Turning the Tables on Family Finance
My favorite professor at Darden has been Ron Wilcox. (And don't worry, I don't have him anymore so there is no grade lobbying going on here.) Anyway, he got his Phd in Economics, but he teaches Marketing here at school. As is typically the case with economists, Ron brings a unique perspective to most things.
He recently wrote a column for the local newspaper, found here, and it's all about the division of financial responsibilities between husband and wife.
Typically men manage the long-term investments (the home purchase, the retirement account, etc) while the women handle the day-to-day or month-to-month expenses.
Ron says it should be the other way around.
Men are too stubborn and trigger happy with the retirement account investments. Their impatience and aggressiveness often slow earnings growth. Meanwhile women are shopaholics and often buy more than they intend/need. Neither wants to swap responsibilities, but Ron's research suggests that women (more careful with fees and transaction costs and diligent in following financial advice when sought) are better at the long-term stuff, while men (ever the efficient hunters) are better at the short-term stuff. And the family finances are better off because of it.
Certainly not what Ryan wants to hear. :)
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5 comments:
No stereotyping here people, move right along!
:D
In that case then Jamie should be responsible for both aspects for us. She is tighter on day to day purchases and she is more conservative and less jumpy with long term investments.
However, I get a lot of personal utility out of investing, so hopefully Jamie can allow me to continue chasing last year's returns.
Just following the lead of a judgmental outdoorsman, Adam! :D
Whoops, there I go again! Man, tough habit to kick.
RG - my case is very similar in that Lindsey is much more frugal on the day to day stuff (which is a true blessing) and she has already proven my superior in many long-term things like various types of insurance coverage. And I think she'd do a better job than me at minimizing cost on the other long-term investments.
but if you give the women the money to invest, they will just spend it on shoes! this theory doesn't make any sense...
It's not that I am judgmental, it's that everyone else is always wrong.
(Har!)
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