Personal Finance: Why women are better money managers

Ashish Modani
Dec 03, 2018 18:01 IST
Indian women managing investments

Is it not strange as most household expenses are under the domain of women, and that men are rarely consulted on a day to day basis? Women are intelligent and capable of handling short term financial decisions, then why don’t they take a step forward and have a say in the long term decisions regarding kid’s education, retirement etc.  Most academic toppers are girls, so why do they not take charge of their finances? Why don't they talk money?


Save regularly with the help of SIP in Mutual funds and link it to your dreams.

One look around our families, friends and acquaintances will confirm that most women who may be employed with substantial incomes are still not financially independent. They don't have control over their own money. And it is worse for homemakers with no income to call their own.


Why should women handle investments?

Women have a shorter career span and on an average outlive men by 5-7 years. At some stage in life most have to handle their finances independently. Most divorces are the result of money issues. Though negative all of these make it imperative for women to learn to handle their own money.

Also Read: Personal Finance Planning Tips


Important aspects of personal management of money

Understand the concept of financial planning i.e. setting goals. Make it a point to participate in long term financial decisions. To start with, understand the concept of Liquid fund i.e. save money for emergencies, that’s one of the most important goal for you.

Don’ts of money management


Do not invest in Insurance policies, your savings accounts is not an emergency fund, neither are your father or husband. Don’t lend money to the aforesaid, especially if they are businessmen. Avoid financial products that are aimed specifically at women. FDs are not long term investments and are best if you have a short term goal.

Do’s of personal finance

Save regularly with the help of SIP in Mutual funds and link it to your dreams. Create and use liquid funds for short term management. Create and use FDs/Debt Funds for medium term goals of your life.


Why women are better money managers?

Fidelity- the world’s biggest financial managers have stated that women are better at savings and investments but most lack the courage to invest. Some of the reasons put forth were that women are better students. They stick to plans and avoid gambling and leverages. They are more patient than men and don’t hesitate to ask for help. By far the biggest reason is that they are better behaved than men.

In conclusion communicate, don’t be intimidated by Finance, and Take control.

Views are the author's own. Please read all financial documents in detail before taking any investment decisions.

#personal finance #She Talks Money