Photo: Courtesy Of Dartmouth College
A working paper from George Washington University economist Annamaria Lusardi found that women stink at maths.Lusardi found women are less likely to answer financial literacy and maths questions correctly and more likely to say “they don’t know” to answer an question. But it’s not that they don’t know the answer, they’re just not confident enough to say it.
With more women taking on responsibility for financial decision making, these are discouraging findings.
Lusardi says people who can’t crunch interest compounding, for example, will be less likely to save for retirement, much less own stocks. Also, the poorer their financial literacy and maths ability, in particular, the more likely they are to suffer a mortgage delinquency or default. (See 5 reasons women are scared about retirement right now.)
Women haven’t earned the best reputation for managing money. A recent LearnVest study of 637 women ages 21 – 59 found 66 per cent don’t have a clue where to turn to for financial advise, while 84 per cent aren’t confident in their ability to set specific money goals.