How women and men think differently about money

Various studies conducted across the world prove that women like spending more on fashion purchases and men more on gadgets and technology.

Be it our long-term financial aspirations, how we manage money day to day, what we spend on and how we save - men and women view money matters a bit differently. Different wants and needs coupled with a history of predefined socio-economic gender roles have shaped the way we look at money.

Here's a look at some of the biggest differences in how men and women treat money and manage personal finances.

The gender pay gap is real, but how do men and women feel about this?

Let's start with the most striking difference of them all, the fact that women don't make as much money as men. Global salary data released by the 2015 World Economic Forum suggests that pay scales are stacked against women, and it could take more than 118 years for the pay gap to close.

How do women and men in the UAE perceive this? According to a 2016 survey by the UAE's Ministry of Economy, 29 per cent of female respondents believe that men do get paid more than women in the country. On the contrary, 60 per cent of male respondents don't see any disparity.

Are women more financially aware than men? They are in the UAE.

According to Standard & Poor's Global Financial Literacy Survey 2015, UAE's women are more financially literate than men. While globally, 30 per cent of women are financially literate, five per cent lower than men, this gap is reversed in the UAE's case with a four per cent higher number of women being financially literate when compared to their male counterparts.

This goes to show that women in the country are better equipped to make sound financial decisions than men. Time to hand over the purse strings to the ladies then?

Approach to saving, investing
Souqalmal.com has a dedicated segment for women on its Money Doctor section. Here, women can find personal finance guides and expert insights and learn more about the latest financial trends in the UAE.

The 2015 Blackrock Global Investor Pulse Survey shows that 37 per cent of women consider growing wealth as their most important goal, compared to 39 per cent of men. The difference between their intentions regarding wealth creation is not very big, but men and women are not on the same path when it comes to actually making it happen.

According to the survey, women are more disciplined in the way they budget and save, but not so much in the case of investing. Over 60 per cent of women follow a household budget, but only 45 per cent in fact hold any investment.

If you're looking for a bank account specifically tailor-made for women, browse through Souqalmal.com's Ladies Bank Accounts section to find one that's right for you.

Spending habits
What do men and women plan to do with their disposable income? Various studies conducted across the world prove that women like spending more on fashion purchases and men more on gadgets and technology. A 2015 Nielsen report showed that 38 per cent of women plan spending on clothes, compared to 31 per cent of men. And 28 per cent of men would spend on the latest gadgets, compared to 18 per cent of women.

Regarding how women and men like to shop, women in the UAE are lagging behind in adopting digital channels, compared to men. A 2015 survey by UAE-based retailer awok.com revealed that only 24 per cent of UAE's online shoppers were females.

But some of the obvious differences seem to be diminishing. Millennial men are definitely more conscious about what products they buy and what brands they use, and are increasingly willing to spend more on these. Retailers have traditionally focused more on women, however that's changing fast. Brands and retailers are now tailoring their product offering and customer experience to tap into what men want.

While certain dissimilarities remain, it isn't fair to stereotype men and women when it comes to how they treat money. Millennial women are more financially independent than ever, and are more confident about making long-term financial decisions for themselves. Similarly, men's spending behaviour is not the same it used to be a decade ago.

The writer is the founder and chief executive officer of Souqalmal.com. Views expressed are her own and do not reflect the newspaper's policy.