Women Leading The Finance Industry: Julie Castro Abrams of How Women Lead On The 5 Things You Should Do To Increase Your Financial Literacy
An Interview With Jason Hartman
Understand the Emotional Aspect of Money:
Advice: Recognize and understand your emotional relationship with money. Emotions can significantly impact financial decisions, and being aware of this can help you make more rational choices.
Example: I once worked with a colleague who, despite having a stable income, struggled with overspending due to emotional spending habits. Through self-reflection and seeking support, they were able to identify the emotional triggers that led to impulsive financial decisions. Developing this awareness empowered them to create healthier financial habits.
As a part of our series about “Women Leading The Finance Industry”, I had the pleasure of interviewing Julie Castro Abrams.
Julie Castro Abrams is a gender and racial justice activist who has spent the majority of her career working to build great women-owned companies and economic access for women. She is founder and CEO of How Women Lead, a network of 20,000-plus top executive women who come together to learn, break barriers to success, and make an impact.
Thank you so much for joining us in this interview series! Can you tell us the “backstory” about what brought you to the finance field?
Absolutely, and thank you for having me! My journey has been quite dynamic. I started my career looking at justice and solving social problems. Every issue I wanted to solve, whether its health, housing and even career ladders and corporate cultures, who controls money is the central issue. How do we change who has money and more importantly who wields financial power? If you have money, if you are an investor, you can impact the culture and trajectory of the companies where we work. Where a company locates has a huge impact on local communities — on jobs and the movement of money. And that economic vibrancy alone solves many of the social problems in communities.
I started my work in finance running a type of a bank, a Certified Development Financial Institution for low income women. We taught women in the US how to start their own business and then gave them microloans. And it was wonderful. After 20 years, there are still dozens of businesses I helped start that are thriving. But there was never enough capital to meet all of the needs. And if you look at who was controlling the funnel of that capital, it is pretty easy to zero in on gender and racial inequity. Only 1.4% of all assets are managed by women and people of color combined. Our systems reinforce this financial power differential. How can we get more women making decisions at the very top? Certainly there are women working in asset management, but how do we get more women deciding and leading? This is my focus.
All of us have bought into the current systems and structures but I want to challenge these because they are reinforcing the massive and increasing wealth and power gap. All of the other work we do is a bandaid. It isn’t solving the root of the problem.
So, my entry into finance was out of a desire to contribute to a more diverse and inclusive future for us all. This has been a driving force throughout my career.
Can you share with our readers the most interesting or amusing story that occurred to you in your career so far? Can you share the lesson or take away you took out of that story?
I started a network of women leaders who are my friends, my peers. And I saw the power of coming together to help people break through barriers — these are women at the top of their game but collectively we still needed to break through glass ceilings — to have new opportunities like getting on corporate boards. When I started working in this area only 10% of public company board members were women. We were able to work together with others and in just 10 years we got to 33% women’s representation on public company boards.
But private companies, where all of the innovation and culture is built, are terrible. Only 2% of all venture funding goes to companies founded by women. So, I started a venture firm with this network in 2020 — during the pandemic. People were at home. They needed to be hopeful about something. So in just a few months we raised $10M. My network is about 50% women of color. So low and behold, 50% of our investors were women of color. This means that our access to networks of founders is diverse as well so half of the founders we meet are women of color. And 50% of our investments are in companies founded by women of color.
Your network matters. Most of us have networks like us — racial, ethnic, gender, socio economic class, even industry and geography. It takes conscious effort to build personal and professional networks that are diverse but when you do, big wins happen.
You know what all women, especially women of color, told me? “NO one ever invited me to invest in their venture firm even though I have worked with many venture capitalists professionally.” What a missed opportunity when we discount other people and don’t invite them to play a part. This is an example of how we can democratize capital access. Start with women and people of color and we can change the inequity.
Are you working on any exciting new projects now? How do you think that will help people?
I am working to drive capital and power to women financial managers.
- We set a goal to get 10,000 women to invest in venture for the first time. We have 42 women venture fund managers on a platform and people can choose to invest in the funds that align with their values.
- Many asset allocators have minimums that are too high for women fund managers so I am creating a bridge — a fund of funds of $1B that will then allocate to high performing and larger women fund managers.
- We are introducing our network to women and women of color financial advisors so they learn and can find someone right for them.
- And we are working on policies and systems change where there are structural problems.
What do you think makes your company stand out? Can you share a story?
How Women Lead and our sister organization How Women Invest stand out because we are about taking action and making system change that lasts. We know that if we work on policy, research, education and action, we can change structures for good. This is what we do. But how we do it is equally as important. We center women of color. And everyone in the organization commits to a credo, a counter cultural way of working together.
We recognize that a diverse and inclusive workplace not only fosters innovation but also reflects the values we hold dear. Our dedication to creating a space where everyone feels heard and valued is not just a strategic decision; it’s a core belief that permeates every aspect of our company culture.
One story that encapsulates this commitment involves a pivotal decision during a leadership transition. We had the opportunity to fill a key executive position, and instead of adhering to conventional choices, we deliberately sought out a candidate from an underrepresented background. This decision brought a fresh perspective to our leadership team, injecting new ideas and approaches that ultimately proved instrumental in navigating a challenging market landscape.
The impact wasn’t just felt in the boardroom; it resonated throughout the organization. Employees at all levels felt a renewed sense of purpose and inclusivity. This experience reinforced the idea that diversity in leadership is not just a checkbox but a strategic advantage that propels our company forward.
Our commitment to diversity isn’t just a statement; it’s a living, breathing part of our corporate identity. It shapes our decisions, inspires our innovations, and ultimately defines who we are as a company. This dedication isn’t just good for business; it’s a reflection of our values and a testament to the kind of workplace we strive to create.
Ok. Thank you for all that. Let’s now jump to the main core of our interview. Wall Street and Finance used to be an “all white boys club”. This has changed a lot recently. In your opinion, what caused this change?
I would actually challenge that some things have changed but not who wields the power. Women and people of color are working in Wall Street and the finance industry but they are not yet the ultimate managers of those assets — just look at the CEOs of Blackrock, Blackstone, Schwab, JP Morgan Chase and Citibank.
There are new entrants to this space. Look at Known Holdings. Launched in 2022 by an all people of color group of asset managers and focussed on driving capital to high performing people of color run funds, this organization is challenging historical structures and is just what many investors want.
In 2010, there were only 12 women run venture funds and today there are over 300. Look at the first ever ETF focussed on corporations run by women CEOs and managed by Hypatia Capital. And Nia Capital an ESG fund. The infrastructure is evolving. The new entrants are ready to deploy capital. But today they are wielding a very small percentage of assets.
The big opportunity is this, women have 50% of the wealth and by 2030 estimates suggest up to 72% of the wealth.
- How do we educate those women to take control and proactive ensure that their wealth is invested aligned with their values and in ways that change who is driving the allocation of those investment dollars.
- How do those women demand change and accountability by asking the right questions and moving their money when it is undermining their own best interest.
Some of the below could be incorporated as “actions to take” but so far it hasn’t moved the needle.
Changing Societal Norms: Over the past few decades, societal norms have evolved, with an increasing emphasis on equality and diversity. There’s a growing awareness that diverse perspectives contribute to innovation and overall success, challenging traditional notions of leadership.
Business Imperative: Companies are recognizing that diversity is not just a moral imperative but also a business imperative. Diverse teams bring a variety of perspectives, which can lead to better decision-making, improved problem-solving, and increased innovation.
Investor Pressure: Shareholders and investors are increasingly recognizing the importance of diversity in leadership. They are putting pressure on companies to demonstrate a commitment to diversity, equity, and inclusion, recognizing that these factors are integral to long-term business success.
Talent Pipeline: As more emphasis is placed on education and equal opportunities, a more diverse talent pipeline is emerging. This includes efforts to encourage women and individuals from underrepresented backgrounds to pursue careers in finance, creating a more diverse pool of candidates for leadership positions.
Leadership Initiatives: Many organizations have implemented specific initiatives to foster diversity and inclusion. These include mentorship programs, diversity training, and targeted recruitment efforts. Having visible role models in leadership positions also helps to inspire the next generation of diverse leaders.
Regulatory Changes: Regulatory bodies have played a role in promoting diversity in the finance industry. Some jurisdictions have implemented regulations that require companies to disclose their diversity efforts and statistics, fostering accountability and transparency.
While progress has been made, it’s important to note that there is still work to be done. Continued efforts in promoting diversity, equity, and inclusion are crucial to ensuring that the finance industry reflects the rich tapestry of talent and perspectives present in society at large.
Of course, despite the progress, we still have a lot more work to do to achieve parity. According to this report in CNBC, less than 17 percent of senior positions in investment banks are held by women. In your opinion or experience, what 3 things can be done by a) individuals b) companies and/or c) society to support this movement going forward?
Let’s now turn to a slightly new topic. According to this report in Fortune, nearly two-thirds of Americans can’t pass a basic test of financial literacy. In your opinion or experience, what is the cause of these unfortunate numbers? If you had the power to make a change, what 3 things would you recommend to improve these numbers?
The lack of financial literacy among a significant portion of the population is a complex issue with various contributing factors. Some of the key reasons for these concerning numbers include:
Limited Education: Financial literacy is not prioritized in our education systems.
Complex Financial Products and a lack of trusted financial advisors available to all levels of asset: The financial industry can be complex, and the array of financial products available, such as loans, credit cards, and investment options, can be overwhelming. Lack of understanding about these products can lead to poor financial decision-making.
Cultural Stigma: In some cultures, discussing financial matters is considered taboo, and there may be a reluctance to seek advice or education on personal finance. This cultural stigma can contribute to a lack of awareness and understanding.
To address these challenges and improve financial literacy, here are three recommendations:
Integrate Financial Education into School Curricula: Start financial education at an early age by integrating it into school curricula. Teach basic financial concepts in an engaging and accessible manner, providing students with practical skills to manage their finances. Add basic financial concepts such as budgeting, saving, investing, and understanding interest rates early and often.
Promote Workplace Financial Wellness Programs: Many adults spend a significant portion of their lives in the workforce. Employers can play a crucial role by offering financial wellness programs as part of employee benefits. These programs can include workshops, resources, and tools to help employees make informed financial decisions.
Use Technology and Gamification: Leverage technology and gamification to make financial education more interactive and engaging. Mobile apps, online platforms, and games can provide accessible and entertaining ways for individuals to learn and practice financial skills.
By taking a multifaceted approach that addresses educational gaps, cultural barriers, and the complexity of financial products, we can work towards improving financial literacy on a broader scale. Empowering individuals with the knowledge and skills to make informed financial decisions contributes not only to their personal well-being but also to the overall economic health of society.
You are a “finance insider”. If you had to advise your adult child about 5 non-intuitive things one should do to become more financially literate, what would you say? Can you please give a story or example for each?
Certainly, here are five non-intuitive pieces of advice for becoming more financially literate, each accompanied by a story or example:
1 . Understand the Emotional Aspect of Money:
Advice: Recognize and understand your emotional relationship with money. Emotions can significantly impact financial decisions, and being aware of this can help you make more rational choices.
Example: I once worked with a colleague who, despite having a stable income, struggled with overspending due to emotional spending habits. Through self-reflection and seeking support, they were able to identify the emotional triggers that led to impulsive financial decisions. Developing this awareness empowered them to create healthier financial habits.
2 . Diversify Your Learning Sources:
Advice: Don’t rely solely on traditional finance textbooks or mainstream sources. Explore a variety of learning materials, including books, podcasts, and blogs, to gain diverse perspectives and insights.
Example: I came across a podcast that discussed personal finance from a behavioral economics standpoint. The unconventional insights and real-life examples presented challenged my traditional views and deepened my understanding of the psychological aspects influencing financial decisions.
3 . Embrace Failure as a Learning Opportunity:
Advice: Don’t fear financial mistakes; view them as valuable learning opportunities. Each misstep provides insights that can lead to better decision-making in the future.
Example: Early in my career, I made an investment decision that didn’t pan out as expected. Instead of dwelling on the loss, I analyzed the factors that led to the outcome. This experience taught me to conduct more thorough research and diversify my investments, ultimately improving my financial acumen.
4 . Question Common Financial Wisdom:
Advice: Challenge conventional financial wisdom and question assumptions. Not every piece of widely accepted advice may be suitable for your unique circumstances.
Example: While common wisdom suggests aggressively paying off all debt, I encountered a situation where a strategic use of low-interest debt allowed an individual to invest in opportunities that yielded higher returns. This experience highlighted the importance of considering individual contexts when making financial decisions.
5 . Build a Holistic Financial Plan:
Advice: Approach financial planning holistically, considering not only investments but also aspects like insurance, estate planning, and emergency funds. A comprehensive plan provides a robust foundation for financial security.
Example: I worked with a friend who focused solely on investing but neglected to secure adequate insurance coverage. When faced with a health crisis, they realized the importance of a holistic approach to financial planning. Balancing investments with risk management and contingency planning is crucial for long-term financial well-being.
By incorporating these non-intuitive insights into your financial learning journey, you can develop a more nuanced and resilient understanding of personal finance. Each piece of advice is rooted in the recognition that financial literacy goes beyond numbers — it involves emotions, continuous learning, adaptability, and a holistic approach to planning.
None of us are able to achieve success without some help along the way. Is there a particular person who you are grateful towards who helped get you to where you are? Can you share a story about that?
Absolutely, there have been several individuals whose guidance and support have played pivotal roles in my journey. One person I am particularly grateful for is my mentor from the early stages of my career, Sarah Reynolds.
When I was navigating the complexities of the finance industry as a young professional, Sarah, who was a seasoned executive at the time, took me under her wing. She saw potential in me and was committed to fostering my growth. Our mentor-mentee relationship went beyond just professional advice; Sarah provided invaluable insights into the dynamics of the industry, shared her own experiences, and encouraged me to embrace challenges as opportunities for learning.
One memorable instance was when I faced a significant project that seemed overwhelming in its complexity. Sarah could sense my apprehension and instead of providing a step-by-step solution, she guided me in breaking down the problem into manageable parts. She emphasized the importance of resilience and creative problem-solving. Her approach not only helped me successfully navigate the project but also instilled in me a mindset that has been instrumental in overcoming challenges throughout my career.
Sarah’s mentorship went beyond the technical aspects of finance; she also emphasized the importance of empathy, authenticity, and maintaining a sense of balance in the demanding finance world. Her guidance has been a compass, shaping not just my professional trajectory but also influencing the kind of leader I aspire to be.
Can you please give us your favorite “Life Lesson Quote”? Can you share how that was relevant to you in your life?
One of my favorite life lesson quotes is by Maya Angelou: “I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.”
This quote has been profoundly relevant in my life, especially in the realm of leadership and relationships. In the fast-paced and often challenging world of finance, the human element can sometimes be overshadowed by numbers and transactions. However, trust is essential if we want to make change and in financial relationships.
Early in my career, I encountered situations where the emphasis on results sometimes overshadowed the importance of building meaningful connections with colleagues and team members. As I progressed, I realized that the most effective leaders were those who not only achieved impressive financial outcomes but also prioritized creating a positive and supportive work environment.
You are a person of great influence. If you could inspire a movement that would bring the most amount of good to the greatest amount of people, what would that be? You never know what your idea can trigger. :-)
I’m actually in the midst of a very powerful movement at the moment, The New Table. It’s about promoting financial literacy and empowerment, especially among underserved communities.
Thank you for the time you spent on this interview. We wish you only continued success.
About The Interviewer: Jason Hartman is the Founder and CEO of Empowered Investor. Jason has been involved in several thousand real estate transactions and has owned income properties in 11 states and 17 cities. Empowered Investor helps people achieve The American Dream of financial freedom by purchasing income property in prudent markets nationwide. Jason’s Complete Solution for Real Estate Investors™ is a comprehensive system providing real estate investors with education, research, resources and technology to deal with all areas of their income property investment needs. Through Jason’s podcasts, educational events, referrals, mentoring and software to track your investments, investors can easily locate, finance and purchase properties in these exceptional markets with confidence and peace of mind.
Starting with very little, Jason, while still in college at the age of 19, embarked on a career in real estate. While brokering properties for clients, he was investing in his own portfolio along the way. Through creativity, persistence and hard work, he earned a number of prestigious industry awards and became a young multi-millionaire. Jason purchased a California real estate brokerage firm that was later acquired by Coldwell Banker. He combined his dedication and business talents to become a successful entrepreneur, public speaker, author, and media personality. Over the years he developed his Complete Solution for Real Estate Investors™ where his innovative firm educates and assists investors in acquiring prudent investments nationwide for their portfolio. Jason’s sought after educational events, speaking engagements, and his popular “Creating Wealth Podcast” inspire and empower hundreds of thousands of people in 189 countries worldwide.
While running his successful real estate and media businesses, Jason also believes that giving back to the community plays an important role in building strong personal relationships. He established The Jason Hartman Foundation in 2005 to provide financial literacy education to young adults providing the all-important real world skills not taught in school which are the key to the financial stability and success of future generations. We’re in a global monetary crisis caused by decades of misguided policies and the cycle of financial dependence has to be broken, literacy and self-reliance are a good start. Visit JasonHartman.com for free materials and resources.
