While many people may be looking to improve their financial strategies, both men and women could be approaching the issues differently.
Women may be more conservative with their money than men, as 45 percent noted that they would save if they received an extra $200 on top of their regular earnings, according to a report from BlackRock. Just 38 percent of men said the same.
Men were also less likely to use the money to cut down their debt, as just 23 percent noted this, while 28 percent of women felt they would utilize this strategy, the report showed. Another 15 percent of women would spend more of the money on their children, while just 11 percent of men felt this way.
“Simply put, when it comes to money, women and men today see the world quite differently,” said Sue Thompson, managing director and head of the institutional asset Management and RIA channel at BlackRock. “Women have a profoundly sober financial perspective, apparently more influenced than men by the realities of today’s market volatility and ongoing economic uncertainty. They place greater emphasis than men on day-to-day financial planning and maintaining the household balance sheet — but this focus also seems to undercut engagement around longer-horizon activities such as retirement planning as well as investment.”
Americans struggle with savings, spending
Even though more individuals want to be better with their finances, many are still having trouble executing their personal finance plan. According to a report completed jointly between the American Savings Education Council and the Certified Financial Planner Board of Standards, Inc., just 51 percent of individuals have a savings strategy with goals set.
“We know it’s important to set money aside regularly, for a rainy day and a sunny future, but it obviously isn’t always easy to do,” said Eleanor Blayney, consumer advocate at CFP Board. “We need to reverse the ‘easy to be bad’ and ‘hard to be good’ dynamics that determine our spending and saving behavior.”
Only two-fifths of Americans noted that they have a spending plan that will provide them with enough savings, the report noted. However, nearly 70 percent of those polled spend less money than they earn, while saving the remainder of the funds. Another 64 percent noted they have enough emergency savings to help them deal with an unexpected expense.