Money management has been primarily a male-dominated activity. How many of you will second this statement?
Almost everybody, isn’t it?
It however has undergone a sea change especially since it witnesses active participation of many women today.
Nowadays women are inevitable when it comes to financial decision-making more so in households. The control that women exercise on managing finances for their families and the job they do while balancing the needs of their family while still ensuring some savings is par excellence. Having said this, most men still hold back major financial decisions regarding big-ticket purchases and investments.
Oh and did you know? 80% of the purchases are mostly female-driven. Astonished? Don’t be!! It is true, women show more vigilance when it comes to sizeable spending and informed investing. Though men are at the forefront when making important financial decisions; the responsibility of safeguarding family wealth lies with the woman of the house. Females have an innate skill to determine and utilize funds astutely in a financial crunch situation.
Congratulations ladies, pat yourself on the back and keep it going.
Here’s why women should indulge in financial decision-making:
- LIFE EXPECTANCY:
Research says- Life expectancy of women is higher than men; reason being the physical activeness of women in their personal/professional lives. Going by this the female member might be required to single-handedly tackle financial responsibilities and be the decision-maker later in her life in the absence her better-half. Wouldn’t it be advisable then that women show consistent inclination towards financial decision-making?
- SOCIAL SECURITY:
Talking of life expectancy, the need for social security is of paramount importance and any decision taken in context of this should be mutually agreeable between the couple. They should understand their financial situation and chalk out a plan on what kind of cash flows would be acceptable for them thus phasing out when they should start receiving periodic benefits.
- PRACTICAL APPROACH:
Practicality of financial decisions is crucial too. Noticeably, some men who control financial decisions have more aggressive and risky financial habits. Women on the other hand adopt a more practical approach towards overall wealth retention and management.
- KNOWLEDGE OF HOUSEHOLD EXPENDITURE:
A clear understanding of daily household expenditure helps boost savings. Women AGAIN have a better say in this. “My wife is the FINANCE MINISTER of my house” say most husbands. True isn’t it? Most women handle household budgets and hence are better aware of everyday expenses. Setting financial goals and aiming for retirement savings is the target every home sets for itself and an in-depth understanding of where the income earned is spent regularly would give clarity on how much money is needed now, in the near future and thereafter.
In culmination women now have equal access to investing and investment advice and they should take full advantage of the same. Rational investing and saving sufficient funds for life post retirement are inevitable habits; any inconsistency in these could lead to families handling their funds unproductively.
So gear up ladies, let’s make a difference!!