How the financial literacy gender gap may affect men

Jul 12, 2011

Men may be susceptible to risky investments

Researchers have found that women are significantly behind men in most areas of financial planning, with the largest gaps found in investing and budgeting, according to Forbes. A mere 25 percent of women are confident in their investment strategies compared to 42 percent of men. Additionally, 80 percent of men spend less than they make, compared to 63 percent of women.

While this may seem like a one-sided problem, men are often forced to deal with it just the same. Men and women are interconnected and often share financial burdens. Experts have found that men spend thousands of dollars a year offsetting these financial inconsistencies.

Some financial experts believe that men may be overly confident about their financial solvency, thinking they know more than they actually do. Being overconfident can cause individuals to lose their edge and not realistically assess situations.

Studies have shown that men actually make more investment mistakes than women, according to the Wall Street Journal. People who invest in hot stocks instead of safe bets, such as whole life insurance, can find themselves in a financial mess.

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