Financial Feminism:
A Woman's Guide to Investing for a Sustainable Future

If you want to change the world, the first step is to become more financially savvy

Financial feminism – the belief in the financial equality of women – is rapidly gathering interest and momentum across the world, as we wake up to the huge challenges many women face when it comes to money. In particular, the gender pay gap is front of mind and it’s not getting any better, with the World Economic Forum estimating it will take more than 200 years for economic equality between men and women to be achieved.

But financial feminism is not just important when it comes to the money a woman earns. It’s also related to what women do with their money – how they save, how they invest.

The harsh reality is that many women face a glaring gender investing gap. They’re not investing to the same extent as men, saving less for retirement and parking more in cash, which results in a significant shortfall. The pay disparity compounds this shortfall, but it also means that women are missing out on making the money they do have work better for them.

So what is happening? Research indicates that women lack confidence when it comes to investing, pushing them towards lower risk options such as cash savings accounts. Men are more likely to invest in stocks and shares, and with stock markets generally giving stronger returns over time, this means their investments are creating more value in the longer term. The result is that women are left with a big financial hole.

But this is only part of the story…

As we leverage the interest in financial feminism to address both the gender pay and investing gaps, we also have the opportunity to talk about HOW women want to use their money. We are beginning to have conversations about how financial feminism is not just about getting women to invest more. It is also about empowering women to invest in the type of future they want to build. We are at a point in time where we are building a movement, one where a financial feminist is someone who uses her wealth to build a more sustainable, cleaner and fairer world.

Why does this matter?

From where many of us stand, our collective future is looking bleak. We are sitting on the brink of an environmental crisis, inequalities are widening, corporates continue to engage is unsavoury practices such as child labour. Something needs to change – and we have the power to affect that change.

We can use our investment decisions to create the positive change we want to see in the world. We can do this by investing in companies and sectors that are aligned with our sustainability values and beliefs – for example, companies that consider their environmental footprint and take action to reduce it; companies that have strong labour practices and protect their employees; and companies that are open and transparent in the way that they operate.

For women who want to join this movement, this book is for you. My goal is to empower you to start taking action and to use your financial decisions to demand a better world. My goal is to help you become a sustainable investor.

Why women?

A recent global survey found that a whopping 83% of women surveyed care about where their money is invested and the majority (63%) are motivated to be sustainable investors. I am one of these women.

By definition, sustainable investing involves thinking about the environmental and social impact of your investment decisions, not simply focusing on financial returns. Your financial decisions give you a great deal of power. For example, I am really worried about how slowly we are moving to combat climate change. For this reason, I am investing in companies and sectors that provide us with climate solutions. I am big on clean energy as a sector and I do everything I can to stay away from fossil fuel companies in my investment decisions. Investing is how I am making my voice heard.

I think about the impact of my decisions but it’s not always obvious that your financial investments can have such an impact on the world.

What is holding women back from making smarter financial investments?

Many women I’ve spoken to want to make their money work in a smarter, more sustainable way. The problem is that they are often held back by a lack of time, a lack of confidence or a lack of understanding on how to get started. Sometimes all three.

And let’s face it, the financial industry also isn’t doing a great job at serving women. Many women feel talked down to or misunderstood by financial (mostly male) advisors or bombarded with meaningless financial jargon and concepts. Banks are no better, often telling you that they can only help if you have millions in assets. But sustainable investing shouldn’t be only for the ultra rich. I want it to be for everyone.