We Asked Women If They’re Prepared For Financial Emergencies: What They Said

Financial freedom is a must for a woman to be empowered in our society. If a woman doesn't have money, unfortunately, she is forced to live by the standards of society which only oppresses them. So it is a do-or-die situation for women. Either earn your own living or reel under the patriarchal system. But what if women are not able to be financially secure due to various reasons like job loss, bankruptcy, retirement or inflation? Do they have no other option than to give in to the gendered practices? It is this fear that is keeping many women awake. As per a study by financial education company Finsafe India, 37 per cent of women in India are not sure if they have enough money for the emergency. 

Finsafe survey which 865 women professionals in the organised sector as respondents across India found that 37 per cent of women are unsure if they can meet their financial goals or have enough money to pay health expenses in case of job loss or other emergencies. Even though 45 per cent of women make independent financial decisions, most of them are unaware of financial knowledge and proper planning. 66 per cent of women aren't confident that all their financial goals will be met. 

To get a clearer picture of the situation, I approached a few working women and asked them about their financial planning.

Financial anxiety among women

Ragini Daliya, a senior sub-editor working remotely, said that she faces major financial anxiety. "Being financially independent was one of the major goals of my life and I have worked extremely hard to achieve that and I want to keep doing that." 

Daliya said that earlier she was not aware of financial instruments like mutual funds and did not inculcate them to save up for emergencies. However, things changed for her after marriage. 

Tanya Savkoor, a journalist, said that she does have Fixed Deposits, Recurring Deposit Account and some insurance but no investment plans. "I am reliant on my parents to help me make long term financial decisions and they are not that aware of these things either, so I need to explore investment opportunities," she said. 

Savkoor mentioned that she finds money matters "daunting" even though there are many resources that can help her make the right decisions. "It feels like an overload of information so I completely avoid getting into it," she concluded.

Oshi Saxena, journalist, believes that she is more of a spender than a saver. However, she is interested in learning about financial security and inculcating it in her life. Saxena's mother has been her constant help in financial matters. "My mother always guides me to think before I spend as she is a huge fan of savings and it has fared really well for her."

In our society, it is a conception that women don't understand money. It is assumed that women's understanding of numbers, expenses and savings is just not dependable. Women are assumed to be spend-thrift who cannot save money. So they are not involved in the discussions about financial planning. Men are supposed to take up all the financial responsibilities and so since childhood, they are given financial education too. 

But, this is a misconception rooted in a gendered mindset. In most of the middle-class families, women are the ones who handle the budget of the house. Moreover, many women entrepreneurs are also stemming from various regions of the country proving that finance is not a man's business alone. This misconception is only fogging the minds of women by making them believe that money matters are not their cup of tea. Parents need to ensure that their daughters learn about financial planning from a young age. They have to help their daughters in making financial decisions so that in future they can make independent choices. 

Marriage and motherhood can be a game-changer in the financial plans of women

Marriage indeed can be a game changer for women. Daliya, for example, said she and her husband work as a team to ensure financial stability.  She said, "After marriage, I did start looking into investments with the support of my husband. He actively trades in the stocks and the share markets too. But, I am not into risky investments. So I invest in mutual funds." She also talked about how she plans with her husband to invest together and make collective financial decisions.  

Sreelekha Menon, a HR professional , says that her financial planning became staggered when she took 7 years of maternity leave. Because of this, her financial security plans have been delayed. "Most of the financial security plans require fixed regular income and most of the time hesitant to use because of safety concerns. I will have control over making financial decisions in life once I'm of a decent financial position."

Menon further talked about how having a child affects women's financial decisions. She recalled a study by the University of Massachusetts, Amherst that stated "Each child chops 4 percent off a woman's hourly wages, whereas Men's earnings increase by 6 percent when they become fathers, after controlling for experience, education, marital status and hours worked."

Menon added, "This is alarmingly true and of course, motherhood takes a hit on women's financial stability. So any savings done prior to that would be the major part of her life's savings."

Women, married or not, have to remember that they have an individuality which has the right to live freely. And to live freely in our capitalist society, one has to work, earn and invest. For this, we need to first leave behind the perception that women cannot handle money and help them achieve financial security. Secondly, we cannot let marriage or motherhood affect the financial control of women alone. Many firms do not hire married women or fire them once they get married. While others replace women employees after a maternity break. We need to get rid of these practices so that women can control their finances even after marriage. 

Let's not make financial security tough for women just because they are new to the field. Let's make space for women in the financial plans by including their concerns too.