Why women learning household finances is good for everyone

Other than creating documents in pink colour there is not much that the BFSI sector has done much for women!

Women should take interest in finance – and make sure that all the family members have all the basic living skills.

Cooking, handling basic finance skills are a part of this. Women's participation in understanding and implementing personal finance at home is crucial for empowerment, family stability, and long-term security.

It fosters independence, better decision-making, and resilience against life's uncertainties.

Below, I'll outline key reasons why women should learn basic finance.

1. Enhances Financial Independence and Preparedness for Life Changes

Women often face unique challenges, such as longer life expectancies (outliving men by about 5-7 years on average), shorter career tenures due to caregiving roles, lower average earnings, and reduced access to pensions or survivors' benefits.

Actively engaging in household finances prepares women to manage independently, especially in cases of divorce, widowhood, or sudden loss of a partner—situations where unmarried women near retirement have been found to have significantly lower wealth levels.

This involvement builds confidence and eases the transition to handling family well-being solo.

2. Improves Household Risk Management and Decision-Making

Women's cautious, risk-averse nature often brings balance to financial choices, countering more aggressive tendencies and leading to better outcomes in investments and big purchases.

Studies show that financially literate women play more dominant roles in household decisions, resulting in smoother consumption during economic shocks and overall improved funding for the family.

For instance, their detail-oriented approach excels in budgeting, expense tracking, and emergency savings, which are top priorities for many women.

3. Promotes Long-Term Planning and Wealth Building

Women tend to have a forward-thinking mindset, focusing on cause-and-effect scenarios like saving for children's futures or rainy days, which supports sustainable wealth accumulation.

They are often better at long-term planning, starting investments early for retirement and uncertainties, and their conservative investment style—rooted in thorough research and self-control—yields strong returns.

With women already controlling over $10 trillion in U.S. household assets, active participation ensures they leverage this growing influence effectively.

4. Boosts Overall Family Well-Being and Confidence

By sharing responsibilities, women contribute to collaborative financial planning, which 60% already do, leading to higher confidence (62% of non-retired women feel positive about retirement) and emotional readiness for life goals like travel or leisure.

Their multitasking and process-driven skills bring discipline to financial plans, enhancing success rates and family stability.

This catalytic role not only reduces expenses—the foundation of wealth building—but also addresses the gender gap in financial literacy, where women historically specialize less in finance, putting them at higher risk of problems.

5. Empowers Broader Societal Impact

Financially confident women can drive positive change, from family education to economic equality.

In most households, women already lead decisions, prioritizing retirement, emergency funds, and caregiving—active involvement amplifies this, closing literacy gaps and ensuring comprehensive family strategies.

In summary, women's engagement in home finances isn't just beneficial—it's essential for bridging inequalities, securing futures, and optimizing resources.

Seeking expert guidance or education can further amplify these advantages.

The story is written by PV Subramanyam for The New Indian Express