Why Women Invest Differently than Men
“Many people perceive a style difference as the other person’s personal failing.”
—Deborah Tannen
Our financial choices, like many other decisions, are rooted in our neurobiology. And the neurobiology of a woman’s brains is somewhat different than a man’s due to phylogenetic history. This means that by looking back to our distant ancestors we can better understand why women and men tend to make the investment choices they do.
Our prehistoric grandparents wanted to survive just like we do today. In order to achieve this, they had to use every skill she/he could muster to stay alive in a threatening and often hostile environment. Along the way, each developed life protective skills that were gender specific and are still carried in our genetic makeup today.
Our prehistoric grandmother had to protect herself so she wouldn’t be killed. Since she was the physically weaker sex, this involved caution. Otherwise, a strong male from another group might carry her off, or an animal might enjoy her for lunch. Genetic selection for caution meant she was more likely to live and procreate. Her stronger male counterpart, on the other hand, had to develop the confidence and aggressiveness to kill animals and other humans or he wouldn’t survive and his genetic pool would die.
Also, just like women today, our great, great, etc. grandmother wanted to be as comfortable as possible. This involved cooperation and communication with other females to use common utensils and tools for making a home. Talk/listen was the process she used. Without this skill, she would more or less be on her own, and again more likely end up as prey for a predator. Males, on the other hand, developed their action-based skills, since this was needed for killing animals for food and other humans to protect their group. Rather than discuss whether to kill a foe, it was killed upon sight. Action had to be taken. If not, our cave-grandfather was the victim, not the victor.
Additionally, our great, great, etc. grandmother had to look ahead to her future. Which male would she align herself with who could give her and her potential children protection? Which group members were trustworthy allies? Thinking ahead and seeing her future in perspective meant she saw the overall goals for her survival, the long-term picture. He, on the other hand, had to be more focused on short-term goals in order to supply the group with food and protect them. Also, because he was powerful, he could conquer his female of choice and was less likely to calculate ways to attract her.
Read more at: http://www.hcplive.com/physicians-money-digest/columns/my-money-md/05-2008/investing-and-gender#sthash.yRHudWhZ.dpuf