The biggest financial mistake women are making according to an economist
AMP’s Deputy Chief Economist Diana Mousina explains why getting into the market early is an important step for women to build their financial wealth.
3 min read
We all know the story: women earn less than men. But even as society and employers work towards closing the gender pay gap, there’s another inequality that women face that’s just as crucial to building their wealth: the investment gap.
Why women are not investing their money
According to CoreLogic's 2025 Women & Property report*, Australian women are underrepresented when it comes to investing, with 40% of women reporting not having any investments, compared to 27.8% of men.
AMP’s Deputy Chief Economist Diana Mousina says it’s the biggest financial mistake she sees women making today. “You can see this from a high school age, going to uni, and then going into the workforce. Women tend to be more risk-averse, and they don't tend to be as into investing and making those investment decisions,” she says.
“That is not a bad thing. There have been studies that show female portfolio managers who manage investments for clients smooth performance out, for example. But from the financial literacy bit for everyday women, I think it dampens the age that they get into investing and become more interested in it.”
Even Diana herself was a late bloomer to investing and wishes she had started when she was younger. “I was never exposed to it and never took a real interest in it. I always loved economics but finance didn’t come as naturally to me,” she says. “I started getting into it more in my first full-time job after university, basically because I was in the field and I had additional funds! My first big investment was an apartment.”
Why women should be investing
“We know that time in the market equals money, because of the way that compound interest works,” says Diana.
Compound interest refers to the way returns compound on past returns for an investor over a long period. Essentially, it’s your money making more money, which then makes even more money - like a financial snowball rolling downhill, getting bigger and faster.
“Investing doesn't have to mean you need thousands of dollars to invest into the share market or into some sort of asset. It can be as simple as investing in $200 and building on that into the future,” she says.
How to start investing
Diana says the best way to start is with a budget. “Make a financial plan and figure out how much additional spare cash you have for investing.” AMP’s Budget Planner Calculator can help with this.
“Investing can be in so many assets: housing, shares, superannuation. Even if you don’t have any additional cash right now make sure you are happy with your super fund and understand which portfolio you are invested in.” You can also salary sacrifice into your super to help grow your balance even faster.
“The way that we can invest now is so much more accessible to everyone. You can do it on your smartphone. There are so many platforms that you can use. And it can start from a very small amount,” says Diana.
You can learn more about investing on Diana’s podcast with AMP’s Chief Economist Shane Oliver, Simplifying Investing. Learn more about how AMP can help you invest here.
Important information
It’s important to consider your particular circumstances and read the relevant product disclosure statement, Target Market Determination or terms and conditions, available from AMP at amp.com.au, or by calling 13 30 30, before deciding what’s right for you.
You can read our Financial Services Guide online for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relation to products and services provided to you. You can also ask us for a hardcopy.