Women should also know about Money Management
In today’s era, most of the women are now getting out of the conventional society norms and heading out to be the bread winners for their family. Many women are now earning a decent salary and paying home loan installments and utility bills just like the male members of their family. However, when it comes to the money management, a majority of these earning women do not have any active participation in the investment and saving decisions of the family. Whether it is investments in bank’s fixed deposits, insurance, equity market or pension schemes, women are largely dependent on their father, brother, husband or male friends to guide and advise them. However, there are several reasons why it is important for women to break the norm and take interest in the matters of money management.
Reasons Why Women Should Learn to Manage Their Money
There are several reasons for women to become more serious when it comes to investing or saving.
- Women tend to live longer
For emotional reasons, women do not like to think about this aspect of life. But the truth of the matter is that women have longer life span than men. This means that women tend to live longer than their retirement age, when compared to men and have a longer time to spend with all the health issues that come with the old age. Having to depend on someone else for financial help at this time of age is not advisable.
- Women have more discontinuities in their career
A woman has many responsibilities to fulfill during her life. Most of the women have to interrupt their career due to reasons like marriage, birth of children, homely responsibilities like taking care of older people in the family and so on. This is one of the most important reasons that make women to look for flexible working conditions by hugely compromising on their earnings. This is why it is important for women to invest their money wisely to remain financially independent in case of such discontinuities.
- Emergency situations
This is again a situation that women do not like to foresee, but there may be conditions when there is a long term illness or sudden death of the partner. However, in such emergency conditions it becomes very important for a woman to know how financially secure her future is. Even if you as a woman do not want to dwell upon such situations, you need to be prepared for it now to secure your financial future.
Reasons Why Women Do Not Participate in Money Management
Women can be good money managers, provided they have the required knowledge, awareness and confidence. Here are a few of the reasons why women do not participate in savings and investments as much as they should.
- Social Conditioning
The main role of the women is to take care of the family by supporting the husband, raising children and providing care for elderly members of the family. As such, all the major financial decisions of the home are taken by the male members of the family.
- Women lack financial knowledge
Most of the women including those who are well educated, do not find it interesting to talk about savings and investments. As such, they do not have any knowledge about the financial products in the market beyond, FDs, PPFs and insurance. As such, they turn towards their partners or other male members of the family for taking care of their financial decisions.
- Lack of Confidence
Most women do not feel confident in investing money. They are more comfortable in letting their partners do all the money management. Lack of financial knowledge is one of the main reasons for this low confidence.
Things to Do to Manage Your Money as a Woman
- Educate Yourself
A good money management doesn’t require a lot of training and knowledge. All you need to know is your financial goals, the financial products that can help you achieve your financial goals, and how long you should remain invested in those products to achieve your goals.
- Explore Investment Options
There are many financial products beyond the traditional savings, FDs and insurance. However, when you are investing you should take care of the growing inflation rate. There are many equity products like mutual funds and ETFs which will provide you better returns than the inflation in the long run. However, most women do not have the required knowledge about these products and their own risk tolerance.
- Evaluate and Monitor your Investment
It is a lifelong process. Once you have invested in financial products, you have to keep track of their performance, at least on a yearly basis. Increasing your investment amount overtime is also desirable. Employ a financial advisor who can access your investment situation.
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