Do women invest differently than men

This article was created in collaboration with our partner Francesca from FemmeInvest. In her blog, she shares her financial knowledge from years of experience. Her aim is to support women on their path to financial independence.

Why do women invest differently?

Women are often initially concerned with saving. Although interest in investing is growing (finally!), the majority of women prefer to put their money in a savings account - mainly out of fear of the risks.

This also has a lot to do with our childhood. It has been proven that girls receive less financial education in childhood than boys. We tend to talk more about saving with daughters and about investing with sons. But an early, confident approach to money is important, because money habits are formed at an early age.

Compared to men, women tend to act more thoughtfully and pursue more long-term investment strategies. They are less active than men and therefore women's investments tend to perform better.

Why do women invest less?

There are many reasons not to invest, but the following are the main ones:

• A perceived lack of knowledge
• Fear of making mistakes
• Little interest in financial topics
• Supposedly too little wealth

Women in particular need to get to grips with the topic of investing. They often work part-time, usually have lower incomes and longer career breaks. As a result, they usually receive lower pensions in retirement. On average in the OECD, women aged 65 and over receive 26% less income from the pension system than men.

What do women say once they have started?

According to studies, 70% of them wish they had started earlier. This would have allowed them to benefit from the compound interest effect for longer and build up greater wealth.

So what could help you to start investing?

• A financial assistant like Selma, who can build a strategy for you?
• Knowledge is power - read up and familiarise yourself with the subject, it can be a lot of fun!
• Spread the risk of your investment portfolio and don't put all your eggs in one basket.
• If possible, start investing early to capitalise on the compound interest effect.
• And last but not least: talk about money - we all (!) need to make provisions, let's talk about how we do it and how we invest.

Conclusion

Women invest differently - less, but often better. Studies show that in Switzerland only 40% of women invest compared to 60% of men. Why is this? Fear of risk and a lack of financial education play a role. Girls receive less financial education than boys, which has long-term consequences. Women are often better investors, act more thoughtfully and pursue more long-term strategies. Reasons for less investing include a lack of knowledge, fear of making mistakes and a lack of interest. However, women who invest often wish they had started earlier.

If you have any further questions, please feel free to contact the Selma Finance team or check out my website FemmeInvest!