As we celebrate International Women’s Day today, it is vital to recognise their valuable contributions to different aspects of life, from providing for the family and participation in the country’s economic growth to social change and national-building. The more women are financially literate and independent, the better the chances of a prosperous nation. Their financial empowerment is critical to ensuring a life of dignity for all. Recognising this reality, the United Nations has chosen different themes every year since its first commemoration in 1977 to ensure gender equality and other vital goals for women’s development.

In his recent address at Dibrugarh University, Deepak Mohanty, chairperson of the Pension Fund and Regulatory Development Authority (PFRDA), stressed the importance of retirement savings for women. Citing the Labour Force Survey Report 2022-23, he said the country’s female labour force participation rate was 37.0 per cent in 2023 compared to 78.5 per cent for males. “It is not that women are not working: they are doing unpaid housework or farm work. In fact, women need a retirement savings account more than men as their longevity is higher,” Mohanty said.

A report by the Age well Foundation in 2023 showed that older women are more prone to suffer abuse because of their dependency on others for various needs, primarily financial, compared to men. It indicates women must equip themselves with financial knowledge for future security.

Here are five tips for women to improve their financial acumen.

Improve Your Financial Knowledge Even If You Are Not Earning:

Although female labour participation is low, it should not prevent them from being financially literate. According to the “Addressing Women’s Needs For Financial Education” report by the International Network on Financial Education (INFE), a public experts network on financial education established by OECD, “Women often have less financial knowledge and lower access to formal financial products than men. Women, therefore, have specific and additional financial literacy needs.”

They can learn about money, financial products, government schemes, etc., to financially empower themselves. Use whatever medium is available, such as a newspaper, financial websites, visiting a bank, discussing with friends, etc., for financial awareness.

Also Read: What Coverages Should Women Consider In A Health Plan For Pre And Post-Retirement?

Take Charge Of Your Finances:

It is difficult to understand until one manages money by oneself. If you have not had a chance to manage money until now, take charge and start with a monthly budget for yourself, save some money, and learn about different avenues for investing this money. Typically, in India, many women choose to give up this responsibility, and the father manages the daughters’ money. After marriage, husbands take up this responsibility.

But if you are an earning woman, it is easier to learn about saving and investing because you have the decision-making power, but chances are that you are not using it. So, consult with family, learn, and start doing it yourself to reduce dependency on others.

Collaborate On Financial Matters:

After one is financially settled and married, it becomes even more vital to handle money carefully and save for various responsibilities: children, health, house, other emergencies, etc. Whether it is a joint savings account or separate account, showing the spouse as dependent in the health insurance policy or taking a floater policy, investing in equity separately or jointly, how to pay the loan, who to make the nominee in life insurance, open communication about these and many more such questions, you may not have pondered earlier, are essential for a happy and financially secure family.

Also Read: Explainer: What Is Mahila Samman Savings Certificate? All You Need To Know

Secure Yourself Against Job Loss And Other Setbacks:

Emergencies can derail your financial security and peace of mind. A sudden diagnosis of a fatal disease or a job loss can be challenging if finances are not planned. For women, a break from work for childcare may stretch from a few months to a few years. The choices of whether to continue in a job, extend a break, switch to another job, etc., can be difficult to make. A robust financial plan can stand women in good stead in facing challenges, job breaks, re-joining, or doing what they love if they are financially aware.

Do Not Ignore Retirement Planning:

Retirement planning is crucial for women to ensure a comfortable and dignified old age. In families where husbands receive government pensions, their spouses don’t worry much about investments. Typically, women depend on their husbands and their children for money matters. With changing family dynamics and increased life expectancy, women must actively secure their financial future, independent of their spouses or children.