I will be told that, as a representative of the patriarchy, I have no standing to speak about this. But what prevents a man from dwelling on this question that nevertheless concerns half of humanity? Women’s money is a touchy subject, but the numbers are staggering. Women hold 40% of the world’s wealth. But it is only between 15% and 18% to grow this equity. Fortunately for everyone (for women, of course, but also for the economy in general), things are changing…
Expense or investment?
They are the ones who, most of the time (in 70% of cases, according to an Ifop study commissioned this summer by Bayard), administer the family budget. Namely, expenses. But they are the ones who take the investments in hand. Three-quarters of women say they save, but according to a European study by JP Morgan, less than one in five invest regularly. And 64% of them declare that they do not invest because it is “very complicated“.
Result? “In Europe, only 15% of women invest, against 50 to 70% of men, depending on the country“, confirms Paloma Castro, founder of Ryse, a structure that labels financial institutions with a favorable approach to women investors. In a large pharmaceutical group, a study showed that 90% of the last salary increases obtained by women were deposited in passbooks and checking accounts. Instead, men deposited them into investment products. sAccording to Stéphanie Fawcett, responsible for a study by the American asset manager Blackrock on European women and savings, this gap between savings and investment is mainly due to the fact that “they are more conservative than the French and do not have confidence in their future finance. Only 28% of French women have a positive view of their financial future, compared to 40% of men and an overall European average of 49%. It must be said that everything leads women to not believe in their ability to invest…
Paloma Castro, founder of Ryse, a structure that labels financial institutions with a favorable approach to women investors
A “depletion mechanism”
At the The couple and the money. Why men are richer than women (Éditions L’Iconoclaste), journalist and author Titiou Lecoq dissects what she calls “the mechanism of women’s impoverishment“, which leads them to accumulate less than men. It starts very early, with an allowance: there is a difference of 4 euros per month in college between girls and boys, reveals a study by Pixpay. And it still goes up to 10 euros for young people from 16 to 18 years old. And this continues throughout the life cycle, until retirement… And as Maeva reminds us of the monbudgetbento website, about the couple, “If you don’t count at the beginning, you shouldn’t count at the end either.“.
For asset management advisor Héloïse Bolle, co-author of To the Thunes Citoyennes (Editions Le Cherche Midi) and the Instagram account Sorrel and company (and former journalist for Challenges; Editor’s Note), women should “Do you know what’s in the boxes?“. And for that they have to fill out the IRS declaration themselves, keep track of the family’s accounts and get to know the payslips… Not necessarily pleasant, very time consuming. But essential. “True equality depends not only on women’s access to livelihoods, but also on their ability to fully control them.“ explained in American magazine FortuneMelinda Gates.
Reactivate inactive money…
The stakes are not small: “by reactivating women’s dormant money, it would be possible to put three trillion dollars, or $3 billion, back into the world’s economic circuit“, says Paloma Castro, from Ryse. A number confirmed by a recent study by the BNY Mellon bank. This represents one and a half times the French GDP. A big boost to the global economy. By creating Ryse (the start-up is still in the fundraising phase), this former executive of large international groups wanted to label financial institutions with a favorable approach to women investors. But of the dozens of large financial institutions she examined, only two had created a specific offering. Because, strangely enough, these big groups, despite their lavish marketing departments, have so far neglected this niche. However, women’s aspirations, in terms of investment, run counter to one of the great workhorses of these asset managers: ESG. That is, taking into account environmental and social criteria…
… giving meaning
Because women, several studies show, have a radically different approach than men. “They are not just looking to make money, but also to make sense of their investment.“, confirms Paloma Castro. They, therefore, want to know what their money is used for, and they wonder more than men. Natural questions, says influencer Clara Morley, former trader and creator of the excellent podcast starter pack: “How can I be sure I’m not funding gun sales, wild speculation, polluting industries? Do I really decide what I do with my money or do I lose control as soon as I close my consultant’s door?“
In fact, it is a constant: of the 15% of women who invest, almost 80% do so taking care of the impact that their action will have. Soon they will be able to do so with full knowledge of the facts: several banks will develop, in particular with Ryse, impact products. Specifically for them…
some numbers (excerpts from the Ifop for Bayard 2022 study on women and money and the 2021 JPMorgan European study on women and investment)
More than 75% of women save regularly.
In France, 50% of French women do not invest. Only 18% invest regularly.
Less than 15% of women have a retirement savings plan, stocks or bonds, unit-linked life insurance, bond accounts or PEA.
40% of women, if they received a large sum of money, would deposit it in an account or in a savings account. 36% would spend it at home.
podcasts to follow
“Argent Conte” by Caroline Lamaud
“The Martingale” by Matthieu Stefani
“Law(her)” by Estelle By
“The Starter Pack” by Clara Moley.
“My fair value” by Insaff el Hassini
“Richissime” by Delphine Pinon
“Let’s dare to sorrel!” by Vives Media