Busting 3 Myths about Women & Money

Have you ever been told that you're not good with money? That women aren't as financially savvy as men? That we're more prone to overspending and living beyond our means? Unfortunately, these kinds of stories are all too common. But the truth is, they're just myths.

I’m going to bust some of the most pervasive myths about women and money, and share some truths that will help you take control of your finances.

Myth #1: Women are naturally bad with money. 

There's no biological or genetic reason why women would be less skilled at managing finances than men. Studies have shown that women tend to be more diligent about budgeting and saving than men, and are less likely to take on risky investments.

A report published in 2018 by the Warwick Business School in the UK analyzed data from 2,800 investors over a three-year period and found that women generated higher returns on their investments than men. The report attributed this trend to the fact that women tend to be more patient and less likely to engage in impulsive trading, which can lead to lower returns. 

The study also found that women were more likely to take advantage of tax-efficient investment opportunities and were less likely to engage in herding behavior, where investors follow the crowd rather than making independent decisions. 

Myth #2: Women are "shopaholics" who can't control their spending. 

While it's true that some people struggle with impulse buying, this is not a gender-specific issue. Women are just as capable of managing their finances responsibly as men, and there are plenty of tools and strategies available to help us stay on track.

A report by the National Bureau of Economic Research found that women are better than men at using credit effectively, meaning they’re less likely to default on loans or carry high credit card balances. 

Myth #3: Women don't earn as much as men, so they can't be as financially successful. 

While it's true that the gender pay gap is a real issue, it doesn't mean that women can't build wealth and achieve their financial goals.

With the right skills and mindset, women can take charge of their finances, negotiate better salaries, and invest wisely for the future.

Let's stop perpetuating these myths and start empowering ourselves and each other to be smart, savvy, and financially successful.

The myths about women and money are just that - myths. Women are just as capable as men when it comes to managing finances, and there are plenty of resources and strategies available to help you achieve your financial goals.

If you're ready to take control of your finances and feel confident in the legacy that you’re leaving for your family, I invite you to contact me for a consultation. Together, we can create a customized plan that works for you and helps you achieve financial success.

Here are some other myth-busting blog posts to check out: 

6 Budgeting Myths to Stop Believing (and the Truths Instead!)

5 Financial Myths to Stop Believing (and the Truths Instead!)

Don't Believe these Investment Myths