It’s well-known that women have a caring nature. This extends to many facets of everyday life, making it natural for them to shine in certain areas, including managing finances effectively.
With growing access to education, we are seeing more women in finance calling the shots and handling household finance. This women’s day, let us explore this phenomenon in depth to see why financial planning for women comes so easily.
Why women are better financial advisors for household finance?
Women are actually better suited to manage household finances than men. Why? Because they’re more detail-oriented, better at multitasking, and possess a stronger sense of empathy and emotional intelligence. So this women’s day, let us delve into the several reasons that make women better-suited for household finance.
1. Women tend to save more easily
Saving money is essential to financial planning, and women excel in this area. Due to their caring and nurturing nature, they have a natural tendency to prioritise the well-being of their families and be prepared for rainy days. This mindset enables them to save money more easily.
Moreover, women who handle everyday expenses develop a solid grasp of their spending habits, creating effective household budgets. This helps them save effectively or even cut back on costs that are not urgently needed.
2. Women think long-term with finances
Smart vestments are key to growing your wealth and meeting your financial goals. But it requires careful planning and a long-term vision. Women in finance have this advantage because they tend to plan for things long-term.
As investing can be volatile, especially with the stock market, a long-term investment plan can mitigate the risk of market fluctuations. Moreover, as women prefer investing long-term, they have a safer approach to investing that helps them handle finances better.
3. Investing in traditional assets
Most women invest in gold to safeguard their family’s future and even have prospects for their children. Moreover, this traditional investment helps offset most rainy days as they have gold to pledge or sell in a dire situation.
In India, investing in gold reflects the cultural and emotional significance attached to this precious metal. However, this is also a safe investment option preferred by most women, making it yet another reason why financial planning for women comes so easily.
4. Handling debt
As more women enter the workforce, there is an increase in women home buyers. And with the added responsibility of mortgage payments, handling finances effectively becomes even more critical.
However, women have proven to manage debt effectively through careful planning and budgeting. Besides managing EMIs, women also handle household and other miscellaneous expenses, which helps them create strategies to manage debt with ease.
5. Women are careful with risk
Being risk-averse, in general, helps women handle finance in many ways. For example, strategic investing helps them avoid the short-term and potentially risky prospect of day trading and betting on individualised stocks. They are more likely to take a cautious approach to investments and rely on thorough research and analysis to make informed decisions.
6. Women spend less
Contrary to popular belief, studies show women spend less money than men. By spending adequately, they can run their homes more efficiently without overspending. Thus, women in finance do more with less, shedding light on another critical reason women handle finance well.
This women’s day, celebrate the financial advisor in you!
Women have, time and again, proved to be better at handling finances due to their natural inclination towards careful planning, risk aversion, and a long-term perspective. At Tata Capital, we honour your ability to manage household expenses, debts, and investments with ease. Wishing a happy women’s day to all the amazing women out there.