It is common knowledge that men and women think, act, and function in ways that vastly differ from one another. There are proven scientific reasons why men and women operate differently concerning many different factors. Biological makeup of males and females may be the root of those differences and the reason the sexes handle money and credit issues very differently.
How men and women manage money matters particularly when the genders are joined in marriage and legally responsible for joint debts and personal financial issues. It is important that both parties understand their different perspectives on money matters, preferably before marriage, in order to keep cash conflicts at bay. Being on the same financial page in a relationship is certainly an important element to consider long before making commitments, financial or otherwise.
Here are 12 ways men and women tend to differ where money and credit is concerned:
1. Amount of Credit
Despite some popular beliefs, men are the gender more likely to have the most creditor accounts, including personal loans, mortgages, and car financing. Women, on the other hand, are more apt to have a greater number of credit card accounts. This may be due to practicality as women tend to deal with family money matters and are more in control of making buying choices and regular spending decisions.
2. New Offers of Credit
Those offers you receive in the mail notifying you of new credit card deals are not handled the same way by men and women. Men tend to dispose of these offers and other mail considered to be junk directly in the trash can. Women are more inclined to collect the unneeded mail and take care to shred and dispose of the information as recommended by financial experts.
3. Credit Spending
Women tend to carry more credit card accounts but it is the men who have the higher monthly credit card balances. Men carry higher debt loads on credit despite their more infrequent use of the cards. On average, men beat out women’s credit card balance by several thousand dollars.
4. Money Talk
While it is essential for couples to have an open line of communication about family financial matters, women tend to be more communicative about money issues whereas a man will keep financial details to themselves.
5. Bad Credit Assistance
For those who are struggling with credit score problems, men tend to not seek help unless a woman has initiated the call for assistance. Both genders almost equally struggle with credit debt issues but will resolve it in different way with females being more aware of their financial situation and therefore reaching out for help when they become overwhelmed.
6. Filing for Bankruptcy
According to a report completed by the United States Department of Justice Trustees Office, women are more likely to follow legal procedure when they realize their debts are out of control. While men tend to have more credit card debt than women, men will only seek bankruptcy relief if they are facing a critical situation. Women tend to plan more for handling debt issues in a legal manner.
7. Business Credit Use
Women-owned businesses tend to use credit card accounts to pay for the needs of the business. Male-owned businesses most often establish accounts where the supplies and equipment are acquired on a ‘pay later’ basis.
8. Medical Bills
Several surveys conducted by various insurance companies have revealed that men are more likely to pay for medical care costs using a credit card. Women use credit cards for medical bills but are more likely to request a reasonable payment plan for services being rendered unless it is for emergency care.
9. Savings Theories
Single men are less likely to focus on saving during the times they are seeking a relationship. There is more of an emphasis on using credit card to establish financial power. Married women are most likely to concern themselves with savings goals relevant to the needs of the family in the short and long term.
10. Shopping Skills
Women are well-known to be the shoppers. In addition to pleasure shopping, women are typically in charge of household buying decisions including home décor, groceries, and necessities. Men tend to shop only when necessary but have a tendency to make bigger ticket purchases. Men also tend to be more focused on what needs to be a purchased while a women is more likely to comparison shop for personal items and household goods.
11. Money Temptations
Women may be more inclined to snap up an impulse buy or tempt financial fate with window shopping trips. Men, on the other hand, are more likely to avoid impulse buys and put an emphasis on researching purchases before spending.
12. Financial Organization
While men do participate in financial decision-making, women are more likely to be the person in charge of handling monthly financial obligations. She will pay the bills, balance the checkbook, file and maintain financial documents, and keep financial matters organized.
Granted there are exceptions to each of these categories where men would rather take the reigns over money matters. Obviously single men and women will handle financial issues differently than married couples would. However, the general consensus appears to be that women tend to pre-plan financially whereas men participate on an as-needed basis, when matters necessitate their input.
Both sexes are becoming more involved in realizing the importance of good credit ratings and cutting down on spending. Debt elimination is also becoming more of a priority for both sexes who are dealing with the consequences of a shaky US economy and unsure job market. Personal finance has become a focus for both genders across the nation with more emphasis being placed on savings. There is also focus on more efficient personal and household financial management skills and an increased desire for financial literacy among both men and women.
The differences between males and females when it comes to married money matters and credit issues may work in the favor of some couples who have different money perspectives. It may also be a conflict difficult to overcome for some couples without additional financial counseling. The most important matter at hand when it comes to gender difference and money is first figuring out where each one stands before joining financial forces. Men may be from Mars and women may hail from Venus but money commitments can easily become a matter of the courts.