Breaking down barriers
For many women, finances are wrapped up in layers of stereotypes, hesitations and often a sense that they’re just not “good” with money.
In fact, it’s an idea subtly reinforced by society - 65% of money articles for women focus on saving, while 75% of articles for men talk about taking financial risks. This split can send the message that women are expected to play it safe when it comes to their personal finances. But by challenging these ideas, females may experience a healthier relationship with money and genuine financial success. Here’s how.
Unpack those assumptions
Women can be incredible savers. Studies show women are less likely to splurge than men and, interestingly, even professional female fund managers lose less for their clients than male counterparts. So, why do they feel less confident about the stock market1? It could be that many have internalised the idea that money decisions are risky and risk is something to avoid. However, a tendency to make thoughtful, measured choices with money can be a significant advantage when it comes to building a portfolio.
Build confidence with experience
It’s understandable to want to know everything about investing before starting - but that can create an extremely high barrier of entry. For many women, this lack of confidence isn’t necessarily about ability. In fact, studies suggest that women often know just as much as men when it comes to personal finance, but are less confident about applying that knowledge1. The truth is, you don’t need to be an investing guru when starting out in the stock market. Be on the lookout for educational content (you could try starting here with CommBank’s Girls That Invest content series), and consider investing small amounts to gain hands-on experience as you learn.
Seek out female role models
In the words of Billie Jean King, you have to see it to be it. Without many visible examples of female investors, it can also be difficult for women to see themselves in the role. When it feels like something “other people” do, it’s easy to dismiss investing as a possibility. The antidote may be to seek out female financial voices – take a look at this interview with Simran, founder of Girls That Invest, and don’t miss CommSec analyst, Laura Besarati, on CommSec’s Instagram account.
To support women on their investing journey, CommBank has partnered with Girls That Invest to launch a content partnership. Founded by Simran Kaur, it’s the world’s largest financial education platform dedicated to empowering women to take control of their financial futures. Learn more.
1. George Washington University School of Business, the Global Financial Literacy Excellence Center (2021). Fearless Woman: Financial literacy and stock market participation (PDF)
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