I’ve got to tell you – I’m enjoying this series of blog posts. There are so many myths about women and money, and it’s great fun to dispel these societal beliefs. I love working with women and watching them realize that their internalized thoughts regarding money and their ability to manage it just simply are not true. And you know what it all comes down to? History.
There’s no doubt that if you turn the clock back a hundred years, our female ancestors’ lives would have looked much different than ours. Even fifty years ago, and thirty years ago. Historically, many of these current myths were true. However, those myths haven’t stood the test of time. As the opportunities for women have changed, so have their financial lives. Let’s relegate one more money myth to the history books.
Women Don’t Invest – Do They?
As I grew up, it was only ever men who talked about money. Sure, our moms did the grocery shopping and arranged for the household bills to be paid. But I probably did grow up with the impression that women aren’t interested in investing or in the finer details of finance. It was a world they weren’t involved with, a party they weren’t invited to.
But life is a bit different these days, isn’t it? Women are far more independent, and they need to be. Due to a whole host of societal changes, somewhere close to 50% of marriages in the US today end in divorce.
Not only that, women generally tend to outlive their husbands, so become solely responsible for their finances (and their financial legacy) later in life. Developing and maintaining a solid relationship with their money is now the norm (and 100% essential) for all women.
So historically, you could have said that women aren’t interested in investing. Is it still the case?
Studies Seem To Show Women Aren’t Interested in Investing
A study recently found that in the UK, there are more investment funds run by men than women. Other studies show that women invest 40% less money than men do, and that men are 35% more likely to invest unexpected financial windfalls than women are.
And further studies show that while women save their money, they are less inclined to invest due to a lack of understanding. And that’s because financial literacy and education hasn’t been available in the mainstream education system, and far fewer women than men will specialize in finance in higher education. It is still seen as a predominantly male world.
Not all that is historical remains untrue. Women have traditionally been more concerned with financial stability and security than amassing great wealth. 70% of women would prefer to see their original investment safe than to chase high returns. Once again, it comes down to biology and genetics. Men, the historic hunter gatherers who risk their lives for the big kill, need to exhibit prowess and be able to show the trophy for their actions. Women, on the other hand, collect the basics needed for long-term sustenance.
And so it remains in finance. Women have differing priorities than men, and so identify less with the investment and performance mindset. A good example of this was when nurses approaching retirement were offered investment seminars and financial advice; there was a really poor turnout with very few attending the sessions. The event organizers changed the name from investment to ‘financial security’; the nurses piled in to learn more. This was an event they felt was for them.
The Tide Is Changing – Women Are Investors Too
So women have historically not seen themselves as investors. They have had a more passive relationship with their money. They have saved, but not invested.
But again, thanks to significant societal change, women’s wealth is growing, and as it grows, so does their presence in the financial world. More women are becoming financial advisors than ever before, and more women are investing. In 2020, women have signed up to online investment platforms in droves; eToro reported a 366% rise in female investors this year alone.
So women are indeed finding more financial confidence, and they are realizing that anyone – themselves included – can invest. Women make smart investment decisions, and are proving to be extremely successful investors – better than men, in fact. Historically, women have not been as involved with investing; however, with their increased access to the financial world, this myth is loosening its grip on the psyche of females.
Want To Learn More About Investing? Take The Next Step
You may relate to some of the beliefs reviewed in this article. Maybe you have realized that your money has far more potential than you initially thought. Perhaps you have questions as how to make the most use of your resources so that your financial life will be less stressful and provide a more meaningful life.
Taking the first steps to invest strategically can feel daunting, but I assure you, it’s well worth it. Invested money, over time, is going to grow much more significantly than your cash savings. You may well have retirement accounts that aren’t invested properly based on your priorities. A review of your financial circumstances and some sound investment advice would go a long way in achieving financial security.
Contact me today to arrange an appointment, and together we’ll unlock your potential as an investor.