Study: Men don't trust their partners to make good financial decisions, and other economic equality rumblings
/A new UBS report, Own Your Worth, finds that just 20 per cent of couples both participate in financial decisions equally.
The report was designed to examine couples’ relationship with their money and what an unequal situation in decision making could cost them.
Couples agree on the importance of both partners engaging in financial decisions so we can achieve gender equality, but still, almost half of the married women surveyed still defer to their husbands.
Millennial women are most likely to defer financial decision-making to their partner but are the most open to changing that dynamic.
Key findings of the report include:
Forty-eight per cent of those surveyed said their spouse takes responsibility for long-term financial decisions like investments, and financial and estate planning.
1,500 high-net-worth married or partnered men and women were surveyed
Just one in 20 couples say they make financial decisions together despite most believing that unless women are equally involved, we’ll never truly achieve gender equality
Limiting beliefs - and too much housework
Women defer to spouses because they believe they lack the knowledge (82 per cent), the interest (73 per cent) or the time to participate in such conversations because they are too busy doing housework and caring for children (78 per cent)
The men in the partnerships who take responsibility for these long-term financial decisions feel strongly that they have greater financial knowledge than their female partners (95 per cent), that their spouse doesn’t have an interest in financial matters (90 per cent) or that their spouse is busy with household obligations (84 per cent)
Most of the men surveyed do not believe their spouse would make good decisions and don’t trust them to do so
In the event of a divorce, these men believe they are in a better position to protect their assets if they are in charge of the financial decisions
Surprises in the results
Wealthy millennial women defer financial decision-making to their spouses, more so than any other age group, which was surprising. Half stated their partner was responsible for long-term finances and 75 per cent of those men agreed to take the lead. Millennials, however, are the most open to change, with 94 per cent of millennial husbands wanting their wives to be more involved in financial decisions, and 69 per cent of millennial women (the deferrers) want to be more involved.
Communication is key
According to the report, there are perception gaps and a lack of communication between couples slowing down the switch to making financial decisions together. Almost 70 per cent of men say they take the lead in financial decisions, with men believing just a small number of women, 11 per cent, take the lead - but 30 per cent women believe they take the lead. This is a gap in perception of who is making these decisions.
Most men who are taking the lead (90 per cent) want their partner to be more involved in the long-term financial decisions, however 57 per cent of the deferring women want to be more involved.
It’s not just a matter of interest, however, since the benefits of collaboration can be significant. Seventy per cent of the couples agreed that sharing responsibilities in financial decisions would foster a better sense of financial security and make them feel more confident in their financial futures. Eighty per cent of the women surveyed say equal involvement would help them feel more prepared in the case of accident or death of their partner.
