The answer to the wealth gap lies in the playground, so it’s time for kids to hear fairer tales
By 2020, it is estimated that 66 per cent of the world’s wealth will be in the hands of women, according to figures from Boston Consulting.
Yet, despite this impressive trend, there are still disparities between the way men and women are managing their money. For example, women’s use of investment advice falls behind that of their male counterparts, which means they might not be making the most of their assets.
What is driving this gender gap? The answer may lie in the playground rather than the boardroom.
Research from the University of Cambridge indicates that our attitudes to finance are formed between the ages of five and seven. By this tender age, children are typically able to recognise the value of money, the need to plan, and they understand that some choices are irreversible.
However, a new study commissioned by HSBC on financial literacy has found that differing levels of financial confidence are apparent between boys and girls even at this young age.
Almost two thirds of the girls who were interviewed claimed that they didn’t “understand money”, compared to just over half of boys of the same age. Girls were also less likely to think that they were good with their pocket money compared to boys.
But the disparity in financial confidence sadly doesn’t end with our childhood years, because the research illustrated mirrored patterns in speaking to adult investors.
Although women know as much about investing as their male counterparts, they tend to have lower levels of confidence about their knowledge – meaning that they are more likely to be put off by financial jargon that they do not understand.
The fact that these patterns (which experts report to last a lifetime) are being set so early on makes it all the more important to avoid negative gender stereotyping during this formative window.
Unfortunately, some of the traditional stories and fairy tales we tell our children can undermine the best of intentions, and can have a significant impact.
This is something we’ve sought to correct in partnership with children’s author Emma Dodd through publishing “Fairer Tales: Princesses doing it for themselves”.
We’re challenging gender stereotypes with a new book that flips traditional fairy tales on their head – instead of waiting for Prince Charming to save them, Cinderella, Sleeping Beauty, and Rapunzel use their own financial savviness and independence to make their dreams come true, and achieve their financial goals.
More can also be done to empower those who are too old for bedtime stories. While I don’t believe gender defines the way that we manage our money, there are subtle but notable factors that may put some women off investing.
For example, the financial advice sector is often over-reliant on financial jargon, while women tend to have a more conservative attitude to riskthan men. This means that some women may not be reaching their full financial potential.
As a business and sector, it is our responsibility to remove as many of these barriers as possible.
Fairy tales may not completely solve the financial gender gap. But showcasing the potential of women and girls to achieve their financial goals independently, while engaging young people about financial literacy early on in life, will certainly help more people live happily ever after.