Why Are Women Still Excluded From Crucial Financial Conversations?

Discussing money can be challenging. From a young age, we've been told that it is impolite to talk about finances, and this ingrained belief often carries into adulthood, leaving us with a sense of stigma and shame around the topic. Historically, even when women working and earning a living were just a distant dream, it was women who managed household finances. Despite not being the primary earners, they skillfully managed the household budget, often stretching a single salary to cover groceries, healthcare, and children's needs, while still setting aside savings for emergencies. We saw our mothers do this expertly, hiding away small amounts of money in the kitchen or other nooks of the house, ready for unforeseen expenses.

Given that women have always had a knack for managing finances, why do we still feel excluded from financial conversations today? Times have changed, and women are now a vital part of the workforce. Despite this evolution, the stigma persists that financial matters are too complex for women to grasp. A recent Wells Fargo and The Female Quotient study titled "Our Secret Numbers: Women, Men, and the Taboo Nature of Financial Health" puts into perspective the hard realities of how men and women handle financial topics differently.

The Research Findings

The study asked individuals about their "taboo" indicators, which included age, salary, weight, credit score, financial savings, debt, romantic relationships, prescription prescriptions, and spending. When comparing men and women, the data revealed similarities in terms of age and romantic partners, but disappointing—if not shocking—differences in finances. 

The findings indicated that men and women have varying levels of comfort when it comes to discussing finances throughout their careers. Interestingly, 66% of men in entry-level positions felt comfortable talking about their financial health, a figure higher than the 57% of women in senior-level positions who felt the same way.

Across all career levels, men reported greater comfort in discussing their financial health. Specifically, 66% of entry-level men, 67% of mid-level men, and 70% of senior-level men were comfortable, compared to 54% of entry-level women, 55% of mid-level women, and 57% of senior-level women. This pattern also held true for discussions about debt, with 57% of entry-level men, 61% of mid-level men, and 67% of senior-level men feeling comfortable, compared to 50% of entry-level women, 52% of mid-level women, and 46% of senior-level women.

The study also highlighted that men are generally happier and more confident in their financial abilities than women. Almost half of the women surveyed (49%) reported a lack of confidence in managing their finances, while only 35% of men felt the same way. Additionally, 58% of women expressed dissatisfaction with their financial situation, compared to 42% of men.

The Cycle of Financial Taboo

 When individuals avoid conversations about salaries, debts, and investments, they miss out on valuable advice and insights that could improve their financial situation. Men's relative comfort in discussing financial matters means they are more likely to benefit from shared knowledge and opportunities. In contrast, women's hesitation keeps them from accessing the same resources and support, further compounding financial inequality.

The differences in comfort and confidence regarding financial discussions can be traced back to societal conditioning from a young age. Boys are often encouraged to be assertive and knowledgeable about money, while girls are taught to be cautious and conservative. The study also highlighted differences in how financial responsibilities are perceived in married or partnered households. Men were more likely to take ownership of financial decisions, while women often saw it as a shared responsibility, contributing to women feeling less confident in their financial management skills.

Recommendations for Change

To address these inconsistencies, it is essential to shift the conversation about finance to multiple levels:

1. Education and Early Conversations: Encourage open and positive discussions about money with children, regardless of gender. Highlight the importance of financial knowledge and encourage both boys and girls to take an active role in managing their finances.

2. Workplace Initiatives: Companies should build an environment where financial discussions are normalized and encouraged. This can include financial literacy programs, mentorship opportunities, and transparent salary discussions.

3. Personal Accountability: Women should be encouraged to take ownership of their financial health, including seeking out financial education, discussing salaries and investments openly, and challenging the norm that talking about money is impolite.

4. Media Representation: Positive representation of women managing finances successfully can help shift societal perceptions. Media, including films, books, and advertisements, should portray women as confident and capable in financial matters.