How women are shrinking the investment gap
56% of women feel financially independent, yet only 15% prioritize investing — here’s how we can shrink the gap for good.
6 min read
Women are taking a more proactive approach to their finances, with budgeting, saving, and planning firmly in focus. Yet, despite these strong financial habits, an investment gap remains. Women still invest less than men overall, which can limit long-term wealth growth. The good news? This is changing. Our data shows that women want to invest more frequently in 2025, and the key to closing the gap lies in accessibility, simplicity, and financial education.When it comes to managing money, the landscape is evolving, and women are increasingly in the spotlight. In the latest YouGov survey for N26, we examined financial habits across five European markets, with findings showing that women today feel just as capable as men in handling their finances. More than half of female respondents (56%) identified as financially independent, matching their male counterparts.In 2024, while women were less likely to invest, they were also less likely to struggle with maintaining healthy financial habits — only 26% reported difficulties, compared to 30% of men. This trend remained consistent across income levels, with minimal variation: 25% for high-income respondents, 27% for medium, and 29% for low-income brackets. These findings highlight that financial stability isn’t necessarily tied to income level. Now, in 2025, the focus shifts to investments, where a significant gap remains.While many women feel in control of their day-to-day finances, barriers like financial stress, investment anxiety, and gaps in financial education can hold them back from investing. This is where the real gap lies, not in managing money but in actively investing for the future.When allocating monthly budgets, men and women are often on the same page. Whether spending on daily or leisure expenses, savings, and debt repayments, priorities between the two groups remain largely consistent. But, when it comes to investing, there’s a notable difference in financial habits. Our data shows a clear gap: only 15% of women prioritized investments in their monthly budget in 2024 compared to 26% of men. Plus, men allocated nearly twice as much of their savings toward investments — 20% compared to just 11% for women. So what’s holding women back? A few culprits stand out: risk perception, financial education gaps, the ever-persistent gender pay gap, and a healthy dose of financial anxiety. These barriers can snowball over time, leading to significant disparities in wealth accumulation later on. Investing should feel as intuitive as checking your bank balance — simple, stress-free, and within reach. Yet, investing tools are often wrapped in jargon or feel overly complicated, making even the most financially savvy hesitate. Many women successfully manage their day-to-day finances, but that doesn’t always translate into confidence about their financial future. Without accessible resources and clear guidance, taking the next step toward investing can feel overwhelming.With accessible investment options and resources designed to simplify financial education, N26 aims to bridge the gap between managing money and growing wealth, as Carina Kozole, Chief Risk Officer at N26, explains:"Our analysis reveals a clear picture: when addressing financial management, it is essential to consider the unique needs of women, such as longer life expectancy, career interruptions due to caregiving, and an inclination toward risk aversion. Our data shows that many women feel less confident in their financial knowledge, which holds them back from making investment decisions. It is very natural for this lack of knowledge and confidence to be felt as fear and uncertainty, and this shapes our choices, leading us to favor safer options over more proactive investments that may come with some form of risk.However, there is a way to address this — and that is through financial education. Women today are eager to learn and empower themselves to manage their finances. It is crucial to foster open conversations, share knowledge, and challenge the barriers that exist. Only then can we truly close the investment gap.We must continue to encourage women to view investments as an accessible tool for supporting their well-being and securing their financial future. By providing the right resources and creating spaces for dialogue, we can inspire women to invest confidently and build lasting financial security. Women must feel empowered and validated when it comes to taking better care of themselves, of which fostering self-awareness and prioritizing their finances is a crucial part. Being conscious of our economic situation enables us to improve our financial well-being and create new opportunities, with investments serving as a key tool in this process.”Confidence with money doesn’t just happen; it’s built, brick by brick, with the right knowledge. The more we know, the more empowered we feel to take action. That’s why financial education is crucial in reducing the investment gap. It demystifies complex topics such as investing by breaking down intimidating jargon and replacing uncertainty with clarity. It shifts investing from something that feels out of reach to something that feels not just possible, but simple. Whether you’re new to investing, refining your strategy, or simply trying to understand the basics, every step you take toward financial literacy helps build a stronger foundation for future wealth.For women looking to grow their wealth, goal setting isn’t just helpful, it can be a game changer. Across all surveyed countries and income brackets, investment is emerging as a priority, with one in seven women (14%) planning to make regular investing a key part of their financial strategy in 2025.Interestingly, when defining financial goals for the year ahead, women and men show strikingly similar priorities. Both groups are focused on stabilizing their present finances before exploring ways to boost their financial well-being through investments and other wealth-building strategies. In this second phase of financial planning, we see an encouraging trend: not only are more women planning to allocate funds toward investments, but there’s also a growing interest in discovering new paths to financial growth. So, how can you turn financial goals into action? Here are a few typical strategies:The future of financial empowerment relies on continued progress in three key areas: accessibility, education, and support. By making financial tools more user-friendly, providing resources that demystify investing, and fostering environments where financial confidence can thrive, we can help ensure that women everywhere have the opportunity to grow their wealth on their own terms. At N26, we’re committed to being part of that future, one step, one goal, and one investment at a time.
Investing shouldn’t come with hidden fees or complicated processes. That’s why at N26, we’ve made stock and ETF trading completely free, so you invest without worrying about hidden costs eating into your returns. No barriers, no jargon, just a simple, transparent way to grow your wealth on your own terms.Prefer a hands-off approach? Our Ready-Made Funds offer expertly managed, diversified portfolios designed to help you invest with confidence. Whether you're new to investing or looking for a stress-free way to build long-term wealth, N26 provides the tools to take action, without the usual obstacles. Start investing today with N26 and take charge of your financial future, fee-free.
Confidence to capital — how women are owning their finances
Only 15% of women are prioritizing investments
Why accessibility and financial literacy matter
The power of financial education
From intention to action with goal setting
- Wealth building: Define clear goals, such as saving for a home or growing a specific net worth. Diversify your investments across asset classes like stocks, bonds, and ETFs, and review your portfolio regularly to ensure it aligns with your evolving goals.
- Passive Income: Identify passive income streams that match your risk tolerance and interests, such as dividend stocks, rental properties, or peer-to-peer lending. Set measurable goals, like earning a certain monthly income, and track progress over time to adjust strategies as needed.
- Retirement planning: Start by envisioning your ideal retirement, considering lifestyle, location, and activities. From there, calculate how much you'll need, factoring in potential expenses, and set regular investment contributions to reach that target.
The future of financial empowerment
Bridging the investment gap with N26
Find similar stories
BY N26Love your bank
Related Post
These might also interest you
Invest
How ready-made funds simplify investing for beginners
Overwhelmed by stocks? Ready-made funds offer expert-managed portfolios to help grow your wealth stress-free.
4 min read
Invest
What is dividend investing? Here’s what you need to know
Dividends are a piece of a company’s profit, and some investors focus their portfolios around dividend-paying stocks. Learn about dividend investing, from key metrics to risk management.
5 min read
Invest
What is return on investment (ROI)? Plus, how to calculate it
Return on investment (ROI), explained: Basically, it’s how profitable a given investment is. Learn here how to calculate ROI and apply it to investments, real estate, and business strategies.
6 min read