Why women’s financial literacy is key to workplace equity and growth

Pauline Coutinho, Vice-President - Human Resources, Interactive Avenues, writes that fostering financial literacy among women is crucial for gender equality, enabling them to unlock their potential and secure a prosperous future. Organisations must integrate financial literacy into their DE&I programs to drive this vision forward

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New Delhi: For generations, financial independence has been a distant dream for most Indian women, despite their growing contributions to the workforce. In most households, cultural stereotypes have resulted in men being at the helm of all financial decisions. And the dismal truth is that this phenomenon is not just limited to women who are homemakers. According to a recent survey by TATA AIA, 56% of women are ‘not allowed’ to make financial decisions despite being breadwinners for their families. These skewed societal norms have led many working women to hand over the reins of their financial planning to their husbands, fathers, or brothers. 

However, as women continue to break barriers in every field, they are now increasingly interested in empowering themselves to navigate the intricacies of finance. IndiaLends’ #WorkingStree report reveals that 86% of employed women are keen to acquire financial knowledge and enhance skills in domains such as budgeting, investing, saving, and more. 

But does the burden of bridging the financial literacy gender gap lie solely with women and their families, or do employers have a role to play? As a forward-thinking digital agency, we believe female empowerment is a crucial part of any organisation’s diversity, equity, and inclusion (DE&I) mandate. Here’s what workplaces can do to remove barriers:

Organise financial wellbeing sessions exclusively for women

As many women’s levels of financial awareness differ vastly from those of their male colleagues, any financial well-being initiative needs to be tailored exclusively for them. The ‘one size fits all’ approach might work for certain Learning & Development programs, but not this one! We recently launched a custom 5-part workshop where women employees got expert insights into building a wealth mindset, planning for financial goals, smart investment options, and more. The level of participation and positive feedback was overwhelming, to say the least—what earlier seemed like Greek and Latin became straightforward, real-world concepts!

Empower women with financial planning tools 

We all have financial goals such as buying a house, funding our children’s education and wedding, and our own retirement planning. Simple financial planning tools like a monthly investment calculator and smart goal spreadsheets can act as a starting point for helping women achieve these objectives and chart their path to financial freedom. Organisations need to partner with apt financial experts who can share the right insights with female employees and help them master simple but life-changing tools. 

Help women combat the ‘fear of fear’ 

While the trials and tribulations of the stock market may be a common bar table discussion topic for men, it isn’t a staple for most women. As inexperienced investors, navigating the complex universe of shares, fixed deposits, mutual funds, digital gold, insurance plans, and the array of other available investment options can be extremely daunting. This often acts as a knowledge barrier for women who fear being belittled for asking questions that are ‘obvious’ to many males in social/professional circles. Sharing information systematically with women—right from 1-0-1 to advanced levels—can help them break the circle of fear and make informed financial decisions. Beyond group sessions, workplaces can also facilitate one-on-one financial consultations for women employees. This gives them a safe space to clarify their doubts and voice their concerns without any judgment. 

In essence, fostering financial literacy among women is a huge stride towards achieving gender equality, paving the path for women to realise their true potential and build a more prosperous future not just for themselves but also for their families. To transform this vision into reality, more organisations need to incorporate financial literacy as a key pillar of their DE&I programmes.     

 

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