3 Common Misconceptions About Women and Money

3 Lies You've Been Told About Women and Money

Humans are fed stereotypes throughout life. Keep reading to learn more about the stereotypes surrounding women and finances.

Lie No. 1: Women are bad at math, which leads to them being bad with money

An interesting study by Giftcards.com discovered how differently parents speak to a child about money based on gender. The study found that parents discuss important issues like financial literacy, investing, and credit scores with their sons more often than with their daughters.

• The result: Women often enter adulthood with less financial savvy than men, leaving them vulnerable to financial abuse.
• The fix: Deliberately prepare your child, male or female, to fend for themselves financially.

Lie No. 2: Women spend money frivolously

A joint study by CNBC and Acorns found that men and women are equally likely to make impulsive purchases. In fact, men are more likely to spend $100 or more on impulse purchases than women are.

• The result: Women are painted as frivolous when, in fact, nearly everyone can be tempted to make an impulsive purchase.
• The fix: Don't feed into the myth that only women can spend unwisely.

Lie No. 3: Women are risk-averse

Studies have shown that women are more cautious about investing, yet women do well as investors, despite their cautious approach.

• The result: Financial professionals can underestimate women, and women may not receive the same investment suggestions as men.
• The fix: Look for a financial advisor who specializes in working with women.

When it comes to personal finances, no one does things exactly right. We all learn on the go, hopefully becoming wiser with each mistake. However, holding on to old myths about women and money is harmful to roughly half the world's population.