Women Must Take Charge Of Finances In A Nuclear Family

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Women Must Take Charge Of Finances In A Nuclear Family
Rahul Jain - 08 March 2020

Over time, we have seen an evolution with women in the world of finance. They are taking a step forward and making their presence felt in making – smart investment decisions, participating in financial decisions and talking about money.

A survey conducted by an online lending platform found that, 76 per cent women in the country make their own investment decision. The survey included more than 8000 working women in the 25 to 45 age group from metro and non-metro cities.

On the other hand, the percentage of women as fund managers has seen a significant spike in the past decade. The total assets managed by women fund managers is approximately Rs. 3.59 lakh crores, indicating rising confidence in Women fund managers. [3]
As is the case in managing finances in the professionally environment, smart tactics need applied to managing the household expenses as well. These can help you to properly allocate the funds for your necessary requirements and take charge of the family’s finances.

Be Armed With Sound Financial Knowledge

Knowledge has no substitute, and it’s no different when it comes to finances. Equipping yourself with as much knowledge as possible. Today, ample material is available on the Internet, reading which can help you understand the nitty-gritty of personal finance and the various investment avenues.
Also, many financial institutions conduct workshops and webinars attending which, can help you analyse the granular aspects of finance that can come handy in making an intelligent choice. The right knowledge can help you mitigate risks, know your rights and help you make decisions to secure your financial future.

Getting Involved In Family’s Finances

It’s important to get actively involved with your husband and set your financial goals together. Chalk out ways as to how you can achieve them. If required, split financial responsibilities in terms of paying utility bills, handling investments, planning for your future and so on. You bring the money to the table as well, so it is important that you take an interest in all the household financial decisions.
While initially many couples face difficulty in discussing money-related matters, but breaking the ice is necessary and it can easily be done by some fruitful discussions.

Have A Joint Bank Account

This is a simple and effective manner through which it can help you to be on top of your finances. A joint bank account with your spouse will help you to understand the flow of money and get a holistic view of the transactions taking place. This will enable you to keep a track of all your spending, which are conducted by you and your partner and make it all easy to cut down on unnecessary expenses wherever possible.
For instances, there have been numerous cases where the husband has carried out transactions or has taken loans without the knowledge of the wife and in the event of fallout or demise of the husband, the burden of repayment fell on the wife. It is better to be prepared than fail. Thus, things can be different with a joint bank account as it will give you a holistic view of the flow of money.

Remember To Take Care Of Yourself

Note that when you start a family and need to take a break from work, this corpus would come handy to take care of your various needs. Regular savings and investing in various assets ensure that you build a sizeable retirement nest egg and don’t depend on your children for post-retirement needs. Also, dedicated savings can help you to contribute in the household expenses and even share a portion of loans sought to buy a new home or car.

Winding Up

Staying in a nuclear family seems easy but, is attached with added responsibilities. And by considering the unique needs of women — they have truncated careers and tend to outlive men — it’s crucial for them to take care of their finances as well as understand the needs of their family. The aforementioned moves can lend financial stability and help them prosper.

The author is the Head, Edelweiss Personal Wealth Advisory

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