Women and financial planning

There is a lot of debate on need for women to be proactively involved in financial planning. It has been seen when women are working they tend to plan finances as they earn, save taxes and invest. So, investments and long term financial goals are a need as well. Regular interactions at the workplace educates them of different financial products. Moreover, its been seen women are more inclined towards education and savings for education of their children contrary to popular belief that they are spendthrift.

Disquiets with Women can be changed to Disquieting factors/Challenges faced by housewives:
Housewives have a different problem. Firstly, there is a severe lack of awareness for financial planning . Housewives in a country like India are consumed by home ownership and elementary concepts like inflation, time value of money, Compounded returns are alien to most of them. Secondly, they are at a disadvantage in terms of surplus money to invest. Since they do not earn they can’t invest. That work is invariably left to the breadwinner of the family i.e., the husband. Lastly, families do not trust “non-working” women with decisions in investments. Any decision gone wrong is a big risk. And this too keeps them away from proactively participating in financial planning.

Explanation to Concerns:
Ideally, a husband and wife should jointly access financial goals and plan. However, that’s rare. Its either the husband or the wife that takes keen interest in financial planning. However, if the husband is not inclined and the wife isn’t working, then the financial planning invariably takes back seat. Long term goals suffer. And the thinking about investments, starts close to the time of cash outflows. This is a precarious situation.

Resolution:
All women, working or not working, should take interest in financial planning. There is no dearth of easily accessible information. Internet is key and information is available on a smart phone. That too in the language of your choice. The more women participate in financial planning, better will be financial future of the family. In a country like India where a vast majority of women are not working, this will be a boon and also relieve primary breadwinner from additional task of financial planning.


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