By Sameer Rastogi
With longer life spans and less years of work-life in their kitty, women need to be in-control financially!
Every time somebody mentions ‘women empowerment’ the picture of Rahul Gandhi asking for it like a-child-asking-for-candy comes to mind, no-matter the issue remains imperative and social change can only be attained with changing attitudes more than just thoughts.
Gladly, I feel that the society is not just talking bold but acting as well. Participation of women is definitely on the rise in most spheres and in some (fashion, beauty) even more pronounced than men, however, there remains one area which can use more of a bevy of beauties than a portfolio of stockbrokers and that is Personal and Family Investments.
A recent DSP Blackrock – Nielson survey highlighted some interesting observations –
According to the survey:
- Barely 13% of married working women make investment decisions about the money that has been earned by them. Husbands are the key decision makers
- Only 18% of the single working women make investment decision. Parents are the key decision makers in this case
- Non-working women who make investment decisions are less than 5% in Metro cities, and near zero in non-metro cities
- Nearly 52% of the women are just informed about the decisions that have already been made.
- Proportion of sole women decision makers is significantly high among divorced and widowed. However, this is a forced situation in absence of no fall-back option.
- Majority of women invest with “rainy day” mentality or for child’s education. They don’t have set retirement goals. Safety of money is the top priority. Most women investors don’t invest to become rich.
The lower participation in family investment decisions by women raises several questions:
- Are the women less financially literate compared to men?
- Or…the theory that Men are from Mars & Women are from Venus .i.e. Women find investments an alien subject?
- Or…are the women reluctant towards investment decision making?
- Or…are the women discouraged to make financial decisions?
You might think it’s A. But I’d like you to remember that the education offered to both men and women is the same in our country. In fact, girls out-do boys when it comes to results of board exams. When it comes to financial information, it’s possible the old stereo types exist and women are less interested by choice.
I don’t think it’s B. Anyone who would take interest in a subject would not find it alien. It’s true for both men and women. It’s worthy to note that research has proven that women are more patient and cautious in their investment approach. They don’t go for leveraging and are always looking for debt reduction. This helps them generate stable return over long term.
I think it’s C and D. Yes, research shows that. Perhaps, women need to be more confident about their ability to make investment decisions. Take it from a guy – women are possibly aware of their lack of financial knowledge, while men are less willing to admit what they don’t know.
Besides, the above mentioned problems are not unique to India. They are prevalent in USA, Japan, Germany, Sweden and Russia. The New York Times raised some very valid questions on women’s financial security and gender gap:
- On an average, women outlive men. Then why do women not plan for retirement?
- Women earn less than men. Then why do women not take control of their financial security?
- Women sacrifice most for family and move out of the labour force to stay at home with children. Then, why is there a gender gap in family’s investment decisions?
The answers to above questions have to come from women only. Women need to realise that financial challenges come with potentially longer life spans and potential absences from workforce. Therefore, they must plan accordingly. It is time to ditch the old stereotypes and make room for new.
