More and more, women are entering fields that were mainly or solely driven by men. Whether it’s becoming a Supreme Court justice or annihilating the box office competition as a super-hero, women are showing their strength in every field. Well, almost. There is one field where this is especially lacking: finance. It is still rare to meet a woman who is actively investing her money, trading stocks, or managing a portfolio. Whether young or old, rich or poor, most women are not making smart (or really any) investment decisions. Even in conversations with my highly educated friends, there are mostly blank faces when the stock market comes up. As women, we are happy to discuss the answer to “Who wore it best?” but are often absent from the “Who invested it best?” discussion.
I was just as uninvolved and uninterested in investing and managing my money as any of the women I encountered. Even the vocabulary was daunting … P&L, APY, CAGR? More like WTF? But what I would soon learn is that most people are clueless about money, but few are willing to admit it.
When I was growing up, my smartest financial decision was asking my parents to invest my bat mitzvah money in Coca-Cola and IBM stock. They didn’t do it, and to this day I teasingly remind them about how much my investment would have grown by now if they had listened to me (a lot!). Otherwise, I was never proactively investing or managing my money. But everything changed when I found myself sitting in a finance class while getting my MBA at Harvard Business School.
I came from a liberal arts background and was struggling with the coursework, unlike the former bankers and consultants around me who were breezing through the material. I am a visual learner. I don’t think in numbers, and I find financial concepts intimidating and overwhelming, especially as someone new to the jargon.
My way of learning was to use images and sketches to understand and solve problems. So I used scraps of paper, envelopes and napkins … anything I could get my hands on. I called it Napkin Finance. There were not many places or people I could turn to for help. And I was not alone. Many people struggle with numbers and basic financial concepts, but it is mostly women who have lower financial confidence and who pay the highest price. Interestingly, most women do recognize that they are less informed than men and are open to learning given the opportunity. This self-awareness and initiative is what is unique and, ultimately, empowering.
What started out as a passion project to empower myself has now become a platform and resource for both men and women. Napkin Finance is an easily accessible tool to help people understand basic financial skills, build their own knowledge base, and make better financial decisions. It has been especially exciting to discover that diverse groups of people are now using our platform. Women and men, both young and old, are coming to us for help in making important financial decisions.
Financial illiteracy can be very expensive. While it may start with a lack of general knowledge, a lack of confidence and access to skills ultimately means fewer women working in finance and bringing new perspectives. How many women work on Wall Street or are CEOs of the largest investment banks? How many financial advisors are women? How many hedge fund managers or private equity partners are women? How many venture capitalists are women? The low numbers are staggering. I notice this more now, working in finance and technology, as one of the few women in the room.
Resources, a network of mentors, and capital are more accessible to men, which means businesses headed by women have a harder time getting off the ground. And because there are fewer female investors and decision makers, fewer women-led businesses get funding. Time and again, the only thing that differentiates a successful business from a failure is having enough money to weather the storm and find the product market fit. Since most venture capital money goes to men, it is so much more difficult for women to take a company through the ups and downs that are typical of most start-ups.
My own struggles have been internal as much as external. I have had to overcome my fears and the voices that drown out my potential. I’ve had to block out the noise and find an inner strength—it’s not easy, let me tell you. But I was incredibly lucky to grow up with parents who told me—and showed me—over and over that I could do anything I wanted. I believed them. They stood by me as a kid, when I was a bit of a tomboy and insisted that I play on the boys’ team. They supported me when I decided one day to pack a bag and travel and live abroad. They cheered me on when I started a business and consoled me when that business bombed. I look back at all the crazy ideas I’ve had in my life, and my parents were always there for me. They are the reason I believe in myself, even when I have no reason to.
As mentioned above, a big challenge for women in business is a lack of confidence, not competence. Sitting around a table, women will be more humble and dismissive about what they have done. Men are encouraged to broadcast their accomplishments and are apt to consider themselves trailblazers. I try to take my cue from them and speak loudly and proudly.
I HAVE HAD TO OVERCOME MY FEARS AND THE VOICES THAT DROWN OUT MY POTENTIAL. I'VE HAD TO BLOCK OUT THE NOISE AND FIND AN INNER STRENGTH—IT'S NOT EASY, LET ME TELL YOU.
I draw inspiration from the incredible women I see in other industries: bestselling authors, activists, lawyers, and doctors. I look to their achievements as evidence of what is possible for women. There is no reason that more women should not be running finance or technology businesses. I am optimistic that more and more women are going to be finding their way into technology and other nontraditional industries. In the meantime, I’m enjoying the shorter lines for the ladies’ room!