In this article, we will be discussing the myths related to women’s financial planning and how women can do financial planning. So, let’s get started!
Myths related to Women’s Financial Planning:
1) Women earn less than Man:
- Generally, in society, Women earn less money than the man and hence it’s a perception that women do not need to invest money.
2) Financial Planning is too complex for Women:
- Women generally consider that financial planning, as well as all the terminologies used in it, are complex and hence it is not believed to be the cup of tea of women.
3) We do not have enough time:
- There is also a belief that women do not have much time as they have to handle their office work, household chores, and others.
- But here women need to understand that there are only 24 hours for everyone and they should prioritize such things.
- Women should not consider financial planning a big task. It is a one-time big exercise and then it only needs a periodic review.
4) If men are doing it, then what is the need for us to do it?
- Generally, there is the basic belief that women think of is that if the men in the house are already investing or doing financial planning, then why do they need to do it? So, the answer to this is that women have to go through several breaks in their life like maternity breaks or others.
- Women also need to be properly aware of the need for their health insurance as they are much more prone to insurance.
- Also as per the statistical data, women live longer than men, and hence for this reason also they need financial cover which can be settled via retirement planning, life insurance, etc.
How Women are better than Men at Financial Planning?
1) Women are better Savers
- Women are the best savers of men. They keep aside a few amounts of the earnings for their future needs.
- The only thing women need to improvise here is that they should invest instead of savings, as the amount not invested is being killed by inflation.
2) Women can multitask better than men:
- Women are generally considered better multi-tasker than men as they manage several things at once and hence they should be more proactive towards financial planning.
3) Holistic Viewpoint:
- Women have a holistic viewpoint towards finances is holistic and not only towards one or two factors.
- For Ex.: When talking about investment, men will prime-most will look towards return on investment, but women are focused on all the factors like whether the investment meets financial goals, what could be the alternatives, etc.
- Females are also considered to be consistent with what is told to them.
Why do Women Lacks Men in Financial Planning?
The answer to this question is simple in older times it was a tradition that males of the house/society will only manage the financial planning work and females are kept out of it.
How to do Financial Planning for Women?
- Know your current situation- About status, earnings & expenses, financial goals, and others.
- Setup your financial goals
- Timely Review
What Should Individuals Do?
Financial planning does not differ between men and women, it stands the same for everyone. Hence any person especially women for this part should actively participate or get involved in the financial planning process and should know at least basic know-how.
Disclaimer: The information here is provided for reference purposes only and should not be misconstrued as investment advice. Under no circumstances does this information represent are commendation to buy or sell stocks or MF.