We all know that Women are good at multi-tasking! The way women handle house and work proves the very fact! However, when it comes to managing money, many still prefer to hand the responsibility over to men.
These days, although many women are capable of generating their own income, unfortunately, they still lack the awareness about saving and investing money. They need to learn and know how to manage, save and increase savings (by making good investment decisions) along with knowing how to make money.
This is my attempt to spread some thoughts about why women should know how to manage money:
Reason #1: Women live longer: Generally speaking, women tend to have longer life span as compared to men.
Also, being dependent on a family member for financial assistance at later stage in life is not advisable and understanding this risk is very important. Women have longer period of health issues in old age. Therefore health benefit costs affects more women than men, as income tends to be low or in some cases there might be no source of income at all, for many women, at this stage in life.
Reason #2: Emergency Situations or Circumstances: In the situation of sudden death of a life partner, a woman is less likely to be fully aware of her partner’s investments and financial situation. Even if a woman handles day to day expenses and bills at home, she is hardly aware of what to expect financially for her future. Some real life situations like this force women to start looking for solutions at that point. The financial world is getting more and more complex, day by day, with so much new innovation going on in this high tech world. If a woman who has never been financially educated gets pushed into emergency situations, unprepared, it might get extremely difficult and overwhelming for her. It’s really a need that a woman should take interest and participate in the decision making of each and every financial matter of home.
Reason #3: Women generally earn lesser: Women, in general, (I may be wrong) earn less as compared to men and mostly all her income goes in home expenses and therefore savings hardly turn into investments.
Reason #4: More breaks in Profession/Career: Women go through phases in life which might need them to take more breaks in their career as compared to men. These breaks are often long term, for example, break after having a baby, after marriage or due to change in city, or shifting from a full time to a part time (which cannot be completely considered as a break, but still is not equal to being in work force on a full time basis). Many a times, a woman’s career also becomes secondary, unfortunately, as it is still largely considered that a woman is not the main earning member of the family and is more of a person with a ‘supporting’ role when it comes to finances. But this can badly affect not only her earning capacity but also in managing money affairs.
Reason #5: Single/Divorced Women: Divorced women suffer more financial burden than men because of inequality of income and this burden increases, if she gets the custody of kids. After divorce, as a single woman, with or without children she has to take control over finances, manage day to day expenses, and pay bills and also save for children’s education/marriage and for retirement too.
Reason #6: Boost Financial Confidence: In general, women find it hard and stressful to make investment decisions. They find it difficult to handle due to low confidence and lack of financial knowledge. Women also find it less interesting to discuss and learn about money or financial matters. Many women who are well educated and professionally successful also lack financial literacy and depend on their husbands or hire professional advisors for investments.
Actually, the surprising fact is that women, inherently, have a tendency to save and take more investment risks than men. The only element that is missing is proper education in financial matters, to boost their confidence. It doesn’t require a professional degree to learn about handling money and investments. There are many resources available to help women get educated financially. There are many websites, financial blogs (including mine) which provide all the needed information like basic rules of investing, information about financial products and services, tools and calculators, budget worksheets etc. Online money tools are of great use and easy to learn. Consulting a good financial advisor before making investments can also help to make better investment decisions. Every such good decision you make will surely boost your confidence and will get you one step closer to be financially independent! Even if you have made mistakes before, don’t stop, consider it as a lesson learnt !
So…stop making excuses and start building your secure financial future!
References: NewYorkTimes.com, Forbes.com
Author: Gayatri Jagdale
Gayatri Jagdale lives in Raleigh-Durham, North Carolina Area. She is a Financial/Investment Advisor and Blogger. She has years of experience working in the Financial Services Industry. She also blogs to bring financial awareness and literacy specially in women in India. To learn more about her, visit her website Fund-Matters https://fund-matters.com/. Contact info: email@example.com