The Importance of Financial Literacy for Women

What is financial literacy?

Financial literacy is the ability to understand and effectively use financial skills, such as personal financial management,budgeting, and investing. In the world of investments and creating wealth through multi-channels, merely possessing money is not enough to make it sustainable. Financial literacy for women is thus very important to keep track of finances.

Financial literacy is the foundation of your relationship with money, and it is a lifelong journey of learning. The earlier you start, the better off you will be because education and its application are the keys to success when it comes to money.

Both women and men should acquire financial knowledge to participate in money-related issues of their families effectively. But it has been observed that women in India have limited financial knowledge. This could be on account of women traditionally being ‘home-makers’ and not being concerned with where the finances are coming from and where they should go. However, with the changing economic scenario and the higher participation of women in the workforce, financial literacy for women should be given topmost priority.

Women and financial literacy

Financial literacy for women is an important aspect of their independence, financial and otherwise. Being financially illiterate can lead to a number of problems. You could be more likely to accumulate debt burdens, have poor spending habits, or lack long-term preparation. Financial literacy empowers people, especially women, to make independent decisions. During emergencies or unforeseen circumstances, an individual can take correct steps if she is financially literate.

A survey revealed that only a small percentage of women are able to build on and grow their existing wealth. Among those, only about 33 per cent, have the confidence to invest their money as they see fit. Given that women’s roles in the domestic and public sphere are on the rise, these low figures show that financial literacy for women is still not part of mainstream discourse.

How can we improve the Present Healthcare System in India?

More public spending on healthcare. Period! Most of the problems that Indian healthcare is facing currently are primarily due to low government spending on healthcare.

The amount India spends on public health per capita according to a news report is Rs 1,815 is less than the cost of a single consultation at the country’s top private hospitals–or roughly the cost of a meal at many hotels. That comes to Rs 150 per month or Rs 5 per day. At 2.1 percent of its gross domestic product (GDP)–India’s public health expenditure is amongst the lowest in the world, lower than most low-income countries which spend a good percent of their GDP on healthcare.

These costs push millions of Indians below the poverty line every year, according to various studies.