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Saturday, September 11, 2010

Women and Finance

This is one of my favourite subject that I wanted to post for a long time.  There are many songs in Indian movies which praise women for being the best finance managers who would not only preserve money but also multiply the money.  However, it is far from the truth as far as the Indian homes are concerned.  While women may play the role of cutting down on spending and living within the family budget, they have not been involved with active money management.  Whether it is working women or home maker, they are very happy to let their spouse take care of their family finances.  They would not know where the money is invested nor would they completely know the liabilities that are currently carried by their family.  The general excuse given is 'I am very busy with kids and the family chores and do not have time or energy to track these things'.  I know that there are exceptions to this case and there are many women entrepreneurs and investors springing up now than before.  However, I am talking about what happens in majority of the homes.
It is true that most of our time is spent in taking care of the needs of our family members and we have a very big role to play there.  It is also true that most of our spouse do not share all the regular chores that we have and let them run the finance show.  However, as a partner, we need to be up to date on the finance situation of ours in the interest of the family.

Please take a minute to see if you really know the answers to these questions?

  • What is our monthly saving after all the expenses for running the family?

  • Where are the savings kept? Is it in bank or is it invested somewhere?

  • How much loans do we owe to bank, credit cards and others?

  • How much is our savings/investments earning?

  • What are the insurance policies currently being held?

  • Where can we find all the original papers of our investment (bank pass books/cheque books,Fixed deposit certificates,Mutual funds, shares, real estate etc.)

  • Where is the electricity, gas, property and other documents kept?    
Try to take some time to learn these details from your husband.  It not only helps you be up to date on all the information, it will also make your husband feel good about the interest that you take on these activities.  In most families, it tends to make husband accountable for all the investments they make, which helps in avoiding reckless investments which could be very risky. Investments made with consultation always turn out to be more balanced than the ones based on single person's decision.   It would also make you feel in control of the financial destiny of your family.

Still not convinced?  See the 5 minute video below.  Even though this was meant for the american audience, the basics very much apply for woman in all parts of the world.


This may be a bit overwhelming to you when you see how much needs to be done.  As a Chinese saying goes 'A million miles journey start with the first small step'.  So, break this up into small goals that you can handle and start executing them. 
Some of the things that you can start doing from now are

  • Ask you husband about the monthly income and expenses and the amount that could be saved

  • Get details of all the bank accounts that are currently held

  • Get information on all the investments that are currently held (like stocks, Mutual Funds, Fixed deposits etc.)

  • Get the details on all the outstanding loan that you family owe

  • Be aware of the place all these original documents are kept.

  • Get a basic understanding of finance.  I know this could be a dry or a boring thing to do.  But we can do with some basics I suppose.  You may read some blogs like mine or others.
Start discussing about these with your husband and see how his eyes light up. I am sure he will be very proud of his wife and the change in her.  I will be covering lot of personal finance stuff in detail in the coming posts including basic finance stuff.  Keep looking for more in the future.

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