Both men and women are greatly influenced by their emotions and values when it comes to making financial decisions. However, there are significant differences between the two sexes, according to the financial planner and chair of the board of IQPF Nathalie Bachand.
While women perceive themselves as far-sighted and economically efficient in terms of financial management, men say they are rather free and fully autonomous, she said Tuesday as part of the Women and Success event, an initiative of the psychologist Rose-Marie Charest.
In terms of money, men and women have a marked aversion to losses, but women would be even more reluctant to see the value of their investments perish momentarily. As a result, women are often more cautious in their investments.
“It has not been that long since women work for a living. They want even more than men to keep this hard-earned money at all costs, “says the one belonging to the Bachand Lafleur group, while mentioning that this philosophy tends to change among younger generations of women.
It is up to financial planners to reassure their clients about market risks.
“It is also important for women to be educated to possibly be able to take a little more risk in their investments, while respecting their investor profile,” said Ms. Bachand.
MONEY, THE LAST OF TABOUS
Between 2% and 7% of couples have a hidden account that is not known to their loved ones, according to a Bloomberg poll in the United States. This statistic, which may seem innocuous, reveals that few couples are comfortable talking openly about money, which often leads to conflict and injustice.
Women, determined to maintain the autonomy they have acquired over the past decades, do everything to not depend financially on their spouse, the financial planner believes. Thus, they will often insist on sharing the expenses evenly, even if their income is lower.
“Even when they are on maternity leave, some women will insist on paying 50% of the expenses. The consequence is that they get poorer while their spouses can save. When the couple will want to go on vacation, for example, one of the members will have the means, but not the other. It’s not necessarily fair to cut each dollar in half, but it’s a reality I often encounter in my practice, “says Ms. Bachand.
With a joint account or separate accounts, pooling of expenses or consolidation of income, there is no magic recipe for sharing expenses within the couple, she argues. The important thing for both men and women is to communicate and find a fair deal. Couple members should also consider protecting themselves in the event of death or separation, even though such planning is far from pleasant.
RATIONALITY TO BETTER MANAGE
In order to make informed financial decisions, savers must be able to put their emotions aside, which may be more difficult for women than for men, says the counselor.
Nathalie Bachand gives the example of life insurance needs.
“Some people want to take out a life insurance policy for their children. However, it is sad to say, but the death of my child will not put me in a situation of financial precariousness. I must make sure that if I die, he will have enough to support himself. ”
Poorly prioritizing can also become expensive.
“On the one hand, people pay dearly for their car insurance to have a low deductible, but on the other hand, they do not have any disability insurance. Yet paying a $ 1,000 deductible for your auto insurance has a much smaller impact on your finances than a loss of income related to a long-term disability, “says Bachand.
To have a rational thought is also to consider that women have a longer life expectancy than men and as a result, they have no choice but to save more, recalls the financial planner.