Women's Day Empowerment Special: 5-pt advisory to money management

It is International Women's Day today. On this special day that is marked across the world and what can be better than reading about how to empower oneself when it comes to money. Empowerment does not only mean going out and achieving something, it also means a specific mind-set and habits that can end up making a defining contribution to turn a woman stand up as a self-sufficient, self-driven thinking person when it comes to finances. 

1) Why women require a financial planning road map?

All women should have a goal based financial road map in place, regardless of their marital and work status. Usually, women were more involved in managing day to day finances, and household budgets. However, in today’s times, women should also play an active role in setting long-term financial goals such as Children’s education, building Retirement nest egg, along with the family. When a family sets goals together, all the members feel emotionally invested and responsibly save and invest towards achievement of the same. 

2) Women are reluctant to invest in financial instruments, how can one drive this push, what should they do?

Traditionally, women have been less involved in the financial aspects and investment decisions. This has resulted in them having very limited knowledge of the various investment avenues, and the overall financial situation of the family. It is very important for women to be aware of all the investments, documents, loans etc, not only in their name, but of the full family. 

One of the key ways to drive women in this area, would be for them to be a part of the finances of the family, and take joint-responsibility towards achievement of financial goals. When this happens, women themselves will take keen interest in understanding various financial instruments that are available, and suitable to invest in. 

3) Women are reluctant to know about financial products, how can one increase their efficiency of learnings?

It is usually the lack of knowledge, which leads to women taking a back seat when it comes to finance. They are reluctant to even learn more about financial products, as they often rely on men to take the lead in this area. The only way to increase the knowledge of financial products among women, is by Spreading Financial Literacy.

One can read books, magazines, newspapers, online content, to get a basic understanding of finance and to stay updated with the latest developments. Further, a financial advisor plays a key role in this area. It is very important to choose a good, qualified advisor, who will help you improve your knowledge, explain the financial products that are suitable for you, and also do make financial literacy a priority. 

(By Amar Pandit, CFA, Founder & Chief Happiness Officer at HappynessFactory)