Why Young Women Should Know About Financial Planning

I am a student and don't earn, should I still know how to manage my finances? I received my first salary but where should I begin to manage my money? My family and friends say do not discuss finances with me, why should I? Am I too young to begin investments?  Let us note, financial fitness is significant for women of every age to ensure an independent, empowered and respectable future. Specifically for young women, who are capable to change trends and set new benchmarks, financial empowerment and security are important to embolden their stand.

They will inculcate the belief, right from the beginning, that they can live on their own. Most women are oppressed and forced to keep silent because they are financially dependent on the oppressor. Young women especially are at the point where they can either comply with the patriarchal conventions of the society or stand for their own choices and set on a different journey. This confidence to go against the family or society comes when they are financially secured in the present and in future. Besides, if the younger generation is financially secured, in future all women will be financially smart. Why many women are still reluctant to manage their finances despite earning handsome salary? Because they never did it before.

Normalize Women Discussing Finances Among Families and Friends

Generally, Indian society does not encourage financial empowerment of a woman. Financial discussions and responsibility have traditionally been a male domain. Women are rarely allowed to participate in the financial discussions of the families. Consequently, women who grow up in such families lack the basic knowledge and experience of financial planning. Even though they emerge as confident leaders in every aspect, they struggle to manage their finances which often retards their growth.  Therefore, for young women to be financially secure, it is important that they discuss, question and learn about finances among their families and friends. In fact, schools and colleges should also include a course on understanding the technicalities of finance. So that women know from the very beginning that they don’t have to be dependent on others for anything, not even money.

Also Read: Women And Money: How Can The Two Be Better Friends?

Don’t Wait Till You Earn; Save And Invest From Today

Women should not wait until they start earning to know financial planning. The key to financial planning is to be aware of the expenditures, avoid extra expenses and save as much as possible. Young women who haven’t started earning yet can learn and experience to manage their finances by saving their pocket money. To start, women should have independent bank accounts where they can save their money. Besides, investing in Health insurance and Mutual Funds does not necessarily require an income but savings. Almost all the banks offer investment policies to account holders irrespective of whether she is earning or not. Even if there is a fear of risk or no savings to invest, they should discuss finances with friends or other people who are managing their finances well. So that in future, they can take better decisions. Women only need to get over the stereotype that only men can understand finance. After all, financial planning is not rocket science but it does require practical experience and enough knowledge.

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How are some young women managing their money?

Many young women today are setting examples for financial independence and planning. They are not only earning their dream life but are exploring ways to plan a financially secured future. SheThePeople.TV spoke to some of these women to know their plans.

Charvi Kathuria, Content Writer and Social Media Manager said, “I have been earning for three years now. I started investing a year ago in various FDs and other mutual funds. In fact, I plan to gather more knowledge about all the options I have and keep investing to make myself financially secure. I believe that we spend too much energy on looking smart then why not being financially smart too?” Similarly, Anushka, another Content Writer, invests her money in Systematic Investment Plans or SIPs.

On the other hand, women who have just started earning their own living are also keen on managing and saving their money. Muskan Nischal, who has been working as a Content Writer for a year, said that she hasn’t yet started saving or investing her earnings but they are safe in her bank accounts. And, she is planning to invest her money in SIP and mutual funds in the coming years.

So dear women come out of your shell of reluctance and manage your money. It is never too early to start saving or investing likewise it is never too late for a woman to be financially smart.

Also Read: Dear Women, Here’s Why You Should Invest More

Article in partnership with AMFI, Mutual Funds Sahi Hai. Mutual Fund investments are subject to market risk. Read all scheme related documents carefully.