For far too long, the narrative around women and money has been filled with stereotypes and misconceptions. Women are often perceived as less competent in financial matters, less interested in investing, or more inclined to overspend. However, these narratives are not only outdated but also detrimental. They limit women’s potential and reinforce harmful stereotypes.
Understanding Gender Differences in Money Attitudes
The misconceptions about women and money have more to do with gender socialisation than gender itself. From a young age, boys and girls are often taught different things about money. Boys might be encouraged to take risks, invest, and think about long-term financial goals. Girls, on the other hand, might be encouraged to save, be cautious, and focus on immediate needs. These early lessons can have a profound impact on how women perceive and handle money later in life.
Research supports the idea that these differences in money attitudes are socially constructed rather than inherent. A study by Sahi (2023) in the International Journal of Bank Marketing highlights how gender differences in money attitudes can be attributed to social and psychological factors rather than biological ones. This underscores the importance of changing the socialisation process to empower women financially.
The Great Wealth Transfer
One compelling reason to rethink these narratives is the great wealth transfer that is currently underway. According to Emily Green’s article on Ellevest, a significant amount of wealth is expected to transfer to women over the next few decades. This shift presents a unique opportunity for women to reshape their financial futures and assert greater control over their wealth.
Financial Self-Education
One of the most effective ways for women to change the narrative about money is through financial self-education. Taking the initiative to learn about investing, budgeting, and financial planning is crucial.
Developing a New Money Mindset
Changing the narrative also involves developing a new money mindset. This means challenging the internalised beliefs and stereotypes that women might hold about their financial capabilities.
Research by Sesini, Manzi, and Lozza (2023) in the International Journal of Consumer Studies did a review of what evidence exists around gender and psychology of money. This review found that men and women hold different conceptions of money, with men often looking at it as a symbol of success and power and women holding more ambivalent attitudes toward money as both a source of anxiety and a means to ensure security and prove their love. As far as for financial behaviours studies, indicate that both genders have similar approaches to savings and expenses monitoring, while financial investments are primarily pursued by men.
The review suggested also that addressing such psychological barriers goes beyond providing financial knowledge in the classical form. More research (including qualitative) is needed on money meaning and emotional experiences, especially with regards gender implications.
Common Beliefs and Attitudes Holding Women Back
- Associating Self-Worth with Money
Many individuals, especially women, believe that their worth is directly tied to how much money they have. This belief can lead to feelings of inadequacy or unworthiness if they don’t achieve a certain level of wealth.
- Fear of Judgment
Women often fear being judged negatively if they make a lot of money, worrying that others may see them as greedy, shallow, or selfish. This fear can hold them back from pursuing higher-paying opportunities or investments.
- Limiting Beliefs About Earning Potential
Some women may hold the belief that it is inherently harder for them to make money compared to men, leading to self-imposed limitations on their earning potential. This can prevent them from negotiating salaries, seeking promotions, or starting their own businesses.
- Associating Money with Negative Traits
There can be a belief that money is for uncaring corporations or individuals who don’t prioritise important values, leading to a negative association with wealth. This mindset can hinder financial ambition and success.
- Fear of Losing Relationships
Some women may believe that making a lot of money will alienate them from friends or potential partners, leading to a fear of success in financial matters. This fear can prevent them from fully pursuing their financial goals.
- Discomfort with Discussing Money
Many women feel uncomfortable or find it distasteful to talk about money. This discomfort can hinder open conversations about financial matters, further perpetuating financial ignorance and anxiety.
Practical Strategies for Shifting Mindsets
If you are willing to revisit your relationship with wealth and money, there are several steps that you can start taking, and coaching can be helpful in this journey. Resources like the Life Coach School Podcast by Brooke Castillo, specifically episode 324 on women and money, offer valuable insights and practical advice on how women can empower themselves financially.
1- Identify and Challenge Limiting Beliefs: Reflect on your current beliefs about money and identify any negative or limiting beliefs. Challenge these beliefs by questioning their validity and considering alternative perspectives.
2- Practice Gratitude: Cultivate a sense of gratitude for the money you have and the opportunities it provides. Focus on the positive aspects of money, such as the freedom and security it can offer, rather than viewing it solely as a source of stress or worry.
3- Educate Yourself: Take the time to learn about personal finance, investing, and wealth-building strategies. Knowledge is empowering and can help you feel more confident and in control of your financial situation.
4- Set Financial Goals: Define clear financial goals that align with your values and aspirations. Having specific goals to work towards can motivate you to take positive actions towards improving your financial situation.
5- Practice an Abundance Mindset: Shift from a scarcity mindset to an abundance mindset by focusing on opportunities, possibilities, and the potential for growth and prosperity. Believe that there is more than enough wealth and success to go around.
6- Surround Yourself with Positive Influences: Seek out mentors, role models, or communities that have a healthy and positive relationship with money. Surrounding yourself with supportive and inspiring individuals can help reinforce positive beliefs and attitudes towards money.
Take Action: Start taking small steps towards improving your financial situation, whether it’s creating a budget, saving regularly, investing, or exploring new income opportunities. Action breeds confidence and can help you build momentum towards financial success.
Conclusion
Given the great wealth transfer that is already occurring to the benefit of women, it is high time our narratives got a shake-up. By addressing the roots of these misconceptions and taking proactive steps to change them, women can reshape their financial futures and break free from the limiting stereotypes that have held them back.
Isn’t it time we changed the narrative about women and money? Let’s embrace financial empowerment, a new kind of financial & emotional education, and develop a new money mindset. The future is bright, and it’s ours to shape.
Stay Tuned / Exciting Opportunities
This topic is of specific keen interest to me, and I am preparing a dedicated programme as a special collaboration to be launched later this year, aimed at high-achieving women willing to redefine their relationship with wealth and money.
This Thursday I will be speaking about this topic of money beliefs and wellbeing at Anne-Claire Delval event https://www.linkedin.com/feed/update/urn:li:activity:7211283361883942913/.
Get in touch if you want more information and to be sure to stay updated exclusively on how this fascinating learning & growing opportunity develops.
Sincerely yours,
Dr. Sophie
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Inspired by:
Castillo, B. (Host). (2020, June 25). Women and Money [Audio podcast episode]. In The Life Coach School Podcast. The Life Coach School. https://thelifecoachschool.com/podcast/324/
Green, E. (2024, January 16). The Great Wealth Transfer. Ellevest. https://www.ellevest.com/magazine/investing/great-wealth-transfer
Sahi, S. (2023). Understanding gender differences in money attitudes: biological and psychological gender perspective. The International Journal of Bank Marketing, 41(3), 619-640. https://doi.org/10.1108/ijbm-08-2022-0352
Sesini, G., Manzi, C., & Lozza, E. (2023). Is psychology of money a gendered affair? A scoping review and research agenda. International Journal of Consumer Studies, 47(6), 2701-2723. https://doi.org/10.1111/ijcs.12975
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