Photo: Vlada Karpovich
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Over the years, women have been making waves in the business world. According to What to Become, women now own four out of 10 businesses in the U.S., and in the last two decades alone, the number of businesses that women own has gone up by 114 percent. That doesn’t show any signs of slowing down soon, with an increasing number of women going to college and becoming the primary breadwinners in their families.
However, despite the progress women are experiencing in business, they are still behind when it comes to money management and investing. According to Visual Capitalist, women score lower than men on financial literacy tests and they invest 40 percent less than men. Women are great at saving; the site also says that women save 9 percent of their salary, while men save 8.6 percent. But in another study, where women were asked what they would do if they were given $1,000, it was shown that they were 35 percent less likely to invest the money than men.
Though women entrepreneurs are excellent business owners and money savers, they may not understand the importance of investing – even if it means taking some risks. Ellevest, an online investing platform made by and for women, is helping change that by providing the guidance needed to navigate those risks successfully. Get your first month free with code: STACK.
Why investing can be critical for women entrepreneurs.
Women entrepreneurs can gain more personal and business capital through investing. They can also supercharge their savings and secure their financial future.
For instance, let’s say they put their money into a traditional savings account, which will accrue on average only about .01 percent to .06 percent a year in interest. Compare that to the stock market, with its historical returns of 10 percent and the opportunity to gain quarterly dividends. So if they put $1,000 into a savings account with .05 percent interest, they could gain $5 in interest over the course of a year. If they put it into the stock market and potentially get a 10 percent return, they’ll make $100 that year.
Women entrepreneurs have the opportunity to make money and then put it towards their businesses and/or back into their personal accounts to use it a later time, like in retirement. They may be able to make enough money to grow their business exponentially, buy other businesses, retire early, purchase real estate and much more. Investing can be key to their financial freedom — and Ellevest helps make the barrier to entry much lower by helping women to create and manage a portfolio.
But how do they actually get started?
That’s where Ellevest comes in. For $1, $5 or $9 per month, women entrepreneurs can gain access to the investing platform and money membership, which doesn’t require a minimum deposit*. There are no fees to use it either, aside from the membership cost.
Ellevest creates and manages personalized portfolios for its users and is the only investment algorithm that weighs crucial factors in women’s lives such as pay gaps, career breaks and longer lifespans. The platform also provides unlimited access to email courses, video resources and online workshops, as well as a discount on one-on-one sessions with their financial planners.
Investing may seem intimidating to women entrepreneurs who have never bought a stock share or want to get into bonds and real estate but don’t know how. But with Ellevest, they can start investing in a diversified portfolio easily and automatically for a small monthly fee, and begin to boost their financial future today. Check it out and get your first month free with code: STACK.
*Ellevest Digital doesn’t require you to maintain a minimum account balance. However, there are portfolio-specific minimums (ranging from $1 to approximately $240). You may not receive the entire recommended portfolio until your account balance meets the respective portfolio minimum.
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This article originally appeared on entrepreneur.com