow better money management rules, too.
12 Women don’t hesitate to ask for help
A woman usually never hesitates to ask for help. As per a report published by Fidelity, women are more willing to take help from financial experts on how to manage personal finance. This nature of being smart and humble at the same time, helps a woman to come out of difficult financial situations.
13 A woman’s tool is ‘Fear’ instead of ‘Anger’
When there is uncertainty about the performance of an investment, women usually try to respond with fear instead of getting angry. So, a woman assesses danger and tries to minimize the damage.
14 Patience - Undoubtedly, women are better at this
A person has to be very patient when it is the matter of paying off debt. Usually, men like to play energetic games than women. Wait wait! I know - of course, exceptions are there. To repay debt, you need to plan a suitable budget and a repayment plan, and be patient to wipe out debt one by one. And, women are good at this!
Finally, it can be said that though FINANCE is regarded as a male-dominated realm, comparatively women are better at managing money to some extent.
Do you have any other points to support this thought? Feel free to give your opinion even if it’s against it!