"Young Women Are Bad at Money, Say Old Men"


“More than half of respondents said that male clients were more financially knowledgeable than women; just 9 percent said the reverse was true. Asked which age group had the best money sense, 6 percent said it was those 30 to 40, while 76 percent said it was those 40 and older.”

“financial advisers believe everyone in America is in dire need of their services

Maybe it’s oversimplifying some things, but not sure if I disagree with the general results.


Two points to be made:

  1. Never ask a barber if he thinks you need a haircut.
  2. To a man with only a hammer, everything looks like a nail.

But you should ask a barber for financial advice. The Wealthy Barber is a best seller.

^ found out last night while watching Pawn Stars (the Phillies were getting shelled) that barbers used to be barbers/dentists/doctors. Perhaps the next time I’m at Great Clips I should ask the one semi-attractive stylist for hernia test as well.

The History Channel actually taught you something about history? What is this, 2004?

^ That Rick Harrison is one smart dude, at least when he has advanced notice of what’s coming into the shop and has time to research it.

Considering how much women spend on shoes/handbags/accessories; I approve that statement.

I worked for a summer between high school and college selling balance transfers for a credit card company. I was blown away by the number of men who said that their wives handled their finances. I think it’s much more common than you would think. For all the women buying overpriced handbags, there are also men indulging in random hobbies they care about (e.g. M&A’in on the buyside).

I also think that men are more likely to overestimate their financial ability than women are. Women are more willing to just throw up their hands and invest in index funds.

How many designer handbags = Porsche 911?

Agree that there might be some bias in the survey, given that the participating FAs were predominantly old men. A couple of things to note though:

  1. Financial literacy does not always translate to consumer decisions. You can but a lot of handbags but be knowledgeable about finance. Or you might be knowledgeable about finance but make irrational purchasing decisions due to psychological reasons, like a shopping addiction. Many finance workers obviously know a lot about money, but blow their paycheck on strippers and table service.

  2. I do agree that in general, men care more or are more interested in money. More men aspire to have careers in finance, for instance. This is anecdotal, of course, and maybe does not translate into actual knowledge.

  3. There might be some family division thing going on, especially since FA clients tend to be older couples. Older people are more likely to have a sole (usually male) breadwinner. Not sure what are the implications to personal finance. Maybe the wife handles family finances since the husband goes out 9 to 5. Or maybe the husband, being the breadwinner, handles all the money, and the wife does house things. I suspect that the family division of duties breaks down for younger couples compared to older couples.

The thing I don’t disagree with is that more people need education about personal finances, especially when they are young. Apparently, this is one of the most common “regrets” that people cite: “I should have learned more about personal finances”.

I say my wife handles whatever I don’t feel like talking with a telemarketer about.

HCBs don’t have to be good with money. They can always catch the next bus if you run out.