scorecardresearchInternational Women’s Day: Breaking the biases in personal finance

International Women’s Day: Breaking the biases in personal finance

Updated: 09 Mar 2022, 08:21 AM IST

Money management is akin to financial freedom. It’s time that women take their finances into their hands.

Endorsing financial freedom for women

Endorsing financial freedom for women

Is managing money so hard for women or do they use this as a ruse to veil their disinterest in investment options? Financial well-being is the key to confidence and stability in life. Then, why are so many women disenchanted with the idea of handling their own money? Why do most of them hand over their earnings to the men in their families and allow them to decide investments on their behalf? 

Many women have realized the value of financial management. In fact, many have broken stereotypes by not only handling their own finances but also hiring the services of personal financial advisors for essential tips and ideas. 

On International Women’s Day, if you are still not aware of how sound financial health can help women, it is time to understand the reasons why naivete in monetary management will not help them in the long run. 

  1. Feeling financially independent: With enough money in hand, you sure do not have to rush to the men in your family for help every time. The need to enjoy financial independence necessitates prudent financial management. Financially secure women have a greater sense of self-esteem considering that they do not have to depend on others for their living.
  2. Frequent career breaks: Sad, but true that women have to often take career breaks due to marriage, parenthood, and other familial responsibilities. Job loss is synonymous with a lack of steady income. This mandates financial planning from the start to ensure that the sudden break in income does not lead to loss of finances. Also, some women take career breaks to pursue higher education that involves added expenses like college and tutorial fees. This explains why they must have enough money in hand to refrain from taking too many education loans that they might find difficult to repay later.
  3. Sudden emergencies: Uncertainty is a fact of life, which means that preparation for sudden emergencies is a must. Money is the most potent force to mitigate the effects of an emergency. From sudden hospitalization to other emergency situations that call for urgent expenses, women must always have a contingency fund in place to cope with unexpected curveballs.
  4. Marriage and parenthood bills: Every woman would like to save enough for her marriage. Post marriage, savings are directed at having enough to foot maternity bills or other expenses necessary to bring up the child. In a bid to break the stereotype, women now foot their wedding bills without relying on their parents.

The maximum proportion of women in employment is in the age group of 22-25

To achieve financial freedom, women must have a necessary financial plan in place. This is possible only if women

  • Set realistic financial goals
  • Identity income baseline
  • Budget the cash flow every month
  • Plan retirement early
  • Keep an emergency fund

With women now taking the lead in many activities, it is time to let them assess and decide their finances. The gender pay gap is a fact that we cannot ignore; however, treating the women in our lives equally and lending the same financial freedom that we enjoy will imply their essence in our daily living.

First Published: 09 Mar 2022, 08:21 AM IST