Every March 8, the headlines remind us that women “should be encouraged to invest”, “they have to educate more in finance” or “need to improve their relationship with money.” But what if it were not how women have to do better?
BEST INVESTORS, LESS INVESTORS
There is a persistent myth that women invest worse than men: in general terms, they are less risky because they have less confidence in their financial decisions. However, the data tells another story.
Several studies have shown that women, when they invest, usually obtain better yields than men. The reason? They tend to be more disciplined, less impulsive and less likely to operate in excess and sell at bassists in the market.
For example, a study of Fidelity Investmentsone of the largest asset and financial services management firms in the world, which covered more than 5 million investment accounts for a decade, revealed that women achieved, on average greater annual profitability than men.
Despite this, the reality is that they invest less. Not because they do not know, but because opportunities and access are still unequal.
The investment gap
Today the salary and documented gap in economic and statistical studies of international organizations such as the OECD, the UN, the World Bank and the ILO is already widely recognized.
Specifically in Argentina, the last Statistical dossier of 8m Posted by Indec reveals that, in relation to men, Women face higher unemployment and partial employment rates, in addition to being mostly concentrated in certain areas of activity (horizontal segregation) and having less access to high hierarchy charges (vertical segregation). These inequalities are reflected in the income gap.
However, little about the “investment gap” is discussed: the difference between what men and women manage to capitalize throughout their lives simply by participating less in the financial market. In other words, if a woman earns less but, in addition, she invests less, the accumulated patrimonial difference over time is abysmal.
This is not a matter of “lack of interest”. It is the result of a system that still does not adapt to its needs and realities.
Historically, women have faced obstacles to accessing financial products, from credits to investments. For example, a study of the IDB showed that in Latin America, entrepreneurs receive lower amount loans and with stricter conditions compared to their male peers, despite having lower delinquency rates than these.
Additionally, even today the lack of designed products is evident taking into account their realities. For example, contemplating that women live longer than men and that many times their retirement savings do not reach because they have had intermittent periods of maternity work or care tasks.
Specifically, the “Quarterly Social Security Statistics Report” Published by the ANSES details that 73% of retired women have obtained their benefit through pension moratoriums because they do not comply with the 30 years of contributions, in contrast to 46% of men, largely due to labor interruptions for maternity or their responsibilities for the care of children or other family members. This reinforces the need for financial products adapted to their reality.
Less tips, more action
What are needed are no more talks from “Finance for women” on how to save better. We need financial systems designed to actively include them. We need policies that reduce entry barriers, access to investment networks, education that does not start from the idea that they “know less” and references that reflect that finance are not an exclusively masculine territory.
The financial sector also has a key role. You must stop talking to women as if they were a niche market and start recognizing them as what they are: a fundamental part of the investment ecosystem.
Financial inclusion is not only a matter of equity, but of economic growth. As more women access the financial world with adequate tools, they not only improve their individual economic well -being, but also boost the growth and stability of the economy as a whole.
So this March 8, instead of repeating that women “have to improve their finances and encourage more to invest”, let’s talk about how we can improve the system for them. Because women do not need to be better with money, they need better opportunities to grow.
Financial Advisor and Director of Finance.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
