Studies have shown women are better long term investors than men. Women tend to be “buy and hold” investors and are less likely to make changes to their investments. They are less emotionally attached to their investments and do not make rash sell decisions when the stock market fluctuates. Women also are much more likely to manage household finances and budgets. This is all good news!
However, women are more likely to be the family care givers, whether children or parents. This means more time off work, not working outside of the family or taking a job with family flexibility. Many companies do not provide adequate mentoring, promotions or clear career ladders for women. Income inequality still exists.
All of that adds up to less income over the working years. What does this mean? Less savings in retirement plans, less pensions, less social security payments. Add longevity to that and you can see that there are large financial differences between the genders.
Many women have grown to believe that investing is a man’s domain. Whether that is the media not showing women in those roles or societal messaging that has been internalized or gender bias. It does not have to be that way.
While it takes time for society to change, to wake up to the resources it is losing by down playing women’s talent and abilities; YOU can change faster. Education is gender neutral. Knowledge does not care – it is just knowledge. Investments do not care. Let’s make everyone informed financial consumers, one class at a time. Whether that class is negotiating a salary, saving for financial goals, or analyzing mutual funds. Learn, grow and change- be a financial powerhouse!