8 Things Every Woman Should Know About Finance
Updated: Jul 24, 2020
Have your own bank account
If you were working earlier or are still working, it is good to keep your own savings separately in a bank account in your name and contribute to the family kitty from it. Similarly, if you choose to have a credit card, have one on your own. It helps build your own credit score and thus helps provide a quick record of your credit when you choose to borrow at any point.
Sit for the big decisions
Women have a tendency to outsource all money and investment related matters to their partners or father. If you choose to have somebody do it, then you must be aware of what is being done to your money. Faith is good but awareness is necessary. Whether it is for buying a house or taking an insurance policy or simply a discussion with your financial advisor or auditor, make sure you are present with your partner in all of these meetings and provide your views.
Know your money trail
It is important for you to know your income and your expenses and track them every month to keep tab of your spending. You can do this even with a mobile app! This way, you will know how much you can save and can also keep a tab of your expenses, if they seem to cross your monthly average spending.
Save up for kids early on
If your partner is not already doing it, you need to have a talk about saving up for your kid’s education and start as early as possible and keep it going regularly. Thinking about saving for your kid’s higher education when he/she is 15 can be a case of too little, too late.
Don’t forget retirement
While you may be busy running household, do not forget that you need to put your feet up sometime. Make sure you and your partner are saving up enough for retirement. Consult an advisor to know how much you would need to save up. Do not forget that you have to race against inflation and therefore save up enough to ensure that you are able to meet the rising cost of living in your retired life, independently, without anybody’s help.
Not enough to save; invest well
Women can be good savers, stashing surplus left after every month’s expenditure. But your money will not multiply unless you invest them in sound, tax efficient wealth building options. Otherwise, your money might just lie in your savings bank account yielding a measly 3%!
Know about contemporary investment products
The traditional bank deposits and post office schemes or gold may be your favourite investment options but remember, there are more contemporary, regulated and far efficient wealth creating options such as mutual funds, bonds and equities to help multiply your money with lot of tax perks as well.
Every earning member in the family as well as the homemaker should have a basic term cover & adequate health cover. Check with your spouse if he has one and ensure you are adequately covered.