Women are cutting back on discretionary expenses in this down economy more than men, according to a study released today.
Women are cutting back on discretionary expenses in this down economy more than men, according to a study released today.
In fact, 86% of women were spending less on discretionary expenses — including eating out and buying clothes — compared with 78% of men who said they were spending less on these types of expenses.
The study, conducted by Opinion Research Corp. of Princeton, N.J., on behalf of Jersey City, N.J.-based TD Ameritrade Holding Corp. showed that 58% of women were eating out less, compared to 48% of men.
Of the respondents, 54% of women were buying fewer clothes and shoes, compared with 40% of men.
The survey canvassed 801 adults 21 and older who participated in a telephone survey May 28-31.
While it may seem that the spending adjustments both women and men are making are simply reactions to the volatile market, Paula DeLaurentis, managing director of strategic alliances with TD Ameritrade, believes that those changes could last.
“People are changing their spending long-term,” she said. “It's not a fad — this will stay with us.”
Ms. DeLaurentis believes that women are spending less than men because they're trying to protect their families from financial problems.
Forty-eight percent of women were shopping more frequently at discount stores, compared with 37% of men.
Meanwhile, 31% of women had canceled or postponed vacations, compared with 22% of men.
Women were also spending less on charitable giving — 36% said they had cut down on charitable donations, compared with 26% of men.
Diane Young, president of The Athena Group Ltd. of Rochester, Mich., which manages more than $20 million in assets and 70% of whose clients are women, says her clients are doing everything they can to cut costs.
In an informal survey of her clients, conducted on the LinkedIn social-networking website, she found that eating out and buying clothes were the two top items on the chopping block for both men and women in these hard times.
Additionally, Ms. Young's clients are cutting back on personal trainers and spending less time at the movies.
“I think in general, people are spending less across the board,” she said. “They're going to bars during happy hours.”
But not all women have reduced spending, Diane Park, a certified financial planner with Wade Financial Group Inc. in Minneapolis, wrote in an e-mail.
Her firm manages around $180 million in assets.
Ms. Park said her firm's strategy to give clients one to three years of living expenses in cash and reserves allows them to maintain their lifestyle in down markets.
