Tackling the Financial Confidence Gap Between Men and Women

International Women’s Day is March 8^th – a time to reflect on ways to advance gender equality in our society. One area in particular where old stereotypes and imbalance persist is in the area of personal finances,  according to new data from BMO Harris Bank’s inaugural Real Financial Progress Index – a quarterly measurement of consumer sentiment about money. The survey was designed to help encourage more dialogue about personal finance and how to make progress.

The national survey, conducted in January 2021 by Ipsos, showed a noticeable gap between women and men in the U.S. when it comes to financial confidence and the overall division of labor in managing household finances.

Some of the key findings around the confidence gap include:

• As of January 2021, confidence in one’s financial situation is significantly higher among men (78% very/somewhat confident) than women (72%)
• Men (51%) are more likely than women (42%) to agree they are making real financial progress
• Men (80% very/somewhat optimistic) are more optimistic than women (75%) about their financial situation over the next year

When looking at how household finances are addressed among couples in particular, additional gaps between women and men were revealed. While 82% of those with a partner/spouse say they share/integrate finances, men are more likely to say they take the lead in managing them: 

• Men (39%) are more likely than women (30%) to say they are the one who primarily takes responsibility for initiating discussions about household finances
• Men (46%) are more likely than women (31%) to say they are the one who primarily takes responsibility for setting household financial plans
• Men (45%) are more likely than women (21%) to say they are the one who primarily takes responsibility for meeting with a professional financial advisor
• Men (40%) are more likely than women (26%) to say they are the one who primarily takes responsibility for setting household financial goals for the family

By shining a light on these insights, BMO hopes to empower Americans to make more positive strides toward gender equality. For more information on how BMO’s products and services can help women close this gap and make real financial progress, visit www.BMOHarris.com.