Even though women earn less in the workplace overall, they’re more likely to have higher savings rates and better retirement plan participation. And, although some women invest, it doesn’t compare to the number of men that do so as well.
In fact, men are not only more likely to invest in the stock market. They’re also more likely to place higher amounts of risk on their investments. In the end, if the investment goes well, this leads to a larger rate of income for men.
Investing for women is tough. Some people think it’s not in our nature.
We argue that society hasn’t taught women the same way that they’ve taught men. So, we’re here to fix it.
To learn more about how to invest and rack up some women investing tips, keep reading.
Investing For Women: Busting Myths
First, we need to bust some myths that are lingering out there about women investors. There is talk about how women don’t know how to handle money, or they’re too shy to put their money to good use.
Well, we know this isn’t true based on the statistics you just read. So, there must be something else going on.
Myth #1: Women Aren’t Confident Enough to Be Investors
First of all, confidence isn’t designated by sex or gender. So, this is a blanket statement that doesn’t apply to most women.
However, this statement does stem from the lack of education that women receive about investments and money in general. Education leads to confidence. And, without education, it’s hard to be confident in what you’re doing.
The argument comes down to this: women tend to be self-deprecating. On the other hand, men tend to be overconfident.
We could talk about the differences in societal upbringings and the small role that nature has to play here, but the point is to overcome these thought processes.
If you want to invest, you have to stop thinking that you aren’t educated enough. Instead, you should be looking to get educated.
You’re making a great step by being here.
Myth #2: Women Can’t Handle Risk
There are plenty of women throughout history who have proved this statement wrong. From astronauts to single mothers to business owners, women can do it all.
This statement derives from studies that show that women tend to be risk-averse. This means that they’d rather invest in low-risk funds with the promise of a return than put their money into high-risk funds and end up losing it.
We’d like to call this risk-aware. This flips the negative meaning to a positive meaning. And, this is most definitely a positive thing.
Myth #3: Women Can’t Learn How to Invest
This statement is 100% wrong. Of course, women can learn how to invest.
The reality comes down to how confident women are in their investments. And, as we said, this comes from education.
Multiple studies and everyday interactions show that women are confident with their money. In fact, they’re smarter when it comes to most money-saving decisions. So, investing should be no different.
But, the stereotype of frivolous money-spending has deterred women from even trying.
We’re here to say that women can be competent investors. It just takes some education and confidence.
Myth #4: Women Lack Financial Literacy
We can already debunk this based on the statistics we shared earlier. But, even more studies and observations prove this wrong.
Financial literacy comes from a combination of education and exposure. And women are lacking both. But, it’s not their fault.
Women haven’t been nurtured to be business-minded people. Rather, women have grown up with the idea that their husbands may take care of finances. The woman may be lucky to make money for the family at all.
But, it’s time to stop that mindset. More and more women are entering the workforce and making money on their own. So, it’s time to stop thinking about the past and encourage women to make their own financial stability.
Myth #5: Women Don’t Want to Invest
If you’re reading this article, you know that this statement is most definitely a myth. You wouldn’t be here reading these words if you weren’t even the slightest bit interested in investing your money.
So, we invite you (and others) to break the financial glass ceiling with us. It’s time to put all of these myths to rest and let women know that investing is possible.
Further than that, it’s important to encourage education and experience.
Investing For Women: Tips and Tricks of Beginner Investing
First and foremost, you need to get the thought out of your head that you’re at a disadvantage. You technically are, but this kind of thinking isn’t going to get you anywhere.
Whether you’re risk-averse or risk-tolerant, you deserve to invest in the stock market. No one should make you feel otherwise.
As you’re picking the investments that you want to make, you should start by picking companies that you believe in. Numbers and stats are important, but they aren’t everything.
And, since the stock market is constantly changing, today’s conditions are not going to be the same tomorrow.
Keep in mind that buying stock from a business makes you part-owner. You may not sit in on board meetings, but you should still believe in that company.
And, you should invest in several companies gradually. Avoid dropping all of your money in one place.
Once you’re invested, you should have a disaster plan. If one of your stocks were to crash tomorrow, what would you do?
Set an action plan and follow it. But don’t overtrade.
Remember, you aren’t actually losing any money unless you decide to withdraw your money from the stock. Otherwise, your money will eventually come back.
Get Started Investing
No matter how much education and experience you have, investing is difficult. And, as you know, investing for women is harder without the necessary exposure.
That’s why our wealth advising partners are here to help. Our investing program can help you manage your investments while you learn more about the stock market.
Get started today to make the most of your money.
Note: Investment advisory services offered through Paces Ferry Wealth Advisors, LLC, a Registered Investment Advisor with the U.S. Securities and Exchange Commission. This material is intended for informational purposes only. It should not be connstrued as legal or tax advice and is not intended to replace the advice of a qualified attorney or tax advisor. This information is not an offer or a solicitation to buy or sell securities. Paces Ferry Wealth Advisors, LLC and Signature Bank of Georgia are not affiliated companies.
Products offered by the Advisors are not insured by the Federal Deposit Insurance Corporation and is not a deposit or other obligation of, or guaranteed by the bank. Investment products are subject to risks, including possible loss of the principal amount invested.
