In today’s world, it is paramount for women to understand the intricacies of money management. Despite being natural experts in handling household finances and adept at saving for rainy days, women often shy away from understanding financial concepts. This reluctance is rooted in societal norms that have historically relegated financial decision-making to men. However, it’s time to debunk these myths and empower women to take control of their financial futures.
International statistics reveal that women excel in managing money. Studies have shown that women tend to outperform men in investment returns, demonstrating a disciplined approach to financial planning. A survey by Fidelity Investments found that women consistently save a higher percentage of their income and achieve higher returns on their investments compared to men. These statistics highlight the inborn ability of women to be shrewd money managers.
At various life stages, women need to be knowledgeable about money. From managing their finances as young adults to planning for retirement in later years, financial literacy is essential at every stage of a woman’s life. Yet, societal norms often hinder their access to financial education, perpetuating a cycle of dependency on male relatives for financial decisions.
The patriarchal handling of money further aggravates this dependency. From fathers to brothers, husbands to fathers-in-law, women are often relegated to secondary roles in financial matters. This system leaves women vulnerable and disempowered, reinforcing the notion that a man is the ultimate financial plan. However, it’s crucial to challenge this narrative and advocate for women’s financial autonomy.
I strongly believe men play a pivotal role in dismantling patriarchal structures by empowering the women in their lives. Whether as fathers, brothers, or husbands, men must recognize the importance of financial education for girls and women. By encouraging and supporting women to handle their own money, men can help break the cycle of dependency and foster financial independence.
Empowering women through financial literacy not only benefits individuals but also society as a whole. When women are financially independent, they contribute to economic growth, reduce poverty, and promote gender equality. It’s time to recognize the inherent strength and capability of women in managing money and provide them with the tools and resources to thrive financially.
On the occasion of International Women’s Day, let’s celebrate the strength and resilience of women, especially in the realm of finances. In our Indian society, women often hold the reins of household finances, yet they may hesitate to actively participate in financial matters due to societal norms.
But times are changing.
Meet Priya, a 25-year-old from Mumbai, who recognized the importance of financial literacy early on. From her first job, she started saving and investing, driven by a desire for financial independence. Priya took the initiative to educate herself through free online courses, laying a solid foundation for her financial future.
Then there’s Meera, a 30-year-old software engineer from Bangalore, who alongside her husband, set clear financial goals. They worked together to save for their flat, crafted a savings plan, trimmed unnecessary expenses, and meticulously planned each step of their journey towards homeownership.
Building emergency savings is imperative for weathering unexpected financial storms. Neha, a 35-year-old physiotherapist’s experience underscores the importance of this practice. When her father fell ill and required hospitalization, Neha was grateful for the emergency fund she had diligently built over the years. This financial cushion provided her with stability during the crisis, enabling her to cover medical expenses without depleting her long-term savings.
Ananya, a 35-year-old pilot, inspired by a financial seminar, overcame her apprehensions about investing and initiated a systematic investment plan (SIP) in mutual funds. She diversified her investments across equity and debt funds, harnessing the power of compounding to build wealth for her future. Ananya’s proactive approach to investing demonstrates her commitment to securing her financial well-being.
Meanwhile, Radha, a single mother, and 40-year-old government employee from Delhi, aimed for a secure retirement. She maximized her EPF, PPF, and NPS contributions but sought additional investment strategies. With a financial coach, they devised a goal-based plan for her retirement, health and child’s education needs, emphasizing diversification and mutual funds for higher returns. They committed to a disciplined, long-term approach. Combining stability with mutual fund growth, Radha felt confident in her retirement strategy, showcasing the importance of goal-based planning and professional guidance for financial success. Continuous evaluation and adjustment of financial goals and strategies are essential for staying on course towards financial independence.
Sunita, a 42-year-old doctor exemplifies this by regularly reviewing her financial goals and adjusting her investment portfolio based on market conditions. Her husband also a surgeon relies on Sunita managing their finances. Her flexibility and adaptability ensure that she remains agile in navigating the ever-changing financial landscape, optimizing returns, and mitigating risks of their investments with the help of their financial planner who she meets at regular intervals.
Protecting assets is vital for safeguarding one’s financial well-being. Ritu, a 45-year-old jewellery designer business owner, after witnessing a neighbour’s house being damaged in a fire, took proactive steps with the help of her financial coach to review her home insurance policy and added coverage for natural disasters. She also ensured that her health insurance provided adequate coverage for critical illnesses, fortifying her family’s financial security against unforeseen adversities.
Networking and seeking mentorship are invaluable tools for professional and financial growth. Deepika, a 48-year-old marketing firm head, recognizing this, joined a professional networking group for women in Chennai. Through mentorship and guidance from experienced professionals in her industry, Deepika gained valuable insights into career advancement and financial planning strategies, positioning herself for success in her professional and financial endeavours.
Shreya, a 50-year-old CTO heading a tech team in a finance company, stood up for herself by negotiating for fair pay, and challenging gender biases in the workplace. Upon discovering disparities in her male colleagues’ salaries, she gathered market data and negotiated a raise during her performance appraisal. Her assertiveness and preparation resulted in a well-deserved salary increase, narrowing the gender pay gap in her workplace and setting a precedent for fair compensation practices.
This International Women’s Day, let’s break the cycle of dependence on men for financial decisions. Let’s empower women like Priya, Meera, Neha, Ananya, Radha, Sunita, Ritu, Deepika and Shreya to take control of their finances. By educating, supporting, and advocating for women’s financial independence, we can create a more equitable and prosperous society for everyone.
In conclusion, these examples underscore the importance of empowering women through financial education, goal-setting, emergency savings, investing, retirement planning, fair negotiation, asset protection, networking, continuous evaluation, and support for financial education initiatives. By embracing these practices and advocating for gender equality in financial matters, women can overcome patriarchal barriers and achieve true financial independence in the Indian context.
Shared by: Chitra Iyer,
CEO, MFA Capital.
