Women play a crucial and integral part in the development of our society. They are known to wear several important hats as a mother, daughter, spouse, sister, caregiver, business leader, family health officer and disciplinarian, among several other roles, and have incredible multitasking skills. Essentially, we may say that women tend to be a perfect balance between the yin and yang energy forces. Women are leaders everywhere, whether as a CEO of a Fortune 500 company or as a homemaker who raises her family and heads her household. However, when it comes to taking charge of financial affairs, they usually tend to take a back seat. While we do see the situation changing, this is, however, at a nascent stage.
Let us understand some key reasons why women should take charge of their financial affairs.
Future inheritors
Indian women are expected to outlive men by a minimum of a couple of years on average, according to Economic Survey 2021-22 tabled by Finance Minister Nirmala Sitharaman in Parliament last year. This means there is a greater likelihood of women inheriting at least a portion of the family wealth. However, are women equipped and aware about the opportunities and challenges inheriting wealth can bring? While it is important that they understand the mechanism to create and manage wealth to meet their family financial goals and targets, it is equally important that they understand the nuances of estate planning to secure the future of their loved ones and themselves.
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Financial independence
Being financially independent in the true sense just doesn’t mean to earn one’s living but also the ability to manage wealth in a manner that requires no dependency on anyone else. Hence, families need to take cognizance of the fact that it is just not important to leave wealth to their inheritors but also equip them with the right information and knowledge on how to gain access to their wealth through an effective estate plan as well as how to manage that wealth prudently once inherited.
Managing contingencies
The untimely demise of a loved one may often lead to a situation of chaos and confusion for a family. A woman by default carries great responsibilities during her lifetime. However, these accountabilities increase manifold when they need to take the front seat to manage the financial affairs for their family, especially after the demise of the family member in charge of financial matters. In the event of such a contingency, if the woman does not have any experience in financial matters, the road ahead may not be an easy one, not only for her but her family, too.
Influencer
“When you educate a man, you educate an individual but when you educate a woman, you educate a generation,” goes the saying. Women do occupy a position of great influence in their families and if they actively participate alongside the menfolk in financial decisions, it would certainly have a positive impact on the next generation as well. Awareness levels and acumen about finances will definitely improve, leading to gender parity too when it comes to financial decision-making in families.
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Family issues
In typical large Indian families, women who survive their spouse, if they are not in control of their finances, can easily be dominated by other members in the family/external parties and at times be taken undue advantage of. Moreover, children and grandchildren can also put great pressure on the family’s financial matters, which may lead not only to unfair division of wealth but also lack of financial resources available to the woman who may have inherited the wealth in the first place.
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Being financially independent is a self-sufficient goal that not just women but everyone should aim to achieve. It enables one to be confident and face every situation in life, whether favourable or not. The involvement of women in money matters can definitely be a game changer in the manner in which wealth gets not only managed but also inherited by households in India.
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