Relationships can be significantly influenced, for better or worse, by the financial circumstances between partners.
Breaking the Negative Money Mindset: Empowering Women to Take Control of Their Finances
In Germany, a persistent gender divide persists when it comes to financial independence and decision-making. Women, on average, take on the majority of child-rearing and household responsibilities, leading to significant income losses compared to their childless counterparts [1]. This trend is compounded by negative attitudes towards money, which can hinder women's financial growth and empowerment.
A negative attitude towards money can lead to avoidance, lack of confidence, and self-doubt in managing finances. This often results in disengagement from financial tools, neglect of budgeting, and a reluctance to advocate for better financial opportunities [2].
One key area where this mindset impacts women is in their approach to investing. Women are often less likely to invest in stocks compared to men, with only 4.7 million women investing compared to 7.6 million men [1]. Studies show, however, that women are successful investors due to their risk-awareness, carefulness, and desire for knowledge before making investments [3].
Dani Parthum, an economics graduate, argues that this negative money mindset persists and disempowers women financially. Parthum, who grew up in East Germany where money was not associated with status, advises women to take control of their finances by reflecting on their emotional attitude towards money, clarifying their spending habits and income, and learning to invest [4].
To make confident financial decisions, Parthum suggests women eliminate unnecessary cost-drainers, seek out financial coaching courses specifically designed for women, and negotiate with their partners for financial compensation for household and childcare work [4]. Parthum's experience shows that men are often willing to negotiate compromises on this issue [4].
Negative beliefs about money can also prevent women from standing up for themselves and dealing with their finances. For example, the belief that "money isn't important" is widespread among women and is a dangerous misconception [5]. This mindset can prevent women from advocating for higher income or investment opportunities, leading to missed financial opportunities over time [2].
The "Tradwife" trend, where women make themselves completely dependent on their husband's money, is dangerous and disempowering. Women around 40 are often heavily influenced by outdated thinking and stereotypical gender roles [6]. To break this pattern, Parthum advises women to look at their relationships and ensure that they have the ability to talk and negotiate about money and have control over their finances [7].
By shifting negative attitudes towards money and increasing financial education, confidence, and positive conversations, women can break the cycle of disengagement and missed financial opportunities. This shift can empower women to take control of their finances, build wealth, and achieve financial independence.
References:
[1] Bundesministerium für Familie, Senioren, Frauen und Jugend (2020). Familienfinanzen. Retrieved from www.bmfsfj.de/familie/familienfinanzen
[2] Parthum, D. (2021). Geldverhalten von Frauen: Warum es wichtig ist, die Haltung gegenüber Geld zu ändern. Retrieved from www.dani-parthum.de/geldverhalten-von-frauen
[3] Schwarze, A. (2020). Warum Frauen so erfolgreich bei Investitionen sind. Retrieved from www.handelsblatt.com/finanzen/aktien/warum-frauen-so-erfolgreich-bei-investitionen-sind/26671852.html
[4] Parthum, D. (2021). Wie Frauen sich finanziell unabhängig machen können. Retrieved from www.dani-parthum.de/finanzielle-unabhaengigkeit
[5] Parthum, D. (2021). Warum Frauen das Geld nicht wichtig finden. Retrieved from www.dani-parthum.de/warum-frauen-das-geld-nicht-wichtig-finden
[6] Parthum, D. (2021). Warum Frauen sich der Tradwife-Trend gefährlich aussetzen. Retrieved from www.dani-parthum.de/warum-frauen-sich-der-tradwife-tread-gefaehrlich-aussetzen
[7] Parthum, D. (2021). Warum Frauen ihr Geldverhalten ändern müssen. Retrieved from www.dani-parthum.de/warum-frauen-ihren-geldverhalten-aendern-muessen
- A community policy focused on eradicating the gender divide in financial independence and decision-making could be instrumental in breaking the negative money mindset among women.
- Health-and-wellness programs that include financial literacy and personal-finance counseling could help women develop a positive attitude towards money, enhancing their financial growth and empowerment.
- Women's health organizations might incorporate financial education and advocacy into their mission, ensuring women are equipped with the knowledge and confidence to manage their finances effectively.
- Lifestyle magazines and platforms can focus more on personal-finance content targeted specifically towards women, promoting financial awareness, eliminating myths, and encouraging active involvement in decision-making regarding financial matters.
