Financial Myths Women Should Finally Ditch
For generations, women have been told who they should be, what they should aspire to, and even how they should handle money. Many of us grew up hearing outdated financial advice, often rooted in cultural norms, family dynamics, or social stereotypes. The result? Too many women still hold themselves back from taking charge of their financial futures.
But here’s the truth: managing money isn’t about gender — it’s about knowledge, confidence, and action. And when it comes to building wealth and making empowered choices, women are far more capable than they’ve been led to believe.
This Women’s Month, we turned to Praleena Mudley, Associate Portfolio Specialist at Morningstar Investment Management South Africa, to help us debunk some of the most common financial myths that hold women back — and show us how to replace them with empowered action.
Myth 1: “Women are not good with money”
This is one of the most damaging stereotypes out there, and it’s flat-out false. According to Mudley, the data tells a different story: A Warwick Business School study found that women investors actually outperform men by 1.8% per year, largely because women tend to trade less frequently and are more risk-aware.
The takeaway? Managing your money is a skill, not an innate trait. Mudley recommends starting small: track your expenses for a month, revisit your savings goals, or sit down with a financial adviser. As she notes, “competence follows action”.
Myth 2: “My partner handles the finances”
While it’s natural to split household responsibilities, Mudley warns against being completely hands-off with money: Delegating without understanding can leave women vulnerable in the event of divorce, illness, or death.
Instead, she encourages shared financial responsibility. Know your household’s income, expenses, debt, and investments. Attend financial planning meetings, ask questions, and make decisions together.
Myth 3: “Investing is too risky. I’ll just save”
Avoiding investing might feel “safe,” but in reality, saving alone rarely keeps pace with inflation. Mudley explains that in real terms, you can end up with less money if you only save in an interest-bearing account.
The smarter strategy is diversification — spreading your investments across shares, bonds, and property to reduce risk while still growing your wealth. Morningstar, for example, offers balanced multi-asset portfolios that are designed to deliver inflation-beating returns over the long run.
If you’re unsure where to begin, Mudley advises speaking with a financial adviser about your risk profile. You don’t have to do it alone, she reassures.
Myth 4: “I’ll start investing once I earn more”
This is one of the most common — and costly — misconceptions. Waiting to invest means missing out on the power of compound growth.
Mudley illustrates this with a simple example: an investor who starts early, even with small contributions, often ends up with a significantly larger portfolio than someone who waits to begin, even if the later investor contributes much more.
Her advice? Don’t wait for “someday.” Even a modest debit order — as little as R500 a month — can compound meaningfully over time.
Myth 5: “Talking about money is unladylike”
Money conversations have long been seen as taboo, but Praleena believes this is one of the most important myths to ditch. When women talk openly about finances — whether it’s budgeting, salaries, or investing — they build confidence and break the taboo. The more we share, the more we learn, and the stronger we become collectively. As she says: “Talking about money isn’t; rude — it’s empowering”.
As Praleena reminds us, ditching these myths isn’t about knowing everything — it’s about being willing to learn, ask questions, and take small steps forward. With the right information and support, every woman can build the tools and confidence to make empowered financial choices.
This Women’s Month, let’s take her advice to heart: stop playing small with our money, and start owning our financial stories.
