Happy International Women’s Day!
Any discussion about gender is thought provoking. 😊
A Forbes article says so because women usually take the slow and steady approach to investing rather than taking too much risk and hoping to get rich quickly. It does makes sense from this point of view. Let’s play the long game and use time itself to generate value. Keep investing regularly and take advantage of the dollar cost averaging without timing the market but rather increase the time in the market.
However, women are usually less confident than men on personal finance. These two characteristics above seem related. Confidence is only a self-perception. Actually, both genders perform at similar level at personal finance tests.
There is risk in lack of confidence though especially when they do not have sufficient knowledge. Some are scared of investing by just keeping money in saving accounts that usually do not beat inflation. The asset is actually losing value year after year, but they do not realize that until it is too late.
Women generally live longer. It is even more important not to outlive our money. Financial security is foundational to our overall well-beings. Let’s continue to learn financial literacy and enhance our knowledge and skills in managing our money.