We all want to feel secure in our future and confident that we’re making the right financial decisions to help us achieve that security. Unfortunately, this isn’t the reality for some women, with research showing that women are typically less confident than men when it comes to investing and indeed finances in general. So, what’s the best way for women to increase their confidence and take charge of their financial situation?
Women have some inherent challenges when it comes to their financial situation, which make it even more important for them to feel empowered to make smart investment and financial decisions:
There's a significant wealth gap between men and women, caused by issues such as the gender pay gap – in June 2022, Statistics New Zealand measured the gender pay gap in New Zealand as 9.2%. Women also tend to spend more time out of the workforce caring for family. Our saving and investing are impacted by these things, meaning it’s important for us to take control of our finances early on.
Women live longer. By age 85, women outnumber men two to one. Also, women on average outlive men by five years, so those in heterosexual relationships will likely find themselves inheriting and controlling more assets if their husbands pass away.
It’s important that all women feel comfortable talking about money and gain confidence in their ability to make investment and wealth management decisions. When I was faced with being the sole source of income for my family, I realised I needed to educate myself on financial planning and investments. I wanted to be sure that I was making the right decisions with my money, and that I would have enough saved up for retirement and other long-term goals. Most importantly, I wanted to ensure a secure future for myself and my family.
3 steps to build financial confidence
Step 1: Always keep learning
Becoming financially literate is an essential part of life. With the right knowledge and tools, you can make informed decisions about your money and investments.
Fortunately, there are many resources available offering plenty of ways to learn about personal finance. If you enjoy podcasts, The One Up Project, Girls that invest, or Cooking the Books with Frances Cook are great places to start. You can also check out our Financial Wellbeing for women webinar where we busted some investment jargon and debunked some common investing myths.
You could even take advantage of a free financial education course like the NZ Certificate in Personal Financial Capability from Te Wānanga o Aotearoa, or visit the Sorted website for some great articles and tools to help you start planning your future.
By taking advantage of resources like these, you can gain a better understanding of how money works and how to make it work for you. With the right knowledge, you’ll be on your way to becoming more financially confident and securing your financial future.
Step 2: Talk more about money
Money conversations can be uncomfortable and even intimidating. But having these conversations is an important step towards achieving your life goals and taking control of your financial future.
Start by having open conversations about money with your family, friends, or a professional financial advisor. You can start small by talking about your daily spending, your debts, or discussing how to set up an emergency fund to deal with any unexpected costs. Once you gain confidence you can work your way up to bigger discussions like your future financial goals, and your retirement plan.
Having these honest conservations about money can help you gain a better understanding of your current financial situation and develop strategies for long-term success.
Step 3: Work with a trusted adviser
Making financial decisions on your own can sometimes feel overwhelming. That’s why it helps to have a trusted adviser by your side who can help you make the right decisions. Working with an adviser helps you gain a better understanding of which options are available to you and empowers you to take control of your finances.
A trusted adviser will not only support you in making financial decisions, but also work with you to understand your current situation and your goals and provide tailored advice to help you achieve them.
Start building your financial confidence today for a brighter and more secure future!
Money and finances can seem complex and daunting, however by educating yourself and partnering with a trusted adviser, you can make confident and informed decisions that are best suited to your unique financial situation.
At Fisher Funds, we have a team of friendly and knowledgeable advisers. They can walk you through the different types of investments we offer, explain risk management strategies and work with you to create a diversified investment portfolio. They will be there to answer any questions or concerns that you might have, ensuring that you’re making the best possible decisions for yourself and your family.
