Unveiling the Intriguing Trend: Women More Resilient to Inflation Than Men, Suggests New Study
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Men and women handle rising prices differently, with women appearing to adapt more effectively to inflation, research suggests. - Women demonstrate stronger resilience in handling inflation compared to men.
Contrary to popular belief, a recent analysis of customer data from German bank N26, published by the Ifo Institute and Technical University of Munich, reveals that women have displayed remarkable resilience in battling the escalating cost-of-living crisis compared to their male counterparts.
Leveraging anonymized data from 20,000 randomly selected N26 account holders, the research uncovered that men experienced a slight edge in income growth, with a 27.4% increase from early 2021 to late 2024, compared to a 24.4% surge for women. However, this difference was quickly offset by women's impressive spending management abilities and their propensity to take out overdrafts 34.2% less frequently.
The Enigma of Women's Financial Resilience
Pondering the reasons behind this intriguing trend, the study's authors attribute women's steadfastness to a more calculated approach towards managing their finances.
The N26 data analysis revealed that across most consumer groups, variable spending expenses underwent a 23.8% hike from 2021 to 2023, in contrast to a more modest 20.3% increase in income. Consumers typically compensated for higher costs by dipping into their savings or availing themselves of overdrafts. However, the savings rate took a hit, and liquidity gaps peaked in 2022 and 2023. It wasn't until 2024 that incomes grew at a faster pace than expenditures, leading to a "moderate recovery in purchasing power." The frequency of using overdrafts began to decrease towards the end of 2024, suggesting a delayed financial stabilization.
- Keywords: Inflation, Women, Price Increase, Men
- Despite the slightly higher income growth among men, women displayed remarkable resilience during the cost-of-living crisis, thanks to their superior spending management abilities and less frequent use of overdrafts, as suggested by the analysis of employment and personal-finance data from N26.
- In light of the enigma surrounding women's financial resilience, it's evident that their calculated approach towards managing their finances and employment policies plays a crucial role in buffering them against economic challenges such as inflation, thereby maintaining the stability of their personal-finance and business situations.
