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Women generally have a lower risk tolerance than men when it comes to money. It’s a concept that’s studied often and in-depth. In exploring the more emotional and psychological reasons why this difference occurs, we interviewed Dr. Nicole Garner Scott, a renowned financial expert and coach who has spoken for several Fortune 500 Companies, appeared on CNN, and was an awarded entrepreneur under the Obama Association.
Dr. Scott’s book “Make Space For Wealth” will be out this fall, and covers many topics that pertain to financial fear. “The purpose of the book is to create a mindset shift,” she noted. “and doing everything you can to adjust your life to capitalize on that money when you get it.” Having coached many clients on wealth management, Dr. Scott was familiar with the concept of financial fear, and she provided some very valuable insight into why it happens and how to fix it.
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It’s passed down
“A lot of financial fear women deal with can be generational,” Dr. Scott explains. Many women, she says, may have grown up in households where their fathers handled all of the finances and their mothers weren’t invited into conversations about household finances – “It was always the man’s role to handle things.” That pressure to provide may vary based on one’s race, too. Research has found that Black mothers and fathers are particularly prone to measuring what sort of spouse or partner they are based on whether or not they can financially provide for their families.
