The bestselling book from the ’90s, “Men Are From Mars, Women Are From Venus” sold millions. It detailed how men and women often approach situations very differently — and dug into those differences.
But how do the sexes differ when it comes to financial matters?
“While it’s important to acknowledge that individuals vary widely in their financial behaviors and attitudes, studies have shown that there are some differences between men and women and how they manage their finances,” Kevin T. Taylor, financial advisor and managing partner at InSight, says. Here’s how American men and women tend to differ on 10 key financial fronts:
1. How Much Money Women Make Compared to Men
According to the latest U.S. Bureau of Labor Statistics Consumer Expenditure Survey, single males earned an average annual gross income of $49,525 in 2021, while single females earned an average of $38,178.
“The overarching environment is that women still make 82 cents on the dollar to what men make. It affects women’s pay and ability to create their own net worth,” says Kimberlee Davis, wealth manager and author of “The Fiscal Feminist: A Financial Wake-up Call for Women.”
Men, however, don’t maintain their income leads in the long run. In The Wealth of the Households survey, the U.S. Census Bureau found that while unmarried males made more per year up until the age of 64, unmarried females made slightly more from the age of 65 on.
[MORE: Democratic Women Face Resurgent Gender Gap Against Republican Men]
2. Homeownership and Housing Spending
When it comes to homeownership, women come out ahead. About 55% of single women in the BLS survey were homeowners compared to 46% of single men. Further, 32% of the female homeowners owned their homes outright compared to 25% of males.
Women also spend about $600 more per year on housing expenses like mortgage or rent payments, property taxes, maintenance costs, homeowners insurance, utilities, household supplies, furnishings and household equipment.
“I’ve noticed that my male clients tend to place priority on increasing their income and taking calculated risks in pursuit of financial success, while my female clients are more likely to prioritize security and stability in their finances,” says Jeff Mains, CEO of Champion Leadership Group.
The tendency for women to prioritize security and stability could be a reason for their higher homeownership rates and propensity to spend more on home-related expenses.
3. Transportation Spending
While women are spending more on housing, men are spending significantly more on transportation expenses like vehicle purchases, gas, maintenance and repairs. According to BLS data, single men spent an average of $6,469 per year on transportation, while single women spent an average of $4,621.
[Related:How Transportation Costs Impact Inflation]
4. Entertainment Spending
Single men also tend to spend more on entertainment costs than single women, averaging $2,197 per year compared to $1,694, respectively. Entertainment expenses, according to the BLS, include purchases for pets, hobbies, toys, entertainment supplies or services, fees and admissions, and audio, visual and playground equipment.
5. Health Care Spending
Regarding expenses like health insurance, medical services, drugs and medical supplies, single women spent an average of $3,747 per year, while single men spent an average of $2,845.
6. Personal Care Product Spending
No surprise here — women also spent more on personal care products and services. Single females averaged $596 per year, while single males averaged just $255.
7. Personal Insurance and Pensions
Single men were the bigger spenders on pensions, life insurance and other personal insurance policies. They averaged $4,210 per year compared to $2,967 per year for single women, according to the BLS.
8. Savings
Men are also currently bigger savers, perhaps because they tend to have higher annual incomes. Women saved an average of $3,146 in 2022, while men saved an average of $7,007, according to a recent New York Life survey.
9. Feelings About Finances
Men report feeling more hopeful, less stressed and more able to meet their financial goals than their female counterparts, according to the New York Life survey. For example, 37% of men said they were hopeful about their finances compared to only 28% of women.
10. Investing
Shifts are occurring on the investment front. Over the last 10 years, women’s investments have outperformed their male counterparts’ by 40 basis points, according to the Fidelity Investments 2021 Women and Investing Study. Further, more than 65% of women are investing outside of retirement now, up 44% from 2018.
The BLS report also showed women earn more from investments than men. Single women earned an average of $1,836 annually from interest, dividends, rental income and other property income, while single men averaged $1,574.
The secret could be in a more conservative approach. According to the J.P. Morgan Wealth Management’s Diverse Investor Study, 45% of women described their investing strategy as cautious, compared to 33% of men.
“Despite these differences, neither gender is superior to the other when it comes to handling financial matters,” Mains says. “In reality, there’s much that men and women may gain from analyzing one another’s differences and similarities.”
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How Women and Men Differ Across 10 Financial Fronts originally appeared on usnews.com
