For Women, By Women: Financial influencers say they’re part of a new generation of powerful investors

  • A climax of economic uncertainty triggered by the pandemic, higher earning power and an explosion in financial content created by women led to a wave of women turning to the stock market.
  • Over the past two years, more and more financial content created by women for women has emerged, said investment banker and author Danielle Ecuyer.
  • Young “influencers” say their audiences are very engaged because women seek to gain financial literacy from “diverse voices”.
  • Visit the Business Insider Australia homepage for more stories.

An influx of women into the investment space since the start of the pandemic is the result of an explosion of financial content created by women, according to influencers and financial experts.

According to the recently released Australian Stock Exchange Investor Study 2020, the past two years have seen an influx of young investors into the market, as well as an improvement in the gender balance of new investors.

The study found that a quarter of recent new investors were between the ages of 18 and 24, with as many women as men saying they intended to start investing.

This, compared to current Australian investors, of whom 58% are men and 42% are women.

Similar data from Finder shows that around 2.5 million Australians in total started investing for the first time during the pandemic.

He also saw a slight increase in the number of women entering cryptocurrency, with the number of women invested in crypto increasing from 7% in January to 11% in June of this year.

Danielle Ecuyer, investment banker and author, told Business Insider Australia that she believes a peak of factors since the start of the pandemic has accelerated already existing trends.

Ecuyer, citing a US statistic suggesting that about 15% of investors are new investors, said the pandemic has caused people to reassess their approach to wealth creation.

“The stock market collapsed, you had to work from home, people weren’t given financial support, and interest rates hit record highs,” she said.

“People and women generally agree that putting your money in a bank deposit account is not really going to generate the returns you might want. “

Kate Browne, spokesperson for Finder, told Business Insider Australia that the increase in the number of women investing follows the trends the company is seeing with millennials across the board.

“One of the biggest reasons we’re seeing people turn to investing right now is because the cash rate is so low, so putting your money in a savings account won’t do much for you. in terms of getting a good interest rate. “said Browne.

Where young people traditionally viewed homeownership as the primary means of investment, those excluded from the real estate market increasingly turned to the stock market.

She said this was combined with the democratization of investment through technology and applications that removed the barrier to entry and enabled micro-investment; deposit small amounts of money and invest in robotics; which enables automated investments, have resulted in the broadening of the investor category.

Browne said she has witnessed the explosion of financial creators tipping the scales towards financial content focused on women.

“I watched this change in real time,” she said.

“I think two years ago we weren’t seeing as many influencers as we do today,” she said. “And what I have observed is that a lot of them are young women.”

Aleks Nikolic, a lawyer by training, manages the Instagram and TikTok accounts Broke Girl Wealth with an audience of 31,500 and just over 9,000 respectively, where she shares information and ideas on investing and managing money .

She believes that for many millennials, “maybe the first time for our generation,” the pandemic was the first experience of a disaster where they thought “I might lose my job”.

She said the greater availability of financial content in recent years has come as millennials have narrowed the gender pay gap, married, and had children later, which resulted in greater disposable income – at the same time that a generation of women were using social media as a means of making money.

“It’s kind of a perfect dropout moment,” she said.

“I think in a way there was almost financial enlightenment for women seeing other women,” she said.

Along with the increase in content, including podcasts like She’s On the Money, which feature women speaking directly to other women about money, Nikolic said the growth of micro-investment platforms like Raiz and others that cater to millennials and millennials are also being marketed. in a more “gender neutral” way.

Women dominate finfluencing

Queenie Tan launched her TikTok, Instagram and Youtube Invest with Queenie platforms in 2020, just as the pandemic struck.

While her Instagram and Youtube audiences are healthy, at 21,300 and 18,500 respectively, Tan said that a list of TikTok posts that went viral had propelled her to 66,600 subscribers on the sharing platform. videos.

Tan said she fully understands what her audience is looking for. Its Instagram audience – which is similar to TikTok – is 65% female, with 56% female aged 25 to 30 and 23% between 18 and 24.

“I poll my audience just to get their feedback,” Tan said.

And what the young woman she’s cultivated tells her is that she’s looking to gain financial literacy from someone who speaks to her at her level.

“Something that comes up over and over again speaks from my own personal experience,” she said.

“So be honest and open and tell people what it was like for me to experience particular things like investing for the first time and buying a house for the first time.”

Tan said the content that works best are the videos on “looking rich vs being really rich” and describing the realities of growing assets, as well as demystifying concepts such as compound interest and money. ‘inflation.

Nikolic said her audience was also overwhelmingly made up of Gen Z and Gen Z women and 81% female, the majority of whom were between the ages of 25 and 30. She said her audience, which is predominantly Australian, reacted best to content on ‘transparency around money’.

“My posts on net worth are really popular,” she said.

“Most of my content is focused on; how do you take this really dry financial concept, put it in a really nice Instagram graphic, then put it in front of an audience that will actually consume it? “

But Nikolic doesn’t think the success of the new wave of women creating financial content on social media is because they’ve created millennial pink graphics that are pleasing to social media.

“I think for too long a lot of information has been kept behind a pay wall,” she said, whether through financial advisers or financial content aimed at men.

Much of what she shares is “just factual information,” she said. “In fact, it’s not financial advice to explain to someone like ‘what is a retirement pension?’ What is the compulsory contribution?

“It’s the law and the information available to the public. “

Tan believes the reason her content resonated is that she “doesn’t speak to young people in a critical or condescending manner.”

“Overall, I think the more diverse the voices we can hear on social media,” the better, she said.

“At the end of the day, what I’ve tried to do is make it a safe place to ask questions, and nothing is a dumb question,” Nikolic said.

“I just put the information for free in front of people in a way that was digestible and not condescending.

“And in a way that didn’t shame people for, you know, for the debt, or for spending money, or any of those things.”

The risk of crypto

Those who create financial content online are a disparate bunch, ranging from Tan and Nikolic to influencers pushing pump-and-dump schemes and creating crypto tokens.

The result has been an increase in voices calling for greater regulation of online financial content. This includes watchdog ASIC, which said it monitors influencers giving formal unlicensed financial advice,

Tan has said she supports more surveillance because she believes it will strengthen the integrity of good actors in space.

“There are a lot of positive people in the space,” she said, and she thinks there is a clear difference between spruikers and those who provide tools for financial literacy.

Nikolic said her concerns about tighter regulations were that it would deter more women from joining her.

“Where I see the limit is I don’t want young women who are transparent about money to disappear for fear of regulation,” she said.

“ASIC has a very difficult job regulating really glaring faults, on the one hand, and clarifying the regulations. But on the other hand, recognize that it should be a values-based approach. ”

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