10 Reasons Why Investing as a Woman is Sooo DAMN Different
- Women pursue higher education more. (Okay, for me it was like my father wouldn’t talk to me anymore if I didn’t go to uni, but that’s a different story.) Globally, women are more likely to enroll in higher education than men. However, they still occupy fewer leadership positions in high-paying industries. This shows that education alone doesn’t guarantee wealth. Here’s the kicker: Many female-dominated fields like teaching, social work, healthcare, and the arts typically aren’t the highest-paying professions. Women often choose these fields for job security and personal fulfillment rather than wealth potential.
- Lack of investment education at home: While boys might be taught about money management, girls are often left out of these “money talks.” Many young women I’ve spoken with professionally had to become financially independent as adults faar away from their families. This often leads to poor financial decisions due to a lack of knowledge and experiences.
- Socialized for under the bare minimum: While men are often taught to maximize their earnings and career potential, women are often socialized to live on minimum expenses and focus on saving. This mindset of course… can limit financial growth potential.
- Career breaks for childbirth: When women have children, they often experience years of career and income interruption. For example in Hungary we have 3 years of maternity leave, or in Austria 2. Of course, it is better for babies like in the USA the 6 Weeks maternity leave. I always say dogs can be adopted after 8 weeks, so insane. I won’t be able to manage something like that physically or emotionally after a C-section. This can be one of the biggest financial setbacks in a woman’s life. Balancing work and childcare is challenging. Many women struggle financially during this period.
- Altruistic nature: Women often put themselves last, sacrificing their careers and personal needs for their family’s well-being. This self-sacrificing nature can impact long-term financial planning.
- Higher rates of domestic abuse: Unfortunately, women are more likely to be victims of domestic abuse. Many stay in abusive relationships due to financial dependence. They often lack the resources to support themselves and their children independently.
- Gender pay gap: In many countries, women earn less than men for the same work. For example, in the United States, women earn about 82 cents for every dollar earned by men. This pay disparity significantly impacts long-term earning and investing potential.
- Lack of female-focused investment communities: Women often lack safe spaces to discuss financial matters. This is why female-focused investment groups and education programs are crucial. They help in creating supportive environments for financial growth.
- Longer life expectancy: Women generally live longer than men. For instance, in the UK, life expectancy at birth is 82.9 years for women and 79.2 years for men (as of 2020). This means women need to plan for a longer retirement period.
- Lower pension/retirement benefits: Due to career breaks, lower pay, and often part-time work to balance family responsibilities, women typically receive lower pension or retirement benefits. For example, in the EU, women’s pensions are 30% lower than men’s on average.
Read my other blog posts on the topic:
- Achieving Financial Independence: Understanding Lean, Fat, Traditional, and Barista FIRE movement and differences. How could you achieve them as a woman?
- Empowering Women: Long-Term Stock Investing for Multi-Generational Wealth
- Everything You Need to Know About Stocks: A Beginner’s Guide for Women Investors
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