Indifference is a trap: Women still deferring to men on financial matters
When it comes to major financial decisions in relationships, a UBS study finds, men can be "barriers" or "bridges."
During a time of heightened awareness of equality, half of women still defer long-term financial decisions to their spouse or partner.
“Why are some women stuck in this financial time warp? Our findings reveal that many women let their spouse make long-term financial decisions primarily because they feel he knows more,” according to a report from UBS.
“Or they simply do what their mothers did and let men take the lead.”
Two-thirds of women who defer say they just want to be taken care of. Does it matter that men take the lead and women defer? Quite simply, yes.
Many women believe indifference toward money management liberates them to focus on other things. In reality, it often traps them. When women don’t participate in financial decisions, they miss out on more than being an equal partner. They forfeit having a voice in decisions that will profoundly affect their family and their future.
For many women, that future calls for being in charge of their own finances:
- Most wives outlive their husbands.
- Divorce among the 50-plus age group has doubled in the past 30 years.
- Many women choose to remain single.
“For all these reasons, eight in 10 women will end up solely responsible for their money and the wealth they are likely to inherit,” the report said. “The women who are woefully unprepared are the women who previously deferred financial decisions to men.”
UBS surveyed 1,500 men and women in marriages or partnership to learn why some men are bridges to women’s financial involvement and others are barriers. Among the findings:
- Seven in 10 men say they take the lead on long-term financial decisions. Overwhelmingly, they believe they know more about long-term finances than their spouse.
- More than 80 percent feel it’s their responsibility as husbands to make long-term financial decisions for the household.
- Seven in 10 don’t trust their spouse to make good decisions or they are protecting their assets from divorce.
- Among men who take the lead, nine in 10 wish their spouse was more involved in long-term financial decisions.
- More than 80 percent believe including women in financial planning and investment briefings would increase their engagement.
- And both women and men agree that making long-term financial decisions together would increase their confidence in the future, minimize financial mistakes and reduce anxiety about money.
- Currently, only about 20 percent of couples make long-term financial decisions together.
- Nearly 100 percent of women and men believe women should be more involved in financial decisions.
“Women don’t need to take the lead or be solely responsible for making the long-term decisions,” the report concluded. “Just participate. Certainly, all women should have a say in the decisions that to a great extent will determine their future. Women have an obligation to take their seat at the money table. When they do, women unlock more opportunities to design the life and legacy they want. But men are critical to removing barriers and building bridges. That’s progress for everyone.”
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