By Laurel Kutler, CFP®
While American society has made some progress in striving for equality, there remains a gender gap in knowledge when it comes to women in finance. Even though we’re decades removed from certain cultural influences and stereotypes that limited their progress, closing that gap remains a challenge—one that everyone needs to take on.
Fortunately, times are changing. According to Fidelity, two-thirds of American women have active investments outside of their retirement plans. They’re also beginning to invest at a younger age, following a more general trend. On top of that, women in finance tend to earn better returns than their male counterparts by as much as 1% more.
Still, the educational disparity continues, even as prospects for women in finance are stronger than ever. What forces remain to be neutralized? How can women in finance—and those on their side—empower themselves to seek financial education and independence?
Challenging Institutional Stereotypes
Despite some significant strides in recent decades, women still face an investment marketplace that favors men. One of the biggest reasons for this bias is the continuing pay gap that women contend with; as recently as 2022, American women made only 82 cents for each dollar men made.
This kind of imbalance has strapped women’s investment sources simply because they don’t have access to the full capital that men have. It also implies a bigger aversion to risk among women in finance. That’s not a bad thing in itself, but it can hinder women from taking part in more risky but potentially more profitable investments.
Although women have overcome stereotypes and can undoubtedly continue to do so in future years, those assumed roles still play a factor in the gender gap. Outdated notions about women’s dependence on men, lack of financial knowledge and resources, and other assumptions don’t just restrict women’s choices—they hold back all of society.
Women in finance face unique challenges in engaging with the investment landscape, from dismantling these assumptions to balancing work and family responsibilities. Working to overcome these gender-specific obstacles in investing is key to women establishing themselves as competent investors.
Building Confidence in Women in Finance
For many women, there is a fear surrounding investing and a lack of self-confidence in their financial decisions. The most direct answer to this apprehension is to get actively involved with financial planning—and there are many resources for women to attain that goal.
The first step is getting more educated about the financial marketplace. This education can take the form of workshops, books, online courses, and other ways to beef up financial literacy.
From there, women can follow the same general route most investors take when setting up their portfolios. This starts with setting attainable financial goals for their investments. It can continue with structuring an investment budget, building an emergency fund, diversifying your holdings, and staying on top of movements in the investment market.
Long-Term Planning for Women in Finance
Another way women can get more engaged with finances is to consider long-term planning, such as for retirement and navigating life transitions.
Retirement planning is just as crucial for women as any other member of society. They have access to tools and strategies that reinforce their financial means in retirement. On the way to that place, they also encounter life changes—having children, buying a home or a car, changing careers, and so forth—that impact how they save and spend for necessary expenses.
Creating a Plan for Women in Finance
The road to financial independence welcomes all who seek financial stability. Women in finance should feel enabled to use the same tools that help everyone establish short- and long-term investment goals, reasonable budgeting, and strategies for growing wealth through savings and smart investments. This is where the knowledgeable team at ABLE Financial Group comes in, serving women in Scottsdale, AZ, and beyond.
We serve clients from all walks of life, and we’d love the opportunity to hear your story and learn what you’re hoping to achieve in the future. To learn more about our team and the ways we can help guide you, call 480.258.6108 or email adam@ablefinancialgroup.com today.
About Laurel
Laurel Kutler is a Financial Advisor at ABLE Financial Group, a financial services practice that focuses on transition planning and simplifying the complexities of their clients’ wealth. Originally from a small town in North Carolina, Laurel is a graduate of the University of North Carolina at Charlotte, where she earned a degree in Communications with a focus in Public Relations. After earning her degree, Laurel went on to start her career as a Financial Advisor with Edward Jones. Laurel holds the Series 7 and Series 66 securities registrations, as well as an Arizona Life Insurance License and is a CERTIFIED FINANCIAL PLANNER™ Professional. She works closely with 401(k) plans and their participants, as well as divorcees and widows.
Laurel currently lives in Scottsdale and enjoys hiking, hosting dinner parties for friends, and traveling whenever possible. Laurel volunteers as a “big sister” for Big Brothers Big Sisters of Central Arizona.
