From time to time, we see disgruntled professionals expressing regret over not being financially literate in their school or college days. It’s evident in the statistics that one in every five Indians is financially literate. Even a survey by S&P declared that 75% of Indian adults were not adequately well-versed with the concept of finance. At the same time, 80% of Indian women remain financially illiterate.
Therefore, our goal in this post is to provide smarter pathways for women to gain financial knowledge.
What Is Financial Literacy And Why Do Women Need It?
The term financial literacy refers to developing the ability to confidentially use financial skills. This involves budgeting, personal finance management, and investing. Be it for a man or a woman, merely earning an income is not enough. One needs to understand what more can be done to grow that income and use smarter ways to use or save it. With the rising gap in financial literacy, it is observed that women have long been neglected in this area.
Women are traditionally seen as homemakers in society, which deems their role as limited to the concerns of the home. They are not liable to take part in the inflow and outflow of money. However, the economic scenario is seeing a vast change in society, including a rising number of women joining the workforce. This makes it all the more essential for women to be financially literate.
A few factors that contribute to financial literacy for women:
- Financial literacy plays a significant role in their independence.
- They can avoid developing, poor investment decisions, poor spending habits, and debt burdens.
- They can make long-term plans to save and invest their money.
- They are better prepared for financial emergencies.
- Women can deal with rising economic concerns and inflation.
- They are more confident about making intelligent financial decisions.
- It can help her build financial freedom if she is initially trapped in an abusive relationship or marriage due to financial dependency.
How Can Women Become Financially Literate?
Women in the rural and semi-rural regions of India are less encouraged to develop knowledge in personal finance management. Since their role is deeply integrated in managing the day-to-day household expenses, it is essential for these women to learn how to make the best use of money.
This is why development programs like FLCC (Financial Literacy and Credit Counselling Centres), self-help groups, and the National Center for Financial Education (NCFE), among other programs, are designed to help these women overcome financial literacy challenges.
Even when it comes to women from the urban parts of India, they can take a few more important steps independently to improve their knowledge about finance. Let’s explore these easy steps for women to become financially literate.
- Start reading – Read as much as you can to understand the terminologies used in the world of finance. Go through the finance section in the newspaper and magazines. Subscribe to the Wall Street Journal, the Economic Times, The Economist, etc. Investopedia is another great platform to make more room for financial knowledge.
- Download financial app tools – Use your smartphone to download finance app tools that can teach you about budgeting, help keep track of expenses, and implement smarter financial decisions.
- Hire Expert Financial Advisors – Hiring expert advisors can help you avail financial expertise on making a budget, managing debts, planning future security, and putting you on the right track to manage all your finances.
Personal Finance Management is the best way to improve one’s economic standing in life. Fun with Finance can help build your financial knowledge on this front with easy-to-understand coaching sessions.