Despite the stereotype that men are better with money, Perpetual Wealth financial advisor Elysse Lorenti argues women have traits that underpin long-term investing success.
Think back to primary school… long before most children understand compound interestor know what super is, many have already absorbed subtle messages about what boys and girls are supposedly ‘good’ at.
Boys are often expected to be logical, analytical and naturally good with numbers, while girls are praised for being organised, caring and sensible. None of these qualities are inherently limiting, but somewhere along the way another idea quietly takes hold — that money is something men instinctively understand better than women.
It’s a stereotype that has proven remarkably difficult to shake.
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On social media we see videos joking about ‘girl maths’, used to explain our spending decisions. While many of these videos are funny and light-hearted, they can reinforce dated assumptions that women and financial capability don’t naturally belong together.
The problem is these messages don’t simply entertain us. They shape our confidence and beliefs.
In my experience working with female clients for more than 15 years, I’ve seen many capable and financially successful women underestimate their investment knowledge and decision-making ability. Often, it isn’t a lack of capability holding them back. It’s a lack of confidence shaped by years of messaging about who is supposedly ‘good’ with money.
Research from ASIC’s MoneySmart found that young women are more likely than young men to experience financial stress and concern about the cost of living, highlighting the ongoing impact that financial confidence can have on overall financial wellbeing.
Despite women leading businesses, running households, building careers and increasingly managing significant wealth, outdated assumptions continue to influence how many women see themselves as investors. We still hear familiar clichés that women are too emotional, too cautious or simply less interested in finance.
Yet the evidence tells a different story.
Women have an ‘investment advantage’
Women consistently demonstrate many of the behaviours that underpin long-term investing success:
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They are more likely to research investment decisions carefully.
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Women are less likely to trade excessively.
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Women are more likely to take a long-term approach and avoid reacting emotionally to short-term market movements.
Throughout my career as a financial adviser, I have observed that many female clients approach investment decisions with a high level of preparation and discipline. They often take the time to understand their options, ask thoughtful questions and focus on how an investment aligns with their long-term goals rather than chasing short-term market noise.
