Two different conversations
Part of the problem appears to be that when it comes to investing, and money in general, there are two quite different conversations taking place. The importance of better money management is nothing new to women, many of whom are the key decision makers with regards to household finances.
But the money management narrative often directed at women is that they are risk averse, lacking in confidence or simply don’t have the know-how.
Women are systemically sold the idea of not being capable. A linguistic study of financial adverts and articles, aimed at men and women, showed that 70% of the content presented money was a masculine ideal. Meanwhile 65% of the articles defined women as excessive spenders and 90% told women to cut back on their spending.
These are messages that don’t resonate with many women. The WealthiHer Report shows that wealthy women consider themselves risk aware, not risk adverse.
It therefore shouldn’t be a surprise to anyone to find that 86% of non-investing women don’t think that people like them are investing. They are told over and again, both directly and subliminally, that investing is a man’s game and they should be cutting back and saving their pennies.
The fact that they are well on their way to having many more pennies than men, makes them an incredibly important pool of potential clients for advisers. In fact, women are the world’s largest emerging market , with an overall value of £350 billion. Working out how to bridge these two conversations is one of the keys to unlocking that potential for advisers.
What women want
The final piece of the puzzle is understanding exactly what it is that women want. Because they don’t see money in the same way as men. The meaning of wealth, and the accumulation of it, plays a more important role for women than simply having it.
For the majority of women (59%) money is about family, security and comfort. Another quarter (23%) feel that wealth symbolises freedom and independence.
Those feelings go hand-in-hand with the notion that money should be more than transactional. Women want a more meaningful relationship with it. As such, 67% of women invested already wanted to see their investments ‘do good’ . ESG (environmental, social and governance) and impact investing are on the rise – 71% of investors are interested in the topic – and that trend is likely to continue as mass wealth transfers to women in the next five years.
Many advisers are already au fait with the world of ESG investing. Showing an understanding of these motivations can help to unlock the relationship that will result in longterm client rapport.
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