What’s stopping women from investing?
Though many women earn well, not all women contribute to the financial decision-making of their families. This mentality hinders the ability of women to create wealth in the long run. Investing has a phenomenal impact not only on individuals but also on many generations that follow.
Let’s discuss some of the issues women face that discourage them from making investments.
1. Leaving financial planning to the male counterpart
Women feel financial planning is not their forte. They simply depend on men for financial planning. This stems from the patriarchal setup of our society. Men are expected to do budgeting and financial planning for the family. Women’s opinion is mostly not considered before finalizing the investment plan.
2. Lack of financial knowledge
Investing in the financial market requires the right mindset and knowledge. It is a gradual process. No one can master these complex financial terms and investment concepts in a short period. Most women just don’t know the basics of finance and cannot make rational investment choices. Almost half of the women around the world feel investing to be a risky gamble. Financial literacy learning opportunities in society are aimed at motivating men to manage household finances. Naturally, women develop a feeling of being less valued or incompetent.
3. Lack of Confidence
Majority of women are less confident about investing. The key reasons are they don’t know where and when to start. Women fear that investing can lead to huge losses due to market volatility even if they have sufficient money to diversify. Investments carry some risks, but avoiding investments completely can reduce the purchasing power of money eventually.
4. Pay Gap and Missed Career Opportunities
Women are still making less money. As per the survey conducted by Monster Salary Index (MSI), women in India earn 19% less than men. The survey revealed that the median gross hourly salary for men in India was ₹242.49, while ₹196.3 for women, meaning men earned ₹46.19 more than women on an hourly basis. Women hesitate to ask for a raise as compared to men. Women are on sabbatical more frequently as they have to take care of the family. Other career breaks are due to motherhood and parenting needs. This leads to a lot of lost income and missed career opportunities.
Women shouldn't shy away from discussing finance. This is the only way to break the walls and set a level playing field. Let's be unstoppable. We've all heard the saying, "Be the change you wish to see in the world." This is for all the ladies out there, come join FIKAA to empower women so they can learn, invest, connect and grow together.
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Written by Mitali Pania