Women are usually adept at managing household finances. They can typically not only work with a tight household budget, but also manage to make some savings. While many women have a keen sense of finance, in most cases, they take a backseat when it comes to avenues for growing money and making investment-related decisions. Today, while the new age woman is career conscious and equated as being ‘financially empowered,’ the reality is not quite the same. Financial empowerment isn’t just about earning money. A financially empowered person is both informed and skilled. They understand their money dynamics, make wise financial decisions, and are able to access resources to help reach their goals. While the guiding principles of personal finance apply to both men and women alike, there are some factors which differentiate the financial needs of women from those of men, making it even more important for women to be ‘financially empowered.’
Turning Dreams Into Reality
We all dream about pursuing our passions and following our aspirations. While some may aspire to be entrepreneurs, others might want to travel the world or buy a house in the hills. Needless to say, all these endeavors and pursuits need money and therefore a sound financial base is the first step towards realizing our dreams. This is especially relevant for women, as they usually take more breaks in their career than men. Studies suggest that women spend 15% of their work life outside the workforce.
Coping Up With Challenges
Life is not always fair, nor does it quite unfold the way we envision it for ourselves. Life can be challenging, especially if one faces a divorce or becomes a widow at a young age. Such difficult times can cause immense emotional and even financial stress. While the loss of a loved one cannot be compensated by anything in the world, being financially empowered can result in one less worry. Money management skills can help a woman streamline her life better and live without being financially dependent on anyone.
To Be Enabled, And Involved
Women often tend to leave financial decisions to the men in their family. Sadly, such a trend, or rather more of a norm in our society, has set an uninspiring precedence, something that can cost dearly to women in times of hardship. It is estimated that only 25-30% of working women make their own financial decisions. We are not against a woman taking a backseat in money matters, but that should be out of her choice and not because she finds herself incapable of taking financial decisions.
Bridging The Gap
Women are often faced with the tough situation to choose or prioritize between work and household commitments. Many women aren’t able to continue with their jobs, and of those who do manage to achieve a work-life balance, there is the problem of pay gap. In a developed nation such as the U.S., women earn roughly 82 cents to every dollar earned by men. The figures are, as expected, much more disparate for developing nations. Women, therefore, need to be financially empowered to also mitigate the effect of gender inequality.