Are Men More Likely To Seek Financial Advice Than Women?
Men are notorious for not taking advice, while women exchange it constantly. Are they somehow different when it comes to financial advice?
Published: Wednesday, April 26th 2017
When it comes to our financial roadmap for life, it seems women are in the driver’s seat. And by that we mean, they’re less likely to stop and ask for directions. A study that’s just been released has revealed that, in the US at least, men are more likely to seek financial advice than women - on all fronts.
Financial Advice For Women
A study by COUNTRY Financial (a US entity) set out to discover which financial topics people were seeking advice on, most. What they discovered, was which people were seeking financial advice most. Men.
Across the range of topics, the study found that men consistently sought advice more than women. Even in the areas where the least people sought advice, charitable giving. They also wanted to discover how many people have never sought financial advice in their lives. Almost a quarter of women admitted to never having sought advice (24%) compared to 15% of male respondents.
It’s no wonder the most recent Old Mutual Savings and Investment Monitor report found that 76% of women felt financially insecure.
South African Men And Women
The COUNTRY Financial study also revealed that only 29.6% of Americans sought advice on savings. Of that, men and women were not too far apart – 31.6% of men versus 27.8% of women. A discrepancy, however, that’s mirrored in our actual local savings culture.
45% of South African men have banked cash savings, compared to only 39% of women. And, 53% of men contribute to a pension or provident fund, versus 47% of women.
But, to flip the switch on this, 22% of SA women had short-term savings compared to only 16% of men. Old Mutual Personal Finance’s Lizl Budhram, says women’s lower rates of financial confidence is linked to their higher levels of financial vulnerability. 72% of women would be financially supporting their parents this year. Further than that, 42% of local households are headed by single mothers.
Don’t Know Better, Do Better Financially
It’s human nature to procrastinate on making sound financial decisions. We know what to do but, for whatever reason, we delay. The COUNTRY Financial research revealed that in the US, 51% of all respondents feel they are not managing their savings or investments as well as they should be. 39% of Americans (43% men and 35% women), however, are more comfortable giving financial advice than applying it themselves. COUNTRY Financial’s director of wealth management, Troy Frerichs, offered three tips to turn the tables:
1. Take An Inventory Of Personal Money Management Habits
Assess the money coming in, in relation to your current spending and saving behaviour. Are you a reckless spender? Are you giving your savings and investments due diligence?
2. Determine Financial Priorities And Opportunities
Take what you learn from your personal financial inventory to identify short- and long-term goals. Is your emergency fund stocked up for unexpected expenses? Do you have adequate medical aid? Is there a vacation you have yet to start saving for? Once you determine your goals, explore saving or investing solutions to help reach your goals.
3. Create a Circle Of Trusted Advisors
When taking advice, never take it from the person who can’t apply it themselves. It’s also a good idea to have a network of trusted advisors who have the kind of results you’re after. Whether it’s relationally, professionally, or financially. Your network can be made up of trusted family, friends, co-workers, employers, financial advisors, etc. Ensure you consider them trustworthy, resourceful, and knowledgeable enough to give you financial advice as it relates to your personal goals for your life.