In this modern age, we see women leading at every possible front. They are now more informed and educated and are confident enough to make their own decisions. They are masters of multi-tasking with juggling their careers and households at the same time.
Women have never felt more empowered than we do today. Women are running for office in record numbers. More women are pursuing entrepreneurship. Women are earning more bachelor’s degrees than men. More working mothers are the primary or sole earners in their households. The list goes on and on.
While they make their continuous progress, women should also pay a special attention to financial planning. This is one area which often takes a back seat in a woman’s life. Financial planning for women is a critical aspect for them to reach their personal as well as professional objectives, without being dependent on anyone.
Improving Financial Literacy Among Women
Financial planning is not a rocket science. It is more down to habit and careful management of your hard-earned money. Because of the limited exposure, women previously were not aware of the simple ways that contributed in successfully managing the finances.
Today, one way to tackle this is taking more interest in the subject and being aware about the basic things that build a solid financial foundation. It can also be called as improving the financial literacy. One can read books, finance magazines, news etc. to keep themselves updated about the latest trends in the domain.
Women deserve economic equality
On average, a woman today earns between 80 to 82 cents for every dollar a man earns or $9,308 less annually. By understanding how to manage personal finances, women will be better able to make informed economic decisions over the course of their lives. Also, women will have a better grasp of their worth in the marketplace. Ultimately this information can help to reduce the gender pay gap.
Financial Independence
One of the biggest reasons why women need financial planning is to be financially independent. With a sound plan, they can march confidently towards their personal and professional objectives without worrying about the financial implications. Also, it prepares them for any crisis in the future as well as raises corpus for retirement. Thus, it is high time for all the women to take active role in financial planning and take complete control of their finances. It is the first step towards achieving that coveted financial independence.
It becomes difficult to fathom an equal world without empowering women with equal social and economic opportunities. Making them financially literate is one of the most important area.
The highlighted factors that profoundly influenced financial literacy among Indian Women, which are:
- Lack of independence
- Culture
- General Literacy
- Lack of Confidence
- Access (to finance)
State Initiative
The situation has goaded the government to launch schemes aimed at boosting financial literacy among women. The rationale being, this would lead to greater financial inclusion in the country.. These schemes encourage women to take up personal finance activities as savings and investments. The programmes also spread awareness of financial of fundamental financial issues that impact their lives, and to design the address the key components of financial literacy such as:
- The need to save
- Benefits of investing
- The difference between saving and investment
- The need for insurance
- The need for a regular stream of income after retirement, or in their old age
- The necessity of saving or investing regularly
- The advantages of savings in bank
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