Women are great at saving money, but tend to lag behind their male counterparts when it comes to investing. In fact, 2018 research revealed there was a gender investment gap of over £100bn in the UK alone.
Many women we’ve spoken to feel like the financial sector has been designed for men, which is very plausible given it was only in 1975 that women could open a bank account in their name. Even in 2018, only 14.2% of financial advisors were women, leaving the majority feeling demotivated and locked out of the industry. Did you know – women who don’t invest typically lose out on around $1 million in their lifetime according to research by Ellevest… but it doesn’t have to be this way.
At Moneybox, our ambition is to make saving and investing accessible to everyone and we’re eager to highlight the benefits investing can bring to your financial future. We want to empower and inspire all women to take control of their money, plus celebrate just how far we have come as a new decade and another International Women’s Day is upon us.
- Over a third (34%) of Moneybox investors are women! Even though an investing gap remains, this is up 9% from this time last year.
- Nearly a quarter (22%) of assets invested with Moneybox are held by women.
- Our female investors are more committed to sustainable investing than their male counterparts, with 7% opting to invest in our Socially Responsible fund compared to 5% of male investors.
- When it comes to risk appetite, 80% of our female investors opted for our “adventurous” or “balanced” risk allocation, versus 86% of the male investors choosing the same allocations – whilst women might still be a bit more cautious than males, this indicates that women are perhaps not as risk averse as commonly stated.
In celebration of International Women’s Day, we reached out to four women who are investing in the stock market with Moneybox to talk openly about their experiences. Check out why investing has made Kia, Elise, Iana and Laura feel more confident about their financial futures. Also, they share their top tips for you!
Prior to investing, what was the barrier (if any) holding you back?
Kia: The lack of knowledge. I saw people always talking about investments but I had no clue about the first steps and what I should be investing in.
Laura: It all seemed so complex and difficult to understand and I had thoughts of trading floor scenes from films whenever I thought about it. It never seemed like a space where I could fit.
Elise: Most of the information I read online was from people investing hundreds of thousands of their money into stocks and shares, so thought none of it was applicable to me.
What was the triggering factor/s that made you start investing?
Iana: I got the opportunity to join a charity investment committee so learnt more about investing. I realised that returns from my everyday savings accounts were minimal and that investing could potentially provide a lot more!
Elise: I was diagnosed with arthritis and realised that I’d never be able to work a full time job, so I knew that I had to be more savvy with my part time wage.
Laura: I knew that I wanted to try and save more for my future, so only had your typical ISA in mind, but then I heard about the Moneybox app on TV and read some reviews. It sounded so accessible and easy to use that I thought I’d give it a try. What it’s actually done is taught me the basics of investing and allowed me to take my first steps into financial planning for the future.
Has starting to invest increased your confidence about your financial future?
Kia: My confidence has most definitely skyrocketed! Investing is often associated with men and many don’t want to share the knowledge, however doing this myself has absolutely empowered me and made me very confident about my financial future.
Laura: Yes, I’d definitely say that taking the step to invest has helped me feel more confident. I’m now envisaging doing things that I didn’t imagine I’d be able to do before. Moneybox makes it so easy to put a little away each week or month and it all adds up!
Iana: I’m still a novice and keen to learn more but I’m really pleased I started investing. It doesn’t seem like a lot now but as long as I keep it tucked away it will hopefully grow. It’s another way to safeguard my financial independence and wellbeing.
Elise: Definitely! I just set up the weekly deposit and payday bonus deposit and forget about it. So far I’ve saved a nice amount and have a much higher return than if that money had been sat in a bank account.
Do you have any tips for other women thinking of getting started with investing?
Laura: I would say don’t be put off by films like The Wolf of Wall Street or scenes from the news of hectic trading floors. It’s not all corporate, faceless and male. With apps like Moneybox, we can shape investing into what we want it to be.
Kia: For any women interested in investing, my tip is to just go for it! You can start small so you can get used to how everything works then increase as and when your confidence increases!
Iana: An easy way to view investing is through your pension. You could look to consolidate your old pensions, which is a very long-term approach to investing. Consolidating could save you on fees charged by different providers and the personal admin involved in managing so many pots of money. Do some research and understand what works for you. Find the best service/product and get investing – it’s all to look after future you!
Elise: No matter how little you invest each week, it can all add up! Even on my part time wage, I don’t really notice the money going out of my bank account each week and have managed to save much more than if I’d try to save using conventional methods.
Remember, as with all investing there is risk. The value of your investments can go down as well as up, and you may get back less than you invest.