Myths about women and money
MANILA, Philippines – Not all women are “shopaholics” like the characters in “Sex and the City,” a personal finance advocate and bestselling author stressed as she debunked some myths about how ladies handle money.
In a recent interview on the ANC show “On the Money”, Rose Fausto said women who are unable to control their urge to buy shoes and bags are nothing but a “caricature” that became popular with the help of television shows, movies and commercials.
“Even I cannot relate to that because I’m not quite a big shopper,” she said. “It’s a myth.”
While there are exceptions, Fausto noted that women in general are better with money than men because of their temperament.
“Women are actually more detail-oriented. When you’re dealing with money, you have to deal with details and generally, women are better with details than men,” she explained.
Being good with details and having less testosterone makes for a good investor, Fausto added, as this usually equates to a person who does not go into too much risk.
“Women trade less so there are fewer fees,” she said. “Women have less overconfidence and they are more realistic.”
“It's already established that lenders are better off lending to women borrowers,” she continued. “Because these microfinance institutions, they now target women because they are good borrowers. Their repayment record is better than men.”
Budget and allowance
Another myth discussed during the program is that women should always handle the family budget.
While women can be trusted with money as mentioned earlier, Fausto stressed that there are cases where men can do the job better.
“Whoever is better with it [should take care of the family budget],” she said. “Look at each other’s strengths and weaknesses. Make use of your strengths for the benefit of the family.”
To those who are planning to become full-time housewives and depend on allowances from their husbands, Fausto gave this advice: “Before you leave that job of yours, you better have a heart-to-heart talk with your husband. [Tell him] ‘Your money, your salary is not just yours. It’s ours.’
“Money is not a taboo topic. It should be discussed between husband and wife. It should be discussed before marriage,” she added. “[Talk about your] financial goals, tell him that you want to get involved more actively in them.”
“It should not open the question only on allowance, but also lay down on the table what you really have. After all, it’s the community of property – whatever he has, she owns. If you got married in 1988, it’s not anymore conjugal. It’s more encompassing. Even the ones you own prior to your marriage, it goes into the pool. It’s really very important for the wife to know [about the family’s resources]. What if he goes? She doesn’t know.”