There are lots of differences between women and men, but you might be surprised to learn that one big divide has to do with how much money each gender needs to be happy. In 2024, that’s no small feat. With inflation on the rise and everyday home goods like groceries and gas getting more and more expensive, the price of happiness is going up.
In a July survey from CardRates.com, the data showed that a $200,000 liquid net worth is what 56% of Americans reported needing to be happy. The study noted that, while salaries and incomes might vary for different people, “women generally report higher contentment at lower net worth levels compared to men .”
The split was also measured in terms of age demographics as related to gender. The report noted, “Millennials report higher contentment levels at increased salaries compared to Gen Zers.” Yet, digging deeper, the numbers showed that compared to their male counterparts, Gen Z and millennial women reported contentment levels that were higher upon reaching $100,000 net worth.
Christel Turkiewicz, the founder of The Time To Flourish , said, “I think the answer isn’t so much how much money women need; rather, it is how women need to give themselves permission to spend the money they have.”
This is starting to prove true even with younger generations. As CardRates.com wrote, “Gen Z men significantly prefer a net worth of $1 million or more,” which is almost ten times as much as the women in the survey noted.
For the most part, the data showed that women with lower net worth levels tended to be happier or at least more content than men, who needed higher net worths or, at the very least, higher than their female counterparts.
Historical Roles
There might be a historical trend to this attitude. Home life and family have traditionally been the duty and focus of women, especially before many of them entered the workforce in the mid 20th century. While the balance of work and personal life have changed, CardRates.com pointed out that women might be viewing their financial goals in accordance with historical modalities, which is in stark contrast to how men have defined success for themselves.
For men, this viewpoint tends to come with different priorities and focus. Again, looking at historical trends, men have typically felt the pressure to make money, achieve wealth and claim their title as the “breadwinners” of their respective households.
Psychology
Furthermore, the study pointed out that psychological research has shown that “women often derive a significant portion of their life satisfaction from relationships and social connections.”
Work-life balance, as well as job security, social connections and personal goals contribute to their overall happiness, rather than their current financial state.
CardRates.com broke it down: The data points denote that women are more comfortable earning less, with their satisfaction and happiness on a broader spectrum, and they tend to find happiness does not necessarily equate to wages.
Financial Happiness Isn’t Just Net Worth
“Does it give you the peace of mind to know you paid off the car loan rather than have the extra $20,000 to invest?” Turkiewicz asked her readers in a recent blog post . “I would say that, for many, spending $20,000 today for what gives you peace of mind won’t materially change your financial future, but it will definitely have an impact on your current attitude.”
The CardRates.com survey found that the sweet spot tended to be around $100,000 — where 37% of men and women surveyed noted that if they could make that amount of money in a year, they would be happy.
Perhaps it is at the six figure level where anyone, no matter their gender, can put their guard down when it comes to their economic stability. There’s enough to cover the cost of living expenses of modern society, while still providing some wiggle room for more “wants” alongside “needs.”
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