If you’re to believe a couple of recent polls, gender differences are still alive and well when it comes to how men and women save, invest and spend their money.
Men, it seems, are more likely to save for the future while women are more inclined to live for today.
Men are more likely than women to have more than one credit card and are more likely to be hands-on about managing their cards than women.
Women, on the other hand, are more likely to try and make the most out of their purchases by signing up for loyalty programs and having more loyalty cards than men.
“There are significant differences in how Canadian men and women save and invest their money, particularly what they invest in and how much money they invest,” said Lee Anne Davies, head of retirement savings with RBC about a recent RBC registered retirement savings plan (RRSP) poll.
Women are more likely to worry about balancing savings for immediate priorities versus putting money away for the longer term or their retirement, while men are more likely to put money toward retirement savings and build their investment portfolios. Almost one third of women in the survey reported they have not yet started saving for retirement compared to only 20 per cent of men.
“What we’re seeing in our research is that women are placing more emphasis on taking care of daily needs — often the needs of others — rather than focusing on their long-term needs,” Davies said. “This makes it all the more important for women to get advice about the options available to help them build their savings and enable them to have the lifestyle they want when they retire.”
The poll identified a few striking differences in what men and women plan to or already have invested in their RRSPs.
Stocks were the third most favoured type of investment by 23 per cent of men but were in sixth place by 14 per cent of women. Savings accounts ranked in third place for women and fourth place for men.
Mutual funds were the top choice for both genders. However, 46 per cent of men hold mutual funds compared to only 38 per cent of women. Twenty-two per cent of women said they didn’t know what investments were in their RRSPs or that an adviser handles investments for them, compared to only 15 per cent of men.
A Leger poll conducted for the Air Miles Reward Program found that men and women view their wallets and what goes in them in very different ways.
When it comes to credit cards, men are more likely than women to have more than one card and take a more hands-on approach to managing their cards.
“Their approach to spending and the cards they use are very different,” said rewards expert Patrick Sojka. “Women may look to make the most out of every purchase, signing up for a variety of loyalty programs, while men tend to have more credit cards.
“In both cases, it’s important to re-asses all the cards in your wallet to ensure they are working for you.”
Women also have a different perspective about how much money they will need for retirement.
The RBC poll found that the amount women believe they need to retire dropped modestly in 2010 to $510,000 from $566,000 in 2007 while the same goal for men changed dramatically, dropping to $493,000 in 2010 from $922,000 three years earlier.
“Women tend to be more conservative in their approach to saving for the future, with a stronger focus on investments that provide steadier returns,” said Davies. “This is why the amount of money women say they need for retirement is remaining steady. The amount of money men say they need in retirement, on the other hand, changes as their investment returns change.”
Talbot Boggs is a Toronto-based business communications professional who has worked with national news organizations, magazines and corporations in the finance, retail, manufacturing and other industrial sectors. He can be contacted at boggsyourmoney@rogers.com.