With Mother's Day upon us, there's one more reason to celebrate the mums in our lives – they might just be better investors than they realise.

In the world of investing, patience, careful planning, and methodical decision-making often trump impulsive actions and unnecessary risks.

Does that sound familiar…?

These are qualities many of us associate with our mothers - and research is increasingly showing that these traits translate into superior investment outcomes.

The Confidence Gap

A recent Financial Services Council (FSC) report revealed a not-so-little something about women in New Zealand: They're typically more financially literate than men, with two-thirds correctly answering three or more financial literacy questions (compared to just 57 percent of men). Women demonstrate strong understanding of key financial concepts like investment strategies and risk diversification.[I]

"The data is clear - women are better investors than they think they are," says FSC chief executive Kirk Hope.

Yet despite this competence, more than 80 percent of women still rate their financial well-being as low. They're more likely to worry about money regularly, which affects their overall wellness.

This is called the confidence gap. It’s something Kiwi mums know all too well - often underestimating their financial acumen while quietly making sound decisions that benefit the entire family.

A Methodical Approach

What makes mothers such effective investors? For starters, women tend to approach investing with a more methodical, researched strategy rather than chasing trends or making impulsive decisions.

Studies consistently show that when investing, women typically:
Take time to research investments thoroughly before committing
Focus on long-term financial security rather than short-term gains
Practice a disciplined "buy-and-hold" approach, avoiding impulsive decisions
Diversify their portfolios more effectively to manage risk
Seek expert advice more frequently – understanding that a burden shared is a burden halved

These characteristics mirror how many mothers approach family decisions; with careful consideration, long-term vision, and an eye toward security.

Remember Aesop's fable of the tortoise and the hare? The hare, quick and impulsive, races ahead but ultimately loses to the slow, methodical tortoise’s steady pace.

Many mothers take to investing with the same methodical approach, which often yields impressive results. This isn't just about feel-good platitudes. It translates to real financial outcomes.

While women tend to invest more cautiously, the FSC report found they often achieve better long-term results due to their measured approach and focus on financial security. Like the tortoise in the fable, the consistent, patient strategy typically wins the investment race.

Flashy, quick-profit strategies might grab headlines, but it's the steady, thoughtful and future-focused approach that builds wealth over time.

Yet, despite their investment prowess, New Zealand women still face significant structural barriers. The gender pay-gap and career interruptions contribute to lower lifetime earnings, resulting in a 25 percent retirement savings gap between men and women in KiwiSaver.

These findings are reflected in the 58 percent of women feeling unprepared for retirement, a higher percentage than their male counterparts.[ii] This is particularly concerning given that women in New Zealand typically live longer than men too. According to recent data, life expectancy for women in New Zealand is 83.7 years compared to 80.3 years for men. Further still, those who are fit and well at 65 years of age are expected to live until 88 years for a female and 86 years for a male.[iii] This longevity means women need their retirement savings to stretch further. [iv]

Practical Wisdom in Action

The financial savvy that many mothers display doesn't just apply to investments. Their practical approach often extends to overall financial management, including budgeting, saving, and planning for future expenses.

A common trait among mothers is their ability to anticipate future needs and prepare accordingly. Whether it's setting aside money for school fees, planning for family holidays, or building an emergency fund, this forward-thinking approach mirrors successful investment strategies.

Research from financial institutions consistently shows that households where women are actively involved in financial decision-making often have higher savings rates and more diversified financial portfolios. The same FSC research found that while women tend to invest more cautiously, they often achieve better long-term results due to their measured approach and focus on financial security.

This practical wisdom becomes particularly valuable in today's economic climate. With New Zealand's inflation rising to 2.50 percent in early 2025 and mortgage rates in flux, the ability to make sound, long-term financial decisions are more important than ever. The methodical, research-based approach many mothers naturally adopt can serve as a model for addressing these economic challenges.

Consider the five key financial lessons we can learn from mums:

Research thoroughly before investing - Take time to understand what you're putting your money into
Think long-term - Focus on security and sustainable growth rather than get-rich-quick schemes
Stay disciplined - Don't panic-sell during market downturns or chase the latest investment fad
Diversify wisely - Spread risk across different types of investments
Trust your judgment - If something doesn't feel right, it probably isn't

Changing the Narrative

The key to unlocking women's full investing potential may be as simple as better acknowledging what they already do well. We need to shift the narrative from perceived lack of confidence, to recognising and celebrating women's strengths in financial decision-making.

In these changing economic conditions, the steady hand that mothers often bring to financial planning becomes even more valuable.

Perhaps this Mother's Day, alongside the flowers and breakfast in bed, the greatest gift we can give is to acknowledge the financial wisdom that mums have been quietly demonstrating all along.

The next time you're making an important financial decision, consider asking yourself: "What would Mum do?"

After all, when it comes to investing, it seems that mum really does know best.

[i] https://blog.fsc.org.nz/insights-and-trends-women-and-finance-new-zealand

[ii] https://www.rnz.co.nz/news/business/544507/women-are-better-investors-than-they-think-they-are

[iii] https://businessdesk.co.nz/sponsored/why-so-many-kiwis-work-after-65

[iv] https://newsroom.fidelity.com/pressreleases/fidelity-investments--study--women-tapping-into-their-financial-superpowers-to-gain-ground-with-thei/s/f912c67e-75e9-4398-9ea8-dd6e196005a4

Nick Stewart (Ngāi Tahu, Ngāti Huirapa, Ngāti Māmoe, Ngāti Waitaha) is a Financial Adviser and CEO at Stewart Group, a Hawke's Bay and Wellington based CEFEX & BCorp certified financial planning and advisory firm. Stewart Group provides personal fiduciary services, Wealth Management, Risk Insurance & KiwiSaver scheme solutions. Article no. 406.
The information provided, or any opinions expressed in this article, are of a general nature only and should not be construed or relied on as a recommendation to invest in a financial product or class of financial products. You should seek financial advice specific to your circumstances from a Financial Adviser before making any financial decisions. A disclosure statement can be obtained free of charge by calling 0800 878 961 or visit our website, www.stewartgroup.co.nz