The investment behaviors, perceptions and financial engagement of women from the low-to-moderate income (LMI) bracket have been detailed in fresh insights from Logica Research and Commonwealth.
To garner a practical insight into investing personas, including behaviours, perceptions and engagement, Logica Research and Commonwealth surveyed 1,500 women from the LMI bracket; with a particular focus on Black and Latina ethnicities.
This online survey, conducted in the first-quarter of 2021, included a target sample of 1,500 working women aged 18 to 65 with annual household incomes between $30,000 and $80,000 (about 45% and 120% of national median income, respectively) and oversampled for Black and Latina women with a total of 405 in each category.
The results of which were conveyed in the release of the study, entitled “Invest Forward: Closing the Investing Gap for Black and Latina Low to Moderate-Income Women“.
Key findings uncovered three distinct personas encompassing a diversity of perspectives:
- The Confident Investor: Confident investors have greater exposure to financial tools, accounts, and investing. They enjoy a higher level of financial well-being and have positive attitudes toward investing, perceiving it as providing better opportunities for financial well-being. They strongly disagree that investing is more for men than for women or that there are no opportunities for people like them. Of the women surveyed, 23% fit with the ‘confident investor’ persona. Demographically, this includes 62% of Black women and 38% of Latina women.
- The Discerning Investor: The financial well-being of Discerning Investors is moderate, and they have moderate exposure to financial tools, accounts, and investing. Their attitudes toward investing and opportunities in capital markets are neutral. This group comprised 36% of the respondents: 53% being Black women and 47% being Latina women.
- The Potential Investor: Potential Investors do not currently invest, and they experience lower financial well-being. They are particularly unlikely to recall their family investing when they were growing up. They are not sure where to start in investing (feeling they need to know a lot) and are significantly more fearful of losing money. They lack exposure to financial accounts, brands, or tools. This persona constituted 41% of the working women surveyed: 41% are Black women and 59% are Latina women.
“Advancing racial and gender equity requires addressing the enormous and persistent wealth gaps in the United States,” said Lilah Raynor, Founder and CEO of Logica Research. “This study sheds light on how the dramatically lower wealth holdings of working women with lower to moderate income – particularly Black and Latina women – reflect long-standing systemic racism and sexism that excludes them from traditional pathways to wealth.”