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Women cashed up, but not making money

Discussion in 'General Investing Discussion' started by Johny_come_lately, 27th May, 2010.

  1. Johny_come_lately

    Johny_come_lately Well-Known Member

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    Hi,

    Came across this link:

    Women cashed up, but not making money | News.com.au

    I have friends who are too scared to invest, because of the 'risk'. So they leave their money in the bank.

    I also know women that rely on their husband to manage the finances.

    Why do ladies find investing hard?





    Johny.
     
  2. Chris C

    Chris C Well-Known Member

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    Greater levels of risk aversion.

    The problem of course is the social belief that putting your money in the bank is "safe" or lower risk.
     
  3. Johny_come_lately

    Johny_come_lately Well-Known Member

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    So do you think it a risk versus gender thing? That women are not prepared to invest in risky areas, as much as men.





    Johny.
     
  4. KateMelb

    KateMelb Active Member

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    Historically, pay inequity as well as lack of financial education, part-time income and dependence on spouses all contribute to women's decisions when it comes to investments. Fortunately, the Courts have recognised that financially illiterate women who are dominated by their partners can be excused from mortgage liabilities (CBA v Garcia).
     
  5. Jacque

    Jacque Team InvestEd

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    Actually more single women buy property than men, so I don't know where this is coming from. I certainly aint one of them :D
     
  6. AsxBroker

    AsxBroker Well-Known Member

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    I agree with Jacque.
    I think this is more about selling an article.
     
  7. Chris C

    Chris C Well-Known Member

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    Greater need for security?
     
  8. TDFawaz

    TDFawaz Tony

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    well, I'm from Romania, and I can tell you how things work here. there is an old traditional concept in my country of women staying at home, and having a lot of children, and men bringing the money in the house. for most of the families, those concepts still work. Automatically a substantial number of women are excludes from investing money. the other small number is sectioned too. some don't have money to invest, some are too afraid of risks. and finally, there are a few women who turn to be good business persons, but it all depends a lot on each person's concept and personality. I know families where the woman takes all the business decisions, and her husband takes a smaller part into this. It depends a lot.
     
  9. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    There is a flip side to this argument.

    Why do men feel more confident at taking risks?

    I think you'll find it's mostly a gender thing - the same thing happens with many aspects of life ... men and women generally tend to assess risk differently.

    I would think that men (in general) take far more financial risks - some of them pay off, many of them don't.

    Much of the time it is ego which dictates many of the decisions - it has been often said that women make far better sharemarket traders than men do, since they are much less likely to be swayed by ego and take unnecessary risks. I'm not sure whether that is backed up by scientific analysis, but on the face of it, it does kind of make sense.

    Look at the share trading forums - they are full of guys comparing the size of their ... trades. It's a game and it gives bragging rights.

    That being said, I do think that understanding risk and how to manage it is a critical part of wealth creation - and many women err on the overly cautious side due to a lack of education and understanding about the nature of risk. However, I would suggest that in many cases they will still end up as well off (or better) than many men who go the other extreme - for the same reason ... not understanding the nature of risk and taking too many of them.

    Swings and roundabouts.

    A woman with money in the bank over the past 2-3 years has probably made a better return than a man who invested in the sharemarket over that same period!
     
  10. Tropo

    Tropo Well-Known Member

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    " ...it has been often said that women make far better sharemarket traders than men do, since they are much less likely to be swayed by ego and take unnecessary risks.

    That being said, I do think that understanding risk and how to manage it is a critical part of wealth creation - and many women err on the overly cautious side due to a lack of education and understanding about the nature of risk.
    However, I would suggest that in many cases they will still end up as well off (or better) than many men who go the other extreme - for the same reason ... not understanding the nature of risk and taking too many of them".


    Yep...

    Few years back I attended a trading seminar, and at one stage a man running it asked a question:
    "Do you know why women are better traders than men"?
    There was no answer so he said: "Because women do not have balls". :p