According to research from Blackrock, women tend to keep 74 cents of every dollar they save in cash. On the other hand, men tend to keep 61 cents of every dollar they save in cash. When money is in cash, it’s often in a savings account – which earns almost nothing. Instead of cash, this money could be invested in the stock market, which historically has outperformed savings accounts over the long-term.
So if women are keeping more of their money in cash than men, this means they aren’t investing as much as men. And over time, this exacerbates the financial gap between women and men. In fact, women retire with nearly a third less money than men.
But this is one area where we can make progress. We need to break down the traditional roles of delegating financial matters to men. We need more women to get involved and to invest.
Women actually tend to be more responsible than men when it comes to money matters. Women are more likely than men to pay back loans, and women-led companies tend to outperform companies led by men. Beyoncé was right: “Who run the world?”
That answer to that is clear.
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