3 Lies You’ve Been Told About Women and Money

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Humans are fed stereotypes throughout life. Keep reading to learn more about the stereotypes surrounding women and finances. [[{“value”:”

Most of us have zero patience for lying, which may help explain why we spend so much time trying to separate fact from fiction. Some lies are meant to manipulate us, while others result from fears and prejudices, stories made up to make one group of people feel better about themselves.

We’re not sure who began the entire “women are not good with money” story, but we know it’s a lie. Told often enough, most lies begin to sound like the truth. Take a look at the following list and decide which of these lies about women and money you have grown to believe.

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. On the other hand, daughters hear about budgeting and saving, perhaps reinforcing the myth that all little girls grow up to be mothers and house managers.

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. That means knowing how to earn money and understanding how to save and invest.

Lie No. 2: Women spend money frivolously

We all know the old trope: A woman spends more than she should, comes home with half a dozen shopping bags, and hides the evidence of her spending from her partner. Another study — this one by Starling Bank — looked at more than 300 financial articles. Shockingly, 65% of the financial articles described women as excessive spenders. Women were advised to avoid splurging on large or unnecessary items.

However, 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. It diminishes women and gives others (who may actually need help with the issue) a free pass.

Lie No. 3: Women are risk-averse

Historically speaking, investing has been a giant Boys Club. After all, it wasn’t until the 1960s that women had a legal right to open a bank account in their own name. In 1974, the Equal Credit Opportunity Act was passed, prohibiting credit discrimination based on gender. While women were busy fighting for things like the right to open a bank account or credit card in their own name, men of means were busy investing.

Not surprisingly, studies have shown that women are more cautious about investing, perhaps because women have been investing on their own for a relatively short time. Yet women do well as investors, despite their cautious approach. They are willing to do more research and are open to changing their minds when research shows they’re on the wrong track.

The result: Financial professionals can underestimate women. Worse, women may not receive the same investment suggestions as men because it’s assumed they’re unwilling to take risks.

The fix: Look for a financial advisor who specializes in working with women, or ask female friends and family members who they work with and how their advisors treat them.

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.

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