When it comes to managing their finances, women trail men

Women still lag behind men when it comes to managing their own money — such as spending less than they make — and in overall investment knowledge. According to a survey of 2,200 women and 500 men, about 62% of women said they have a handle on their cash flow and spend less each month than they make. That compared to 78% of the male respondents. Women also are less likely than men to have saved money to cover surprise expenses. About 43% of the surveyed women have an emergency fund compared to 63% of men. Moreover, women are less likely to pay off their credit card bills each month. Only 45% of women said they regularly pay off their full credit card balance, compared to 68% of men. The survey, conducted by Financial Finesse Inc., found that two-thirds of women also believe they have general investment knowledge about stocks, bonds and mutual funds. Close to 90% of the men in the survey said they possess a basic understanding of investments. These trends worry financial experts because women live longer, earn less over their lifetimes and increasingly are charged with caring for their own finances because of divorce or the death of a spouse. “Women should actually be the ones spending more time and putting more focus on improving their finances because they face so many more challenges than men in financial planning,” said Liz Davidson, founder of Financial Finesse. RELATED ITEM 10 essential financial facts about women » Research shows that women not only earn less at work and are more likely to take time off to care for children, they also incur lost wages of an average of $143,000 because of having to care for an adult. That compares to $89,000 in lost wages for men, according to Eleanor Blayney, consumer advocate for the Certified Financial Planner Board of Standards Inc. and president of Directions for Women, a consulting firm. All these financial factors make it more difficult for women to save enough for retirement. “Retirement is a gender issue and women need more financial security,” Ms. Blayney said. One piece of encouraging news is that the Financial Finesse study showed that both men and women have a high likelihood of participation in their company retirement plan (92% for women and 91% for men). In addition, about 26% of women and 27% of men contribute to an individual retirement account, the survey found.