The Financial Influencers Women Actually Want to Listen To
If you’ve spent any time on social media platforms like TikTok in recent months, you may have come across the concept of “girl math.” It’s the idea that spending less money or buying something on sale is equivalent to saving money. While some find it amusing, others believe it perpetuates the stereotype that women are not intelligent enough to handle their finances.
Haley Sacks, also known as Mrs. Dow Jones, is one of the women leading the charge to provide honest financial advice to women without treating them like children. Sacks started her flagship Instagram account in 2018 after being disappointed by the lackluster advice from mainstream financial experts. She wanted to create content that resonated with women and didn’t focus solely on couponing and saving.
Sallie Krawcheck, the co-founder of Ellevest, took a similar approach. Initially hesitant to start a women-focused business, Krawcheck eventually realized the importance of closing the gender wealth gap. She launched Ellevest with the goal of helping women build wealth and has since amassed $2 billion in client assets under management.
While some argue that financial advice should be gender-neutral, studies indicate that men and women have different investment preferences and financial concerns. Women tend to be more risk-averse and may avoid stock-based investments, which can impact their wealth accumulation. Additionally, women’s earning potential is often lower than men’s, and they are more likely to have interrupted career paths due to factors like motherhood.
Chelsea Fagan, founder of The Financial Diet, believes that approach matters as well. She noticed that the dominant voices in the financial advice space tended to promote a more masculine approach to personal finance. Fagan’s company aims to demystify money and cater to women who prioritize a more holistic view of their finances.
It’s important to note that women’s different perspectives on money do not make them worse at managing it. Sacks, Fagan, and Krawcheck all emphasize the importance of taking women seriously and assume that they are smart when providing financial advice. They believe that personal finance should not be seen as complicated or inaccessible; anyone can manage money with the right guidance.
However, finding reliable financial advice can be challenging, especially with the rise of social media influencers. Many influencers share personal stories and experiences to engage their audiences, but this does not necessarily guarantee the suitability of their advice. There is a bottomless appetite for financial content, but consumers should be cautious of outrageous claims and seek advice from credible sources.
Young women face immense pressure to spend, which can lead to long-term problems like credit card debt. Trends like “girl math” may seem harmless, but they reinforce the myth that women are bad at managing money. It’s crucial to challenge narratives that encourage women to prioritize consumption over financial independence and long-term security.
While the personal finance space is slowly diversifying and offering more perspectives, there is still a risk of sacrificing accuracy and nuance for viral content. Short-form videos on platforms like TikTok can be entertaining but may not provide accurate information or advice. Some influencers prioritize personal enrichment over the welfare of their audience.
In conclusion, women are seeking financial advice tailored to their unique needs and preferences. The rise of financial influencers provides an alternative to traditional financial advice, but it is essential to approach online content with skepticism. If something seems too good to be true, it probably is. It’s crucial to find reliable sources and be mindful of how women are portrayed when it comes to money and financial independence.