Men usually claim that their daughters and wives tend to go splurging on unnecessary things and it isn’t wise in the long run. It is crucial for women as well as men to understand the value of spending money wisely. From buying groceries to buying jewellery, women deal with money to a great extent. Women tend to do the most spending at home, so it is essential for a woman to learn about managing finances even if she is not the primary earning member in the family.
Here are some reason why women should give importance to money and finance -
- Be prepared: The reason why women take a back seat in managing money is because they know their fathers or husbands will do most of the work for them. In situations like death of the spouse or earning member or a divorce it is essential to keep track of the finances. During these times, a person is also emotionally affected, and being unprepared financially only adds to the trouble. So it is important that women in the family also take an active part in understanding finances and managing money.
- Meet financial goals in life: Financial goals depend on financial conditions, family situation etc and changes from time to time. When women understand money, family goals are not hindered even if the main decision maker is no more. It is also important to create a savings corpus for the future. Although many financial terms are difficult to be understood, it is possible by taking the help of a planner or the spouse to understand money and finance.
- Avoid over indulgence: Women, like men, sometimes face shortage of money because of over spending. This is irrespective of whether they are working women or homemakers. This results in a debt trap. When there is no understanding of money, there is no responsibility; as a result, they are not prudent while spending. When women are made to pay credit card bills and repay borrowings themselves, they will understand how to control on the urge to splurge as well. There is also an improvement in the family’s overall financial condition.
- Knowledge for better management of finances: A mother or a housewife is known to run the daily household with a limited budget. With the basic understanding of finance, women can also spend according to their daily needs and save for their future goals. Certified financial planners may help you how to plan your budget according to your earnings. In addition to managing expenses, knowledge about savings and investments is also critical. Proper understanding of these aspects helps a woman manage finance better.
- Achieve financial independence: Women aren’t usually financially independent in India. They are dependent on their husbands or fathers for financial independence even if they are having a steady job. However it is not impossible to achieve financial independence. First of all, focusing on minor details can help you a lot. Cut down where ever possible and maintain a neat record of your earnings and expenditures. A financial planner will help you focus on main areas where you can save your money and how to go about it. Financial independence doesn’t necessarily mean that you can spend without taking anybody’s permission. It consists of spending wisely and curbing your intention to splurge. This is possible only when a woman understands various aspects of finance.
A woman is an integral part of any household. It is critical for women to understand money and take part in financial decisions for various reasons:
1. To be prepared for emergencies
2. To meet financial goals
3. To avoid over indulgence
4. To manage finances better
5. To achieve financial independence