5 reasons why women are better at managing money than men

According to new data from financial services giant Fidelity Investments, women are actually superior investors.

"The myth that men are better investors is just that - a myth." Alexandra Taussig, Fidelity's senior vice president for women investors said.

A past conference of African Women in Technology (AWIT). Pulse Live Kenya

Through meticulous sifting of more than 8 million investment accounts, Fidelity discovered that women not only save more than men, 0.4 percent, but also their investments earn more annually, also 0.4 per cent.

One can easily dismiss these differences as to minimal to make any noticeable change, however when spread over a lifetime of saving and investing, it is anything but minor.

For a 22-year-old starting out with a salary of $50,000 a year, a woman investor will outpace her male counterpart by more than $250,000.

Women entrepreneurs hold a discussion during a meeting. Photo by wocintechchat.com/Flickr Flickr

So what is it, exactly, that makes women better investors?

One factor, Fidelity found, is that men are 35 percent more likely to make trades, which means that trading fees eat away at their portfolios more than they do women's.

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Women also save more in the first place - almost a full percentage point annually - in workplace and individual vehicles such as IRAs and brokerage accounts, Fidelity found.

Joyce Muthoni. ece-auto-gen

Joyce Muthoni, a Kenyan CEO who created her company, Helium Balloons specializes in balloons and party confetti from scratch agrees with the study 100%.

“Women tend to look at the whole picture and not just bits of it which tends to pay off in the long run. Women too take less time in making decisions than men which matter when it comes to investing”

Women assume less risk than men. (4GCapitalKenya/Facebook) Pulse Live Kenya

Women assume less risk, such as not loading up entirely on equities. They also invest more in vehicles like target-date funds, whose automatic allocations make for smarter diversification, Fidelity said.

Unlike men Women are also patient creatures and can quietly sit for ages watching their investment grow without making a fuss.

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Women too don’t despise small investments which men may deem too small for their attention.

Mama mboga kiosk(kiva) Pulse Live Kenya

Stories have been told how mama mboga’s (humble businesswomen) rose from their humble sheds to own companies by simply saving Sh200 daily, the same strategy applies to investments.

Most men want to hit it big the first time and therefore invest in shares with high stakes but come with high risk.

"Men regard their stock picks as a sport that comes with bragging rights, and that is what gets them into trouble," said George Gagliardi, a financial planner in Lexington, Massachusetts.

It is no wonder then that majority of women In Kenya women run the show at home, managing family daily finances to initiating vocational plans.

82% of 4G Capital customers are female business owners. (4GCapitalKenya/Facebook) Pulse Live Kenya

Joyce is however quick to clarify that investment skills do not merely boil down to gender, individual’s personality also matter.

“I am slow to buy that gender is all that matters, a person’s attitude and personality also influences investment since they can know when to buy and sell and which shares to buy in the first place, after all my husband is a better investor than I am”

So if you want to invest like a wonder woman then shift to a long-term focus which will see you save more up front and quit trying timing the market with brilliant trades.