|
Especially For Women
Behavioral psychology has gradually become incorporated into financial planning, both as an explanation for investment behavior (shared by the majority of investors), and also as a general look at a person's individual "money personality" (unique to that individual). If you understand what your basic money personality is, you can understand how you make the decisions you do about money.
Women are different than men are, when dealing with money. We already knew this, but numerous studies have confirmed this. Right now, new businesses owned by women are growing faster than new businesses overall. Women owners of new businesses are actually more likely than men to use the internet in their business. Businesses owned by women are more likely to offer flex time, tuition reimbursement, and profit sharing to general employees than are businesses in general. Women business owners are more likely to serve in a volunteer leadership position than are men. Women are more likely to want to know and trust their advisor than men are, and women are more likely to be involved in philanthropic leadership positions. We care more.
Because of our caring attitudes, women tend to be financial enablers. We are also the caregivers for both children and elderly parents. We tend to look more at short-term financial problems, not long-term ones. Women tend to defer to men in financial matters. This often makes women less prepared for retirement, yet with divorce and widowhood, women are more likely to outlive their retirement funds than men are. Even so, women are financially intimidated and afraid of making mistakes, so they often do nothing. Yet women rank financial issues as the most pressing personal concerns of their lives, ahead of family, health, time stress, and equal rights. Unlike men, we tend to look at money as a source of security, not power, so we may not agree with our significant other about financial decisions. In addition, women more often look for part time, flex time jobs or maternity leave, which gives them less leverage when finding a job.
Women can be just as capable as men, financially. High net worth women are equally well informed financially as high net worth men, and spend as much time reviewing financial matters. Yet much of the financial advice available on the internet is based upon the beliefs and values of men or other companies run by men. Other advice is too simplistic to match your real needs. Very little attempts have been made to match your unique money personality. Determining your type can reveal why you are or are not good at some aspects of financial planning, and how you unconsciously can self-sabotage a good financial plan. Knowing these factors can help determine whether you would do best with a do-it-yourself approach, a financial coach, or with a financial manager that takes care of most of the details for you.
Find out what your money type is and what to do about it by signing up for our Money Personality Seminar. Or make an appointment for a one-on-one money personality discovery meeting.
Back to top
You may also find the following books useful:
Your Money Personality, by Kathleen Gurney, Ph. D., Doubleday, 1988.
Seven Stages of Money Maturity, by George Kinder, Dell, 2000.
Why Smart People Make Big Money Mistakes and How to Correct Them, by Gary Belsky and Thomas Gilovich, Fireside, 2000.
The Power in Your Money Personality, by Susan Zimmerman, ChFC, LMFT, Beaver's Pond Press, 2002.
What Will I Do With My Money, by Ray Linder, Northfield Publishing, 2000.
References
Anthes, William, Ph.D, and Bruce W. Most. “Frozen in the Headlights: The Dynamics of Women and Money.” Journal of Financial Planning (September 2000)
Business and Professional Women's Association. “How Do I Start My Own Business?” (2003)
Cron, William L, MBA, DBA, John V Slocum, Jr., MBA, PhD, David B Goodnight, DVM, MBA, and John O Volk, BS. “Executive summary of the Brakke management and behavior study.” Journal of the American Veterinary Medical Association 217.3 (1 August 2000), p. 334.
Lewis, Robert E., Ph.D, and Jeffrey S. Klausner, DVM, DACVIM. Nontechnical competencies underlying career success as a veterinarian.” Journal of the American Veterinary Medical Association 222.12 (15 June 2003), p. 232.
Center for Women's Business Research. Women-Owned Businesses in Los Angeles-Long Beach, CA: 2002--A Fact Sheet.”
Center for Women's Business Research, and Juanita Weaver, with Andrea Raphael from Goldman Sachs. High Net Worth Women and Men Investors: Common Strategies, Equal Expertise.” (December 10, 2002). [Online] Available: www.womensbusinessresearch.org/Research/12-10-2002/12-10-2002.htm [December 20, 2003]
Slater, Margaret R, DVM, PhD, and Miriam Slater, Ph.D. Women in veterinary medicine. Journal of the American Veterinary Medical Association 217.4 (15 August 2000): 474.
Back to top
|
