Financial Literacy: Why Women Often Procrastinate and Men Plan

Financial Literacy: Why Women Often Procrastinate and Men Plan

A recent study by Verivox shows significant differences between men and women when it comes to financial preparation and planning. According to the survey conducted in April 2025, only 32% of women feel well prepared for financial challenges, while for men this figure is 51%. This is a clear sign of the existing gender gap in the area of ​​financial education and planning.

The discrepancy in budget management is particularly noticeable. While two thirds of men (67%) regularly monitor their income and expenses and stick to a budget, the figure is only 55% of women. These differences are particularly noticeable among young adults aged 18 to 29: here only 46% of women create a budget, while 67% of men do. In older age groups, such as those aged 70 to 79, the gap is smaller: 67% of women and 71% of men actively plan their household budget.

Confidence in financial decisions

The Verivox study also shows that only 38% of young women feel confident making financial decisions, while 65% of young men say this. The feeling of uncertainty runs throughout the survey, as 41% of women report feeling overwhelmed by financial news, compared to 31% of men. Sandra Vollmer, Managing Director of Verivox, emphasizes the importance of sound financial planning and regular retirement planning, especially since knowledge of financial issues is crucial for your own financial security.

Another aspect that illustrates the gender difference is the knowledge gap in the area of ​​investments. 59% of men say they are well versed in investing principles, compared to just 33% of women. Experts therefore recommend targeted financial education to reduce uncertainty and encourage women to be more self-confident in dealing with finances.

The connection between knowledge and self-confidence

A supplementary report from ZEW Mannheim highlights the connection between financial education, self-confidence and participation in the stock market. The study uses data from the Dutch Household Survey, which has surveyed over 1,500 households annually since 1993. Tabea Bucher-Koenen, head of the ZEW research department “Retirement Planning and Sustainable Financial Markets,” explains that women's lack of self-confidence in their financial knowledge plays a significant role in the differences in financial literacy.

It has been found that about 30% of gender differences are due to a lack of self-confidence. Women tend to answer “don’t know” more often when asked about financial questions, even though they often know the right answer. In a survey that removed this option, many women were able to provide correct answers, indicating that the interplay of knowledge and trust is critical to making informed financial decisions.

In summary, the studies by Verivox and ZEW make it clear that targeted measures are necessary to promote financial education and self-confidence among women. This is the only way to reduce the existing gender gap in the financial market and enable women to participate more actively in financial decisions and retirement planning.