A lot folks don’t like labels. Some view terms such as “boyfriend” and “girlfriend” as heavy and confining while others believe labels generate judgment and stigma. Others believe labels result in a loss of individuality and the list of relevant complaints about labels morphs from there.
So how do labels relate to financial goals for women? Believe it or not, the old pun “Jesus saves, but Moses invests” is instructive here. The reason is that while numerous studies confirm that women are better savers than men, many women don’t feel as though they’re investors.
That’s where advisors come in because a recent Vanguard study indicates women may be too dependent on cash, confirming a clear stumbling block on the road to helping women reach their financial goals.
The embrace of cash highlights the financial education gap that often confounds some women. Said another way, at a high percentage, women are interested in investing and leveraging assets such as stocks and real estate to build wealth, but they don’t know where to start. Advisors are forces for good in altering that situation. There are other encouraging points for advisors and female clients to consider.
Help Women Be Investors, Not Just Savers
Look, there’s nothing wrong with saving. It’s certainly better than squandering money, but when it comes to financial goals for women, one should be shedding the “saver” label in favor of the “investor” designation. Fortunately, it’s not a hard transition.
As noted in the 2025 Charles Schwab Women Investors Survey, 91% of women queried said investing (not saving) makes them feel empowered. However, many women are reluctant to see themselves as investors.
“Yet many women investors are hesitant to truly own the role. Although nearly 85% of women currently own or have previously owned stocks, 38% still don’t think of themselves as investors,” according to Schwab.
As Schwab points out, a quarter of the females polled said they don’t view themselves as investors because they work with an advisor while another 8% believe they’re not taking enough risk or “gambling” enough to classify as investors. Of course, these are both positive points. As advisors know, clients are in fact investors, though many women in that camp consider themselves “planners” or “savers.”
Why the Investing Label Matters to Financial Goals for Women
As noted out that outset, labels can be confining, it not downright petty in some circumstance, but when it comes to financial goals for women, the investor label and mindset is pivotal.
Schwab highlights two important reasons why the investor label is meaningful to women: Thwarted potential and lost opportunity. Regarding the former, a woman may be a prolific saver, but if she farms out investing responsibility to a male significant other, she’s a passive participant and not seizing on learning opportunities. Speaking of opportunities, the missed ones can be detrimental to financial goals for women.
“A quarter of women investors say they don’t like to take on too much risk, per the Schwab survey. And while conservative investment management has helped many women avoid speculative trends, too much caution can mean missing out on meaningful financial gains,” concludes Schwab.
