MONEY AND THE GENDER GAP

In a survey of young adults aged 16 to 25, Charles Schwab found young women are more driven to reach financial independence than young men (67 per cent versus 58 per cent).

They are more likely to take on extra work to make ends meet and see more value than men in creating a plan to achieve their financial goals. Yet, despite all this they are investing and saving less than young men – falling early into the financial gender gap.

While the women surveyed report spending 36 per cent less than men, they have far less savings than men ($1,267 versus $2,000) – a difference of nearly 60 per cent.

In addition, twice as many young men as women say they would invest spare cash, and almost twice as many young men as women report having investment accounts (although most young adults do not invest at all).

“Despite their good intentions, young women start to fall behind their male counterparts in savings and investing early on in life,” says Carrie Schwab-Pomerantz, senior vice president at Charles Schwab. “They start off showing a strong financial planning mindset, but there is still room for further education when it comes to managing their dayto-day finances.”

Ms Schwab-Pomerantz says parents should be conveying the same messages to boys and girls about money, but should tailor those conversations based on the individual and gender.

“Our study shows that while boys are spending more than girls, they also are saving more. Have open and honest conversations with your daughters about the wage and savings gap,” she says. “Teach kids about the importance of investing – especially girls, who as we see in the study, aren’t investing as much.

Part of being financially prepared is learning to make the most of your money, and that means investing early and consistently.”