The Evolution of Women from Penny Pinching to Power Financial Planning

Throughout history, women’s involvement in finance has been restricted by social norms and limited access to resources. However, in recent decades, a profound shift has unfolded, marking a significant departure from the status quo. With expanded opportunities in education and employment, women have stepped forward as dynamic contributors in the financial decision-making process. This transformative journey harmonizes effortlessly with the worldwide movement toward women empowerment and financial inclusivity.

Women entrepreneurs are changing the business landscape and contributing to the country’s overall economic growth. They are also making their mark in a variety of industries, from traditional ones such as textiles & handicrafts, to fast-growing fields such as technology & e-commerce. They are, hence, driving innovation, generating jobs, and driving social and economic change. Their impact goes beyond the immediate success of their businesses, as they often work to empower other women and promote social responsibility.

There is a growing awareness among Indian women about financial literacy & investment opportunities. This shift is due to various factors, such as increased access to education & financial resources, as well as targeted government programs & awareness campaigns. This newfound confidence in financial management allows women to make better investment decisions for themselves & their families, which contributes to a better financial future.

While there are still many challenges to overcome, Indian women are making great strides in the business world. Celebrating their success and building an ecosystem that supports their continued participation will go a long way in building a more inclusive & prosperous future for India.

On International Women’s Day 2024, the theme “Inspire Inclusion” emphasizes the need to work towards a world free of gender-based prejudice and discrimination, while ensuring women empowerment. Below are a few ways to achieve the same:

• • Financial Literacy Programs: Bridging the knowledge gap is crucial for empowering women to make informed financial decisions. Specialized workshops and seminars focused on financial planning, investment options, and risk management, can equip women with the necessary skills to navigate the financial landscape confidently. These programs should be designed in a language and format accessible to women from diverse and educational backgrounds.

 

• • Accessible Banking Products and Services: Financial institutions can play a vital role in fostering inclusion by offering a variety of deposit accounts, investment products and services tailored to women’s specific needs and preferences. This can include accounts that prioritize financial independence, savings for children’s education or healthcare, and micro-loans with flexible repayment options to support female entrepreneurs.
    Also read: Reasons Why You Should Opt for a Women-Specific Bank Account

 

• • Digital Banking Solutions: Digital banking platforms and mobile apps should be user-friendly, as women are increasingly comfortable with technology. They should be designed with financial literacy features in mind, such as budgeting, investment simulators and calculators, and educational resources in local languages. Women should have a secure online banking experience that allows them to manage their money independently and effectively.

 

• Entrepreneurial Support: Women entrepreneurs face unique challenges, often requiring targeted support to navigate the business world. Initiatives such as loans with lower interest rates, flexible repayment terms, mentorship programs led by successful women entrepreneurs, and business guidance specific to female-led businesses can play a vital role in fostering an ecosystem conducive to their growth and success.
  Also read: Fostering women entrepreneurship in rural India through financial inclusion

 

These inclusive practices combined with a focus on access on finance, education and support can help women take control of their financial future, make a positive impact on the Indian economy and inspire future generations to overcome the obstacles that remain.

It is important for women to actively manage their finances and make informed decisions about their financial well-being. Fortunately, a wide range of products and services are available to cater to various life stages and financial goals.

• Savings Accounts: Savings Account offers a safe and convenient way to store money and earn interest, making them ideal for emergencies or short-term savings goals like travelling or home improvement.
• Recurring Deposits (RDs): RDs encourage saving regularly by setting aside a fixed amount at regular intervals, promoting discipline and building a corpus for future needs.
• Fixed Deposits (FDs): FDs offer a higher interest rate for a fixed tenure, making them suitable for long-term financial goals like retirement planning or children’s education.
• Investment Options: Banks may offer various investment schemes for women like mutual funds, fixed deposits linked to the stock market, or insurance policies, providing opportunities for wealth creation over the long term.
• Loans: Whether you are looking to pursue higher education, start a business, or finance a personal need, various loan options like education loans, business loans, home loans, and personal loans can provide the necessary capital to achieve your goals.

 

It is important to remember that there is no “one-size-fits-all” approach to financial planning. The key is to identify your specific goals, risk tolerance, and investment horizon.

Many banks offer valuable resources to empower women on their financial journey. These may include:

• Online financial calculators: Help assess loan eligibility, calculate potential returns on investments, or estimate retirement savings needs.
• Financial planning guides:Provide comprehensive information on various financial topics, from budgeting and savings to investing and retirement planning.
• Access to financial advisors: Connect with experienced professionals who can offer personalized guidance and answers to your financial queries.
• Financial Apps: With the advent of technology, financial apps have garnered interest. These digital platforms offer automated investment solutions, portfolio management services, and personalized financial advice, catering to investors seeking convenience and cost-effective options.