'Girl math' may not be smart financial advice, but it could help women feel more empowered with money
- Written by Ylva Baeckstrom, Senior Lecturer in Finance, King's College London
If you’ve ever calculated cost per wear to justify the price of an expensive dress, or felt like you’ve made a profit after returning an ill-fitting pair of jeans, you might be an expert in “girl math”[1]. With videos about the topic going viral on social media, girl math might seem like a silly (or even sexist[2]) trend, but it actually tells us a lot about the relationship between gender, money and emotions.
Girl math introduces a spend classification system: purchases below a certain value, or made in cash, don’t “count”. Psychologically, this makes low-value spending feel safe and emphasises the importance of the long-term value derived from more expensive items. For example, girl math tells us that buying an expensive dress is only “worth it” if you can wear it to multiple events.
This approach has similarities to portfolio theory[3] – a method of choosing investments to maximise expected returns and minimise risk. By evaluating how each purchase contributes to the shopping portfolio, girl math shoppers essentially become shopping portfolio managers.
Money and emotions
People of all genders, rich or poor, feel anxious when dealing with their personal finances. Many people in the UK do not understand pensions or saving enough to afford their retirement[4]. Without motivation to learn, people avoid dealing with money altogether. One way to find this motivation, as girl math shows, is by having an emotional and tangible connection to our finances.
Because the world of finance was created by men for men, its language and culture are intrinsically male[14]. Only in the mid-1970s did women in the UK gain the legal right to open a bank account without a male signature and it was not until 1980 that they could apply for credit independently. With the law now more (but not fully[15]) gender equal, the financial services industry has failed to connect with women.
Studies show that 49% of women are anxious about their finances[16]. However they have not bought into patronising offers and mansplaining by financial advisers[17]. This outdated approach suggests that it is women, rather than the malfunctioning financial system, who need fixing[18].
Women continue to feel that they do not belong to or are able to trust the world of finance. And why would women trust an industry with a gender pay gap[19] of up to 59% and a severe lack of women in senior positions?
Girl math on its own isn’t necessarily good financial advice, but if it helps even a handful of women feel more empowered to manage and understand their finances, it should not be dismissed.
Have a question about girl math, finances or other issues you’re facing in your 20s and 30s? Text us at +44 7360 272494 (or click here[20] if outside the UK).
References
- ^ “girl math” (www.standard.co.uk)
- ^ or even sexist (www.glamourmagazine.co.uk)
- ^ portfolio theory (www.investopedia.com)
- ^ afford their retirement (www.ons.gov.uk)
- ^ This article is part of Quarter Life (theconversation.com)
- ^ Treat culture: why indulging in small, affordable pleasures can help you cope with tough times (theconversation.com)
- ^ Bed rotting: the social media trend the Victorians would love, especially writer Elizabeth Gaskell (theconversation.com)
- ^ Why it’s so difficult to figure out what to do with your life – and three steps to take (theconversation.com)
- ^ emotional relationship (www.thetimes.co.uk)
- ^ up to 80% (www.forbes.com)
- ^ Women are disadvantaged (www.theguardian.com)
- ^ my research (www.routledge.com)
- ^ fizkes/Shutterstock (www.shutterstock.com)
- ^ intrinsically male (www.routledge.com)
- ^ but not fully (www.worldbank.org)
- ^ anxious about their finances (www.ellevest.com)
- ^ mansplaining by financial advisers (www.fa-mag.com)
- ^ who need fixing (www.theguardian.com)
- ^ gender pay gap (www.ons.gov.uk)
- ^ click here (joinsubtext.com)
