Money management skills are always the tricky ones to master. With the rising and dynamic changes in prices, household expenditures, keeping up with security & other funds, and having just the right amount of money to not over splurge, handling cash is a life skill.
Women are known for their exceptional skills in managing finances well. While not all of them may have attended any financial literacy courses, it’s a life skill learned over the ages.
Taking the initiative to learn about complex financial subjects will assist you in reaching your next major financial goals without losing yourself along the way. Every well-informed financial move you make brings you closer to your objective.
Financial Literacy for Women
Women’s financial literacy is a critical component of their overall independence. Financial illiteracy can result in struggles to manage finances and will create an impact on your future plans as well.
You may be more prone to debt, poor spending habits, and a lack of long-term planning. People, especially women, who are financially literate are better equipped to judge. It also prepares you to take the proper steps in case of an emergency or unforeseen circumstances.
However, according to a report, only a minority of women can build on and enhance their current wealth. Furthermore, only roughly 33% of individuals surveyed are confident in their ability to invest their money however they see fit. Given the increasing importance of women’s roles in domestic and public realms, these low levels demonstrate that financial literacy for women’s empowerment remains a subject that needs more attention and enrolment.
What is the Importance of Financial Literacy?
Financial literacy is more than just knowing theories and frameworks. It equips a person to make better decisions at every stage of life with no or low-risk fallbacks. Here are more reasons financial literacy in women is important:
- It makes them more prepared in the event of a disaster.
- If women are financially literate, they can help cope with rising living costs and inflation.
- Mothers have a greater impact on children than fathers. Financial literacy also sets a good example for children.
- Women are usually in charge of day-to-day expenses in most households. As a result, knowing how to spend money wisely is beneficial.
- Financially literate women are more confident in their decision making.
- Take charge in establishing business (entrepreneurship) whenever they are ready to
- Aids in planning out financial goals
- It assists in adverse case scenarios like divorces or spouse’s death.
- Supports in contributing to savings for kids’ education funds
Note: None of the other key points in this blog will help you if you don’t have regular revenue streams.
How to be at the Top of Securing Your Financial Freedom
- Continuing your education and obtaining more certifications are important steps to take:
- Obtaining a postsecondary education
- Negotiating and expecting fair and acceptable pay
- Knowing your rights at the workplace
- Working hard to achieve targets as set by the organization
- Considering and accepting the risks and benefits of entrepreneurship and business ownership.
- Being well-versed in the many employment options available in various economic climates recognizing and appreciating your strengths and abilities
- Overcoming self-doubts or doubters, shattering the glass ceiling with skills and talents
- Recognizing your area of expertise and finding job opportunities in the target industry
- Having a bank account of your own and investments to support yourself during times of crisis
- Filing for income tax returns on time to avoid penalties
Financial literacy for women empowerment is a virtue no woman should avoid
Budgeting lets you see where your money comes from and how you want to spend it…
Make your basic budget by following these simple steps:
- Make a list of your monthly expenses and sources of income by gathering your financial records (paycheck, bank statements, and bills)
- Sort your expenses into constant (monthly at the same cost), variable (monthly at varying prices), and periodic
- Subtract your entire income from your total expenses to arrive at your total savings
- If your expenditure exceeds your income, you’ll need to either cut back on some unneeded expenses, boost your income, or do both.
Financial Literacy for Women Empowerment
One of the financial decisions that women are hesitant to make is investment planning. Some are unable to do so due to a lack of knowledge, while others are women lack confidence when taking investment decisions. . Both are, however, incorrect. Therefore, it is not entirely accurate to suggest that you are financially independent if you are a working woman who does not independently plan her finances and investments.
Only when you earn, manage, and organize your finances on your own can you call yourself financially independent.
As a woman, your immediate attention should not be on splurging on assets with depreciable value but on securing your future. Learning money management and investment may seem like a rollercoaster ride, but it is essential to avoid risk and benefit from schemes and rewards. Begin investing in lower-risk products and diversify your financial portfolio for a brighter and more secure tomorrow!