WOMEN and FINANCES

Women are known to don many hats – be it daughter, sister, wife, mother, corporate professional or a homemaker. They are good at multi-tasking everything not only today but for ages. Women have come a long way, thanks to the progressive mindset of the parents who are raising their daughters to be self-dependent. The majority of women today are smart, courageous and independent. Society has produced great examples of women role models be it, Mother Teresa, former PM Indira Gandhi, NASA astronaut Kalpana Chawla, Indira Nooyi who was the 1st CEO of the second-largest company in the world Pepsi co and former Miss world Priyanka Chopra the latest example and the list goes on.

Despite excelling in their respective fields, a lot of women are dependent on the men in their family to take any kind of financial decisions. According to DSP Winvestor Pulse 2019 Study, only 33% of women make their own investment decisions independently or with the support of family members as compared to 64% of men. WHY SO?

Let’s delve upon the common reasons why women avoid or are hesitant to take investment decision:-

• Lack of knowledge and confidence:- Financial jargon can be intimidating at times. Lack of knowledge or thinking it’s not my domain are primary reasons to avoid taking financial decisions. Only 11% of the women took independent investment decisions and 22% with the help of spouses and other family members. 67% of them did not invest at all according to DSP Winvestor Pulse 2019 Study

• Risk-averse attitude :- Women tend to have lower risk appetite than their male counterparts. They often go into the dilemma that what if anything goes wrong. They are more conservative when it comes to financial decisions. They also tend to save in case there are emergencies. But remember, saving alone wont be able to fight inflation. Hence, investing is a MUST

• Gender pay gap– Unfortunately in a lot of sectors, women have to face gender disparity. Be it motherhood penalty or sexism to be blamed, the reason could be anything. Their male colleagues tend to earn more than them. According to the Monster Salary Index (MSI) published in March 2019, women in the country earn 19% less than men. The survey revealed that the median gross hourly salary for men in India in 2018 was Rs 242.49, while Rs 196.3 for women, meaning men earned Rs 46.19 more than women. In unorganized sectors like agriculture, construction etc the figures are more skewed. Since they earn less, many a time women tend to procrastinate investment thinking they will start after reaching a certain level or after saving a certain amount.

• Lack of time :- It sounds old fashioned but it’s still a reality worldwide, most women go back to doing their household chores, taking care of kids and family. As per Eurostat,93% of women took care of children on daily basis, compared to 69% of men.  The mental load is almost completely borne by the women. A surprise finding that came out DSP Winvestor Pulse 2019 Study was that even while single, women think of planning for a future child’s goals.

Goals	Single men	Single women
Child’s education	16%	22%
Child’s marriage	12%	23%

After understanding the major reasons for not investing, let me enlighten you with some solid reasons WHY should women start investing:-

•  Financial security: To cope up with unwarned emergencies and to avoid living at the mercy of others. It is necessary to start saving and invests. Nothing is guaranteed in life be it a job or marriage. Though a lot of women are earning today, they willingly let their spouses, brothers, fathers or sons take financial decisions for them. But its time to take charge of it in your own hands as not taking that control will hamper your life in future. Financial freedom as read in our last post gives u the freedom to follow your dreams. Hence, a mindful investment will make you financially independent.13% of women said that they were forced to make their own investment decisions due to their husband’s death or divorce as per DSP Winvestor Pulse 2019 Study.

• Financial equality– In the face of issues like the gender pay gap, investing is one of the best ways to ensure they are accumulating as much wealth as men. It is the only way to break the sexist financial cycle.

• To meet financial goals– With the rising cost of living every year, it is not possible to meet financial goals by savings alone. The investment will enable us to save sufficient to upgrade our lifestyle, buy a decent house and assist in meeting the family’s financial goals.

So, ladies stop thinking and start working towards your goals. Internet is a great tool of knowledge. Basic concepts of finance can be learnt over the internet. One can start investing on their own after some learning or with the help of financial planners. Also, remember our mothers and grandmothers have all managed to run their homes despite a tight budget for ages. So, its already ingrained in us. As said by Businessman Clement stone “Thinking will not outcome the fears but action will“. As there is no right time to start investing and the only right time is when you start earning. Start with small investments and gradually increase them. Also, remember the mantra EARN>SAVE>INVEST>SPEND.