Despite the pay gap between men and women and the fight for gender discrimination, many women manage to outshine men when it comes to financial independence. Here are a few reasons why this happens.
Getting a better and better education
An interesting fact: according to the National Center for Education Statistics, women have more degrees in higher education than men. According to experts, getting a better education allowed women to pursue a career and earn more.
For Caitlin Reilly, a member of the HerMoney group on Facebook, the decision to invest in her education was important, although she knew that it would lead to debt. To lower borrowing costs, she worked as a nanny, and then, when she graduated from college, she refinanced her student loans at a better rate. Today, she says that her goal was and is to achieve a “sustainable lifestyle” instead of working in a “survival mode” as she grew up. The desire of women to further develop their education provides an additional impetus that can make them financially more independent than their male counterparts.
However, they still have a significant wage gap, and women still earn about 80 percent of the amount that men earn.
A more objective view of things
“When it comes to spending money, women are known for their determination to pay off debt and keep up with the budget,” says Stephanie O'Connell, author of the financial strategy guide Broken and Beautiful Life: Small Town Budget, Big City Dreams. “Unlike many references to pop culture, single men actually spend more money than women, according to statistics from the 2012 US Census Bureau.”
According to O'Connell, women's attitudes toward spending tend to be more focused on day-to-day spending, and most women tend to approach money management with a big picture. For example, one of the main goals of Leslie Diaz from the HerMoney group on Facebook was to make 20 percent of his retirement income. The 31-year-old woman achieved this through austerity, even when her new job began to bring her 25 percent more than the previous one. Instead of spending it, she just started saving more than ever. Leslie also decided to get rid of her car and bike to put off even more.
Work as much as possible, but only for your own sake
Many women today are well aware of the gender pay gap and know that they will have to work harder than the average man if they want to achieve pay parity, explains Cliff Lick, associate professor of sociology at the University of Northern Colorado and president of the American Association for Male Studies .
Women are riskier
“Often, when men don’t take risks, they are told:“ Be a man, ”Lik explains.“ As a result, they sometimes take unnecessary risks, which can be fueled more by social influence than by rational thinking, which can lead to that they’ll need a little financial support from their parents. "
Women tend to be more at risk, explains Bob Dunnhauser, head of private equity at CFA.Although this is not always good, studies have shown that millennial women invest on average 40 percent less than men, which may mean big problems after retirement, but new Fidelity Investments data show that 83 percent of women want to do more in their finances. and 75 percent want to know more about money and investment.