It’s no coincidence that women handle the money in over half of American households. Females typically have pretty good financial tendencies from a young age.
But while guys are less focused on mastering day-to-day finances, budgeting and spending than gals, they usually pass up the ladies when it comes to saving and investing—again, at a young age.
Charles Schwab dove deeper into these gender patterns in a recent survey of 16- to 25-year-olds, uncovering the importance of talking to kids about money early on in life.
Girls’ money behavior seems great on paper, according to Schwab’s data. Higher percentages of young females than young males:
- Say putting together a financial plan is very important (76 vs. 64 percent)
- Cite paying off student loans as a goal (49 vs. 39 percent)
- Say paying off credit card debt is a goal (41 vs. 32 percent)
- Have chosen to hold off on buying something in order to save money (73 vs. 56 percent)
- Have skipped vacation or travel to save money (36 vs. 27 percent)
But it’s unclear where the ladies are directing all the extra cash they should have.
“Despite their good intentions, young women start to fall behind their male counterparts in savings and investing early on in life,” said Carrie Schwab-Pomerantz, president, Charles Schwab Foundation, and senior vice president, Charles Schwab & Co., Inc.
Among those surveyed, the difference in savings was pretty substantial. Guys reported an average of savings balance of $2,000. Meanwhile, the girls had only saved up about $1,267.
When it came to investing, twice as many males as females said they had an investment account. Twice as many said they’d invest any extra money they had lying around, too.
“There’s room for improvement in educating both young men and women. It’s never too early to start talking to kids about good financial behaviors,” added Schwab-Pomerantz.
She offers the following advice:
- Convey the same messages to boys and girls about money but consider tailoring those conversations based on gender and behavioral tendencies.
- Have open and honest conversations with girls about the wage and savings gap.
- Teach the importance of investing (and doing so early)–especially to girls.
- Encourage children to take full advantage of a company retirement plan and contribute at least up to the company match, more if possible. Explain that it should be a top priority for everyone, but especially for women, who tend to live longer than men.