Apart from the fact that everyone (men and women alike) should be aware of how to manage their money appropriately. The socio-economic situation around us increases the need to know how to grow one’s wealth for women.
1. The cost of being a woman - Spendthrift nature
Women have always been considered as spenders. The temptation to shop and hoard things is perceived as a common womanly trait. Moreover, it is considered okay for women to do the same. Statistically, women are the best buyers - so things are marketed towards women including the men's products. Discounts, offers and sale days such as Women’s Wednesday Bazaar are specifically women-oriented because we make the most of such days.
Due to this innate spendthrift nature, even the banks have introduced special ‘Woman’ bank accounts with special ‘Debit/Credit card’ which allows them additional points for shopping. Women are encouraged to let their purse loose at every other step.
2. The cost of being a Woman - More expensive things
A study from New York – has shown that woman pays thousands of dollars (equivalent to lakhs of INR) over their lives to purchase similar products as men. Women’s products cost 7 percent more on average than similar products for men across toys, clothing, accessories, personal care, home, and health. The report also pointed out that although gendered products often differ in branding, construction, and ingredients, shoppers do not have control over those factors and must purchase what is available at a higher cost. Women have no choice but to buy expensive products.
Apart from this price differential treatment, there are certain expenses that we have to incur such as sanitation, hygiene, skin care because of our body, biology, and gender. These are certain basic expenses which cannot be avoided. So, how do we continue to afford everything? We cannot stop using the basic things which have become a part of our life just because it's more expensive as compared to men. Should we just start buying men’s products which are similar to ours?
3. The disparity in the pay scale
According to The Global Wage Report 2016-17 published by the International Labour Organization, the gender pay gap in India amounts to 30%. To put in simple terms, men get paid 30% more just for being born as men.
Apart from getting paid less, the number of paid working days are lesser than men, women tend to take more leaves over their working career as compared to their men. They do so during their pregnancy, marriage, taking care of their children and elderly in the house resulting in lost income and depleted savings.
4. Longer life expectancy
Women live longer than men by an average of 5 years. So, we need more money for our retirement and insurance for a longer duration than men. Further, a woman has a 50per cent chance that at some point in her life, she will need long-term care - meaning a period of at least 90 days when she requires assistance with activities like dressing, eating, and bathing.
5. No support to fall back on
Most of us are used to being dependent on our families or partners for financial support. We have always had someone to fall back on in case of a financial emergency.
Women who are suddenly single, like divorcees and widows, obviously are at an immediate disadvantage. They do not have that financial backing. 8 out of 10 women are responsible for taking care of their finances at some point in life.
6. Ability to take decisions
Researchers have proven that women have the ability to make smart decisions under pressure and are not carried away by market trends and investment biases. Women's behavior with respect to handling money is very stable. This is also the reason why women asset managers for mutual funds are very sought out for.
Wealth Cafe :
Women have limited income and a list of unavoidable expenses.
The only way to deal with this is to grow your wealth by yourself. Learn about the farfetched world of finance.
Our workshops are designed to you (women) acquire the skills of financial planning and money management. Rather than leaving the money matters to the other members of the family, money education will make you more independent and empowered to make smart money decisions confidently.
Don't just be a feminist, be a 'fe-money-ist'.