As fairer sex we are emotionally and culturally tuned not to take financial matters seriously. We consider that it’s a ‘man’s world’.
Gone are those days when men all the sole bread winners’ of the family. Its time when we too shoulder equal responsibilities. Studies all over the world, indicates that our financial ignorance is much higher than men L
Read on to find out, why it is all the more important for us, as women, to take finances seriously.
- Women are generally underpaid: Studies reveal that for the same work, women are generally underpaid as compared to the men counterparts. Though this analysis is poignant, you need to agree that we are already at a financial crisis since we have less money to put aside as our retirement savings. To add to this, studies also reveal that women generally live longer than men. So, it sums up that we need to plan for our long life with lesser money and hence financial planning is all the more essential.
- Women take breaks during their career: Most women take breaks during the career to cater to the family needs. Though these breaks are nice and essential for personal wants, a potential damage is caused to the pension contribution during these years. This might not cause significant impact during the time of a career break, but the major impact falls on the corpus fund during retirement. We need to plan for this negative impact on the pension and make plans to compensate for this loss.
- Women consider that the money is only benefitting the family: Socially and culturally, a women’s income is considered as “extra” income/savings for the family. Though the times are changing drastically now, there are still families where a women’s income is only considered ‘that extra two pennies’ for the family. Also, women are culturally tamed to share their income with the families/ elderly parents and children. Though there is nothing wrong at this, it becomes a problem if we do not consider our own personal retirement plans and financial security before considering about helping out others. We need to put on our own oxygen mask before we put it on to our child during an airplane crash. The same holds good here too. You need to be financially secure before you go about funding your family.
- Women generally follow the herd mentality: Women are more insecure and less confident about issues such as investment. Studies show that more than 78% of women just heed to advice provided by others mainly due to lack of confidence in investment. It is but natural for anybody to feel that a large group cannot go wrong, and that is the key reason to invest while following the herd. This leads to higher risks and higher losses.
So Ladies!! Break the stereotype!!Take charge of your own finances and be your own boss!!