Why is it so important for women to invest in stocks? Investing in stocks helps women maximize their income! Historically, stocks have outperformed every other investment long-term!
Women Need To Grow Their Money More Than Men
Do womenneed to grow their wealth more than men? Definitely! One reason is that women have a longer lifespan than men. A recent study by Bank of America states that on average, women outlive men by about 5 years. Women, as they age, will need to supplement their Social Security income when they retire.
Absences from the workforce, due to family priorities such as childbirth, caring for family members, (both young and old), reduces women’s long-term earnings! These interruptions from their careers will cause the amount of their savings and retirement benefits to be less than men when they reach Social Security age!
Women Still Make Less Money Than Men
In addition, women still make less money than men in many fields even though they are doing the same work as men! Even in this modern day and age, there continues to be wage inequality between men and women! Women’s work is often underpaid and undervalued by society. According to one reputable research report…women in 2015 were making 83% of what their male counterparts were earning! This “unfair” gender wage gap still exists! This gap should be addressed and corrected.
Another reason womenneed to invest in stocks is that there is an increase in women supporting themselves today. With the divorce rate high in America many women are single parents. The great majority of these single parent households are women. These women are the “sole” breadwinners in their households. They need to learn how to invest in stocks to make their money grow harder.
More Women Need To Learn How To Invest In Stocks
With banks paying ridiculously “low” interest rates today on cash savings, it is important for a woman to learn everything she can about investing in stocks. The following is a result from a 2018 Women and Investing Study from Fidelity Investments: “With more than half of women (56 percent) still not investing, and leaving nearly all their savings in cash or bank accounts–which on average earn less than a one-two percent return–many may be missing out on thousands of dollars in potential earnings.”
Why settle for rock-bottom interest rates on your hard-earned money when, with the proper investing education and skills, you can do much better? And, the younger women start investing…the better! Investing long-term allows compound interest to grow.
Some women may feel “safer” with cash investments but it is actually riskier because you are not earning any money on your savings! For instance, earning just 1% on your savings puts you “in the hole” financially! By the time you back-out inflation and taxes from this 1% figure you are in the negative (red)! This is not being smart with your money!
Unfortunately, our educational system in America has not provided the necessary financial education to invest properly!When you learn to invest instocks long-term, you can at least earn a decent amount of money on your savings! And, with the advent of technology, today, its’ never been easier to research a company online.
Women Are Better Investors Than Men
Another important reason for a woman to invest in stocks is that women make better investors than men! Numerous studies have proven this point. Don’t wait for stocks to come to you! Take the initiative ladies and learn how to invest in stocks today! There is no proven better way to grow your money long-term!
In conclusion, it is important for women to grow their money by learning how to invest in stocks. One reason for this is that women have a longer lifespan than men. In addition, women’s absences from their workplace, due to family obligations, often causes women to suffer aloss of income. Moreover, there stillexists a gender wage gap and women, to this day, continue to earn “less” than men.
I am an Accountant with a Bachelor of Business Administration degree in Accounting and a “Do-It-Yourself” long-term investor in stocks.I pick my own stocks and using my extensive accounting and finance knowledge research stocks online. I also study everything related to the companies behind them. I have read hundreds of books on investing! Learning how to invest well has definitely maximized my income! “Knowledge is power ladies!” If you want to make the most of your money, and are not already investing in stocks, its’ never to late to start!
FAQs
Investing in women means ensuring that more than half the global population is not left out of any economy, health program, or development opportunity. Investing in women also means contributing to an educated, healthier, and wealthier generation. Investing in women benefits society as a whole.
What are the facts about women investing? ›
Women and investing by the numbers. 71 percent of Gen Z women are investing in the stock market, according to a 2023 Fidelity survey, outpacing older generations, with 63 percent of millennials, 55 percent of Gen X and 57 percent of baby boomers, according to a 2023 Fidelity study.
Why did women get involved in buying stocks and shares? ›
Previously, women had needed to rely on men to invest their money for them; these men pocketed handsome commissions. Gage wanted to cut out the middleman and not only avoid having to pay high commissions, but make her own decisions about how and where she moved money.
Are women better at investing? ›
Even though women do better than men at investing, they're less confident about it. Here's what recent studies have found: Only 19% of women are very confident in their ability to invest money compared to 38% of men, according to Robinhood. Only one-third of women see themselves as investors, according to Fidelity.
What is the goal of girls who invest? ›
Girls Who Invest (“GWI”) is a non-profit organization founded in April 2015 dedicated to increasing the number of women in portfolio management and executive leadership in the asset management industry. Our benchmark for success is to have 30% of the world's investable capital managed by women by 2030.
Which is the best investment for women? ›
Public Provident Fund (PPF):
PPF is a government-backed savings scheme known for its safety and attractive interest rates. Your investment is guaranteed, which helps you meet your long-term goals, this is one of the reasons why it is the best savings scheme for ladies.
How many women invest in the stock market? ›
The study shows 60% of women are actively investing in the stock market and taking a less reactive approach to recent market fluctuations than their male counterparts.
Why invest in women owned businesses? ›
Women founders tend to build businesses that generate more revenues, create higher job growth, dream bigger, and execute better. Research by BCG shows that the average investment in companies founded or co-founded by women was half that of what is raised by only male-founded companies.
What are 3 benefits of investing in education for girls? ›
Investing in girls' education is one of the smartest investments a country can make. It boosts economic growth, with every $1 spent on girls' rights and education potentially generating a $2.80 return; it curbs infant mortality and improves child nutrition.
Why do women make better traders? ›
Women don't take that many risks
A study by Capital.com in 2022 showed that women traders were more likely to put bigger stop losses and exit trades when they are hit, when compared to men who put narrower stop losses and are more likely to move or cancel them, even when the trade goes against them.
Men are almost twice as likely to invest in Stocks and Shares ISAs (30% vs 17%), SIPPs (19% vs 8%) or General Investment Accounts (16% vs 9%).
Why do women invest less than men? ›
UK mutual society Shepherds Friendly also found that women are far less confident about their investing knowledge, at 25%, versus 39% of men. Women are also typically more likely to believe that the stock market is too risky for them, as well as worry more about the performance of their portfolios.
Are women better at trading stocks? ›
Men in general, they reported, earned almost 1% less than women per year in their stock-picking endeavors, while single men underperformed their single women friends by 1.44% per annum!
Why are women better at investing than men? ›
Men tend to be more financially active than is necessary or warranted; they trade more than women, and as a result, their average net returns are lower than women's (once transaction costs and fees are considered).
Why do women invest differently than men? ›
But we are still at the beginning. Behavioural finance, the science of behavioural economics, shows us that women are much more anxious, they need much more knowledge and want to understand the product better before they invest.
What is the theme of investing in women? ›
The theme for this year is 'Invest in Women: Accelerate Progress' and emphasizes the critical role of investing in women to achieve gender equality and advancing the overall well-being of societies worldwide.
What are the benefits of women's participation? ›
Indeed, women's participation in decision making in general has benefits not only to women but to the general society as a whole. Now is the time to encourage more women in decision making as they prioritise policies that improve lives for everyone including quality education, health, housing and social justice.
What does it mean when a man invests in a woman? ›
A man who is willing to produce sacrifices for any woman demonstrates he's committed to her and cares about her. Sacrifices in relationships often take the form of bargain, but they may also include larger steps such as moving places or relocating occupations.
