Wells Fargo and The Female Quotient recently released an interesting research study on money taboos called “Our Secret Numbers.” The survey investigated a wide range of questions about personal finance attitudes, including why people are afraid to talk about money and what it takes for people to achieve better financial health.
The study found some interesting findings regarding the differences in how men and women relate to money and personal financial success. There are valuable insights here that can help people understand their relationship with money and perhaps achieve greater financial success.
Let's take a look at some of the lesser-known reasons why people's beliefs and social conditions may be hindering their financial health.
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1. Many people would rather talk about drugs than money.
The survey found that many adults are reluctant to talk about their money, despite it being a major concern and source of stress.
- 63% said money was a “significant source of stress.”
- 45% of adults surveyed said they feel embarrassed talking about money and their personal finances with others.
- One in four adults have never shared personal financial information, such as savings account balances, credit scores, and spending, with anyone.
Because money is a very personal and sometimes uncomfortable topic, people prefer to share their prescription drug history rather than talk about their credit score. Research shows that 81% of adults share the number of prescriptions they fill, but only 71% share their credit score with others. The only information more taboo than money is the number of lovers people have. Only 65% of adults admitted to sharing that number when talking to friends.
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2. Financially healthy people talk more about money.
It's natural to feel embarrassed or uncomfortable when someone is struggling financially. If your credit score isn't great, you've racked up credit card debt, or you've had bad luck investing, it can be tempting to keep that information to yourself.
However, this research suggests that talking about personal money more often may be beneficial to financial well-being. Result of investigation, People who are satisfied with their financial situation are more likely to share their financial information (Salary, debt, credit score, etc.) Relationships with other people in your life. Does this mean that all people with good credit scores and well-stocked bank accounts are bragging about it?
I think there is a more hopeful interpretation of this data. If you're struggling with money, you don't have to worry about it alone. It might be good to talk about money. Talk to someone about personal money matters, even if it's one of your trusted girlfriends or two of her closest friends. This can help break the silence and relieve stress around money issues, and may even lead to helpful ideas and solutions.
3. There is a huge gender gap in financial confidence.
Unfortunately, the pay gap between men and women is a reality. As of 2022, women will earn approximately $0.82 for every $1.00 of men's income. Not only do women tend to be paid less than men, but women also tend to face other challenges throughout their professional lives that make it difficult for them to invest in the stock market and build significant wealth.
The Wells Fargo Women's Index study reveals a gender pay gap as well as a gender gap in financial confidence. Both men and women value financial health (74% of women and 76% of men say financial health is important to them in life); Men and women have different levels of financial happiness.
- 42% of women are satisfied with their financial situation compared to 58% of men
- 51% of women are confident in managing their finances compared to 65% of men
- Men are more likely to consult a financial professional about their financial health (29% of men vs. 20% of women)
- Women are more likely to say they don't tell anyone about their finances (35% of women vs. 26% of men)
Men were also far more likely than women to describe their relationship with money in positive terms, such as disciplined, strategic, satisfying, relaxed, and proud. Women were more likely to describe their relationship with money as “stressful, frustrating, tiring, and embarrassing.''
conclusion
There are no easy answers to the problem of improving people's financial health, especially given the structural and systemic issues of the gender pay gap. From an early age, people are subject to strong social conditioning based on the kind of family they grew up in, how their parents and relatives handled money, and what kinds of money topics are okay to talk about. receive. Men and women often have different levels of authority and freedom to talk about money, share good news about career success, and exercise influence over their finances.
But if you want to improve your personal financial situation, talking to someone is a good place to start. Credit card debt, credit scores, and financial hardship don't have to be sad secrets. Sharing these numbers openly can help you feel less alone and may help you see your money problems in a new light.
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