After five years of working in the insurance industry, I have developed this strong feeling that women are generally better with money than men. That said, I have never actually looked into any studies or statistics that indicate so. Since today is International Woman’s Day, I decided to take a deep dive and see if this hunch of mine is correct.
A quick Google search brings me to a recent study conducted by Agensi Kaunseling dan Pengurusan Kredit or better known as AKPK. AKPK is an agency set up by Bank Negara Malaysia to help individuals take control of their financial situation especially debt management. The study, conducted in 2018, consists of a large-scale survey conducted with 3,500 Malaysian Working Adults (MWA). The purpose of the study is to understand the financial behaviour and financial well-being of MWAs.
From this report, I focus specifically on the differences between women and men MWAs when it comes to money. And guess what? My intuitive is spot on!
On a scale of 0-10, women MWAs scores higher than their men counterpart in both financial behaviour and financial well-being. Let’s take a look into the financial behaviour scores:
From the survey, it is pretty clear that Malaysian ladies are more prudent when it comes to personal finance. This is not all, however. The ladies are also better when it comes to saving habit!
As per the study, women MWAs save about 10.18% of their monthly income while the men only save 8.85% of their monthly income. Financial advisors generally recommend saving 10% of your monthly income. So can we say women are naturally talented financial advisors?
Given their better money habit, it is no wonder that AKPK also found that the ladies feel better financially, as opposed to the men. To determine financial well-being, AKPK uses three key dimensions; ability to make ends meet, feeling comfortable with the current financial position and financial resilience.
So there you have it! I guess this settles the debate once and for all. Well, that is until a newer study is being done in the future. If you are interested to read more of this AKPK study, you may download this report here. Next post, I will look into the specific studies on the financial resilience of MWAs which comes from the same report.