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THE DIFFERENCES BETWEEN HOW MEN AND WOMEN VIEW FINANCES

Iris Buczkowski

As the old saying goes, men are from Mars and women are from Venus. But when it comes to financial matters, they may be in the same galaxy, but they are definitely a universe apart.

In recent years there have been many studies done to examine the way men and women approach the management of their finances. There is a lot of psychology that goes along with this, but at a very fundamental level it is safe to say that women and men absorb and process information differently. Therefore, their relationship with money and how they perceive can be very divergent.

As a person, or a couple, approach financial planning there is a definitive contrast in how men and women prefer to think about money. We often see more men taking a do-ityourself approach when it comes to investing and they also tend to focus more on the short term rather than the full life cycle.

In contrast, women prefer to seek out advice and are more attuned to matters such as estate considerations, legacy, and long-term planning. In most cases couples complement each other by meeting somewhere in the middle, but no matter where the intersection meets it is critical to have a comprehensive understanding of what you currently have and how you are going to meet your goals.

Financial planning has become much more complex than it used to be in recent years given the myriad things a person or a couple need to consider in the process. For most women it is critical to find an advisor that can cut through the jargon and be able to communication in an understandable and relatable fashion. Real life experiences and empathy are important and give confidence to investors that the advisor is authentic and knowledgeable about the information they present. There is so much more to financial planning than just simply investing money. Look for an advisor that you can simply talk to because at the end of the day planning and communication are the keys to financial success. SWM

Iris Buczkowski is the chief executive officer of Birch Wealth Management (BirchWealth.com).