Financial Myths Women Should Ditch
Written by: Praleena Mudley Associate Portfolio Specialist
For too long, outdated beliefs about women and money have held many back from reaching their full financial potential. These are myths that have either been passed down through generations or reinforced by the media; these myths deserve to be left in the past. So, this Women’s Month, we want to debunk some of the most common financial myths that we may find ourselves holding onto from time to time. Behavioural changes are easier said than done; they become more achievable with the right information and small, practical steps. Here’s where you can start.
- “Women are not good with money”
Whether this was a comment you received from someone or a societal norm that you have internalised, this is a myth that can often prevent us from even starting to think about managing our finances. But the data shows us a different picture. A Warwick Business School study found that women investors outperform men by 1.8% per year — largely because they trade less frequently and are more risk-aware.Reframe your thinking by taking a step in managing your finances. This can look like tracking your expenses over the next 30 days, reviewing your savings goals or meeting with a financial adviser to get a clearer picture of your finances. Confidence comes with action. - “My partner handles the finances”
While it can be important to delegate responsibilities in a household, it is equally important to be involved in decisions where you both are affected – household finances are definitely one of these decisions. Delegating without understanding can leave women vulnerable in the event of divorce, illness or death.Instead, encourage more open communication about finances in your household. This can look like knowing your household’s income, expenses, debt, and investments, attending financial planning meetings, and asking questions when you don’t understand something. Shared responsibility is key. - “Investing is too risky. I’ll just save”
While investing does take on more risk than saving in a bank account, it tends to have higher expected returns, which can outperform inflation over the long run. This means that in real terms, you can end up with less money by just saving in interest interest-bearing account that does not outperform inflation.To mitigate risk, consider investing in a multi-asset portfolio that employs diversification. This ensures that your money is spread across different types of investments — like shares, bonds, and property — so that you’re not relying on one asset to do all the work. It’s one of the best ways to reduce risk without sacrificing long-term growth.For example, the Morningstar Balanced Portfolio invests in a mix of local equities, bonds, global equities and cash to give you a diversified portfolio that can deliver inflation-beating returns over the long run.If you are still unsure of how to start, speak to a financial adviser about your risk profile. You don’t have to do it alone. - “I’ll start investing once I earn more”
While it might feel like investing is only for those who have already accumulated wealth, investing early is one of the things that can help us accumulate wealth. Starting your investing journey, no matter how little you can contribute, can lead to a larger savings pot than if you were to contribute a larger amount late in life.
For example, consider two investors;- Investor A decides to invest early and manages to invest R3 000 per year in a portfolio recommended by her financial adviser.
- Her investment grows each year by 10% (net), until she retired at age 65 and by the end, she has an investment value of R813 073.
- Investor B only started investing at 30, also earning 10% (net) per year through the same adviser.If investor B wanted to generate the same investment value as investor A, she would have had to contribute an additional R1 943 a month. This means that delaying investing by just 5 years costs investor B R58 286.
If investor B wanted to generate the same investment value as investor A, she would have had to contribute an additional R1 943 a month. This means that delaying investing by just 5 years costs investor B R58 286.
Time is more powerful than income. Even small amounts invested regularly compound meaningfully over time. Take advantage of time by automating a small monthly debit order into a long-term investment — even R500 a month. You won’t miss it, but your future self will thank you.
- “Talking about money is unladylike”
While it might feel like a taboo topic, money conversations build confidence and community. When we share our experiences, we learn faster, avoid mistakes, and often feel less alone in our struggles.When women talk openly about finances — whether it’s budgeting, salaries, or investing — they build confidence and break the taboo. Start small and ask a friend how they started investing, talk openly about budgeting, or share resources. Talking about money isn’t rude — it’s empowering.
Ditching these financial myths isn’t about knowing everything — it’s about being willing to learn, ask questions, and take small steps forward. Every woman deserves the tools and confidence to make empowered financial choices. This Women’s Month, let’s stop playing small with our money — and start owning our financial stories.