Women in Latvia save up and invest money less than men – 47% of women and 55% of men. Mostly women pick less risky financial mechanisms, according to a study by SEB Bank.
Although generally only 14% of Latvian residents divert part of their income towards financial mechanisms as shares, investment funds and crypto currencies, it should be mentioned these options are mostly used by men.
SEB Bank Private Finances Segment manager Elīna Kalniņa explains that women in Latvia are less involved in active investments. The reason, according to her, is that women on average earn less than men, because they are most often employed in jobs with lower wages – healthcare, education, social work and catering.
«It’s only logical that lower financial opportunities allow for a much lower possibility of investing or making savings. Additionally, it is estimated that women often keep their savings in cash or their bank account,» said Kalniņa.
«With that, 71% of women keep their savings in a passive money sock, which loses its value due to inflation.»
A more detailed analysis of results of this study and people’s motivation for making investments may help identify other major differences that would help explain women’s approach to making savings and investments.
For women it is most often more important to make pension savings (64%) and savings for their child’s future (20%).
As for men, the main motivation for them to start making investments is often the desire to keep their money safe from inflation (29%), putting free funds into a business venture (33%), as as well as gaining passive income (38%).
Norstat performed a public survey following a request from SEB Bank. 1 002 residents aged 18 to 74 years participated in it.