We get your business up and moving. We are a passionate bunch of number crunchers /budget heads. Whether it be an entire overhaul of your accounting department, managing your payrolling, or simply serving you as a bookkeeper – we are here.
Malala Yousufzai’s quote accurately sums up today’s world. Women make up half the population of the world. And if we all want to succeed, we must ensure that women succeed too. And merely allowing them access to money does not fulfill their need. You must teach them how to spend and invest it. In simple words, financial literacy in women is important.
Today, there are more female entrepreneurs than ever. But many of them cannot make the most of their opportunities. Why? Because they need to understand the world of finance better.
Today, there are more female entrepreneurs than ever. But many of them cannot make the most of their opportunities. Why? Because they need to understand the world of finance better.
But before we dive deeper into why financial literacy for women is essential, let’s first look at somestatistics about women in India.
Despite the glorious numbers about women leading businesses, generating wealth, and investing it, the percentage of financial literacy in Indian women is shocking.
The Humanity Welfare Council estimates that 80% of Indian women have difficulty with financial literacy. The difference is significant. And here’s why closing the gap and empowering women with financial literacy is important.
Your relationship with money depends on your financial literacy. It is a lifelong process, but the sooner you start, the better the relationship.
Financial literacy is the ability to understand and use financial skills effectively for
And here are the top 5 reasons why financial literacy for women is important:
The gender wage gap between men and women in India was
19% in 2019. Furthermore, women get paid 34% less than men for performing the same job with the same qualifications. Not to forget that women, comparatively, have a shorter career trajectory than men due to family responsibilities.
As such, women work for a shorter period of time and earn less than men. As a result, the financial resources they have at their disposal may be limited. With appropriate knowledge about budgeting and investing, women can make better financial decisions.
Furthermore, they can learn how to increase their earnings and make better financial investments with greater returns in the future.
Businesses rely heavily on financial data, reporting, and analysis. You can only drive your business towards growth with full insight into the company’s finances.
This can be understood by various financial statements such as –
As a result, women cannot have a full view of their business’s finances unless they understand:
Difficulty in understanding these details may lead to wrong decisions, resulting in losses. Another important thing to understand as the head of a business is financial ratios, which help you understand
the finer details.
Financial literacy is the key to understanding the above-mentioned statements, ratios, and other reports. It gives women the power to understand the finer points of their business and makes it easier for
them to see growth in terms of solid business numbers.
Financial literacy for women can help them learn about the other person’s income, expenses, debt, and assets. This information can help them see things from others’ perspectives and negotiate
confidently. They could, for example, use industry benchmarks, financial projections, or market trends to show how valuable their proposal is or to explain why they should make a counteroffer.
It can also help them find areas where both parties benefit from the negotiation. Lastly, it helps to figure out how different scenarios will affect their finances or to weigh the costs and benefits
of different options and then negotiate based on that.
This way, financial literacy for women can help them achieve equal opportunities in the workplace, entrepreneurship, and personal finance. It helps them get better pay, figure out how to invest, and make
money for themselves and their families.
Financial literacy can provide women with greater financial security by helping them to manage their money, plan for the future, and protect themselves from financial risks. It can also help them to avoid
financial fraud and abuse.
financial literacy can positively impact future generations by providing women with the knowledge and skills to teach their children and grandchildren about money management, investing, and financial planning. This can help break the cycle of financial insecurity and improve future generations’ financial
well-being.
“It has been observed that women have been better money managers on a small scale when it comes to their household spending and savings, but many women, particularly working women, appear to be content to leave their long-term finances and retirement planning in the hands of their dads or spouses.”
Financial literacy helps women break generational barriers and typical “role stereotypes.” It also helps them become independent and equal partners with their male counterparts. Be it at home or at the office. Furthermore, it is an important tool for securing their future. Finally, at a national level, where so many women are entering the world of business, it helps them make informed, strategic decisions to grow their businesses and contribute to the economy.