Investing Is Not a Man’s World: Why Women Should Invest in 2024

As International Women's Day 2024 approaches on the 8th of March, it's the perfect time to spotlight an often overlooked avenue of empowerment and inclusion: investing.
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In a world where financial independence is crucial, women have been steadily breaking barriers and shattering glass ceilings. Yet, investing is still seen by most as a male endeavour.

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Let's dive into why it's essential for women to embrace investing, break free from financial stereotypes, and how they can harness their power to inspire inclusion in the investment world. Remember when investing, your capital is at risk.

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The Current Landscape: Women and Investing 📊

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Despite progress, women remain underrepresented in the world of investing. According to a study by Fidelity Investments, only 35% of women report feeling confident in their investing skills, compared to 55% of men. 

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Additionally, women tend to have smaller investment account balances than men, further highlighting the confidence gap in investing.

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But why does this gap persist? Societal norms, career interruptions, and a lack of financial education are some factors contributing to this phenomenon. 

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However, with awareness and education, we can bridge this gap and empower more women to take control of their financial futures.

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Why Women Should Invest 👩‍🦳

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‍1. Closing the Gender Wealth Gap: The gender pay gap remains a persistent issue, with women earning approximately 82 cents for every dollar earned by men in the United States. It’s the same story in Australia too: for every $1 on average a man makes, women earn 78c. Over the course of a year, that difference adds up to $26,393. And it’s definitely not much of a surprise that statistics in the UK don’t fare much better, either. Investing provides a pathway for women to build wealth and close this gap over time.

‍_{Government Equalities Office, July 2019}

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2. Harnessing Longevity: Women tend to live longer than men, making long-term investing especially advantageous for us. By starting early and staying committed to our financial goals, we can leverage the power of compounding and secure our financial well-being in the long run.

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3. Navigating Career Challenges: Women often face unique career challenges such as part-time employment, career interruptions for caregiving responsibilities, and the high cost of childcare. Investing offers a means to mitigate these challenges by providing an additional source of income and financial stability.

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4. Supporting Female-Led Companies: Investing in female-led companies not only promotes gender diversity but also fuels innovation and economic growth. Consider companies led by women like Mary Barra of General Motors or Ginni Rometty of IBM as potential investment opportunities.

Luckily for you, we’ve gathered these and lots of other female-led companies together in our ETF, Women in Power, which is available on our Standard accounts.

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Investing with Confidence and Purpose 💪

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Women may approach investing more cautiously than men, but this conservative approach often leads to better long-term outcomes. 

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We tend to focus on long-term goals rather than chasing short-term gains, resulting in more stable investment portfolios. Research even suggests that women typically outperform men when it comes to investment returns.

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So how can women boost their confidence and start investing with purpose? Here are a few tips:

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1. Educate Yourself: Take advantage of resources like our own investing course and Learning Hub articles to build your knowledge and confidence in investing.

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2. Set Clear Goals: Define your financial goals and tailor your investment strategy to align with them. Whether it's saving for retirement, buying a home, or funding your children's education, having clear objectives will guide your investment decisions.

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3. Start Small: You don't need a large sum of money to start investing. Begin with small, manageable investments and gradually increase your contributions over time. Every pound invested is a step toward financial freedom.

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4. Seek Support: Don't be afraid to seek guidance from financial advisors or mentors who can provide personalised advice and support on your investment journey.

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Inspire Inclusion: Empowering Women in Investing 🙋‍♀️

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As we celebrate International Women's Day, let's inspire inclusion by encouraging more women to step into the world of investing. 

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By breaking free from financial stereotypes, embracing our unique strengths, and supporting one another, we can create a more inclusive and equitable future for everyone.

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Remember, investing isn't just about growing your wealth; it's about taking control of your financial destiny and paving the way for a brighter tomorrow. 

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So, this International Women's Day, let's embark on a journey to unlock our financial potential and inspire inclusion in the world of investing.

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Remember when investing, your capital is at risk.

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Sources:

- Fidelity Investments Study: "Women and Money"

- Gender Pay Gap Statistics: Pew Research Center

- Study on Women's Investing Behavior: Merrill Lynch Wealth Management

- Gender Pay Gap Data: Australian Government