Why women should take charge of their wealth and investments
Investing can be a daunting task, and when it comes to women, the task becomes even more challenging. The lack of financial literacy, gender stereotypes, and a male-dominated industry have contributed significantly to the gender investment gap. However, taking charge of your wealth and investments is vital for women and their families’ financial well-being.
The Gender Investment Gap
According to data from BrokerChooser.com, men outnumber women three to one in global investing. In the UAE, men account for 76% of investors, with women making up the remainder. The gap is even more significant in Saudi Arabia, where men account for 86% of investors, and Lebanon leads the region with 28% of women investors. The investment gender gap has severe consequences. A 2022 World Economic Forum study shows that women will only accumulate 74% of the wealth that men have at the age of retirement.
Reasons for the Gender Investment Gap
Several factors contribute to the gender investment gap, including cultural and traditional gender roles. The lack of female role models in finance and investment has also contributed to the gap. The majority of financial advisers and investment companies operate in a male-dominated industry, which can be intimidating and patronizing for women. Jargon and complexity are other obstacles that deter women from investing.
Women’s Wealth and Purchasing Power
Women control most household purchasing decisions and are expected to have wealth estimated at $81 trillion to $93 trillion this year globally. In the Middle East, women’s wealth is expected to grow to $1.1 trillion this year, and they control around 40% of the region’s wealth. However, women are only in charge of about a third of the world’s wealth as of 2020.
Closing the Gender Investment Gap
Financial service providers and advisers can play a crucial role in closing the gender investment gap through advice and education. Several female financial advisers are establishing their businesses aimed at supporting women investors, such as Finsbury Wealth, with its Unity Wealth division. Women approach investment differently from men and tend to be more risk-averse. Female advisers understand and cater to these differences, making it easier for women to invest and manage their wealth.
– Women’s wealth is expected to grow to $93 trillion by 2023 globally.
– Only 1% of venture capital funding goes to female-led startups.
– Most women-owned businesses are in the services industry, and only 5% of women-owned businesses generate over $1 million in revenue.
Investing and managing wealth are essential skills that women should acquire to ensure financial stability and security for themselves and their families. Financial service providers and advisers must cater to the unique needs and preferences of women investors. Women should also seek female advisers who understand their investment style and can guide them through the investment process.
The gender investment gap has significant consequences for women’s financial futures. Women should take charge of their wealth and investments and seek out education and guidance from supportive advisers and financial service providers. Investing is not just a man’s game, and women can build long-term wealth and financial security by taking control of their finances today.