(ETX Daily Up) – Spendthrifts, interested, corrupt… There are a whole bunch of stereotypes about women’s relationship with money. However, these ladies are more cautious than men when it comes to managing their finances. An English study, published in the Journal of Behavioral and Experimental Economics, states that men are much more inclined than women to let negative emotions influence their financial choices.
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Researchers at the University of Essex conducted an experiment with 186 participants, asked to make risky financial decisions with real money. Before that, they had watched emotionally charged news reports, in order to observe the impact of these images on their economic choices. Result: men become more cautious when faced with negative information, even when these emotions have no direct link with the decision to be made. Women, on the other hand, are surprisingly consistent and seem less influenced by current events.
Enough to call into question the widely held idea that women belong to the “softer sex”. “These findings challenge the conventional wisdom that women are more emotional and open new avenues for understanding how emotions influence decision-making between the sexes,” says study co-author Dr. Nikhil Masters in a press release.
One of the hypotheses put forward to explain this difference is based on the concept of emotional intelligence, which refers to the ability to identify, understand and manage one’s emotions. Numerous studies have shown that emotions are far from opposing reason. They can, when well mastered, promote harmonious relationships, resolve conflicts and guide decisions. “It has previously been proven that emotional intelligence allows you to better manage your emotions. “As women generally perform better on these tests, this could explain the significant differences we observe between men and women,” says Dr. Masters.
The conclusions of this study could have concrete implications, particularly for situations involving major financial choices, such as the purchase of real estate or major investments. According to Dr. Masters, “we never make decisions in an emotional vacuum. After an emotionally charged experience, a pause to reflect could be essential to avoid impulsive choices.
The researchers behind these findings now want to understand why men are more influenced by their emotions when making financial decisions.
Ultimately, this study highlights the importance of considering emotions in financial decisions and overcoming persistent gender stereotypes about money management. By revealing differences in the way men and women integrate their emotions into their economic choices, it paves the way for more nuanced and tailored approaches to financial advice. Rather than limiting oneself to purely rational approaches, it is crucial to take into account emotional dimensions in order to support each individual, whether men or women, towards more thoughtful and adapted financial decisions.
