Financial confidence can grow over time with the right strategies.

This morning, a friend shared her challenges managing an inheritance. She's not alone. Many women, including those among our financial advisors’ clients, often struggle with financial confidence.

A primary cause of this uncertainty stems from a lack of financial empowerment. A study by Jha and Shayo from Stanford and Hebrew University showed that a short-term engagement in stock trading boosted confidence and knowledge, particularly for women. This finding highlights that participation alone can enhance financial awareness and risk tolerance, proving that empowerment is crucial for women in wealth management.

While not everyone receives these boosts, we can initiate them for ourselves and others. Consider this a gentle push if you're finding it hard to begin.

Here are a few straightforward steps to kickstart your journey.

Seek Your Own Financial Advisor

If you currently share a financial advisor with your partner, consider using a portion of your wealth to hire your own advisor. This step is empowering and can lead to significant learning when the advice is tailored specifically for you. An advisor focused solely on your needs eliminates the risk of your partner’s opinions overshadowing yours, especially if they typically make the financial decisions.

Don't Assume You Need a Lot to Get Help

With many independent advisors and fintech firms emerging, the investment thresholds are much lower than before. Companies like Personal Capital, Facet Wealth, and Farther Wealth represent innovative hybrid advisory models. Unlike men, who often think they don't need an advisor, many women hesitate, believing they lack sufficient wealth. The reality is that everyone can benefit from financial discussions, regardless of their wealth level.

Inspire Others to Enhance Your Own Financial Confidence

It’s essential to educate the girls around us—daughters, nieces, and friends—about investing. They can begin with small amounts. Introduce them to the “three jar” concept: one for spending, one for investing, and one for giving. As they learn to budget with these jars, you could even offer to contribute to their investment jar. As they grow, consider setting up trading accounts for them to understand the impact of their investments. Help them connect their financial decisions to their future goals.

Financial empowerment, much like investing, can yield remarkable outcomes over time.