Hyderabad: Women are no longer just a silent pillar of their families, they are active and participate in decision-making. Saving money helps in dealing with unexpected costs and emergencies. Every year, April 14 is observed as the National Women's Saving Day.
Across India, women predominantly prioritise three main financial objectives namely children’s education, home acquisition and wealth accumulation. As per a World Bank report released in 2021, globally, healthcare and children's education are top two financial priorities for women with a share of 34 per cent and 15 per cent respectively.
Financial objectives of women:
For women aged between 25 to 35 years, buying a home is a top priority, while for those aged 36-45 years, priority changes to children’s education. And for women above 45 years, medical care becomes the topmost priority, revealed the survey.
Women hold 40% of bank accounts in India:
According to the latest figures released by the Ministry of Statistics and Programme Implementation (MoSPI) on April 6, women now hold nearly 40 per cent of all bank accounts in India.
The report titled 'Women and Men in India 2024' states the share of women's bank accounts grew to 39.6 per cent in 2022–23 from 34.6 per cent in 2017–18. This five per cent growth over five years is an indicator that initiatives like Jan Dhan Yojana, Pradhan Mantri Jeevan Jyothi Bima Yojana (PMJJBY) and other financial schemes have enabled more women to become part of the formal banking sector.
According to the report, women participation in social security schemes PMJJBY and PMSBY (Pradhan Mantra Suraksha Bima Yojana) is 44% and 46.4% respectively as on December 4, 2024. It is evident that 38.8% of the beneficiary in PMMVY are women.
The report also states that 47.3% of women are subscribers under the scheme APY (Atal Pension Yojana). PM Jan Dhan Yojana (PMJDY) has helped ensure access to financial products and services for women. As of December 4, 2024, 55.7% of PMJDY accounts were owned by women making them majority account holders in the PMJDY portfolio.
A state-wise variation in financial access was also observed. For instance, southern states such as Tamil Nadu and Kerala indicated a greater degree of financial inclusion among women while a few states in the north and east remained lagging behind.
On the savings front, 64.4 per cent of women aged 15 years and older reported having saved in the previous year, as opposed to 72.6 per cent of men. But when it came to borrowing, just 15.7 per cent of women reported having borrowed a loan in the previous year, as opposed to 19.4 per cent of men. This indicates that although saving habits are gradually improving among women, access to formal credit is low.
Another highlight of the report is that approximately 45.9 per cent of women reported having some say in family financial decisions, meaning even if women do have bank accounts, their part in managing money in the house is minimised.
Money-Saving tips for women:
- Start early: When you start managing your finances at an early age, you have the advantage of time. Over time, compounding can work in your favour, helping you to build wealth and achieve your financial goals, whether it be buying a house, saving for retirement, or paying off debt.
- Saving and investing: Saving and investing are important components of building wealth and achieving financial independence. If you are new to saving and investing, start with smaller amounts and gradually increase as you become more comfortable.
- Be cautious with credit cards: We all have heard how you can utilise your credit card to hack the system and gain lucrative offers and benefits. However, they have certain negative implications. High credit card utilisation could affect your credit score, making it difficult to manage your debts.
- Budgeting: Budgeting is a crucial aspect of financial management as it helps you to track your income and expenses, prioritise spending and make informed decisions about how to best allocate your resources.
- Monitor your credit profile: Monitoring your CIBIL Score and Report is an important aspect of managing your credit health. Your CIBIL Score and Report provide valuable insights into your credit history and can help you stay in control of your finances.
- Reduce debt: High levels of debt can be a major burden and limit your financial flexibility, so it's important to work to pay off debt as soon as possible
- Plan for the future: Make a plan for the future, including saving for retirement, purchasing insurance, building credit and creating an emergency fund to ensure long-term financial stability.
- Educate yourself: Continuously educate yourself about personal finance, money management and investment strategies.
