Women and investing: Closing the gender gap
Investing helps us grow our savings, build wealth, and support projects we believe in. But the gender wage gap and other barriers often put women at an investing disadvantage compared to their male counterparts. To better understand their motivations and obstacles when it comes to investing, N26 surveyed over 16,000 women and men across five European markets. Here’s some of what they learned.
Women invest 29% less than their male counterparts—but nearly 2 of 3 want to invest more in 2022
Here are some key insights from their survey data:
European women invest an average of €857.52 of their monthly income, with the majority investing €100–€499 per month. Austrian women appear to invest the most, averaging €999.37 per month.
European women invest 29% less of their monthly income on average than European men, who invest an average of €1,184.49 per month.
70% of women investors say they want to increase their investments over the next year. This is particularly true among Italian and German women, who report that they hope to increase their investments this year to an average of €1,735.82 and €1,438.97, respectively.
Women prioritize long-term security over short-term gains
In terms of their key motivations for investing, women seem to favour long-term stability over risker short-term investments. 43% of surveyed women rank financial security and long-term wealth as their top priorities. Conversely, just 23% say that growing their money quickly is a primary objective.
Challenges remain for women investors
The survey data shows that there is no shortage of challenges for women, with a lack of money noted as the biggest obstacle among investors (45%). An even higher percentage of non-investors (54%) also cite a lack of money as the most common issue preventing them from investing. This may indicate larger, systemic challenges facing women today, such as pay disparities or the financial burden of caring for young children.
Empowering women to invest
Despite progress in recent decades, 60% of the women they spoke to believe that men still dominate investing. So, what might motivate women to invest more? The data suggests several approaches that may help empower women to invest:
Talking openly about investing. Open conversations can help women feel more confident about investing, whether they’re currently investors or looking to invest in the future.
Expanding access to information and resources. Promoting access to educational resources—especially those designed with women in mind—could help address unique challenges that would level the playing field.
Recognising and addressing gender inequities. The pandemic only heightened some of the financial burdens faced by women, who statistically bear the brunt of childcare and domestic activities. Addressing these burdens and continuing to shrink the gender pay gap may also lead more women to invest with confidence.
To read the results in full click here.