Spousal Differences in Financial Risk Tolerance

Abstract

Differences in husbands’ and wives’ tolerance for financial risk were analyzed, including an investigation of demographic variables previously found to be significant between men and women in predicting financial risk tolerance. The sample consisted of 110 couples who completed a web-based survey designed to measure the financial risk tolerance of both husbands and wives. Although a positive relationship between wives’ risk tolerance and their level of education was consistent with previous results that indicated individuals with higher levels of formal education tend to possess higher levels of risk tolerance, findings also indicated that wives’ higher level of education was associated with a lower tolerance for risk among husbands. Further research and practice recommendations regarding couples’ risk tolerance assessment are provided.

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