Women are generally considered as the caretaker of the household. While the current era has seen a significant number of women entering mainstream workforce and competing with men for the same positions and responsibilities in offices, a large number of women are still handling their families and households, or juggling between work and family. Due to a multitude of the tasks they are meant to carry out on a daily basis, most women have no time, inclination, or knowledge to manage their finances. However, this is a huge loss for them. Financial planning is of utmost importance for women, due to a number of reasons:
Firstly, many women are financially dependent on their spouses. Many of them try to save from the monthly allowance given to them by the spouse for daily expenses of the house. Savings from such money is usually kept in lockers, or invested in gold jewellery which can be stored for future needs as an investment. But by systematically organizing such finances and employing them more lucratively, they can create their own income source.
Secondly, even working women outsource their financial planning to the men in their family, like their husband/father/brother. Many of them don’t feel confident about taking charge of their own money, as they have limited knowledge of the financial markets and investment avenues. This is not always a good idea, because every individual’s needs are different, and they must plan their investments according to their financial needs and goals. If a financial planner invests on your behalf, he is required to do so after taking into account all your financial liabilities, assets and objectives. Men may not understand the women’s needs as well as herself, and hence, it is more advisable that women chalk out a plan for themselves which fully incorporates their financial aspirations and provides them with financial security.
Thirdly, women need to plan their finances better, because they can have breaks in their work pattern, such as changing locations after marriage, pregnancy and childbirth. These are memorable phases in their lives, and they must not be a cause of worry for them due to stoppage of personal income. By doing financial planning, women can continue to maintain their lifestyle and secure their financial situation in spite of such interruptions in working life.
Fourthly, the government as well as many banks and financial institutions have policies and schemes especially laid out for women. Women must take advantage of such schemes to become financially empowered. These include discounts on women’s savings accounts, special medical and life insurance premiums, low interest rates on home loans, reduced stamp duties, etc. Women must become aware of such schemes by consulting financial planners and portals such as Finbingo which play a major role in raising financial awareness among women.
Lastly, any unfortunate events, such as divorce or death of spouse can have major impact on the finances of the family. In such cases, women are more affected financially than men. Therefore, women need to have a contingency plan to cover all types of situations in their life, so that they are never left unsecured and unprotected, come what may.
Thus, it is important for women to take charge of their finances and entrust themselves with money matters. This will go a long way in securing their present as well as future.