International Women’s Day is just over a week ahead and the message is to #beboldforchange. This is especially the case when it comes to finance and debunking some of those money myths that often hold women back.
According to a comprehensive survey conducted by global consulting firm BCG, women are more dissatisfied with the financial services industry than any other industry that affects our daily lives.
This may be partly because 80 per cent of financial planners are men who’ve never had to deal with the consequences of being paid less because of gender, or taking career breaks to have children.
Worst of all, the male-dominated world of investing is perpetuating myths that hold women back from building wealth.
Myth 1: Women need more financial education before they can invest.
Australian women are more money smart than they think.
In fact, women are world leaders in being financially savvy!
They are less impulsive, think clearly and if it wasn’t for unnecessary jargon and years of being told it’s a man’s job, women would already be leaders in the investment world.
Myth 2: Men are better investors than women.
Simply not true!
Morningstar’s report investigating fund mangers by gender, found that female investors are as good, or better professional investors than men.
Women are also better at investing long term which leads to greater financial returns over time.
Myth 3: Women aren’t that interested in investing.
Men are interested in “playing” the stock market.
The next hot tip gives them a high, and stocks that are “sure winners” make them happier than ever. And it’s true, we’re simply not the same.
But that’s exactly what makes women great, if not better investors.
Saving smart and investing smart has always been the key to a secure financial future, and women have known it all along.
A set amount of money from every single pay check, no matter how small, will get you to your goals in the end.
It’s a system that works, and a system you need to start today.
Myth 4: Women need more hand-holding to invest.
Ugh. Seriously? No.
Myth 5: Pay gaps are an excuse
Hardly. Pay gaps are however unjust facts in many industries still today. But slowly this is improving.
Men earn 19 per cent more than women on average.
But they also get promoted earlier and more quickly, and they tend to not take time off to look after children for longer periods of time.
An average woman with a university degree will earn 1.5 million dollars less than her male colleague over her lifetime.
While the pay gap puts many women behind, the “super gap” is adding to the problem at retirement.
By the time men retire, they have saved 88 per cent more superannuation than women.
It’s all something to think about in the lead up to International Women’s Day.
If you’re thinking about ways that you might make a difference and #beboldforchange, perhaps start by debunking some of these myths!
