AS the spotlight shines on the push for equity for women — building families, leading community initiatives, and excelling in the workforce — it is important, now more than ever, to empower them with financial education as they lead the next generation.

Studies indicate that women are less prone to risk-taking than men, settling for security rather than the possibility of growth. But with support, they can create diverse portfolios that balances reward and risk.

Shinelle Simpson, chartered banker and head of wealth at GK Capital, believes that while most Jamaican women face unique challenges in personal finance and investment that could slow them on their way to financial freedom, there are proven tools they can use to safeguard their financial goals.

Learn about financial issues

Knowledge is power. Begin by familiarising yourself with basic financial concepts such as saving, investments, interest rates, and inflation. There are several resources, workshops, and seminars available specifically aimed at women’s financial literacy. For instance, the Women in Business Hub is an organization that is exclusively dedicated to enhancing and advancing the business skills of Jamaican women.

Start early and be consistent

The earlier you invest, the more time your money has to grow. Even small sums of money invested regularly can build up significantly over time due to the power of compound interest. As financial planners point out, “There’s never a wrong time to start investing; in fact, the sooner, the better.”

Diversify your investment portfolio

Don’t put all your eggs in one basket. Diversify your investments among different asset classes, including stocks, bonds, real estate, and mutual funds. This approach reduces risk and keeps poor performance in one sector from significantly impacting your overall financial well-being. Diversification is one of the most important investing principles.

Take advantage of employer-sponsored retirement plans

If your company has a retirement plan, eg, a pension scheme, be sure to join, particularly if contributions are matched. This is essentially “free money” and can have a profound effect on your retirement fund over the long run. Knowing and optimising employer benefits is essential in planning for the future.

Prioritise having an emergency fund

Establishing an emergency fund is one of the first steps in building out an investment portfolio. For example, unexpected healthcare costs can place a significant strain on your finances, especially during retirement. Prioritise investing in medical insurance or establish a specific fund to support out-of-the-ordinary health costs.

Seek professional financial advice

Build a relationship with a licensed financial advisor who understands the unique opportunities and challenges in the financial markets. A licensed financial advisor will provide tailored advice, helping you make complex financial decisions and integrating your investments with your life objectives and financial goals.

Stay informed and adaptable

The financial markets and economy are continuously evolving. It is critical to stay informed about economic trends, emerging investment opportunities, and changes in monetary policies both locally and internationally. By remaining proactive and adapting to changes, you can make well-informed investment decisions that support long-term financial security.

Shinelle Simpson, MBA, MCBI, CFP is the head of private wealth & institutional services at GK Capital Management Limited. She can be contacted at shinelle.simpson@gkco.com