Date: November 4, 2015
To: Ms. Thompson
From: Josseline Barrientos
Subject: “How Men and Women Manage Money Differently”
In response to your request for an article summary, I discovered an article from Money
magazine. The article discusses how men and women face different challenges involving
their saving and investing actions/thinking, titled “How Men and Women Manage Money
Differently”. This article summary explains the differences between genders financial
management.
Introduction
Financial management tasks have no gender role, yet when it comes to money, men and
women face challenges differently. Studies show that men earn about 25% more than
women, but women tend to live longer because they will take time off from their career.
Men feel more confident and knowledgeable when making investing decisions. These
differences may cause problems t your long term planning.
Women
Most women have a very busy lifestyle and prefer to understand what they have and their
options, rather than worrying about how much money they can make. Although they tend
to want spending money, education is what most women prefer to help them feel confident
about the decisions they make when it comes to spending and investing.
Although women are more conservative when it comes to managing money, collaboration
approach is a big part in most women life. Making joint decisions with their significant
other is one of the most important factors other than feeling the need to understand
everything involving management.
Even though statistics show that women earn less than man, women contribute more to
their workplace retirement account. Between the ages of twenty and forty, women spend
more than what they save, but between the age of forty and sixty they tend to start saving
more.
Ms. Thompson
Page 2
December 4, 2015
Men
How much money a man can make based on their investment, is what a man wants to know.
Maximizing every dollar is their main priority when men make an investment. Merging all
assets is a way they handle their financial management, unlike women, women like to have
everything separated.
When it comes to retirement, men are most likely to contribute less than a woman on their
retirement account. Alternatively, men may be investing outside of their retirement
account. Between the ages of twenty and forty, men save more and spend less, but between
the ages of forty and sixty they tend to spend more.
Because of men having more confidence they think they can beat the market and the
investments they do can suffer from overconfidence.
Conclusion
Although men and women have different ways on their financial management, they can
apply those different strengths together to create a better, balanced portfolio. These
differences are very important to understand, to be able to work together.
Sincerely
Josseline Barrrientos
