Understanding Money management is as important for women as it is for men. Still it has been observed that women don’t take active interest in this area. Sometimes they are not expected to participate in family financial matters as they are labeled as homemaker and expected to take care of children and other chores. Even if they are working they themselves ignore this aspect and delegate the financial decision making to their husband or father or other family member. But women have to understand that even though they are part of family, there are some challenges which are unique to women. These challenges can be taken care only when they are financially empowered and ready to understand and act on financial matters.
Why understanding money management is important for women.
1. Women Live longer than Men: On an average women live longer than men and also women tend to marry older spouses. Both the reasons make the retirement planning more sensitive and important for women. It doesn’t only mean more money requirement during retirement years but also having knowledge to take care of wealth independently in the rising inflation and health care cost scenario. This calls for proper arrangements to be made in the family’s financial plan for the sole survivor and empowering the expected survivor to handle the financial matters easily. When a person writes his WILL, in most of the cases I have observed him bequeathing all assets to his wife and then to his children. But the same person has never involved his wife in family’s financial decisions or has never paid heed towards financial literacy of his wife. So what’s the point to leave assets in the name of wife if she’d still be dependent on children to execute and manage the things? To make sure that money be used and managed as was intended it is imperative to help and encourage your better half to participate in family money matters. Women should also take initiative to come forward and understand the money management for their own betterment.
2. To be independent and confident: Numbers of working women are rising. Now day’s men are not the only breadwinner, women also play active role in family’s cash flow. Both have their own personal goals and also would like to achieve some common goals like decent lifestyle, Good education for kids, yearly vacations etc. While planning for all these goals, women should know where and why investments are being made, who’s the adviser, what are the various insurances bought and where are the important documents lying etc. In other words she should participate fully in family’s financial plan so the things could be managed confidently if husband is not around. Moreover understanding money management is also important to make and support her husband in wise decision making.
3. Things are changing culturally: Late marriages or not marrying at all, live ins, divorces etc. all these things are getting common day by day. With a proper understanding of personal money management women can face these situations with confidence and work towards her better future. Women should also make specific provisions in the family’s financial plan or have a separate plan for her as if she will be on her own someday.
Thus it is very much important for today’s women to make finances there priority and educate themselves on money management matters by following a personal finance blog, reading personal finance books, attending seminars, by asking questions on various online forums etc. Even if they are not interested in this area it becomes our responsibility as brother, father, husband, friend to make them understand the financial matters and empower them with financial happiness.