Women Save, Men Invest
With Carole Haswell
Listen to financial adviser Carole Haswell from Talking Finances on this Zoom workshop, where she tackles why women still shy away from investing relative to men and different ways to approach your finances so that ‘risk’ doesn’t freak you out!
Understanding risk and investing: Why women save and men invest
When discussing investment with diverse groups, it's fascinating to observe the different reactions. Ask people to share the first word that comes to mind when hearing "investing," and you'll notice a pattern: many women immediately think "risky." And you can think about this yourself. What's your immediate reaction to the concept of investing? For many women, the response is caution. This highlights an important pattern we see: women tend to save, while men tend to invest.
Interestingly, with proper education and understanding, many risk-averse individuals develop a newfound interest in investment opportunities. This transformation doesn't mean throwing caution to the wind, but rather developing a more balanced view of risk and reward. The key is to consider why you feel the way you do about investing, and whether those feelings serve your long-term financial interests.
Watch Carole's workshop here:
A personal perspective
Financial advising isn't always a straightforward career path. Many advisers come to the profession after working in other fields. Even with some background knowledge of financial markets, the world of investing can initially seem bewildering - especially for those without backgrounds in finance or economics. For many, their education is in completely unrelated fields, proving that financial literacy is a skill that can be developed at any point.
The gender investment gap and what you should know
1. What the professionals do
That's what the professionals do. They mix up the safety nets with the High Flyers. And they choose investments that are different from one another to spread the risk.
2. The risk of inaction - Why saving alone isn't enough
Doing nothing with your future money is risky. This is particularly relevant for women, who often prefer the perceived safety of saving over investing. Not only do you risk your cash not being worth as much in the future as it is now, but you also risk simply not having enough in later years if you haven't had any growth. The gender investment gap means women often end up with significantly less wealth over time.
3. You may already be an investor
If you have or have had a pension, you are already an investor and you are okay with that. The fact that a pension feels sort of tucked away and out of reach, I think, helps us to accept the risk in it. So if you have other money that you're putting by for your future that you want to grow, try to view it in the same way as you view your pension - you know, tucked away, out of reach.
4. Consider professional help
And finally, if it gets overwhelming, do consider getting the help of a professional such as a regulated adviser or a financial planner - someone you feel comfortable with and who understands the unique financial challenges women face. Only pursue this if it makes sense from a cost perspective. Working with the right professional can help build confidence and prevent costly mistakes along the way.
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