Why Don't Independent Women Avail Financial Services?

I have a question for all the working women in the house. Do you take your financial decisions? Do you invest and buy plans? A study says that less than 1 per cent of women do so. What is the reason behind this? Why are women, despite being financially independent, not involved in financial decisions?

According to a survey, there has been a 29 per cent increase in the knowledge about financial services among women. However, the consumption rate is still below one per cent. Women even today depend on their spouses, friends, family members or financial advisors for financial decisions.

While 74 per cent of women operate their own bank account, there are still more than 20 per cent who depend on their spouses. According to another study, only 27 per cent of women take their own financial decisions. Around 36 per cent of women do not invest either due to lack of funds or due to lack of awareness. 54 per cent of women depend on their spouses, family members and friends for financial decisions and 19 per cent depend on financial advisors.

Why Don't Independent Women Avail Financial Services?

These studies tell us that women are still reluctant to make financial decisions for themselves or for their families. They still lack the confidence to invest and manage bank accounts despite being financially independent. Note that we are just talking about women who are working. Women who don’t work might have it worse.

I am a working woman but I still depend on my father for financial decisions. My mother is a homemaker and also handles our business. But still, it is my father who makes the financial decisions at home. I am not blaming my father, in fact, I am happy that he helps us. But the fact that we women don’t try to indulge in financial service consumption is alarming.

For years, women have been kept away from the financial matters of the family. Earlier it was because women weren’t earning and hence had no say in how the money should be managed. But now that women are financially independent, it is sad that still they are dependent on men for financial decisions.

What could be the reason behind it? If you ask me, I would say it is the internalisation that women are not good at managing money. Women have had this internalisation for years. And it is certainly difficult to unlearn it. Especially when men around discourage or make fun of the decisions that women make. Yes, that’s true. Even if women try to consume financial services, men assume that they cannot make the right decisions and always mansplain them. Moreover, Women work hard to be financially independent and this is the reason why they are cautious about using financial services.

However, studies have shown that women are better at managing money than men. They don’t get into debt and are cautious and pragmatic when it comes to making financial decisions. This is the reason why women’s business has shown a growth of 72.3 per cent in the year 1997-2014 which is 30 per cent higher than men-owned business.

However, just as investors hesitate in investing in women entrepreneurs, society believes that women cannot manage money or business. And women have internalised this.

But dear women, scientific facts show that you can manage money better. What else do you need to believe in yourself and boost your confidence? We need to get rid of internalisations and take the control of the money we earn with so much hard work. Making financial decisions and consuming financial services is essential to manage our hard-earned money. So don’t hesitate and make decisions. You can certainly seek help, but don’t be dependent. Make mistakes and learn from them. But don’t let yourself lose to patriarchal stereotypes.

Speaking to SheThePeople, Bhavna Kapoor, a financial analyst who is very passionate to help women become financially independent, said "I am very happy that women are taking steps forward and acknowledging the unsung heroes which women always are. Women are equally responsible and should take the first step in managing the finances,” she said, adding that women should take the first step and later take responsibility for others.

Rajiv Anand,  deputy managing director at Axis Bank, says that it is a wrong narrative that women are not good investors. Stating a study, he said that women are better investors than men. According to Axis Mutual Funds, they are seeing a 7 times increase in the number of women visitors on their websites from January 2020 to October 2021. Similarly, the number of women investors has also increased in the same period by 30 per cent. “As long as we are able to demonstrate that women have a good understanding of money and finances, that itself is a beginning. There are enough examples of this.”

This is a lesson for all women and for me.

Views expressed are the author's own.

Suggested Reading: Women and Money: Dominating If She Takes Control Ignorant If She Doesn’t