Our thinking

Piggy bank power play

1 November, 2024

Research in Australia, Germany, and the US has unveiled a significant gender gap in investment decision-making, challenging our assumptions about financial equality in modern households. The study reveals that men consistently wield greater influence than their partners when it comes to investment choices.

Two main reasons for this gap were identified—gender norms and individual characteristics. Husbands are often older than their partners, more likely to be employed, and higher earners, granting them more financial sway. Personality traits also play a role, with men – holding more bargaining power. 

Despite the geographic focus of this study, this is a global issue. At Good Business, we’ve observed similar patterns in our work for the Gates Foundation supporting women’s financial inclusion in Nigeria, making these findings closer to home both surprising and concerning.

The implications are significant. The research also suggests that men tend to take more risk when making decisions, so it’s possible that if men are making the decisions, their partners are being exposed to more risk than they are comfortable with. 

To address this imbalance, efforts to promote gender equality must extend beyond the workplace and into the home, where social norms are first learned and reproduced. Children who grow up in households where financial decisions are made jointly are more likely to adopt these behaviours in their own relationships, perpetuating positive change.  

By Emma Alajarin