Women look at financial security differently

The psychology behind financial security differs between women and men. In general women concern themselves with the health and welfare of their family, not only themselves. Men, on the other hand, look and finances in a much more "self" centered way. Not to say that they are selfish (well, this certainly DOES apply) but the choices they make are much more "me" focused.

We all have heard that Men and Women are not from the same planet. Yes, it's true at times we seem like, we are two different species entirely. That carries over into everything we do INCLUDING budgeting and financial choices. Understanding that difference enables us to make better financial decisions as women for not only ourselves but for our family's welfare as well.

In general, men are more confident in investing as a whole whereas women are more goal-oriented in their investment choices. An important point of distinction is that we need to focus on our own best interests when making financial decisions. In general, men are more focused on wealth accumulation, while women are more focused on wealth preservation. Women often have a “safety first” mentality. Women are more likely to defer to an expert and seek out advice from professionals than men are.

Women are generally more risk-averse than men when it comes to financial decision-making. The fact that women are generally more risk-averse is critical for a number of reasons, the biggest being that women tend to live longer than men. Secondarily, women as a gender take responsibility for the family unit. This often is comprised of not only children but aging parents as well. As women we feel responsible for everyone which carries over into our financial decisions. Being aware of this and focusing on the greater "whole" has benefits and challenges that must be understood in order to properly plan for a financially solid future.