A woman is truly dynamic in the many roles she plays. But today, in India, even though we constantly keep talking about woman empowerment, it’s true that majority of women take a backseat when it comes to managing money or involving themselves in making financial decisions. They often let the male members of their family, be husbands, brothers or fathers, take the lead or show the way.
This is an issue with most of the women, working and non-working. They often fear not having enough knowledge about the various financial avenues available or suffer from the fear of not making the right decisions. There have been instances when women have been left mystified over unforeseen events in the family. Hence, experts suggest that the best way for women to get more responsible with finances would be through self education or approaching a trusted expert to learn about basic financial concepts.
Financial literacy is a must. If you are a homemaker and confused on from where to start, relax. With the help of various tools, calculators, blogs and vast information available online, on various investment avenues, you could collect as much as information possible and later discuss with your financial expert for better understanding of products.
It’s true that women can meticulously manage household budgets and keep a tab on spending. If you draw a budget of the household needs, pen down liabilities or loans, if any, keep track of short term and long term financial needs, including an emergency fund, you can easily save for the future. Experts suggest that one step at a time, keeping a target in mind, would help in getting personal finances in place. Child’s education, retirement planning could be some of the goals targeted.
Typically, the risk taking capacity, goals and objectives is definitely different for women who are married, unmarried, parenting a single child and so on. But, by and large, women are more comfortable with saving instruments that yield fixed returns. At the same time, a health insurance and a term insurance is a must. Experts believe that women who plan to invest in gold should look at investing in gold based funds instead of opting for gold ornaments. While married women may be in a better position to invest in products that are not entirely risk-free, because they have a second income from their spouse that may not be the case with a single parent who may also need to factor in the future security for herself and her dependents and hence may invest into extremely safe products.
Financial literacy and baby steps towards financial planning should be on top of every woman’s agenda as we approach International Women’s Day, this Sunday. If you haven’t, started yet today…