Women and Money: Where We Stand Today
Women's financial behavior is undergoing changes, but the numbers still show room for improvement. Global data suggests that, on average, women earn less and save less than men, while investing and building long-term wealth less frequently. Nevertheless, wealth in women's hands is growing rapidly. According to a McKinsey analysis, the share of assets controlled by women in Europe rose from 32% to 38% between 2018 and 2023.
Despite positive trends, many women have not yet fully taken the helm of their finances. Until recently, almost three-quarters of women were afraid to invest because they did not consider themselves knowledgeable enough. In other words, most women still lack sufficient certainty when handling money.
Why Does It Matter?
Beyond personal well-being, there are practical consequences. Up to 80% of women will eventually be financially solely responsible for themselves at some stage in life - whether due to old age, widowhood, or divorce. It is therefore no surprise that in surveys, 98% of divorced or widowed women advise others to get involved in family finances actively and early. Thus, women's financial self-assurance is not a luxury, but a necessity.
Why Many of Us Hesitate to Make Financial Decisions
The reasons why women often hesitate to be confident in finance are complex, ranging from societal influences to individual mindsets. One factor is established family and societal models. Many of us grew up in an environment where the man decided on money - father paid the bills, husband invested the savings.
Another factor is confidence itself and the tendency to underestimate oneself. Professional studies have revealed an interesting paradox: while women score slightly lower than men in financial literacy tests, a significant part of this gap is caused not by ignorance, but by insecurity. Professor Annamaria Lusardi found that up to one-third of the financial literacy gap between men and women can be explained by women's lower self-confidence. In other words, "women know more than they think."
We often prefer to answer "I don't know," even if we suspect the correct answer. We underestimate our own abilities and, conversely, feel that to make a good financial decision, we must know absolutely everything. According to a UBS survey, only 55% of women feel confident in long-term financial planning, compared to 79% of men.
How to Start: Tips for Greater Financial Confidence
Building financial confidence is a process consisting of small steps and patience.
Educate yourself in the world of finance: Knowledge is the foundation of self-trust. The more you understand the terms, the less the numbers will scare you.
Start small, but start: The best way to overcome fear is action. Try setting aside a small amount each month and deciding what to do with it. Seeing progress is important. When you see that you have saved or appreciated some money in a year, you will find that even small steps make sense, and you will believe in yourself more.
Talk about money without shame: Many women have a deep-seated belief that it is not polite to talk about finances or that they would seem "stupid." The opposite is true. Asking questions and discussing money is the key to greater knowledge. Don't be afraid to ask a more experienced colleague how she invests, or talk to your partner about the family budget. Open communication about finances breaks taboos and increases your confidence to decide.
Set a goal and a plan to achieve it: It is easier to believe in yourself when you know where you are going. Sit down and think about what financial goal would make you happy. For example, saving for your own home or starting a small business. And once you have a goal, break it down into smaller steps and tick them off one by one. Each milestone achieved will charge you with another dose of confidence.
Confident Women, Stronger Society
Increasing women's financial confidence is not only important for individuals but benefits us all. When women gain control over their finances, entire families and communities prosper, households are more secure, and children have role models for the future.
In conclusion, keep in mind that financial confidence is not born overnight. Each of us makes a mistake occasionally or encounters something we don't understand - and that is okay. The important thing is not to give up and to learn from every experience. If you feel you are alone in your goals, remember how many women have walked this path before you and that their financial security today is worth the effort.
