Everything you should know about women and investing, why investing for women is different, and the money moves to make now to own your financial future.
Women have more financial influence now than ever,
despite factors disproportionately holding us back. The fact is: when women control their own money, they control their own lives. So, in our opinion, to fully own their financial futures, they need to grow their wealth. And the best way to do that may be to invest.
While the financial industry â and the world â hasn’t historically supported women and investing, research shows when women take the chance, weâve come out on top. Women are now widely reported to be better at investing than men, yet many of them just donât.
Itâs important to know the reasons women arenât investing as much so we can address them, demand change, and ultimately join those who are already disrupting the cycle. The result â more money in the hands of all women (yourself included) â would mean massive economic, societal, and cultural improvements. Whoâs really ready to live in that world?
Hereâs just about everything you need to know about women and investing: The myths vs the facts, why investing for women is just different, and the ways each of us could help to make investing fairer, more accessible, and better for all women â starting with the money moves you can make now, whether youâve invested yet or not.
Just 36% of women say they're investing in general, (vs. 63% of men), <em>despite</em> data that shows <strong>women outperform their male counterparts</strong> on average by 0.4%
Women and investing myths
Myth 1: âWomen donât care about investing.â
Money is womenâs #1 source of stress. A 2021 Ellevest Financial Wellness Survey backs this up: 49% of women said their mental and emotional health has suffered from financial stress, and 40% said their physical health has suffered. Itâs clear women care. A lot.
Whatâs held women back:
Women arenât encouraged to invest. Instead of being inspired to build wealth, theyâre told their priorities should lie elsewhere from a young age. So, women tend to keep more money in cash, and the cost of saving vs investing could mean they miss out on hundreds of thousands of dollars, if not millions, over their lives.
Women are shamed and blamed for their lack of investments. Nowhere do they get the message that âhaving less money than men is not your fault.â So weâll say it: Itâs literally not your fault. And weâll gesture wildly toward: the pink tax, the pay gap, the debt gap, the domestic work (and emotional labor) gap, and the investing gap.
Women donât talk about investing. Itâs the unfortunate result of being relentlessly money-shamed. Instead of talking about money, women would rather discuss almost anything else. Itâs time to push past this taboo â if they donât talk about it, they donât realize how deeply this affects them, they demand less, they pursue less.
Myth 2: âWomen arenât successful investors.â
Women are managing more wealth than ever before â about $10 trillion, or a third of total US household financial assets. And their financial influence is about to surge. Over the next decade, American women are expected to control much of the $30 trillion in financial assets that baby boomers have. Thatâs a seismic wealth transfer to an underserved and underrepresented population.
Whatâs held women back:Â
Women are told they’re bad with money. They hear it loud and clear from culture: Women are âexcessive spendersâ who âthrow away moneyâ on buying lattes, while men are told to spend to increase their power. Itâs an infuriating tactic that shifts the attention for the underlying systemic money challenges women face to women themselves
Theyâre told theyâre too emotional. While women are still financially less confident than men, data shows that the presence of women in leadership positions at banks and other financial institutions appears to be associated with greater financial resilience and stability.
Theyâre told theyâre too risk-averse. But women are actually risk-aware. Big difference. Itâs not that theyâre afraid to dive into the pool. They just, understandably, want to know how deep the pool is first. This tendency to slow down and think before acting makes women more successful investors than men.
Myth 3: âWomen have to be in a perfect position to invest.â
Not to get all âthey live in a world where âŚâ but society actively discourages women from building wealth with toxic messaging and money lies. And maybe all that paralyzed you, or it pushed you toward perfectionism and imposter syndrome. But the next time that little voice tries to tell you you donât know enough to take the next step with your money, tell it to beat it.
Whatâs held women back:
Women âhave to know everythingâ to start investing. Hereâs the thing: Men donât start knowing any more about investing than women do â they just dive in anyway. Right now, at this moment, you already know all the things you really need to know, whether thatâs âI need to fix my concentrated stock positionâ or âI donât know the best time to contribute to my IRA, I should ask a financial pro for help.â The rest you can learn as you go. Plus, just because you havenât done something before doesnât mean youâre bad at it.
Women âhave to have a right amountâ to start investing. Right amount doesnât refer to an actual dollar amount. But the right amount can refer to the number you need to smoothly navigate emergencies and short-term goals â âvery valid reasons as to why youâd save money vs invest it. Once youâve reached that comfortable savings place, you should consider investing, ASAP.
Women âwaited too longâ and canât start investing now. Asking for a friend: Is now a good time to invest, even if I passed [insert life milestone here]? The answer couldnât be a more emphatic YES from us. Especially, since women live about five years longer than men. Every day you wait to invest could cost Future You. Donât waste any more time trying to calculate the potential earnings lost, invest instead!
Women and investing facts
Findings from the 2022 Ellevest Financial Wellness Survey show where women put their money:
-
Fewer women invest than men.
- Just 36% of women say theyâre investing in general, (vs 63% of men), despite data that shows women outperform their male counterparts on average by 0.4% annually. Financial priorities might be another reason less women invest: Their #1, âsupporting family,â is a more immediate goal than menâs top-ranked priority, âretirement savings.â
Women stress more about money than men.
- A whopping 43% of women actively worry about money at least once a day, and 59% do so at least once a week. In both instances, theyâre out-worrying men (36% and 55%, respectively). At the same time, women are realizing the toll this takes: Women are now three times as likely to see financial wellness as critical â now only second to mental wellness.
Fewer women have a financial advisor in their corner.
- Yet research shows that people with a financial plan have 3x the net worth of those who donât. Nearly 70% of women say theyâve never met with a financial advisor, compared to just 41% of men â not surprising considering how overwhelmingly male the industry is.
-
Women are less reactive investors.
- 75% of women who are actively investing for retirement say theyâve continued their contributions despite market volatility, compared to two-thirds of men. This tracks with findings from UC Berkeley that show men are âoverconfidentâ investors, which means theyâll trade more and perform worse than women.
Women invest for impact.
- A third of Gen Z women (33%) and more than a quarter of millennial women (28%) say impact investing is important to them. The more wealth women build, the better for all: ââWomen invest 90% of their wealth back into their communities, and give a greater percentage of their wealth to non-profits compared to men.
How investing for women works today
A big shift is benefiting women in investing today ⌠and itâs not coming from society, culture, or the economy (despite all the âleaning in.â) The shift is coming from THE women. More specifically, their money mindset when it comes to investing.
More women understand that money is not just money.
Itâs far more: It’s their future, it’s their dreams, it’s their autonomy, it’s their hopes for their family, itâs their catalyst for making societal impact. In fact, money is power.
More women reject the idea that they need to be financially âempowered.âÂ
The dictionary definition of “empower” is âto be given power.â But women donât need to be given power: They need to choose to use the power they have, which is often way more than they think.
More women are on top of their money
Taking a more active role with finances in relationships is now a non-negotiable. It makes couples happier, leaves less room for negative surprises down the line, and gives them the freedom to leave if they need to. Because â and theyâll never stop repeating themselves â when you control your money, you control your life.
How women can invest in themselves
If youâre new to this: We recommend starting small, and starting now. Ask yourself where it’d feel good to get set, then go.
Maybe you want a better idea of how investing works, why compounding is something you needed in your life yesterday, or what you need to learn about stocks to start investing. Or you might want to set or update your financial goals first. It could be that figuring out how to split expenses with your partner or that a habit of overspending is *the thing* preventing you from making bigger money moves. Tackle whatever it is.
If youâre ready to invest: Do it! Yesterday was always the best time to invest, so make your move.
No matter what, take advantage of your employerâs 401(k) match if itâs available to you. Then, use an investing platform to build a diversified, personalized portfolio at your preferred risk level â it only takes about 15 minutes to put your money to work for you. Want a true 1:1 approach? Connect with a financial planner.
If youâre already investing: Keep it up. The more boring, the more on autopilot, the better.
This is the management stage: invest consistently, check in annually with your financial advisor, and plan for the money moves you should make at every age.
How women can invest in other women
Be aware of your impact. Every time you make a decision about how to invest (and spend, and save) your money, you essentially give companies and industries the ability to keep doing what theyâre doing â for better or worse. If women donât keep tabs on what they’re truly investing in, they risk lending support to causes that conflict with their own values.
For example, businesses that perpetuate existing inequalities, or ones that rely on exploitative products and services (like tobacco or predatory loans), or businesses that produce environmental pollutants, or ones with poor working conditions ⌠unfortunately, the list goes on. Rule out your role in all that with a portfolio health check.
To do: Research the assets you own (or might own) to be sure youâre using your financial power for good.
Know your values. Women would rather invest in companies that are good for people and the planet. When youâre clear on the principles you prioritize above all others, you can use them to make your investment decisions feel easier and more satisfying.
Invest intentionally. Financial returns and social returns donât have to be mutually exclusive. We call the practice of aligning your investment portfolio with your values intentional investing. This act â excuse us, this radical act â creates the opportunity to potentially earn a competitive return and have a positive impact with your investments.
Today, itâs easier and less expensive than itâs ever been to invest for impact. Many investing firms offer the option to screen out âbadâ factors, like investments that score poorly on ESG criteria. Other firms (like us) take it even further by allowing you to actively direct some or all of your money into âgoodâ things, better known as impact investing.
To do: Ask your financial advisor how you can invest for impact.
Successful women in investing
Some names to know, from then and now:
- Muriel Siebertâ was the first woman to buy a seat on the New York Stock Exchange. After that milestone purchase in 1967, she went on to start her own brokerage firm, and later donated millions to help other women get their start in business.
- Mellody Hobson started as an intern at Ariel Investments, the first Black-owned mutual fund and investment management firm in the US. Now, she’s Co-CEO and President. She was named to Time Magazineâs list of the 100 most influential people in the world in 2015, and today, she serves as independent chair of Starbucks board of directors.
- Arlan Hamilton founded the VC fund Backstage Capital in 2015 with virtually no investing experience â and while being unhoused. Now, the firm has invested in over 200 companies led by founders who identify as women, people of color, and/or LGBTQ. In 2018, she co-founded Backstage Studio, which launched accelerator programs for founders in Detroit, LA, Philadelphia, and London.
The most popular ways women invest
Want to do good with your dollars? Try value-based investing.
Weâve shared how women especially get investing according to their values. And our insistence on impact investing is disrupting the industry: itâs been reported that $70 billion was invested into ESG funds in 2021 â 14 times more than the amount just three years earlier. Whatâs equally important is that ESG fund investors tend to not sacrifice performance for their values.
Want to target specific life goals? Try goal-based investing.
Women are passing on traditional performance-based investment objectives for progress-based ones that are personalized to target your investing goal â your dream retirement, buying a house, building up a kid fund, starting a business, making a big splurge. Because goal-based investing allows you to see your financial progress in real-time, itâs more likely youâll stick to that investing goal, reach (or surpass) it, and experience the result IRL.
How to start investing for your financial future
While thereâs more opportunity than ever for women in investing, weâre still living in a bleak financial landscape. In 2023, womenâs financial health has shown a slight improvement âŚÂ from rock bottom. While women push for change, women have to care for their own financial wellness.
Practicing financial wellness is the most accessible way to start investing in your financial future. When you know what you have, know where youâre headed (and take steps to get there), and feel good about it, we believe youâre closer to controlling your money â and your life â on your own terms. Hereâs how to start:
1. Establish your financial foundation
2. Create your financial plan
3. Update your money mindset
Women and investing: Whatâs next?
We packed a lot into this article on women and investing, and for good reason. But if thereâs only one thing you take away, make it this: youâre ready to prioritize your financial future.
Following through on any of our tips for women in investing will take effort. But it’ll soon make dealing with money feel less overwhelming, and potentially put you in a position to build wealth. Putting away money for financial goals is the #1 thing that makes women feel in charge of their future. Growing that money through investing can cement your spot at the top.
Findings from the 2022 Ellevest Financial Wellness Survey show where women put their money:
-
Fewer women invest than men.
- Just 36% of women say theyâre investing in general, (vs 63% of men), despite data that shows women outperform their male counterparts on average by 0.4% annually. Financial priorities might be another reason less women invest: Their #1, âsupporting family,â is a more immediate goal than menâs top-ranked priority, âretirement savings.â
- Just 36% of women say theyâre investing in general, (vs 63% of men), despite data that shows women outperform their male counterparts on average by 0.4% annually. Financial priorities might be another reason less women invest: Their #1, âsupporting family,â is a more immediate goal than menâs top-ranked priority, âretirement savings.â
Women stress more about money than men.
- A whopping 43% of women actively worry about money at least once a day, and 59% do so at least once a week. In both instances, theyâre out-worrying men (36% and 55%, respectively). At the same time, women are realizing the toll this takes: Women are now three times as likely to see financial wellness as critical â now only second to mental wellness.
Fewer women have a financial advisor in their corner.
- Yet research shows that people with a financial plan have 3x the net worth of those who donât. Nearly 70% of women say theyâve never met with a financial advisor, compared to just 41% of men â not surprising considering how overwhelmingly male the industry is.
-
Women are less reactive investors.
- 75% of women who are actively investing for retirement say theyâve continued their contributions despite market volatility, compared to two-thirds of men. This tracks with findings from UC Berkeley that show men are âoverconfidentâ investors, which means theyâll trade more and perform worse than women.
- 75% of women who are actively investing for retirement say theyâve continued their contributions despite market volatility, compared to two-thirds of men. This tracks with findings from UC Berkeley that show men are âoverconfidentâ investors, which means theyâll trade more and perform worse than women.
Women invest for impact.
- A third of Gen Z women (33%) and more than a quarter of millennial women (28%) say impact investing is important to them. The more wealth women build, the better for all: ââWomen invest 90% of their wealth back into their communities, and give a greater percentage of their wealth to non-profits compared to men.
How investing for women works today
A big shift is benefiting women in investing today ⌠and itâs not coming from society, culture, or the economy (despite all the âleaning in.â) The shift is coming from THE women. More specifically, their money mindset when it comes to investing.
More women understand that money is not just money.
Itâs far more: It’s their future, it’s their dreams, it’s their autonomy, it’s their hopes for their family, itâs their catalyst for making societal impact. In fact, money is power.
More women reject the idea that they need to be financially âempowered.âÂ
The dictionary definition of “empower” is âto be given power.â But women donât need to be given power: They need to choose to use the power they have, which is often way more than they think.
More women are on top of their money
Taking a more active role with finances in relationships is now a non-negotiable. It makes couples happier, leaves less room for negative surprises down the line, and gives them the freedom to leave if they need to. Because â and theyâll never stop repeating themselves â when you control your money, you control your life.
How women can invest in themselves
If youâre new to this: We recommend starting small, and starting now. Ask yourself where it’d feel good to get set, then go.
Maybe you want a better idea of how investing works, why compounding is something you needed in your life yesterday, or what you need to learn about stocks to start investing. Or you might want to set or update your financial goals first. It could be that figuring out how to split expenses with your partner or that a habit of overspending is *the thing* preventing you from making bigger money moves. Tackle whatever it is.
If youâre ready to invest: Do it! Yesterday was always the best time to invest, so make your move.
No matter what, take advantage of your employerâs 401(k) match if itâs available to you. Then, use an investing platform to build a diversified, personalized portfolio at your preferred risk level â it only takes about 15 minutes to put your money to work for you. Want a true 1:1 approach? Connect with a financial planner.
If youâre already investing: Keep it up. The more boring, the more on autopilot, the better.
This is the management stage: invest consistently, check in annually with your financial advisor, and plan for the money moves you should make at every age.
How women can invest in other women
Be aware of your impact. Every time you make a decision about how to invest (and spend, and save) your money, you essentially give companies and industries the ability to keep doing what theyâre doing â for better or worse. If women donât keep tabs on what they’re truly investing in, they risk lending support to causes that conflict with their own values.
For example, businesses that perpetuate existing inequalities, or ones that rely on exploitative products and services (like tobacco or predatory loans), or businesses that produce environmental pollutants, or ones with poor working conditions ⌠unfortunately, the list goes on. Rule out your role in all that with a portfolio health check.
To do: Research the assets you own (or might own) to be sure youâre using your financial power for good.
Know your values. Women would rather invest in companies that are good for people and the planet. When youâre clear on the principles you prioritize above all others, you can use them to make your investment decisions feel easier and more satisfying.
Invest intentionally. Financial returns and social returns donât have to be mutually exclusive. We call the practice of aligning your investment portfolio with your values intentional investing. This act â excuse us, this radical act â creates the opportunity to potentially earn a competitive return and have a positive impact with your investments.
Today, itâs easier and less expensive than itâs ever been to invest for impact. Many investing firms offer the option to screen out âbadâ factors, like investments that score poorly on ESG criteria. Other firms (like us) take it even further by allowing you to actively direct some or all of your money into âgoodâ things, better known as impact investing.
To do: Ask your financial advisor how you can invest for impact.
Successful women in investing
Some names to know, from then and now:
- Muriel Siebertâ was the first woman to buy a seat on the New York Stock Exchange. After that milestone purchase in 1967, she went on to start her own brokerage firm, and later donated millions to help other women get their start in business.
- Mellody Hobson started as an intern at Ariel Investments, the first Black-owned mutual fund and investment management firm in the US. Now, she’s Co-CEO and President. She was named to Time Magazineâs list of the 100 most influential people in the world in 2015, and today, she serves as independent chair of Starbucks board of directors.
- Arlan Hamilton founded the VC fund Backstage Capital in 2015 with virtually no investing experience â and while being unhoused. Now, the firm has invested in over 200 companies led by founders who identify as women, people of color, and/or LGBTQ. In 2018, she co-founded Backstage Studio, which launched accelerator programs for founders in Detroit, LA, Philadelphia, and London.
The most popular ways women invest
Want to do good with your dollars? Try value-based investing.
Weâve shared how women especially get investing according to their values. And our insistence on impact investing is disrupting the industry: itâs been reported that $70 billion was invested into ESG funds in 2021 â 14 times more than the amount just three years earlier. Whatâs equally important is that ESG fund investors tend to not sacrifice performance for their values.
Want to target specific life goals? Try goal-based investing.
Women are passing on traditional performance-based investment objectives for progress-based ones that are personalized to target your investing goal â your dream retirement, buying a house, building up a kid fund, starting a business, making a big splurge. Because goal-based investing allows you to see your financial progress in real-time, itâs more likely youâll stick to that investing goal, reach (or surpass) it, and experience the result IRL.
How to start investing for your financial future
While thereâs more opportunity than ever for women in investing, weâre still living in a bleak financial landscape. In 2023, womenâs financial health has shown a slight improvement âŚÂ from rock bottom. While women push for change, women have to care for their own financial wellness.
Practicing financial wellness is the most accessible way to start investing in your financial future. When you know what you have, know where youâre headed (and take steps to get there), and feel good about it, we believe youâre closer to controlling your money â and your life â on your own terms. Hereâs how to start:
1. Establish your financial foundation
2. Create your financial plan
3. Update your money mindset
Women and investing: Whatâs next?
We packed a lot into this article on women and investing, and for good reason. But if thereâs only one thing you take away, make it this: youâre ready to prioritize your financial future.
Following through on any of our tips for women in investing will take effort. But it’ll soon make dealing with money feel less overwhelming, and potentially put you in a position to build wealth. Putting away money for financial goals is the #1 thing that makes women feel in charge of their future. Growing that money through investing can cement your spot at the top.
Re-Posted from Ellevest June 23,2025 | Click Here for article
