I’m a Female Financial Expert: 6 Ways To End the Misconception That Women Are Bad With Money
Written by
Nicole Spector
Edited by
Gary Dudak
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The misconception that women are bad with money may sound like something from ancient history, given that today many women are heads of the household. According to Mint, research even shows that women can better manage money than men and often outperform their male counterparts when it comes to investing. But the myth that women are bad with money persists, and it’s doing plenty of harm.
A 2021 study published in the Journal of Economic Behavior & Organization found the stereotype that women are bad with money increased financial anxiety in women. This can lead to further damage by widening the gender gap in financial literacy. In other words, women told they’re bad with money can internalize this message to the point where they believe they are.
So, where does this myth that women are bad with money come from and how can we end it for good? To find out, GOBankingRates talked with Erika Kullberg, a personal finance expert and the founder of Erika.com. Read on for more, and also check out our list of Money’s Most Influential Women.
Tracing the History of the Misconception That Women Are Bad With Money
“The popular belief that women are bad with money might be rooted in the historical experiences of women who were traditionally excluded from major financial decisions — leaving such matters to a husband — and relegated to handling daily household expenses,” Kullberg said.
“Even as our world has transformed, these attitudes can persist in both societal attitudes and in media portrayals — binding those attitudes further — and in how women receive unequal financial education.”
Keep in mind, too, that women weren’t even allowed to have a credit card in their own name until 1974. That may sound like eons ago, but 50 years is a drop in the bucket in a country that was founded in 1776, when women weren’t even close to being allowed to vote.
Mentorship Programs
A key way to dispel the misconception that women are bad with money is to do more to support them and enable them to support each other. This could be achieved through mentorship programs.
“Establishing mentorship programs that connect experienced women in finance with newcomers can foster a supportive environment for learning and growth,” Kullberg said. “Networking events can also help women gain confidence and establish themselves in the financial sector.”
Normalize the Idea That Women Are Knowledgeable About Money
As the aforementioned study found out, women may internalize the fact that they’re bad with money if they’re constantly hearing they are. Doing the opposite of this — discussing how they’re good with money — can help empower women and bust the myth.
“Encourage women and their families to discuss and normalize the idea of women being knowledgeable about money, explaining financial management, investing and financial planning to each other,” Kullberg said.
Integrate Financial Education as Young as Possible
Most Americans don’t learn much about personal finance as children, due to schools’ failure to provide education on the matter. Schools need to start valuing the importance of financial education and instilling knowledge in children at a young age, to set them up for success and end the misconception that women are bad with money.
“We need to integrate financial training into the school curriculum from childhood,” Kullberg said. “In doing so, we ensure that every child learns how to handle money correctly. We also break down gendered misconceptions from an early age.”
Keep Publishing and Promoting Data That Showcases Women’s Financial Abilities
There’s no shortage of data showing women are excellent with money — when they’re allowed to be, of course. Publishing and promoting this data can make it more accessible to a larger group of people who need to hear it.
“Continuously gathering and publicizing data that shows women’s capabilities and successes in managing money can help dispel myths,” Kullberg said. “Research institutions should focus on studies that explore gender and finance, providing factual evidence to support the dismantling of outdated stereotypes.”
Celebrate Stories of Women’s Financial Success
Finally, we should all take the time and effort to talk loudly and often about women’s financial success stories.
“Stories of women achieving financial independence should be celebrated and shared, whether they are celebrities or everyday individuals,” Kullberg said. “These stories can inspire other women and help change societal attitudes.”
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