FINANCIAL INDEPENDENCE vs FINANCIAL

MANAGEMENT

Over the years, women have been fighting for many rights but the right
to financial freedom. Tactlessly, economic independence is faulty taken for financial
independence. Just because women work they believe that they have achieved ‘financial
freedom’. Financial freedom is when a woman can live her life the way she desires and meet
all the financial goals. Making an income is only the start of the journey to financial freedom.
She has a flourishing accounting practice and earns well. However, when a financial
consultant contacted her, he wanted
to explain the investment options to
her spouse.
She was not offended.
She thankfully passed on the burden
of making the
investment choice to her husband.
And she is not alone.
Most of the women in India don’t
want to get involved in
money matters and let the men in their family manage their financial affairs.
Why are women, even those who are well educated and holding positions of responsibility, so
quiet when it comes to their finances? Do women willingly take a back seat in matters of
finance or do they get bogged down with numbers and problematical calculations?
Women usually validate the strong patriarchal legacy that we have inherited. Even well-
placed working women are not in a place to handle their money individualistically. These
women have imprinted out great occupations for themselves but are at bottom when it comes
to their finances. A massive of 92% of the women admit that all financial decisions are taken
by the male members of the family.
The respondents also establish a poor level of financial knowledge. Their investment choices
hardly go beyond bank FDs and small saving decisions such as the PPF and NSCs. Nearly
83% of the women have little knowledge or no knowledge of mutual funds. And 77% have
more than Rs1.5 lakh cash hiding at home even though it could earn superior returns in a
liquid or short-term debt fund.
Nearly all respondents (98.8%) are making pay off the loan but only thirty out of 100
understands how EMIs work. What’s more, only 14% of them have considered to invest in in
gold ETFs instead of physical gold. The left over 86% are unaware about how the high
making charges ate into the returns from gold jewellery.
Tax is a blind spot. Nevertheless 82% are aware how much tax has been taken from their
earnings as TDS, less than 5% of them file their returns on their own. Most of the women
take the help of a tax professional and 97% of them have never gone to the income tax site.
Women must overcome the shields and take and pay attention in money matters. Whether it
is knowing the benefits of investing or understanding how insurance works, whether it is
getting the opportunity in equity funds or ducking the impact of taxation, they cannot avoid
from learning these basic money ideas.

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