Financial Literacy For Women in India

This article understands the importance of financial literacy for women in India, practical money management tips, and how tools like life insurance and term insurance can empower women to secure their future.

Why Financial Literacy Matters for Women in India?

Financial literacy is a life skill that is a must for every individual including women. Following are some advantages of financial literate women: 

• Improved Decision-Making
  Women are often responsible for managing day-to-day household expenses. A financially literate woman understands budgeting and can easily reduce the unnecessary expenses. 

• Peace of Mind
  Women without any financial knowledge may face challenges if anything happens to the breadwinner of the family. However, a financially literate woman enjoys a peace of mind during these tough times. 

• Prevent Exploitation 
  The rate of digital fraud and cyber crime is continuously rising in India. Thus, a woman with financial knowledge can prevent herself from this exploitation as she knows about the right savings and investment products. 

• Long-term Financial Security
  Whether it’s about buying her dream home or preparing for retirement, a financially literate woman can confidently prepare herself for every life milestone.

• Retirement Planning 
  Women often face career breaks due to family responsibilities. This makes retirement planning even more important. Starting early with pension plans, NPS (National Pension System), or retirement-focused mutual funds ensures long-term financial security. 

• Tax Benefits
  Many women miss out on legitimate ways to save on taxes. Investments in life insurance premiums, ELSS mutual funds, PPF, and NPS are eligible for tax deductions under Section 80C of the Income Tax Act.

What are the Steps Women Can Take to Improve Financial Literacy?

There is no right age to gather a financial literacy skill. Regardless of whether you are young or old, personal finance knowledge can be learnt by any woman in India. Here is a step-by-step guide to financial literacy for women: 

• Track Your Spending 
  Start by monitoring your daily expenses to find out the expenses that can be avoided easily. This will help you ensure that a per day ratio for your savings is more than expenses. 

• Create a Budget
  Now once you know about your extra expenses, create a budget plan to allocate the income for each type of expense. For example, suppose a woman earns Rs. 50,000 per month. She will divide the amount into key areas like needs, wants, investment, life insurance, and more. 

• Write Your Financial Goals 
  The next step is to set your financial goals that you want to accomplish in the future. The goal can either be creating wealth for the future or purchasing dream assets like a home or car. 

• Research For Financial Assets 
  There is a pool of financial products available in the market. Sometimes it might get confusing and result in making wrong financial choices. So, ensure that you research and understand about financial products thoroughly before making an investment. 

• Choose the Right Product
  Invest in financial products that align with your financial goals. It is always advised to diversify your investment portfolio to reduce financial risk and enjoy healthy gains. 

Wrapping Up! 

Financial literacy for women in India is essential nowadays to ensure that they manage their money confidently and create future wealth efficiently. With so many financial products available, it is important to select the right product like life insurance and stay protected. 

Note: Check best term insurance plans for women in India.

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