Articles, Confidence, Goals, Money

Investing as a Young Woman – How Important is it?

holding 20 dollars

When it comes to investing money in different sectors, most women don’t have the idea about where to invest properly, so that they can grow their savings. As a result, they keep waiting until they are convinced their financial future is secure and believe they can take risk of losing money.

But the fact is, the sooner you can start investing, the better.

They also have a misconception that to invest you need to be an expert in this field. They believe without being an excerpt you can’t succeed. But in reality, women have the option to use many tools and resources which can help them to start investing with a little fund.

So is it really that important to invest, being a young woman?

Yes, it’s really that important.

You might not start investing right now. But soon you might need to do so for your own future. Investing doesn’t require a lot of hard work, money, or on-going commitment. But the earlier you invest, the more time you’ll get to make more money.

What stops women from investing?

Depending on the financial goals and personal situations, there are multiple options to invest where women can try their luck. But women still hesitate from investing and as a result can not build wealth over many years. Many women believe that they have enough time to invest later in their life. But practically, with every passing year, the chance of increasing wealth in the form of compound interest also gets away. 

Another common reason that women don’t invest soon or at all is they simply don’t have enough funds. After considering multiple financial obligations such as student loans, consumer debt, mortgages, and more, investing becomes a secondary choice for most of the women.

Here are some more reasons why women do not want to invest earlier:

  1. Lack of confidence – Women can read about investment tips, talk to investment experts to get opinions, and gather enough money to invest, but still they can hesitate due to lack of confidence. Despite knowing all the facts about investing, they literally can’t decide how to choose the “perfect” investment” option. 

Women should realize that they can’t find a suitable investment option if they don’t even try for it. The best investors in the world also become successful after they start investing from scratch. Every single step you’ll make as a new investor will help you to build experience, which may help you in the future.

  1. Care to take risks – Since women tend to be more safe players than men, they always try to keep their money safe. They do not try to take too much risk to gain more. They may also avoid low-risk investments such as bonds and CDs due to their low risk-taking mentality.
  2. Not understanding investment options – Sometimes, due to lack of knowledge women do not understand the profit earning possibilities of multiple investment options. There are multiple investment options available in the market, such as:
  • High-yield savings accounts
  • Rental housing
  • Real estate and property
  • Certificates of deposit (CD)
  • Money market accounts
  • Treasury securities
  • Government bond funds
  • Short-term corporate bond funds
  • S&P 500 index funds
  • Dividend stock funds
  • Nasdaq 100 index funds
  • Municipal bond funds

It is natural to get confused about what to choose and how to choose. But you may solve your issue just by reading multiple investment guides, articles, and watching investment-oriented videos. You may even consult a professional investment expert to suggest suitable options to invest, as per your financial situation. 

  1. Lack of self-dependency – Even if they are ready with money, proper knowledge, and resources, sometimes women may wait for a loved one or trusted friend to set up the account and select investments for them.

This might be the biggest issue in investing that women may encounter. They are self-sufficient when it comes to money-saving, but not in investing. 

Why should every young woman invest?

Best investment option for young women:

  • Savings accounts
  • 401(k)s and IRAs
  • Coverdell Education Savings Accounts
  • 529 Plans
  • U.S. Savings Bonds
  • Short-term corporate bond funds
  • Short-term US government bond funds
  • Money market accounts
  • Certificates of deposit
  • Cash management accounts
  • Treasurys

Women should start investing from a very early age, and there are a few solid reasons for that.

1. To achieve financial equality first 

It’s quite important for women to get a sense of financial freedom and equality. While facing multiple financial issues such as PINK TAX or the gender pay gap, investing in multiple profitable sectors can provide a chance to generate the same amount of wealth as men.

Women should have their financial strength to make decisions that can be helpful to care for themselves. 

2. To reach their financial goals

Like men, young women also have many financial dreams that they might want to fulfill. Starting from an early age, teen girl students should learn to save money for an emergency fund, and save for their future studies. In the next stage of their lives, women use their savings to send their kids to college or use their savings for big expenses like buying a house or long vacation. Apart from that they also save money to pay all the taxes and grow overall wealth. For all of these aspects, investing is needed. With good investing comes great returns. The more you can earn, the more you can use that money to fulfill all the life goals you have.

3. To save money after retirement

Women normally earn 83 cents to every dollar a man gets. That means if women save the same percentage as men, they can save as much as the men do. Apart from that, women also tend to live longer. So, practically they have less amount to spend to last longer. So, to solve this issue straight, women must follow proper investing strategies and grow their wealth.

Women should save money and do a match on a 401(k) or similar retirement savings plan with the employer. If they are unsure about any investment plan, they must enroll in the employer’s program and grow their savings for the future.

So, what are you waiting for? If you are a young woman and want to fulfill your life goals, you must take investing seriously!

Author’s Bio: Patricia Sanders works as a professional content developer and she is a regular contributor to DebtConsolidationCare community. She is dedicated to the financial niche and popular for providing expert tips on financial subjects. She wants to provide expert suggestions to people who are experiencing financial hardships and seeking assistance. Her content and advice made her popular in the financial blogging industry. Apart from writing, she likes to cook and travel, and also gather information on various financial subjects. To contact her (or if you have any questions regarding this article) email at [email protected].


Kristen is a contributor for GirlSpring. Her posts focus on GirlSpring updates and current events.

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