Why Women's Financial Literacy Is Important for the Future of India?

Why Women's Financial Literacy Is Important for the Future of India?

• Posted On Thursday, May 26, 2022

It's 2022, and financial awareness is one of the most important lessons that should be imparted to every individual for our country's economic growth. But unfortunately, 80 per cent of women in India struggle with financial literacy and around 62 per cent of Indian women do not own bank accounts or have limited access to banking services.

What Is Financial Literacy?

Financial literacy is the capability to make informed decisions and take effective measures regarding the current and future use and management of finances. It includes planning for the future, understanding financial choices, expending wisely, and addressing the challenges associated with life events such as a job loss, saving for retirement, or paying for education.

Importance of Financial Literacy in India

Covid-19 taught us many things. Many people got unemployed. And it was then that many people realized the importance of savings and investments. It is essential to become financially literate despite your gender, age, place, lifestyle, etc.

Everyone must know the basics of finance, like managing money, to be financially literate. But in India, many people lack the basics of managing money, whether it's savings, investing, buying insurance or emergency funds. Financial literacy in India lags behind that of many countries. According to a global survey, 20% of the total world population is Indian, but only about 24% of the Indian population knows the basic financial concepts. The government, since independence, has made efforts to promote financial literacy. The financial literacy of common people is directly related to financial inclusion, which, in turn, plays a major role in the country's economic growth. 

Women And Financial Literacy: How Financial Literacy Can Truly Empower Women?

Women form 48% of our population, and only a small percentage of exempt women in India have a significant say in 'how' and 'where' of financial matters in households. This is because most women do not prefer to get involved in monetary decisions and financial matters in India, as these are in the hands of a male relative. Moreover, educational institutions do not teach money management skills, so the responsibility is justly on us to mould women's financial future.

Who do you think is responsible for keeping the feminine gender away from the family's financial affairs? Though both boys and girls get the same education at school, why does one take command of money matters while the other quietly steps back? It is a predicament rooted in centuries of social conditioning, but it is high time now we break the mould.

Women lag far behind men in urban areas concerning financial inclusion and literacy rates. With the changing lifestyle dynamics, there has to be a bigger push towards making women financially aware and independent, helping them with their money journey. If even 10% of our women population manages their money, we would see a societal change.

Suppose we really want to build and exist in an equitable world where everyone has the liberty to dream, work and feel financially secure. In that case, we all need to work towards enlightening people about financial literacy. Financial literacy holds the key to empowering women. Women's financial inclusion has a key role in bringing about gender equality in society. It sets the base for empowerment.

How Can Women Gain Financial Literacy?

A monthly allowance for daughters is a great way to get started. Every parent should open a bank account in their daughter's name and give her a debit card. Putting a fixed amount in the account every month and letting her use it for small transactions will make her know how to manage her allowances and understand the value of money more effectively. Once this is done, she becomes more careful with money. In addition, reviewing and discussing the monthly statements with your child will help monitor your child's preferences and spending patterns.

Girls and women need to know about maintaining the privacy of the card details and observing basic safeguards when conducting online transactions. This is crucial due to the recent swell in phishing scams and online frauds.

Investing is another topic that women should know to take a plunge into the real world. The earlier a woman learns about money management, she is better prepared for the challenges to follow. 

Therefore, financial literacy and monetary empowerment will be far more durable assets for a woman than anything else in this developing India. At the end of it all, we all crave security and freedom — financial literacy can help us accomplish it! So, women lend a hand of help and let's celebrate the spirit of women hood by getting financially empowered and empowering each other.

Join Humanity Welfare Council today; let's grow and expand to contribute to India's growing financial literacy and achieve the Mission 2030 Developed India!