«Money is not important to me.» «I don't want to get rich.» «Money is just a means to an end.» These sentences all come from women, from interviews we conducted as part of our «Money Talk» section. They are answers to the question of what feelings money triggers in them. And they are the answers we receive most frequently to these questions. Interviewees rarely say things like: «Money is important to me.» «I want to have a lot of money one day.» «Money is fun for me.» We have no counter-thesis to these statements, as we do not conduct money talks with men. However, studies show that women are more reserved, more cautious and less self-confident than men when it comes to money.
Where does this come from? We investigate this question.
Girls should save, boys should multiply their money
As is so often the case when it comes to an attitude or approach to a topic, the roots lie in childhood. The images in our heads and internalized beliefs are a key factor that shapes the way women deal with money. When it comes to money, women are socialized differently than men.
There are differences even at a young age, says Alexandra Niessen-Ruenzi. The economist heads the Chair of General Business Administration and Corporate Governance at the University of Mannheim and researches gender-specific differences in capital markets. «In most households, the topic of financial planning and investment is discussed more often between fathers and sons than between fathers or mothers and daughters», says Niessen-Ruenzi. According to an American study, parents also talk about money differently with girls than they do with boys: They teach girls to save, boys to multiply their money. Boys also receive more financial securities as gifts and are more strongly encouraged to participate in the stock market than girls. And last but not least: There is less inspiration for girls. This is because - as studies also show - girls lack female role models who have a fun and active approach to money. When asked about role models when it comes to finances, women primarily name family members, including their fathers in first place, followed by mothers and partners. Men, on the other hand, only look to their fathers for guidance and otherwise tend to look to public figures such as Warren Buffet or Elon Musk. Of course, it is questionable whether Buffet and Musk are «good» role models. But they are interesting in that they encourage us to think big when it comes to money.
Much silence, little exchange
According to Alexandra Niessen-Ruenzi, these trends also continue on later in women's lives: «Our survey data shows that during adolescence and early working life, women are less likely to discuss the topic of money with friends and colleagues than men.» Women are also less likely to have friends who invest themselves and encourage them to invest. Men, on the other hand, regularly discuss money, finances and investing with other men from their family, circle of friends or work.
For all these reasons, according to Niessen-Ruenzi, women often only come into contact with topics such as investing or pension provision relatively late in life, and usually only when they become active themselves and seek information on the subject. And this sometimes takes a lot of effort. This is because the financial industry does not really have women on its radar as customers. The majority of financial advisors see men as their standard clients. Most women do not feel addressed or included by the financial industry.
And finally, we must not forget: There are also historical reasons for women's silence or reluctance when it comes to finances in Switzerland: In this country, women have not had the opportunity to deal with the subject of finances independently for so long. Only since the new marriage law came into force in 1988 have married women been able to pursue gainful employment or open a bank account without their husband's permission.
Women are less self-confident when it comes to finances
There is another hurdle for women: the gender pay gap. Women in Switzerland still earn 12 percent less than men and therefore simply have less money at their disposal. What's more, according to a study, this gap already exists in childhood. Six-year-old girls receive less money from their parents than boys of the same age. According to studies, the difference in pocket money is up to 11 percent. This does change in adolescence - between the ages of 12 and 15, girls receive slightly more money than boys. Nevertheless, girls can hardly catch up with boys financially. Which is why they have fewer opportunities to practise their money management skills.
As the authors of the study conclude, this could be one of the reasons why adult women perform worse than men in financial surveys. The researchers emphasize that this is not because women actually know less about finance, but rather because they believe they are less competent, as the study states: «Women are less self-confident when it comes to financial issues.»
Only one in three women invest their money
A lack of self-confidence, financial inequality, a different upbringing in money matters and a lack of role models: all of this has consequences for women's entire lives and financial situation. «Women tend to be more insecure and have less confidence in their financial decisions than men», says Alexandra Niessen-Ruenzi. As a result, women are less concerned with finances and are more likely to avoid investing. In a survey conducted by the University of Lucerne, four out of ten women in Switzerland stated that they were «not at all» interested in the financial markets. Only one in ten has a «strong interest» in the topic. Among men, the figure is one in three.
The situation is hardly any better when it comes to investing. Although the figures on the investment behavior of women and men vary depending on the study, everyone agrees on one point: women invest their money significantly less often than men. A recent study shows: while one in two men invest their money, only one in three women do so.
The imprints and images that are deeply ingrained in us women are also evident in other areas: in heterosexual relationships, for example, more men still deal with the topic of finances than women. And in the job context, women negotiate their wages less often than their male colleagues.
The beliefs culminate in poverty in old age
Many women suffer the consequences when they retire. Keyword: poverty in old age. «Over the course of their lives, women earn significantly less than men, invest their money less profitably and live on average five years longer. They have a 25 percent higher risk of poverty in old age», says Alexandra Niessen-Ruenzi. Of course, this is not only due to the way they have been shaped in terms of money. The current pension system, which penalizes part-time work and does not take unpaid care work into account, is a major factor. Nevertheless, the economist emphasizes: «Not dealing with the topic of investing money has very worrying consequences for women and jeopardizes their ability to secure their standard of living in old age.»
A new strategy for financial education
Alexandra Nissen-Ruenzi is therefore calling for a fundamental change in the way we deal with financial issues - in private and public life. «We need a financial education strategy and to anchor the topic in the school curriculum.» This is the only way to reach the general public. It is also crucial that awareness of the topics of money, finance and investing is created in the family context: «It is important that parents or other caregivers make sure that they communicate with their children about the importance of saving, inflation, interest rates, etc., regardless of gender.»
Céline Meier
