Woman: A Gorgeous Investor

One of the issues underlying empowerment is often money. However there is more to this, even when women earn well, they are still not very likely to be managing their money, savings, and investments

Men are usually the ones who ask for investment advice for their family or on behalf of the women in their life. But what is the reason for this?

From research, it can be noted that the reason is self confidence. Women tend to second guess their questions and often assume they are asking stupid questions, whereas men ask anything and learn from the advice given, regardless of their lack of knowledge.

There is a stereotype that men save money and women spend money

Even TV ads tend to depict this; the woman is portrayed as a smart decision maker only in ads that have to do with household appliances or other consumer goods. When the ads are for financial products, it is always the man who plans for the future while the woman is buying the household appliance.

Why are women shy about investing? The reasons are rooted in societal norms. Women were meant to be nurturers while men were providers. In India, when a woman earns, her income is meant to be for household purchases while the man’s income is mean to be for investment purposes.

The men in the family are usually not very informative when it comes to investments. Women also don’t want to ask so as not to infuriate. It is generally not a widely discussed topic amongst most families. Women are also risk averse and prefer to play it safe.

So, how do we make women less fearful about the idea of investing? Raise awareness

Women need to be made aware that they possess certain traits that are beneficial to investing; women are less impulsive and are able to reflect, women are also better at coming to terms with their mistakes and learning from them.
It is important to remember that at some point in a woman’s life, she will need to take responsibility for her or her family’s finances. Divorce or death makes it important for women to take full responsibility of their children or elderly parents whether the woman is earning or not. At such times, it is prudent that women are aware of the options available to them. About 90% of women will be financially responsibility for their families at some point in their life (Wi$eUp). More women are breadwinners for their families (30%) (Wi$eUp).

Women typically outlive men and need to be prepared financially for a longer future after retirement. Some women breadwinners in the family need to have goal based investments, as well as health insurance plans for themselves and all dependents/family. Pension plans are important to continue receiving a steady income after retirement It is extremely important for every woman to keep money in the bank to cover at least three to six months into the future. Dependent women need to be as involved in financial decision making of the family as they are in running the house. Most housewives tend to be frugal anyways, and always end up spending less money than allotted for various house expenses. It would be extremely beneficial for them to start an SIP even if they aren’t earning.

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