How you can support other women with your investment dollars
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There are many ways to support other women, and one of them is to invest your money. In this “Financially Savvy Female” column, we talk with Eva Yazhari, impact investor, author of “The Good Your Money Can Do” and managing director of Beyond Capital Ventures, a community-led impact venture capital firm. women, on the best ways you can use your investment dollars to uplift other women.
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Invest in companies where women hold key leadership positions
Investing in companies with female founders, leaders and board members not only supports the success of women who are directly involved in the business, but also often benefits women as a whole.
“This often results in products and services that are more sensitive and aware of women’s needs,” Yazhari said. “Investors may seek opportunities like this where customers are underserved.”
There are several ways to invest in women-led businesses.
“There are public market funds that filter out companies that don’t have women on the board, that don’t help women break through the glass ceiling,” Yazhari said. “There are funds you can proactively invest in.”
“On a private level, it’s really about supporting women’s entrepreneurship, and there are many ways to do that – investing directly in angel investors and companies, but also supporting ecosystems for women to become founders. in emerging markets,” she continued. “There are many groups that are accelerator programs and they are able to receive capital, either from investors themselves or from donations.”
On a smaller scale, you can also support your friends’ businesses.
“If you have a friend who is starting a business, you can support her. I believe in the female tribe and community at the local level because women are more community-based,” Yazhari said. “This investment will also help.”
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Include funds managed by women in your investment portfolio
“We all have a pension or a 401(k) or Robinhood account. The first step is to start asking questions,” Yazhari said. “Ask: how many funds in my portfolio are managed by women? This is a very powerful question to ask. Asking this question creates a demand. Those answers should be there for you, and if you’re being told “I don’t know” or “I can’t give you that answer,” then I think it’s definitely time to move on. »
“Once you know the answer to that question, you can figure out which direction you want to go,” she continued. “Do you want to research more specialized gender-focused funds and add them to your portfolio? Or do you perhaps want to switch to an IRA or 401(k) provider that has better options? »
Work with a financial advisor
Yazhari notes that even women can have biases against working with other women as financial or investment advisors, but we need to change those attitudes if we want to level the playing field.
“It’s possible to interact with a woman for all aspects of your finances,” she said. “Look for those relationships more proactively. A financial adviser does not have to be a white man, although that is the most common type in the United States. »
Bank with an institution that proactively supports women
“Be careful where your bank lends your money,” Yazhari said. “There’s a great new bank called First Women’s Bank in Chicago, and you can open a savings account, and if you have money, you can just deposit your money there. It’s FDIC insured and you can help women with that money in a savings account which the bank then lends out on the other side. [to help support other women].”
GOBankingRates wants to empower women to take control of their finances. According to the latest statistics, women hold $72 billion in private wealth – but fewer women than men consider themselves to be in “good” or “excellent” financial shape. Women are less likely to invest and are more likely to have debt, and women are still paid less than men overall. Our “Financially Savvy Female” column will explore the reasons for these inequalities and provide solutions to change them. We believe financial equality starts with financial literacy, which is why we provide tools and guidance for women, by women, to take control of their money and help them live richer lives.
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