Are men more likely to mismanage joint funds in a marriage, or is it something women are more guilty of?
It is common to hear people express the belief that women are more sensible money managers than men and there actually seems to be a valid reason to this.
According to an article published on Financial Times in 2013, “the idea that women and men manage money differently does find widespread credence, and the difference most commonly cited is attitude to risk.”
In other words, the major reason why women appear to be better fund managers is because they take lesser risks than men.
Whereas men would bravely pour in money into a venture with the hope of reaping great returns [even though the risks are high], women would focus more on the things that could go wrong, and opt out.
But really, does that necessarily make women better money managers than men in marriages?
This question is actually better answered on a personal level.
In some relationships, the woman could be the one who can’t stop herself from spending crazy amounts on showy, unneeded things [expensive fabrics, gold jewelry, expensive outfits, etc] whereas the man is the cool-headed one with money.
And in other marriages, the man would be the one spending lavishly while the woman keeps a tight rein on the way money leaves the family’s safe.
So, while the general belief might remain that women are wiser with money than men, every relationship should still be judged on what happens in it instead of basing judgements on a bandwagon mentality.