Should Women and Men Handle Money Differently?
So first of all. Let's talk about how you get money in the first place and that is earn it right and according to the pew research center Women earned eighty five percent of what men earned in two thousand eighteen That pay gap is shrinking Particularly for younger workers which is a positive trend but that is still a meaningful hurdle to overcome. The pay. Gap is partly due to to work history. You know like having kids great you know. But as we mentioned with the fidelity study earlier taking time off to have quetta's like it often leads to job offers in worse income prospects not to mention the years of not generating any income which often reflects years of not investing in a workplace retirement account in particular. If there's a match there right and those are some big disadvantages to overcome yell like you said at the beginning matt that stat also reflects some structural issues when it comes to male and female pay. But here's another thing to matt When we're talking about pay women are actually often averse to asking for more money than their male counterparts. There was a survey from ron saad. Last year the found that sixty percent of women have never negotiated with employer. Overpay women are also more likely to stay at a lower wage job to according to The personal finance web site the balance. And that's not good right because even just a small bump in pay with a new employer or in a job that been in for years can have just a massive impact on your ability to earn more throughout the years and then also save more for retirement. So i think of all of the things in this episode where we see. Maybe you know women as sex falling short. It is in in the ability to ask for more at knowing what they're worth again. This is another instance where you might be listening and you're thinking i've never had a problem negotiating a race like i've never had a problem asking for more money so again. It's important to keep in mind that though the research shows us like we know any totally doesn't apply to everyone. I'm specifically thinking of two conversations with Kirstin and julian saunders. The couple behind rich and regular that was episode. Eighty six and julianne was just bragging. About how great pearson is at negotiating. Evidently she's just like the queen negotiating more. Pay if you had to listen to that upset go back and listen to that one. Is that regardless of your gender. Earning more it's just so important right and all of us could stand to our abilities on that front And we've had lots of different conversations on the show that specifically cover you know not just stories of individuals negotiating but just how to go about doing that. I'm of Ramiz sadie that was Backing up said one ten and he outlined a great process a great method You know when it comes to wanting to up your salary. You know what steps you need to take. In order to negotiate a solid race gam thinking to matt had far new darabi on the show. She is just awesome personal finance expert and at the same time. She is someone who has made a killing as a small business owner. She knows her worth. she knows. how to negotiate. Yes so like you said there are many women out. there are crushing it. Who don't have a problem and asking for what they're worth. Who don't have a problem asking for a raise. It's just when you read those statistics. There are obviously a number of women who do though. And i wanna see. That number changed for the benefit of women as a whole absolutely. Let's about spending to do women spend more. That's an interesting question. My wife personally met hates to shop. I really. She just defies the stereotypes. And actually i don't know i don't mind shopping. A little bit roles are a little bit reverse exactly but there was a study by the wharton school of business that found that women are more likely to view shopping as a recreational activity. My mom definitely fits that bill Most men wanna leave the store with their purchases quickly as possible but even though women enjoy shopping more it turns out men still spend more than women in a typical year so while men might not enjoy the process of shopping as much. They still shopping. Just from a utilitarian standpoint sure yeah also that increase spending with the stats as well. There's there's a survey from wallet hub earlier this year. They showed that men are more likely to max out a credit card. Women are apparently seven percent less likely than men to have maxed out credit card at least once in so while women they might enjoy the shopping experience. More than men do a lot of different stats. Show that women are more cost conscious. They're more likely to shop at alice. Stores more likely to to wait till something they want is actually on sale The store brands more than men. And so you know when it comes to spending this this is definitely a win in this category for sure And so i i of see this as a call to min to stop spending so much money on neighboring items fan. Yeah i feel like. I'm totally guilty of this. I totally fall into the study. I don't like to go looking for the best deal. I do because i'm spending less but like i'll look at maybe two or three different sites and then i just purchase right whereas for you like i feel you are so good at hunting and making sure you're keeping your eyes on the best deals out there making sure that you're spending the the least amount of money possible. I feel that's something that we all need to make sure that we're doing right. And so you know regardless of who you are. We should all work to just become a little more conscious and how it is that we spend our money. I gotta say mets. I don't care whether you're man or woman but store brands should be high on your list because they're going to save you a ton of money it's just like in savings when you go for the storebrand over the name brand equivalent unless it's your craft beer equivalent And you're wanting to spend a little bit more on the because it makes you feel nice. Can't name brand everything though. I think i think sometimes that's a tendency here. Maybe that men have The men just gravitate towards the name brand no matter what it is without thinking about it and that's where we need to shake things up right and we we need to consider storebrand's more frequently also too. I think we've talked about this. The quality of store brand items has gone up a whole lot in recent years. Her kirkland signature brag. There's other ones too man. Like target has some great Store brands that are better than their name brand equivalent. Sometimes so yeah. It's not just costco yeah costco rockstar Let's see let's talk about saving as well. There's more good news here. It turns out that the the savings rate for women is actually higher than their male counterparts. They save a higher percentage of their pay. They spend less of what they bring in and much of. That is due to the more frugal. Tendencies that we just highlighted when we talked about spending differences but even the women are saving a higher percentage of their income on average. They've actually got less than thirty percent of what men have in savings accounts according to data from the federal reserve from a few years ago That is likely due to the fact that overall they're still making less like we discussed earlier which means a smaller amounts of money saved overall. Yeah one of the reasons. Women have a higher savings rate as well Is that according to a survey by. Us bank women of all ages value financial security more than men do. But here's the thing than that. Focus on financial. Security can often backfire. If you keep more of your overall assets and savings and cds instead of invested in the stock market right like savings for saving for long-term goals is really important but so is investing For the really long