Women & Investing: Bridging the Financial Confidence Gap

Introduction

Investing has, for a long, long time, been a man's game, but times are changing. Increasing numbers of women are opening brokerage accounts, funding their retirement portfolios, and exploring side investments. But research still indicates an investment confidence gap — not of skill, but of confidence. Women tend to wait to invest because they don't feel that they "know enough," even when research indicates they perform as well as (or better than) men over the long term.

If you’ve ever felt uncertain about making your money grow, this is for you. We’re breaking down why confidence in investing matters, the unique challenges women face, and how to start building wealth on your own terms — starting today.

The Financial Confidence Gap: What It Is and Why It Matters

The financial confidence gap is the disparity between what women are able to do with money and how much they believe they can do. A survey conducted by CNBC revealed that only 9% of women believe they are better investors than men, but, on average, their portfolios return more.

This difference matters because not investing — even for a few years — can seriously cut your wealth potential. Each year that money remains in a savings account rather than being invested, it misses out on the compounding power.

Why Women Approach Investing Differently

Research from FINRA and other institutions suggest that women invest more risk-consciously, valuing long-term stability over short-term gains. This is not a weakness — it is one of the reasons why women's portfolios last longer.

Common investing tendencies among women include:

• More research before making investment decisions.
  

• Less portfolio turnover (saving fees and taxes)
  

• Greater diversification for protection against market volatility.
  
  

Barriers Women Face in Building Wealth

While attitudes toward investing are shifting, women still face unique challenges:

1. The Gender Pay Gap

Lower life-time average earnings mean less disposable income to invest. It also affects retirement savings over a lifetime.

2. Career Breaks

Regular periods of caregiving time out of the labor force interrupt contributions to retirement accounts.

3. Financial Education Gaps

Personal finance is not routinely taught in school, and most women report feeling unprepared to make investment decisions.

Steps to Boost Investing Confidence

You don't need a finance degree or get paid in hundreds to start investing. Here’s how to bridge the gap:

1. Start with Clear Goals

Investing for retirement, home buying, or building financial independence? Specific goals give your investing direction.

2. Learn the Basics of Investing

Educate yourself on asset classes, risk tolerance, and diversification. Tools like Plently’s Investing 101 or free courses from respected institutions like Investopedia can be helpful.

3. Automate Your Investments

Set up regular transfers into your brokerage account or retirement account. Automation reduces decision fatigue.

4. Consider Low-Cost Index Funds or ETFs

They are simple to get started with, diversified, and have typically had good performance.

Closing the Wealth Gap Through Smart Investing

Taking small, yet consistent actions can truly add up in the long term. For example, if you attempt investing $500 a month at a 7% annual return over 30 years, it’s safe to assume your money will grow to over $600,000 — even if you start later than you’d like.

Confidence comes with action. The more you invest (and learn along the way), the more comfortable you’ll be with bigger moves.

Helpful Resources for Women Investors

• Ellevest – A digital investing platform designed specifically for women's goals.

• FINRA Investor Education Foundation – Free resources and tools to create financial savvy.

• Fidelity Women Talk Money – Community-driven investing wisdom.

• Women's Institute for Financial Education (WIFE.org) – Women's financial planning resources.
  
  

Your turn: What’s one investing step you’ve been putting off that you could start this week? Share it in the comments — you might inspire someone else to take action too.