Empowering mothers with technical and financial skills can have a significant impact on raising confident and successful girls. When mothers are equipped with the necessary skills, they can provide a better quality of life for their families, including access to education, healthcare, and basic necessities. Moreover, mothers can serve as role models and mentors for their daughters, inspiring them to pursue their goals and dreams. Through education and financial stability, mothers can break the cycle of poverty and create a brighter future for themselves and their children.
Bhavishya Chaurasia, Founder, FinCHAMPS by BrightCHAMPS, says, “Financial literacy is essential for everyone, regardless of gender, orientation, profession, social status, or economic background. However, we must pay particular attention to women’s financial literacy since the situation regarding women and money is particularly alarming.”
According to RBI data, only 24% adult women in India can be considered financially literate. According to a report by the Humanity Welfare Council, 80% of Indian women struggle with the basics of financial understanding, and less than 38% women even own a basic bank account. “How many times have you heard the women in your life say, “I don’t know, my father/husband/brother/son takes care of it,” when asked about their savings and investments? This ignorance, along with the gender pay gap (women earn anywhere between 20 to 40% less than men) and longer life expectancy (women live 2.7 years longer than men on average), leaves women vulnerable and largely dependent on the men in their lives,” adds Chaurasia.
Women face unique financial challenges, such as the gender pay gap, the burden of unpaid care work, and a longer life expectancy, which puts them at a higher risk of poverty in old age. Improving women’s financial literacy can help them overcome these obstacles and make informed financial decisions, leading to financial independence and security. It is crucial to address this issue and provide women with the necessary tools and resources to improve their financial literacy.
When we raise financially literate daughters, they grow up to be financially astute women who are self-sufficient, independent, and confident. Not only are such women great role models to the other women in their families and social circles, but as mothers, they also go on to raise financially aware kids and contribute to the financial health of the family by making more informed decisions about budgeting, spending, and saving.
Mothers have the power to shape their children’s futures and secure their family’s financial well-being. “By developing technical skills and financial literacy, moms can raise empowered kids and make informed decisions about money management and investment. Financial literacy is crucial for moms to make smart decisions about budgeting, saving, and investing. By involving their children in age-appropriate conversations about money matters, moms can instil important life skills from an early age,” says Nita Menzes, Founder & CEO, Financially Smart & MoneyPrastha.
Financial literacy also gives mothers the confidence to seek employment and career advancement opportunities, because they understand the worth of their work. “Financially literate women tend to ensure they have access to money, which means they are able to seek healthcare, advocate for themselves, and not be completely dependent on others in case of emergencies,” states Chaurasia.
We think of these concepts as applicable only to women who work outside the house or in organised sectors, but in truth, this is knowledge that is applicable every day, across big and small decisions we make. Being able to manage money is a basic life skill, and financial literacy is one of the cornerstones trough which we can improve our lives and even elevate people out of poverty. Research shows that it takes 7-8 generations for a family to come out of poverty in India. With continuous financial learning, this can go down to 1 generation. Imagine that.
“The community ‘Financially Smart on coto’ provides a platform for moms to learn and become financially independent, and to teach their children the importance of making sound financial decisions. It’s never too early to start teaching kids about money management. By instilling these values from a young age, moms can set their children up for a lifetime of success. Become a financial role model for your family and join the movement of financially empowered moms today,” opines Menzes.
One of the darker sides of financial ignorance is also that lack of knowledge about money erodes a woman’s confidence in her ability to sustain herself and her kids, which, in many cases, is the reason they are not able to walk away from toxic marriages and families. Financial literacy is the key to not just financial freedom, but also social freedom, especially for women.
“It’s never too early to start teaching kids about money management. By instilling these values from a young age, moms can set their children up for a lifetime of success. Become a financial role model for your family and join the movement of financially empowered moms today,” signs off Menzes.
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