International Women's Day: Why representation in investing is so important

In this panel discussion Anna Panda Boss, Laura Ann Moore from Mind Money Soul and Charlotte from lookingafteryourpennies discuss why representation in investing is important, the differences in risk tolerance and perceptions of long-term investing between men and women and the difference in financial products men and women invest in.

Why do we typically see fewer women investing than men? Do you think there are any stigmas, stereotypes or just general barriers that enable this?

Charlotte opened the discussion up by explaining: “Women have less disposable cash to even start to invest. And as a mum, I'm looking after my kids. So for me it's like, I'll invest later and it's only because I'm in this space that I actually prioritise these things. But you can understand how it becomes, feeding yourself and your kids when you've got less money it has to go on top of that pile. I think that is such an important factor in all of this. 

And then on top of that, you also have the language that is used when speaking about finance with women. The finance space for men is all about building wealth, investing and taking risks, whereas women's is about saving money and budgeting.

As our knowledge is extended, we've got to actually start  talking about wealth building and investing.”

Laura Ann Moore added: “I think women get told that they have to be more risk averse. I need to be more careful. And then that seeps into your psyche as well. There's so many different things at play, but a lot of it starts from the moment you're born and the messages that push you.

So by the time you do get to the point where you're meant to be investing, you're questioning, Is it just for men? You don't see people that look like you, doing it at any time. 

There's a lot of narratives in society and in the financial services world that make women feel less confident when it comes to investing.”

According to an analysis found by Finder: 2 in 5 women (42%) have invested before as of 2024, up from a third (32%) in 2023 - what do we think is contributing to this change?

According to Finders 2024 survey, just over 2 in 5 women (42%) have invested before, which is an estimated 11.4 million. This number has increased from last year, when a third of women (32%) stated that they have invested at some point in their lives. This is an estimated 15.7 million men compared to 11.4 million women, meaning there is still a gender investing gap.
Source: Finder.com

Laura Ann Moore delved in by explaining: “When I first started and I was looking for how to get started I just remember questioning where are the people that look like me?

Where are the young women? Which makes you think it's not for you and it makes you feel like you're doing something crazy and really out there, and actually seeing someone that looks like you is so important. So I definitely think representation contributed to the change. I also think that just the general access to better financial education online, makes a big difference. There's so much amazing education out there and it has reduced the barriers to entry.

Because we're not being taught it in schools. You aren't really being taught that when you get to university and then you get a job you're told to crack on. So unless you're kind of seeking it out before, it’s really hard to get involved.”

Charlotte added: “Also you only need a few quid to get started. I’m at the park with my kids and I can check on my investments, I've got a spare £5 I can invest.

Barriers are slowly being removed and we have more options, such as apps. It's becoming much easier to access these things. And I'm hoping that we will see a continuing rise in the number of women and the percentage of the female population that are investing.”

Have you faced any challenges in being a female creator who talks about investing?

Charlotte explained: “I think I was one of the first UK females to start talking about investing on Tik Tok. In a lot of ways I saw a huge amount of people following me off the back of that, but also I went through this huge rollercoaster of a journey of people absolutely nit picking every word and comment and got comments about, my voice, my hair, what's that in the background?

My God, forget about all of that. But also, I'm coming into this space, talking about the same things that my male counterparts are talking about.”

Anna Panda Boss added: “I used to get comments about the size of my portfolio. And it was criticising questions such as why are you even talking about it? 

And the fact that all these guys were coming at me telling me I only have a few thousand or 5000 made me really frustrated because at the time it kind of made me feel like, I shouldn't be doing this, maybe I shouldn't be talking about it.

And the only thing that pushed me through and kept me going were the positive comments and direct messages of people telling me thank you so much. You've changed my life in this way.”

What advice would you give to women who want to start investing?

Charlotte explained: “I would say just give it a go. You can learn on the job with investments to a certain extent and one of the things that I talk about in my space is why don't you just find a few quid like an amount that you're comfortable with.

Let's just learn about investing a little bit, find a platform that appeals to you on some level and give it a go. You've heard these things, if you're interested, you've probably either seen someone like us talking about it or you've read a book and so you're probably going into it with a little bit of an understanding. If you haven't, go back and do those things.

And you learn so much not only about how to use the platforms and the mechanics of investing, but also about yourself and your mindset and your level of risk.”

Laura Ann Moore added: “When it comes to learning, find out how you like to learn.

So you've got visual learners, audio learners etc. Do you like to listen to podcasts? Do you need to watch a course? Do you need to just try it out yourself? So knowing your learning style is so important because that's going to help with how you digest information.

Also understanding the relationship with money. For me, I was doing a lot of journaling around the time that I started investing, and I was really trying to understand, what is it that is holding me back? What's the fear? Is it the fear that I don't know enough? Is it the fear that I'm worried I'm going to lose money? Is it the fear that I'm going to get it wrong? 

What I ended up doing is, it took me a year to get started and then classically I did it and  questioned why I didn't do this a year ago? But I had to go through that journey.”

Anna Panda Boss finished up the discussion by adding: “If anyone doesn't want to kick off with real money, you can use virtual accounts because there are places like XTB who offer the ability to play with fake money by opening a demo account. You can get used to the platform and how it works.

How do I sell? How do I buy? And I think for a lot of people, having the ability to try it out without using their own money is really important. But also just  getting started generally with a small amount is the best thing you can do.”

Final Thoughts 

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XTB is committed to fostering diversity and inclusivity, including promoting gender equality. We understand the importance of diverse viewpoints and backgrounds, as they can enhance decision-making and overall achievement. Women bring unique problem-solving approaches and decision-making styles, which contribute to greater creativity within our company. By embracing diversity, we cultivate an environment where innovative ideas flourish through a wider range of solutions.

In conclusion, International Women's Day serves as a powerful reminder of the immense economic force that women represent. By closing the gender gap and empowering women to fully participate in the workforce, we unlock a world of potential for growth, innovation, and stability. Let's celebrate the achievements of women entrepreneurs, leaders, and innovators, and work together to dismantle barriers that hold them back. By investing in women's education and by fostering equal opportunities, we can create a future where women's economic strength fuels a thriving global economy for all.