Why College Women Should Invest in Stocks

Growing up, I did not understand how the stock market worked. I assumed it was a secret job only men in suits worked on and was too complicated for me to ever be able to comprehend. I was very wrong. 

Being a young woman does not stop you from doing things men do. Simply because investing in the stock market is not a typical hobby for women to have. Unfortunately, many women still see the stock market as something out of their sphere of knowledge that only men can understand. We are not taught in school the basics of investing, so it can be hard to see the benefits from an outsider’s perspective.

The stock market is historically male-dominated and is not indicative of who can participate today. Male privilege and issues in society, such as the gender pay gap and the pink tax, make it more difficult for women to accumulate wealth. The gender pay gap is still an issue today because, on average, American women are paid 82 cents to the dollar men make. The pink tax is why things everyone buys—like clothes, home products and personal care products—are more expensive for women than for men. Making less money and having to spend more on products adds up over time, negatively impacting women’s ability to grow their wealth. 

Women would have to invest more of their annual salary than men do in order to save the same amount of money since we statistically make less. However, on average, women invest 40 percent less than men. Because the stock market started as a male-exclusive market, men are often more comfortable investing large chunks of money into stocks. Women are more conservative and avoid risks with their money as only 4 percent of women consider themselves “more aggressive” compared to 16 percent of men. Men investing more, making a higher salary on average and having to spend less on products makes it easier for them to grow their wealth. 

However, men and women all have the means to make money from investing. Many women, including myself, have to look at the bigger picture and the long-term gains associated with investing in stocks at an early age. I have learned the more money you put in, the more money you can make and the longer amount of time you invest in a stock, the more money you can make. I encourage all college women to start investing. Automatically setting aside at least $20 every month to invest can add up over time and help grow your net worth. 

Investing in stocks is a good way for anyone to accumulate wealth over time. Women should take advantage of the opportunity the same way men do. Apps, books, advisors and other online tools make investing easier and less intimidating. I use the app “Stash” to invest in various stocks. I have made some money and am just getting started on my investment journey. There are many sources out there to consult for further information on this subject and ways to get professional advice about investing. Investing in the stock market should not continue to be intimidating for young women. If I can do it, anyone can. 

• gender equality
• grow
• investing
• stock market
• wealth