The best time to invest your money? Yesterday.
But, unfortunately there’s been an unspoken myth for decades that the investment world is meant for men. While the thought of investing can be somewhat of a daunting task, it doesn’t mean women can’t master the skill. In fact, the data shows women are actually superior investors.
And since research shows that at some point in their lives, 90 percent of women will be single, divorced or widowed, meaning they will be entirely responsible for their finances, investing is a skill every woman should possess.
Because every single day you wait could cost Future You about $100. That’s like having $4 deducted from your bank account every single hour of every single day. Um, no, thank you.
If you’re a first time investor in your 20s, 30s, or even 40s, and you haven’t started investing yet, today is the best time to start. And trust us – It’s not as confusing as the bankers and economists make it out to be. In fact, you can sign up with Ellevest, the tech-enabled investment and planning company built by, for, and with women, in under 10 minutes and with no minimum.
To make sure you don’t fall victim to any old myths about women and money, we sat down with Ellevest co-founder and CEO, Sallie Krawcheck, to talk to us about a number of common misconceptions and why they’re simply not true.
Myth 1: Women aren’t that interested in investing.
Quite the generalization. Every woman has different interests; some are curious about investing and some are not. However, by and large, women are just as interested in investing as men are. In fact, according to Financial Advisor magazine and reported in Barron’s, 45% of women respondents indicated that they are interested in investing – and that’s a pretty big number. Perhaps women are just a little less vocal about their interest in investing?
Myth 2: Women are not “as good at numbers” – and math-like things – as men.
According to the American Psychological Association, girls make higher grades than boys in all school subjects, including math. What is, unfortunately, true about this myth is that women tend to believe the lie. According to AP Central, 45% of respondents adhere to the stereotype and report that men are “better at math” than women and less than 1% report that women are better than men. It’s 2018, and time to ditch this myth.
Myth 3: Men are better investors than women.
While men may tend to invest more than women, women are just as good or better investors than men at both the professional and individual level. CNN Money reports that female investors outperformed male investors by .03% last year. Over time, that percentage begins to build up. Need any more proof that anything men can do women can do better?
Myth 4: Women need more financial education before they can invest.
Regardless of gender, knowledge is power. However, women think that they need more education than men do which means that men are more likely to invest than women when they are equally educated on the subject.
Myth 5: Women need more hand-holding to invest.
This is one of the most hurtful myths out there about women and investing! In case you haven’t heard, women are becoming empowered more and more every day, and we certainly don’t need any hand-holding when it comes to investing – we can do it ourselves (with the help of Ellevest of course).
Myth 6: Women are too risk-averse to invest.
It is true that women do take in to account more risk than men, but that isn’t necessarily a bad thing when it comes to investing and it shouldn’t deter a woman away from it. In fact, women’s risk awareness keeps us from making impulsive mistakes that men seem to make. CNN Money notes that men “have a bad tendency to buy and sell stocks too often” whereas “women are doing better than men and with a lot less risk.” Being risk-averse pays off, quite literally.
Myth 7: Women need an in-person relationship to invest.
Some women may be more confident meeting in-person with advisers before investing. However, the same could be said for men. What’s more is that women are starting to gain confidence in investing online because of women-focused programs like Ellevest. They are able to explore financial options in the privacy and comfort of their own home – at a more affordable cost, too!
Myth 8: The real issue is the gender pay gap.
The gender pay gap is a real problem that needs a real solution. However, the pay gap should be the driving force behind more women seeking to invest. Because we are earning less than men, we should be taking advantage of every penny by starting to invest right away, building compound interest through a diverse portfolio, and starting to make back some of the money we’re not earning from the gap.
If money is power, then it’s time for women to wake up and realize the true potential they hold in this world. The numbers and research already disprove the myths and it’s time to put it into action by creating a diversified investment portfolio.