“You’re not smart enough, sweetie.”
“Did we not get into the same law school?”
The film “Legally Blonde” portrays how Elle Woods constantly faces criticism for not conforming to the stereotypical image of a serious Harvard Law student because of her unapologetically feminine personality. Despite her confidence, Elle often struggles with self-doubt and worries about not being taken seriously, even though she has already shown how intelligent she is.
What causes Elle Woods to doubt herself?
Research shows that despite possessing equal abilities, women often exhibit lower confidence in professional settings. This stems from societal expectations; girls are praised for being cautious and agreeable from a young age, while boys are encouraged to be bold and take risks. These ingrained messages impact confidence in adulthood. Furthermore, the workplace can be a breeding ground for subtle (and sometimes not-so-subtle) language that undermines women’s expertise. Phrases like “leave it to the boys” or being addressed as “sweetie” (like Elle Woods in Legally Blonde) might seem insignificant, but they chip away at a woman’s confidence and create a perception that these fields are not for them.
How does this connect to financial confidence?
The erosion of confidence isn’t confined to professional arenas; it permeates all aspects of life, including financial confidence. There is a notable gender gap in financial confidence, with studies showing that women often feel less assured in their financial decision-making compared to men.
Financial confidence, in simple words, is trusting yourself with money, and trusting yourself to make financial decisions. Just as societal expectations can influence a woman’s confidence in her professional capabilities, they can also shape her self-assurance in managing finances. When women are consistently exposed to messages that suggest certain domains are “not for them,” they internalize these beliefs, leading to lower confidence in areas like financial planning and investment.
Studies have found that women are more likely than men to say they “don’t know” the answers to financial questions, suggesting a lack of confidence rather than a lack of knowledge. It’s like being in a trivia contest where you hesitate to buzz in, not because you don’t know the answer, but because you’re second-guessing yourself.
Where does this hesitation come from?
Think about the typical metaphors used in investing. Terms like “beating the market,” “hostile takeovers,” and “financial warfare” almost paint a picture of the financial world as a gladiatorial arena.
Cecilia Boggio’s research in 2023 delves into how these metaphors can subtly reinforce the notion that financial investing is a male-dominated field. Investment metaphors often draw inspiration from areas such as war, physical activity, games, and farming, many associated with males. It is argued that the use of masculine imagery in these metaphors could lead to women feeling disconnected from investing and a lack of belonging.
This isn’t because men naturally like military or aggressive ideas or women naturally dislike them. Instead, these metaphors come from environments that men have historically dominated.
Using unfamiliar language in finance can be off-putting and intimidating for people who are not accustomed to it. This can lead to a lack of confidence in engaging in financial discussions and activities, resulting in barriers beyond simply needing more financial knowledge and feeling excluded from the conversation. Women may be less likely to participate in the stock market and take fewer financial risks, partly because the language of investing seems less familiar and accessible to them. This lack of familiarity can erode one’s confidence in financial settings, and the internalized perception stemming from language and stereotypes can be incredibly limiting.
What’s the solution?
Ultimately, the way we talk about finance matters. It’s not just about being politically correct or avoiding stereotypes; it’s about creating an environment where everyone feels confident and capable in making financial decisions. But the reality is more nuanced. Confidence isn’t just something you can switch on like a light bulb; it’s built through experience and reinforced by the environment.
Instead of merely telling women to “be more confident,” we need to create a supportive environment encouraging financial literacy and confidence.
Closing the gender gap in financial confidence requires a multifaceted approach.
- Financial literacy is at the core of closing this gap. Tailored education programs can help demystify financial concepts and build confidence in managing money.
- Creating supportive networks where women can share experiences and advice can empower more women to take control of their financial futures.
- In the corporate context, companies should prioritize increasing female representation in the financial sector, to bring diverse perspectives that lead to the development of financial products and services catering better to women’s needs.
By rethinking the metaphors we use and bringing infrastructural change, we can start to bridge the confidence gap.
Serein works with research and data science to understand creation of inclusive places in the workplace. The next article in this series will explore bias in education and how it influences financial confidence.