Contrary to popular belief that women depend on their spouses or relatives to take financial decisions, a recent study published by CII Indian Women Network (CII-IWN) found that majority (nearly 57%) of women leaders plan their finances and financial futures independently. Among the rest, 36.67% took their financial decisions collaboratively with spouse or father and 6% of women said that the spouse manages their finances and investments.
The report further shows that women prefer to be financially independent as it helps raise their self-confidence and makes them feel independent and more self-sufficient. Taking charge of their finances makes them feel that they are in charge of themselves and their lives. Having financial independence provides women with a platform to participate actively in important family decisions, said the report.
The organisation surveyed little over 50 women leaders who were at a minimum of C-suite level in organizations, which have at least Rs.50 crore turnover or were entrepreneurs running a business with turnover greater than Rs.10 crore and had been at the helm for at least 10 years.
To understand how women IFAs manage their finances, we decided to speak to a few of them to understand their perspective.
Sharing her experience dealing with women clients, Agra based IFA Shifali Satsangee of Funds Vedaa said that the family dynamics in smaller towns are slightly different compared to metros. Majority of her women clients are homemakers. Thus, they depend on their husbands for financial decisions. Shefali has observed three main factors, which decide whether a women will take her financial decision independently or jointly: 1) Is she earning: Generally, working women have higher tendency to manage their finances. 2) Family structure: Usually, women in nuclear families take care of their finances independently. On the other hand, in joint families financial decisions are generally taken jointly in consultation with all family members. 3) Family outlook: Family outlook also plays an important role in determining whether the woman will manage her finances. In conservative joint families, generally the elders look after the finances. While in families with a more modern outlook financial decision may be taken in consultation with family members or independently.
Talking about how she manages her finances, she said consulting with the family helps her take a well-rounded approach to investing. “I am a risk-taker while my father-in-law prefers safer investments like bank FDs. Talking with elders helps me balance my portfolio across different investment options such as direct equities, mutual funds and bank FDs” she said.
Mumbai IFA, Binoli Dodhiwala of The Money Managers takes care of both her family’s finances and her own. According to her, being a financial advisor, she is abreast of all the happenings in the market. Equipped with all the knowledge and relevant tools to take an informed decision, she guides her family on investments as well.
