Men vs. Women: Couples Remain Split on Financial Views and Investing

The recession has caused a disconnect between affluent couples on personal finance issues and how they plan and discuss money, according to survey findings by PNC Wealth Management, a member of The PNC Financial Services Group, Inc. (NYSE: PNC). PNC's “Love and Money” findings, as part of its Wealth and Values Survey, revisited a groundbreaking study first conducted five years ago on relationships and finances. The result: men and women aren't on the same page with regard to the impact of the recession on their financial planning and many differences remain in how they view their money.

Forty–nine percent of women, versus 39% of men, say “we are planning our financial affairs more carefully than we used to,” whereas 51% of men and 38% of women say “nothing has changed.” PNC, which is among the nation's top 20 wealth management firms, found that women worry more than men about a wide range of financial issues.

When asked to rate their degree of concern, more women than men express worry about the recession (69% versus 54% of men); inflation (51% versus 44% of men); money to support lifestyle (46% versus 40% of men); declining real estate values (45% versus 35% of men) and not being able to support lifestyle in retirement (45% versus 34% of men).

“The findings confirm a fundamental need for couples: open communication between spouses is critical to financial harmony,” said R. Bruce Bickel, senior vice president of PNC Wealth Management. “One spouse's perception must equal the other spouse's intention in order to have successful communication. The only way for that to happen is if husbands and wives openly communicate their views and listen to what the other is saying.”

PNC Wealth Management also found insights on the following issues:

• Disconnect on Investing: Four in 10 (41%) men describe themselves as high– or moderate–risk investors versus only 27% of women who tend to describe themselves as balanced (46%) or conservative/no–risk (27%).

• Who’s in Charge?: The majority of men perceive themselves as driving the financial decisions whereas women say they share responsibility for these decisions. Seven in 10 (73%) women and 45% of men say they share responsibility for financial decisions. Half of men (53%) and only 17% of women say they are the ones who are mostly responsible.


• Money and Happiness: More men (55%) than women (45%) say they derive pleasure from wealth accumulation. This represents a slight shift from five years ago when an equal number of men (52%) and women (50%) shared that sentiment.


• Agreement on Kids: Mothers and fathers agree equally that the recession has had an impact on their children’s future financial prospects. More than half (57% of mothers and 55% of fathers) believe the recession has fundamentally changed the way their children will manage their finances in the future. The financial crisis has led many to openly talk about money: 44% of fathers and 49% of mothers agree “the events surrounding the recession have prompted me to have discussions with my children about finances and money.”


• Kids and Their Future: There is rising concern among parents that their children may have a tougher time making it financially, as seven in 10 (71%) of wealthy parents share this concern. In 2006 just over half (57%) of parents agreed with the statement, “I am worried that my children will have a tougher time making it financially than I did.”  

For Bickel, this means parents need to be talking to their children earlier and more often about money, starting as early as the first grade.

“Helping children create budgets and discussing the principles of earning, giving, saving and spending instills discipline early in life and they are more likely to carry these values forward,” he said. “It doesn't matter how much money a family has, this approach is indispensible and helps assure future success with finances.”

The PNC Financial Services Group, Inc. is one of the nation's largest diversified financial services organizations providing retail and business banking; residential mortgage banking; specialized services for corporations and government entities, including corporate banking, real estate finance and asset–based lending; wealth management and asset management.