How would you rate your own confidence and abilities when it comes to investing?
It’s a bit of a stereotype to say that women are better at talking about most work or life related issues than men, but one area we tend not to be good at talking about is money — especially when it comes to investing it.
Dr Jordan Peterson, a clinical psychologist who, as part of his job, has studied gender differences over a long career, claims that women have a tendency to be more interested in people, whereas men are more interested in things. That might go some way to suggesting why men might be naturally more open about talking about money than women, and part of that might have something to do with the issues women face financially these days, including the gender pay gap.
Whether or not you agree with Dr Peterson, there does appear to be a difference between the way in which men and women approach investing, and their attitudes towards it. It’s normatively masculine to talk about finances, investing, the stock market, portfolios and the like. As a result, in Australia, men make up 82% of the total number of investors, according to the Australian Investors Association (AIA).
The good news, though, is that more women now are becoming interested in investing than ever before. The AIA also found recently the proportion of women investing for the first time has increased to 45%, compared to just 31% only a decade ago.
That said, there’s a long way to go before women catch up to men. If you’re a woman looking to invest for the first time, knowledge is power. But where to get it? Here are my three tips:
- Join as many women-only investment groups as you can
Like most things in life, the more we talk about a subject, the more we learn about it. Learning from other people in the same boat as you is hugely helpful, and so I’d suggest looking at LinkedIn groups and local Meetup’s that organise events for women who are interested in investing.
~Novel Serialisation: Heavens Fire~
For example, if you live in Sydney, there’s the Women’s Investing & Finance Club, or if you live in Melbourne, there’s Women and Shares. If you’re in Brisbane, there’s the Women in Blockchain Australia.
These groups hold in-person events from time to time, which can be an incredibly powerful way to network with like-minded female investors and to learn from them.
- Take a course in investment that’s designed specifically for women
In Australia, we’re lucky to have a number of courses designed specifically for women on financial literacy and confidence building.
For example, wInvest is a free 16-week financial literacy program run by the Australian Investors Association, which is “aimed at empowering women to start their investment journey and improve their financial future.” There’s also The Money Project, run by Women Talking Finance, which claims to help you “create your own tailored financial plan in just three months”.
The key is to research as many courses as you can and find the right one for you and your level of investment knowledge and confidence.
- Learn from influential female investors
If you’re on social media or enjoy reading and want to brush up on your financial literacy, there are loads of women you can follow to gain inspiration and learn from.
On the social media side, Jun Bei Liu is considered by many to be one of the most influential investors in Australia. She’s a long/short Australian equities portfolio manager who manages more than $1 billion on behalf of investors, and during her 20 years in the industry, she has made a major name for herself for being a stellar stock picker.
On the publisher side, Nicole Pedersen-McKinnon is dubbed as “Australia’s first lady of personal finance”. Over a career spanning more than 15 years, she has written for The Sydney Morning Herald, The Age, Brisbane Times and WA Today.
These three tips will hopefully help you to build your confidence when it comes to investing. Knowledge is power, so the more we talk about money, the more we learn, and the more powerful we become.
By Angie Liu, product owner, Block Earner
About the author
Angie Liu is a product owner at Australian blockchain-powered fintech startup Block Earner. As part of the product team Angie plays a pivotal role inbuilding the next generation of finance, powered by blockchain technology. She previously held various roles at Amadeus, a global travel technology company, most recently as product owner. She has a Masters degree in Information Technology, graduating with honours.
