moneyview | Personal Finance | March 7, 2015

Women don’t pass the buck

money management womenHistory tells us that women have dealt with money for a far lesser time than men and modern studies say that women live longer than men! What there is the connection you ask? The evolution dynamics of this calls for women to be adept with ‘lesser known’ skills, that have to be used for a longer period of time (than men).

Women and money management has been a controversial topic over the ages, be it for reasons of debauchery or stereotyping. There have been many women in history, rather infamous for their relationship with money. From fashion and flirting to finance, Marie Antoinette, the French Queen came to be notoriously called Madame Deficit, due to her being the alleged cause of France’s financial crisis in the 1700s. Some historians have attempted to clear her role in it, but Marie remains etched as a name associated with money.

Women across the world today are breaking new ground and competing with standards they set for themselves. How then is it that financial management is not a relevant topic for women? Sound financial advice is what is relevant and applicable. Women’s financial planning needs are unique from men’s, because they tend to approach it rather differently.

Here are seven tips for every woman to keep money management in her hands:

  1. Don’t part with the controls – Single or married, a lot of women tend to pass on the financial reins to men in their lives. Fathers, brothers, partners or husbands are made custodians of the finances. A large part of financial wellness depends on control. Take control of your money, start today.
  2. Have a financial goal – Whether it is to buy a car before you get married, taking a backpacking trip across Europe for your 28th birthday, or saving for that nest egg, have a goal to keep you financially motivated. If you start early, you will allow compounding interest to work in your favour.
  3. Make use of special schemes – Banks, insurance companies and other financial institutions have women-centric products with special advantages. From sops for women entrepreneurs setting up new businesses to special rebates on several schemes, there are a host of opportunities to save and benefit from.
  4. Invest in yourself – Between multitasking and caring for the family, women often tend to overlook their own requirements. Whether it is getting an education or saving up for retirement, women need to start investing in themselves soon.
  5. Build an emergency fund – You know you need one! Before unprecedented events catch you unguarded, set up that emergency fund. Most financial advisors say that an emergency fund should cover over 6 months worth of expenses.
  6. Budget for various categories – Whether you are in your first job or paying off debts, it is imperative to budget your every expense. With a framework in place, you will be in better control of your finances.
  7. Get organized – Finally, nothing ever got done well if it wasn’t in order. Get your financial house in order today. Take a few minutes every day to track, monitor and plan your finances better.

A big step to empowerment of women is by financial independence. Remember to effectively handle money management and stay in control of your finances.