RSS Facebook Twitter LinkedIn

Featured Advisor

Asset Preservation Advisors


State: GA

APA’s philosophy is to work closely with our clients to develop an in-depth understanding of their unique needs and objectives. We then customize a municipal bond portfolio that best meets their specific goals and needs. APA manages high quality municipal bond portfolios in four strategies: Short-Term, Intermediate-Term, High Income, and Taxable.

Click to see the full profile

Share |

Saving, Spending and Debt: Part 4 – Men vs. Women

Women worry more about debt than men, according to new Millionaire Corner research that shows the Mars/Venus divide extends to attitudes toward borrowing.

| BY Adriana Reyneri

Women are more worried than men about their personal debt levels, according to a new survey by Millionaire Corner that shows the Mars/Venus divide in financial management extends to attitudes about borrowing.

Forty-seven percent of women expressed some level of concern over the amount of debt they owed, compared to about 42 percent of men, according to a survey or more than 990 investors conducted in April.  The results are consistent with previous Millionaire Corner research that find women are more inclined to worry about every aspect of financial management and make deliberate investment decisions. Men, on the other hand, express greater confidence in their financial abilities and are more prone to decisive action.

The generally more conservative approach of women investors makes them more likely than men to use frugality as a wealth building strategy, according to our research, which shows women are more likely than men to cut spending and increase savings in response to economic concerns. About 60 percent of the women said they planned to cut spending and 52 percent said they planned to increase saving to address their concerns in a Millionaire Corner survey of more than 1,350 investors in June. In comparison, 45 percent of men said they planned to cut spending and 44 percent said they planned to increase savings.

Men are more inclined to take on investment risk as part of their wealth-building strategy, according to our research. Men are twice as likely as women to describe themselves as “most aggressive” and “aggressive” investors, according to our February survey of more than 1,150 investors. Thirty percent of men – compared to 15 percent of women – put themselves in the aggressive categories.  At the other end of the scale, about 23 percent of women – compared to nearly 16 percent of men – say they are conservative and unwilling to put any of their investments at risk.

Willingness to take on risk goes hand-in-hand with investment confidence. Men are more than twice as likely as women to say they are “very knowledgeable” about financial products and investments, while women are more than twice as likely to say they are “not very knowledgeable” about financial management issues, according to our February survey.

Though women expressed heightened fears about stock market volatility and potential tax increases in previous studies, the men are consistently more likely to take steps to protect themselves. When it comes to strategies to address tax increases, a topic of a December survey by Millionaire Corner, men were more likely to purchase tax-free bonds, create a trust and increase contributions to a tax-sheltered retirement plan. Women were more likely than men to take no action at all, 41 percent vs. 28 percent, respectively.

Men expressed lower levels of concern over stock market volatility in November, but were, at the same time, more likely than women to protect themselves from market swings. A greater share of men said they had adopted a more short-term investment strategy and had adjusted their investment portfolio.