The Savings Gap: Are Men or Women Better at Saving Money?

Determining whether men or women excel in saving money involves more than just examining spending habits; it requires an understanding of complex cultural and economic factors. Recent research indicates that while men tend to have higher savings, this may not wholly reflect their abilities as savers.

Survey Insights: Women Express Financial Dissatisfaction

A recent collaboration between Yahoo Finance and Marist Poll gathered insights from over 3,000 adults who maintain a checking or savings account. The survey highlighted a significant disparity in satisfaction levels between genders: 40% of women reported being “very dissatisfied” or “completely dissatisfied” with their savings, compared to only 28% of men.

Furthermore, over half of the women surveyed (53%) indicated they saved less money in 2024 than in 2023, a figure notably higher than the 42% reported by men. This trend was particularly pronounced among millennial and Gen X women, with dissatisfaction rates at 57% and 59% respectively.

The Hard Data: Savings Comparison

Statistics from New York Life’s Wealth Watch 2023 Outlook show that women saved an average of $3,146 in 2022, while men saved significantly more at an average of $7,007. This suggests that men have superior saving capabilities, but further analysis is warranted.

Underlying Factors Contributing to the Gap

“The gap is not surprising,” stated Jenna Biancavilla, Founder of Svvy® and owner of Pearl Capital Management. “It reflects a combination of cultural norms, systemic realities, and personal choices that women are often forced to make.”

One critical factor is the pay gap. In 2024, women earn approximately 85% of what men earn, a disparity that is even wider for women of color. While more women are entering higher-paying roles, they still remain overrepresented in lower-paying jobs.

Lower earnings can make everyday financial responsibilities more challenging for women, complicating their ability to save.

The Caregiving Burden

The role of caregiving is also significant. According to The Commonwealth Fund, in 2020, over 53 million Americans provided care to an adult or child with disabilities—60% of these caregivers were women. This suggests a societal expectation for women to pause their careers for family responsibilities.

Even part-time professionals often miss out on career advancement, promotions, and raises, impacting long-term savings and retirement contributions. Biancavilla observed, “Women are more likely to take time away from work or seek flexible, lower-paying jobs to care for children or aging parents.”

The Financial Literacy Gap

Financial literacy is crucial for making informed financial decisions. Yet, many women feel underrepresented and unheard in financial discussions. Biancavilla noted, “A lot of women we work with have been talked over, pressured, or sold to by financial advisors.”

This perception of the financial industry can diminish women’s confidence in managing their finances, hindering their ability to pursue wealth-building tactics.

Taking Control of Your Financial Future

It’s essential to recognize that it’s never too late to improve one’s financial standing. Here are several actionable steps:

• Create a Budget: Outline income and expenditures to identify potential savings.
• Prioritize Emergency Savings: Set aside funds for unexpected expenses to avoid accruing debt.
• Invest Consistently: Start investing early and regularly to benefit from compound growth, noting that women often outperform men when they invest.
• Maximize Retirement Contributions: Take full advantage of employer matches and aim to increase contribution rates annually.

Encouraging Change Across Sectors

Addressing the gender savings gap requires collective action. Employers, lawmakers, and financial institutions can contribute by offering paid family leave, flexible working conditions, and inclusive financial services.

As Biancavilla concluded, “At the end of the day, women don’t need ‘special’ advice—we need conflict-free, respectful, and accessible financial guidance.” Empowering women with the right tools can help narrow the savings gap and create a positive ripple effect on their financial future.