What Does Female-Friendly Financial Advice Look Like?
Much has been written about gender differences both real and perceived. These differences provide both sexes with some great conversation topics, food for thought, and a big dose of humour.
I hate to be-labour the differences but, YES, they really do exist. Especially with respect to the way we think about, behave and take care of our money.
How familiar are you with these differences? Do you and your husband always agree on money decisions? Do you both use strategies that you’re comfortable with for maintaining and growing your wealth? Are your visions of retirement the same or quite different? A good advisor will listen well, engage all parties involved and adapt her approach to collectively suit her client’s needs irrespective of gender or other differences.
Here are some examples to illustrate the research performed on gender differences and money…
1. A Woman’s #1 Money Goal Is Often Financial Security– For women more so than men, more money does not always equal more success or happiness. Women are more likely to want enough money to take care of their families, friends and special causes and less likely to want money for purposes of status, power or wealth.
2. A Values and Goals Based Approach Works Best– More women than men look for “big picture” and long term financial planning based on their overall life goals. Women are more likely to talk about their needs, desires and life than men. Women also express the need to pass along values to their loved ones, not just assets.
3. Women Want Education/Coaching More Often Than Men- Women more readily admit what they don’t know about finances and tend to worry more about money. In my experience, women have less confidence in money management but not necessarily less skill! Education and coaching go a long way to eliminate the stress associated with managing money wisely.
4. Speak In Understandable English, Not Financial Jargon- “Financial speak” is much less appreciated by women than men. Perhaps this is one of the reasons why women are less interested in pursuing careers in financial planning and wealth management?
5. Buying Decisions Are Based On Relationships, Facts And Values– When it comes to purchasing financial products or services, women make slower decisions (perhaps more thoughtful?) than men. Again, women want to be educated first. They will review and understand possible options before buying.
6. Slow and Steady Investing Strategies; Less Trading, More Profit- Women appreciate simple, straightforward investing strategies geared towards long term performance. They are more likely to say that preserving the value of their initial investment is very important. Therefore, women may be more comfortable with lower risk/lower return investing.
Do any of these findings surprise you? Which ones do you relate to most or disagree with?
Women control the majority of purchase decisions, live longer and have larger pay and retirement savings gaps than men. The financial industry is responding but can still do a better job of giving women the approach, products and services they want.
If you are not getting the advice you want, deserve, appreciate and respect, go out and find some. Don’t settle for less. Your financial future depends on it.
(sources include: Ladies; 5 Reasons To Choose A Female Financial Advisor (Forbes), Why The Investment Industry Needs More Women (Money Sense)
Proud founder of this blog Let’s Talk About Money, Patricia Gass, CPA, CA, provides personal finance coaching and education to improve your money skills