Women and Wealth: A Conversation with Elinor Davison

Elinor is the author of the book ‘The Women’s Simple Guide to Investing’. The book is a great success with women all around the world and Elinor’s aim is to encourage women through knowledge to take control over their finances. She believes that financial independence is more than just about money, it’s about confidence and liberty. We sat down with Elinor to chat about how she came to investing, the wealth gap and how we can help wome become more financially confident.

How did you come to learn about investing?

I became familiar with investing during the COVID-19 pandemic while I was at home without work. Despite having initial concerns about its complexity, I always had a desire to learn about investing. Being stuck at home felt like the perfect timing to finally take control and I decided to take a proactive approach and ordered books on investing from Amazon.

I started learning about investing and most importantly I started trading. Gradually, my knowledge expanded, and I gained confidence in my understanding. In fact, I found the process to be more enjoyable and easy than I had initially thought. Empowered by my newfound expertise, I felt that I have to share my knowledge with others.  I decided to write a user-friendly book specifically tailored for women who are clueless about investing. My aim was to simplify the complex concepts and make investing more approachable for everyone. The book is called

What drives your passion to help women understand how to invest?

My passion to help women understand how to invest comes from a deep belief in equality and empowering women to achieve financial well-being. I believe that knowledge of money and investing means power and freedom in all aspects of women’s lives. When you understand the insights of money it's easier to ask for a pay rise, a mortgage, and even the dynamics with your partner changes. Ultimately, my passion lies in helping women to overcome their fears, doubts, or misconceptions they may have about investing.

What is the bigger impact of the gender wealth gap?

The gender wealth gap has significant psychological and societal impacts such as: financial insecurity among women and low confidence and self-worth. Lower levels of wealth and assets can lead to increased stress, anxiety, and a constant sense of vulnerability. This insecurity can impact mental well-being and overall quality of life.

Secondly, limited opportunities and choices. Insufficient wealth can limit women's opportunities and choices in various aspects of life. It can impact their ability to pursue education, start businesses, invest in their own well-being, and provide for themselves and their families. This limitation of choices can lead to feelings of dependence, frustration, and a reduced sense of empowerment.

Another worrying aspect is unequal power dynamics, as I mentioned before, wealth plays a significant role in influencing power dynamics within a relationship. This can further undermine women's decision-making power, and overall social status.

And lastly, retirement and future security. Women generally have longer life expectancies and may face challenges in funding their retirement due to lower accumulated wealth. This can lead to heightened concerns about financial security in old age, potentially impacting mental health and well-being.

What is your biggest frustration about women being less likely to invest than men?

One frustration I have is the persistent gender gap when it comes to women being less likely to invest compared to men. This gap represents a missed opportunity for women to build wealth, achieve financial independence, and take advantage of the potential benefits of investing. It is frustrating because investing can be a powerful tool for long-term financial growth and security, and everyone should have equal access to it.

There are several factors that contribute to this disparity. Gender norms, societal expectations, lack of financial education, and the investment industry's historical male-dominated culture all play a role. These barriers create an environment where women may feel less confident or knowledgeable about investing, leading to lower participation rates.

Providing accessible and tailored financial education, promoting female representation in the investment industry, and providing an inclusive and supportive investing community are all important steps. By breaking down these barriers and empowering women with the necessary knowledge and tools, we can work towards closing the gender gap in investing and creating a more equitable financial landscape.