Women have significantly less money available than men during their lifetime. This is due to various factors, including parenthood, childcare, and the gender pay gap. On average, they earn 21 percent less than men, and there are still too few women in management positions.
For a long time, the generation of women that today are between 50 and 60 years old were not allowed nor enabled to make their own financial decisions in their younger years – they couldn’t even open a bank account in their own name. Nowadays, we can. And we need to seize the chance, the potential within that capability.
Technically, we could live it all up on the financial markets: we could invest, run a risk, and decide ourselves how much money we would like to spend on what. So …
There is a touch of irony in the fact that women are traditionally regarded to be overly emotional, to be working in classical care and social jobs, to be assuming the sentimental task in child-care, and to like rom-coms best. So, if it was for the general idea, women are anything but rational and patient. And yet:
when it comes to money, women prove to be more patient and rational than men. And oftentimes the more successful investors, due to these characteristics!
On the capital market we can act these strengths out just perfectly and, thus, invest more intelligent than men.
Women are less erratic in terms of selling stocks. They tend to wait and that’s a good thing. Investments in various financial products take time to develop. Women are more than happy to give them said time and are often rewarded with higher yields.
What’s more, contrary to popular belief, women are less emotional investors than men. While men often decide upon what product they can identify best with, women consider the financial market more rationally and as expedient.
How Women Invest
Unlike men, women place greater value on the transparency of their portfolio and they do more profound and detailed research about every aspect of it.
Usually, they also hold way more diversified portfolios. This rather rational approach makes it easier for women to ditch less successful investments and to admit mistakes. That way, they can minimize their losses.
Frequently, the lack of transparency on the financial market, however, put interested women off. Many women want to know in exact detail what happens to their money, want to understand the complexity of the capital market.
In general, female investors often associate money with security, independence, and quality of life.
More transparency and focus on the financial needs of women would be appropriate. In the meantime, luckily, there is a range of forums, blogs, and websites for women to gather information from on financial topics.
FinMarie, too, provides you with tangible tips and information about investing money. Just follow our blog for regular updates and news by e-mail.
Last but not least, women are the more skilled analysts. They act more strategically than men in business matters and consider all information available before they effect an investment, while men judge these information rather selectively and act faster.
Women are more risk-aware, hence, they evaluate potential risk more realistically, are less self-confident then men in terms of investments. With regards to the capital market, though, this is a huge advantage, because women classify specific investments as more risky than men do. It’s that prudence that women often owe their success in investments to; even though you have to admit, of course, that a “Lehman Sisters” alone wouldn’t have prevented the 2008 crash.
Are you curious on finding out more about finances and financial planning? Why not take a look at our download center. Or turn to our experts who are more than happy to help you setting up a profitable investment and matching your portfolio to your financial goals. Benefit from a first free assessment with FinMarie:
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