Fighting the Gender Investment Gap

Gender Investment Gap
Listen

Picture this. A twin brother and sister have the same education, get similar jobs, and save at the same rate for the same period.

Because the sister earns considerably less than her brother (especially if she is a Black or Hispanic woman), and would therefore only be able to invest a fraction of what her brother can, the sister can expect to accumulate up to 61% less in retirement savings than her brother.

This number can extend into the millions.

The Gender Investment Gap

Here, we have the gender investment gap—yet another issue that is a direct result of the gender pay gap. Luckily, some entrepreneurs have taken notice.

Sumeit Aggarwal MBA’05

Sumeit Aggarwal MBA’05 came to Babson because of its entrepreneurship ranking. She was determined to hone her already entrepreneurial mind in order to pursue her own enterprise. Little did she know that she would create a venture to empower women to take control of their financial futures.

In 2017, Aggarwal and her husband seized an opportunity to create change in their community and launched Finhive.

Talking to parents as their own kids got older, they realized that children aren’t taught about money in school. “I was lucky,” Aggarwal says. “Money was an open topic at my house and my mother regularly took me to the bank and taught me about financial independence.”

She quickly learned that kids weren’t the only ones dealing with a lack of financial knowledge. Her female friends, particularly those recently widowed or going through a divorce, expressed interest in learning how to save and invest, ultimately wanting to take control of their finances.

“Women are told from an early age that they don’t need to worry about numbers,” says Aggarwal. “Research tells us that as girls get older they drop out of STEM classes, despite performing just as well as boys. Today, we see major initiatives focused on increasing girls’ interest in STEM. I want to see that happen in finance as well.”

Teaching middle school kids summer classes like “Barter to Bitcoin,” Aggarwal typically has only one or two girls sign up comprising about 10% of the class.

Empowering Women to Invest

Those not taking advantage of the stock market are missing out, according to Aggarwal, which is a big percentage of the population. That’s why she has started investment workshops, classes, and even social gatherings for women to learn and ask questions.

“These are very smart women who have been left out of the financial conversations. They just need to know where to start,” says Aggarwal.

Here are five steps Aggarwal recommends to take control of your financial future:

  • Learn to Fish: Don’t just hire someone to do the investing for you, learn about it yourself and take action.
  • Set Your Goals: Decide what you’re trying to accomplish and make that goal clear. Whether it’s buying a new car or saving up for retirement, if you don’t have a goal, you won’t have anything to work toward.
  • Know Your Risk Tolerance: Understand what kind of growth you’re looking for and what you’re willing to risk to try to achieve that growth.
  • Find a Financial Planner: Planners aren’t always intimidating. Find someone whom you like and go from there. Need help vetting them? Head to finra.org.
  • Regularly Flex Your Investment Muscle: Learning about finance and investing is like learning a new language. If you don’t practice, you won’t get stronger.

The gender wealth gap creates an estimated loss of human capital to the tune of $160.2 trillion globally. While the international community works to fix that gap, investing is one way that women can take steps toward doing it for themselves.

Posted in Entrepreneurial Leadership, Insights

More from Insights »

Latest Stories

Juan “JC” Grullon ’27 and Ty Bradford ’29 shake hands outside Publishers Hall
Publishers Hall Welcomes First-Year Students to Its Cozy Confines During move-in day, a new crop of first-year students made Publishers Hall their home. The small residence hall, built over a century ago, is known for the tight-knit communities that form there.
By
John Crawford
Senior Journalist
John Crawford
A writer for Babson Thought & Action and the Babson Magazine, John Crawford has been telling the College’s entrepreneurial story for more than 15 years. Assignments for Babson have taken him from Rwanda to El Salvador, from the sweet-smelling factory of a Pennsylvania candy maker, to the stately Atlanta headquarters of an NFL owner, to the bustling office of a New York City fashion designer. Beyond his work for Babson, he has written articles and essays for The Philadelphia Inquirer, Notre Dame Magazine, The Good Men Project, and other publications. He can be found on Twitter, @crawfordwriter, where he tweets about climate change.
August 28, 2025

Posted in Community

College mascot and family move in a new student to college.
Parents, Siblings, and New Students Come Together for Babson Move-In Day Families shared stories of packing, pride, and the promise of entrepreneurship as they helped the Class of 2029 settle into campus life.
By
Hillary Chabot
Writer
Hillary Chabot
Hillary Chabot is a writer for Babson Thought & Action and Babson Magazine. An award-winning journalist, she is known for her insightful reporting and dedication to detailed storytelling. With a career spanning over two decades, she has covered a wide range of topics, from presidential campaigns and government policy to neighborhood issues and investigative series. As a reporter for The Boston Herald, Hillary earned a reputation for tenacity and integrity. Her work at Babson College fuels her passions—to learn something new every day and conduct thoughtful, empathic interviews. She’s thrilled to be at Babson College, where students, faculty, staff members and classes provide compelling copy daily.
August 27, 2025

Posted in Community

Students holding Welcome to Babson signs at the frontgates
Move-In Day Brings Babson’s Global Campus Together More than 600 new undergraduate students move into Babson each year. The Class of 2029 brings people from nearby and thousands of miles away to celebrate new beginnings on campus.
By
Melissa Savignano
Writer
Melissa Savignano
Melissa Savignano, a content marketing manager at Babson College, has worked in higher education for almost a decade, where she tells authentic, compelling campus and community stories. Before Babson, she managed communications for Boston University’s largest college, the College and Graduate School of Arts & Sciences. She previously worked in client relations, helping brands of various sizes launch content marketing strategies and storytelling initiatives. When not at work, you will find her in the city of Boston, probably at the movie theater.
August 22, 2025

Posted in Community