UBS Report: only 50% of women out-earning their husbands lead on financial decision-making in the household
Welcome to the bi-weekly update (#187) where we dive deeper into key topics, themes or issues specific to women and their lived experience.
Even though more women are primary earners in heterosexual relationships, thinking around money and relationships has not changed much.
A new report published by UBS: 2023 Own Your Worth has outlined:
whilst 30% of women in the US in heterosexual couples earn more income than their spouse or partner,
only 50% of those women breadwinners take the lead on financial responsibilities in their households, compared to 79% of men in the same position.
And women who earn more are also less engaged in short- and long-term financial decisions, and feel less knowledgeable about investing than men.
Less than half—49%—of women primary earners in heterosexual relationships consider financial decision-making ‘natural’, compared to 87% of men breadwinners.
And whilst we know that women in the UK will own the majority of personal wealth by 2025, gender norms and social conditioning continues to impact how women and men think about money and ‘who should take the lead on finances in the home’.
According to the UBS report, men who are not the primary earner are less trustful of their wife's investing and spending habits than men who are the primary earner.
And more than 50% of non-primary earning men say the financial arrangement causes tension in their relationship.
Moreover, women who are primary breadwinners continue to take on the majority of household chores and childcare, leaving them with less time to focus on money management and investing.
Acknowledging these gender norms and gender stereotypes is the first step to changing them.
Women should also consider working with a financial professional who can support them in taking much more of an active role around their money.
But perhaps more importantly, women need to choose a partner who is not threatened by their earning (or earning potential), is comfortable to discuss money matters and have no issue with their wife taking the lead on money (if they choose to).
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