Financial Socialization and the Gender Investment Gap

Women are significantly less likely to participate in the stock market than men. We show that financial socialization plays an important role in explaining this gap. Survey data from Germany and the U.S. indicate that parents discuss financial matters less frequently with their daughters than with their sons. Women also report fewer financial role models and less exposure to peers who invest in the stock market. We find that this early-life difference in financial socialization leads to lower financial literacy and lower financial confidence of women later in life, and also explains why they are less likely to participate in the stock market than men.

Niessen-Ruenzi, Alexandra, Vanessa Mueden and Leah Zimmerer (2025), Financial Socialization and the Gender Investment Gap, ZEW Discussion Paper No. 25-063, Mannheim.