Your First Personal Financial Advisor. Your Mother
A Mother. Someone who cares about every tiny detail in your life, a figure that will teach you the rights and wrongs in life, and, an idol anyone will never be able to match up to.
Valuable lessons are taught wherever you go in the world, from school to university and your career! But the most important lessons you learn are at home. Let me ask you a question — If a plant dies, will you put the plant at fault? Or the environment surrounding the plant? The humidity, the amount of sunlight, and water given are the most significant environmental factors in keeping the plant alive. Let’s replace a Mother with the environment. Without their support and learnings, where would we be in life?
Not only being the most important woman in your life, but they have also influenced your every habit, including financial habits, the most essential skill for survival. Have you ever wondered why you got paid for doing chores at home? Well, mothers teach you that it takes hard work and dedication to earn a living. They encourage you to think about every penny spent and every penny saved, right from your early childhood.
When it comes to investing, women are usually surrounded by multiple myths. And as a child we should help busting these myths every time!
1. Women are not confident investors
It has been proven that because of overconfidence, men’s returns were decreased due to overtrading. When it comes to women, they tend to measure every small detail and look at all the financials before investing. This does not mean women are not confident investors, they just have a knack for detail.
2. Women are risk averse
Let’s get this straight — women are not risk averse; they are just aware of the results of the risk. A woman will align her investment opportunities with the values she has. Once the opportunity and value align, it opens up a gap to take a risk.
3. Investing does not interest women
Actually, it’s the opposite. Since decades, women have been fighting for their own independence, for their rights, for their choices and their financial standings. So why wouldn’t women be interested in investing?
Mothers have taught you how to save first and spend later. They have given you the confidence to say ‘no’ when needed. Showed you the importance of doing your homework before any important decisions are to be made. And last but not least, they have taught you to never give up.
So now, it’s our turn to break these myths every day to support and help mothers in planning their finances with the right information they would need!
About the author: Palmi Parikh, Content Analyst, Bridgeweave, the company behind InvestorAi, a FinTech firm that creates AI powered next generation products to improve financial wellness and expand wealth enablement into the digital space.