Why Women Are More Inclined to Long-term Financial Planning

men-vs-womenSuch is the difference of men and women in every aspect of life that we can think of. When it comes to finance, men and women are different. In fact, women are way behind men in terms of advanced knowledge on finances, especially with regard to stocks and the like.

Indeed, the gender gap between men and women in terms of finance is glaring. Take for instance the amount of money that women earn as against men. Women earn less than men do given the same work, with about 80 percent of what men earn. However, such gap is getting wider, with women faring well against their counterparts in terms of long-term financial planning, when they engage in workplace retirement plans and real estate planning. Here are some reasons why:

• Women want peace of mind. This is true whenever they decide to handle their own money. They treat this as that one goal they want to achieve, not only for themselves, but for their loved ones. Unlike women, men are more into seeking and securing wealth.

• Women are known to be meticulous when it comes to planning, especially with money involved. Whenever they are deciding on something, they often think a lot of times before choosing the best financial option. They go to great lengths before arriving at such decision, weighing on the possible scenarios that may either make or break their future, mostly via expert advice from a friend or an expert.

• Women collaborate with persons who share the same financial interests as them. In terms of long-term finances, women often want to be educated as to how they should go along with their goal of maintaining their financial standing. They often seek persons who can guide and advise them about the money they handle.

• Women take pieces of financial advice from experts or other resource persons seriously. In fact, according to a recent survey from TIAA-CREF, close to 90 percent of women will save more and rearrange their retirement portfolios. Such rate is far higher than that observed for their male counterparts.

With women being more inclined to long-term financial planning, it is safe to say that their economic power continues to hold promise. According to many financial organizations, women are willing to be educated financially and put what they've learned to heart. It is also possible that women all over the world may account to up to nearly 80 percent of purchasing decisions. Finally, it is also possible that they may control a GDP bigger than that of both India and China in 2014.

The possibilities of women possessing economic power make us all aware of how important it is to empower women. Women may be known for their long-term financial planning, but even some men can do what women can do. Overall, handling personal finances depends on how people, regardless of sex, are committed to their goal of ensuring and securing the future of not only themselves but of their loved ones.

Steven Boccone is a New York-born economist, financial analyst and manager. He has worked for various financial institutions worldwide and currently manages a US-based global marketing company. He is an art lover, a traveler, and he maintains his own business blog.

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