How well ordinary people understand money and finance is known as “financial literacy”. Studies of this from a wide range of countries often show a gender gap, suggesting that women would benefit from financial education that is tailored to them. Tori Dunlap, 27, certainly understands how money works. An influencer and financial feminist, she’s built a multimillion-dollar company by helping other women to make good financial decisions.
Originally from Tacoma, Washington, Dunlap was working as a digital marketing manager in Seattle when she started her financial education blog, called Her First $100K (herfirst100k.com). As the name says, it was addressed specifically to women. Dunlap set herself the goal of saving $100,000 (about €94,000) by the age of 25, and when she had reached that goal, in 2019, she left her office job to work on Her First $100K full-time.
According to her website, Dunlap has already helped more than three million women to “make more, spend less and feel financially confident.” She generates income from her online platforms and digital products, as well as financial coaching, speaking engagements and investments in index funds.
When and why did you decide to be a financial influencer?
In college, I was always the friend other women came to for help with anything money-related — credit cards, saving, investing, etc. I’m very fortunate to have had a solid financial education from my parents. I recognized the need then and knew I wanted to educate women in a broader way. So, I started putting financial content out on TikTok. I definitely didn’t expect that it would become this phenomenon, but I’m so grateful that our community has grown to be what it is today.
What are the main financial challenges that women face?
In general, women are less likely to invest in the stock market and plan appropriately for retirement. Women live several years longer than men, on average, but they are retiring with $70,000 dollars less.
Can men also benefit from your advice?
Absolutely! While my content is geared toward women, the information I share is valuable to everyone. Men could benefit from understanding the challenges women face, as it will help them become better allies to the women in their communities.
What motivated you to give up your office job?
I experienced firsthand so many of the challenges that women face in the workplace — things like sexist comments, a lack of work-life balance, unequal pay, etc. I knew that by working for myself, I could create the work culture that I wanted. Plus, I thought Her First $100K had a lot of potential for growth but was being held back by a lack of time and energy.
What are your goals for Her First $100K and beyond?
Society has made many women believe that talking about money is “rude” and that negotiating your salary or demanding to be paid what you’re worth is “bossy.” By shaming women out of having those conversations, society has limited our opportunities for financial growth.
I want to encourage women to protest the patriarchal system through financial education, literacy and wealth. I want women to know they’re in control of their finances; that they can reach and exceed their financial goals with simple tools and information. And I really want to encourage our community to use their financial resources for good — to support the marginalized in our communities, invest in female-owned businesses and nonprofits and give a voice to those who often go unheard.
How do you use social media for financial education?
Social media is amazing because it offers a platform to anybody. You don’t need a fancy camera or crazy skills — you just need to give your audience value and you can grow.
How do you use language to get people’s attention and communicate effectively?
I think one of the things that makes Her First $100K appealing is that it is really accessible. When people think about personal finance or investing, they often think of words like “annuity” and “dividends” and “IPO” — that can be intimidating for a lot of people and stop them from exploring the world of personal finance.
The goal of our content is to be educational while still easy to understand and relevant. While we may use some technical language, we make sure to provide context around those ideas, so that our audience doesn’t feel intimidated and instead feels educated, capable and confident.
What are the main differences between the financial worlds of the U.S. and Europe?
The U.S. has an extremely complicated finance system, and it doesn’t offer its citizens the same sort of safety nets that many European countries offer, like pensions or other guaranteed retirement options — and those are just the financial safety nets. We also don’t have other social programs, like socialized health care, so Americans typically have to do more groundwork and pay more for basic necessities.
What are the biggest financial mistakes people make and how can they overcome them?
One of the biggest financial mistakes people make is waiting — waiting until they have more disposable income before they start investing, waiting until they are in a more secure career before they start planning for retirement, waiting until they have an emergency to start an emergency fund. Being proactive with your finances is one of the best ways you can prepare for your future and protect yourself in the case of an emergency. The sooner you start, the better.
What dangers should people watch out for?
Right now, it’s popular to invest in things that are trending on Reddit or Twitter. I cannot stress enough how risky this is. Most of those stocks are highly speculative and come with a lot of risk.
Instead of looking for get-rich-quick investments, look for investments that tend to perform well over time. Investing is a long game. The people with the most diverse and impressive portfolios are the ones who have survived the stock market ups and downs, and followed dependability and consistency with their investments rather than trends.
Many people keep their savings in a bank. Should they be doing other things with their money instead?
Keeping all your money in the bank is like going to a restaurant just to read the menu — it’s not the worst thing you can do, but it doesn’t serve you. One of the easiest ways to grow your wealth is to transfer your savings into a high-yield savings account. Then you’ll start earning much more interest on your savings than in a traditional savings account. Every country has different options for high-yield accounts. It may take a little research to find your version.
What practical tips can help anyone achieve greater financial success?
- Create a budget so you understand where your money is going every month.
- Start planning for retirement as early as possible — even if it’s just the $100 grandma gave you for your birthday.
- Remember that you don’t have to do personal finance perfectly to see a big payoff. A lifetime of small, healthy financial habits will add up to much more than a handful of “perfect” financial decisions.
More...
Girls just wanna have funds
There are various funds for different types of investments.
- Exchange-traded fund (EFT)
A fund that is similar to an index fund in tracking an index but is traded freely on the stock exchange.
- Hedge fund
An investing group, usually a limited partnership, that makes speculative investments using credit or borrowed capital.
- Index fund
A mutual fund that aims to track a specific index, such as the S&P500. The fund follows the performance of the market as a whole.
- Mutual fund
An investment company that uses money from its shareholders to invest in a diversified group of other companies.
- Trust fund
Property (as money or securities) that is held in trust by an investment manager, often for children and young adults until they reach a certain age.
- Vulture fund
An investment company that buys up bankrupt or insolvent companies with the aim of reorganizing them so they can be resold for profit.