Female Finance: Investments for Women: An expert explains why we don’t need ‘pink finance’.
“Dear ladies, take care of your money!” This is an important call that we see more often in one form or another on the front pages of women’s magazines, on social media, but also in classic banking commercials. Lisa Hassenzal explains why this is a good thing and how it works.
In addition to the annoying problem of the gender wage gap, that is, the fact that women in similar jobs earn less than men, women often work in the social professions or part-time. All good reasons to treat your own money with more, not less. Because this relates to more than the really important question of your retirement savings.
Handling your own money has a lot to do with personal responsibility. Strengthens self-confidence and in partnership ensures eye level. Of course, it is normal in a partnership to distribute tasks. But the question of finances, unlike the question of who prefers to cook, is simply too far-reaching and too important to be left entirely to your partner. Time and time again, studies show that women in particular cling to an unhappy relationship for financial reasons.
So the question arises as to what is stopping women from dealing with their finances – or: Is it true that women are not interested in their finances?
About the expert
Lisa Hassenzal is the founder and managing director of her family office, the first women’s family office in Germany. She has been a Certified Financial Planner, CFP, since 2015. Lisa Hassenzal is a member of Mission Female, among others.
Financing especially for women – is female funding the answer?
In recent years, the term “Women and Finance” has also gained importance. Women, a newly discovered target group, are engaged with targeted offers, commercials, and women-specific themes. On social media, influencers provide everything women need to know to take care of their finances themselves. “Women’s Finance” is the new favorite topic in many podcasts and press articles.
But what exactly is ‘female finance’, do we need it and is ‘pink finance’ actually the answer to getting women to handle their finances?
From woman to woman?
The umbrella term “Female Finance” brings together many different topics, from career advice for women to novice investors. However, the main focus is “Financial Knowledge and Investments by Women for Women”. The offer ranges from seminars and workshops, where women can discuss financial issues among themselves and ask questions without hesitation, to intensive sessions lasting several weeks, to advisory services explicitly aimed at women.
Should you advise the woman? It’s not just about a woman who needs investment tips or advice from a woman. In fact, there are also women who do not desire any explicit advice to a woman and therefore would like to be advised by a man. This is also good, the main thing is that women take care of their finances.
Instead, it’s about creating a display that a woman can use if she so desires. In some cases this is an aspect of being able to speak ‘woman to woman’. Women in particular, who are successful in their profession and often compete with the men out there, find it easier to ask questions and admit ignorance to women. Men often don’t know more about finances, but are less afraid to ask their questions.
New perspectives from the experts
What really separates women and men when it comes to finance is the basic approach. Women often have a greater need for information, desire to better understand relationships and, above all, desire to be the focus of counseling with their initial situation, goals and challenges.
In short: women are primarily concerned with their financial planning and only then specific investment products, which is often misinterpreted in many studies findings as “women don’t care about their finances because they have fewer stock accounts.” Alternatively, starting with financial planning as a starting point is a sensible approach that, studies have shown, also makes women more successful in the long run when it comes to investing. The problem is that there are very few offerings for this desire.
A recent study by the direct bank ING Germany summarizes all these findings very well:
Women invest with less share and are more widely diversified. An aspect that can be justified by a less willingness to take risks. Instead, women attach importance to a balanced, long-term investment strategy, which they then adhere to in a disciplined manner, even in challenging market stages. As a result, women achieve higher returns on average.
adapted to women
In short: Yes, we do need women’s funding because we still have a long way to go. In order to inspire more women to take charge of their own finances, specials are an important building block. The goal here is to reduce communication concerns and to tailor advice to women’s needs: more information, more space for questions, and an overall view. Then the number of women with securities accounts will increase on its own.
What we certainly don’t need is “pink funding”. This includes, for example, special product solutions for women or special offers for women, which represent communication in such a simplistic way that it is questionable from a technical point of view. Also with pleasure in combination with a lot of roses and pinks.
Because there’s still one thing to say in conclusion: Men are no better at finance than women, they often ask themselves fewer questions and run faster.
Female Mission – X-CHANGE
As one of the leading women’s networks, Mission Female aims to create platforms and highlight the needs of female managers. Under the slogan #notdoneyet, inspiring personalities with a clear stance come together at this year’s X-CHANGE in order to do more for equality together. X-CHANGE is a global leadership event that brings together influential and influential figures from business, media, technology and finance to find ways to empower women. It will be held on June 29, 2022 in Hamburg and will be broadcast online. Tickets are available here.
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