In Quebec, women have the same rights as men and have in theory acquired financial autonomy thanks to the adoption, in 1964, of the Law on the legal capacity of married women, a project defended by Marie-Claire Kirkland- Casgrain. In practice, however, they are still slow to take their place in the financial world. And only about 20% of them earn the same salary or more than their spouse. As a result, we can be sad that, even more than 45 years after the entry into force of International Women’s Day, women lack the confidence to become investors.
As part of my practice, I have been able to observe a rather particular phenomenon within the dynamics of couples. Women are often the ones who take care of personal finances and cash flow management, who coordinate family expenses and undertake financial planning. Perhaps this is the legacy of a not-so-distant era when women were not allowed to have a bank account in their name but had to manage the family’s expenses from a small sum granted by the husband?
But I observe that, even if women manage the domestic portfolio, it is generally the man who is responsible for the investment portfolio. Obviously, these are only personal observations, not scientific data. An American study (conducted by Wells Fargo and The Female Quotient, 2023) shows that around 40% of women say they participate in the couple’s financial decisions and share this task equitably with their partner. We can, however, hypothesize that salary inequality has meant that historically, women had less money to invest and that it is therefore plausible that fewer of them invested in the stock market.
What breaks my heart as a woman is a survey carried out by an investment firm in 2017 which showed that 91% of women think that men are better investors than them. What emerges is a blatant lack of trust, and this state of affairs must change. Indeed, women have significant investment qualities. First, according to various sources, they are less impulsive than men and therefore less likely to change their asset allocation, to stay the course regardless of unforeseen events in the markets. In fact, women achieved 0.4% higher returns over a 10-year period, even though they take only 82% of the risk taken by men. Finally, investors also stand out for their discipline.
The data also shows that investment confidence increases slightly with age, which is a shame since wealth is achieved through stock market investments started as early as possible in life. In 2023, a report released by a Canadian bank found that far fewer women (52%) than men (68%) feel financially comfortable retiring at their planned age. The majority of women surveyed (60%) said they did not receive financial advice or education in their family. Let us remember here that, even with equal rights, we still have a way to go when it comes to financial literacy.
A profession to be feminized
At my first conference in the investment industry, I remember thinking I was in the wrong room because the audience was almost entirely made up of men. During that day, I was even asked “which advisor I was the wife or assistant of”, several times. Having grown up with a promise of equal opportunities regardless of gender, the ambitious young woman that I was had quite a shock! I then noticed that women still had a place to take in the financial world. Fortunately, things seem to be improving, but change happens slowly.
I want to emphasize the fact that this is a professional field in which women can and must take their place. Even if the financial sector is full of professions that we spontaneously associate with a burden of family constraints, it should be noted that the job market is changing in all sectors, including that of finance. Women suffer more than men from the money taboo. They have more difficulty talking about money, even though it is the basis for developing skills. But if you overcome this taboo, a world of professional possibilities will open up.
Take nothing for granted
The study by Wells Fargo and The Female Quotient shows that the taboo surrounding talking about money changes not only by gender, but also by age. More people from Generation Z think that men are more likely to succeed financially (53%, compared to 42 to 45% for other generations). This observation is both surprising and disappointing, since new generations say they are more open to talking about money.
In a couple, it is completely normal for one spouse to show a greater interest in finances. With transparent communication and similar values, this management method may be the most optimal. On the other hand, distancing yourself from decisions or strategic conversations relating to finances due to a lack of confidence or a feeling of deception is not desirable. No matter your age, ladies, trust yourself, train yourself and invest. I am convinced that you will succeed.