It is crucial for women over 25 to have conversations around money at home

Scheduling time for a check-in with your partner, parents or children can plug in any holes in your financial safety net

Money can mean different things to different people. For some, it is a source of security, while others see it shrouded in scarcity. This disparity only becomes more stark when you consider women’s role in financial planning in the household. A study by Fidelity Investments reveals that eight out of ten women will shy away from discussing money with their family and friends as they find the subject uncomfortable. 

Inherent stereotypes

The reason behind this discomfort with considering a leading role in investment decisions can be traced back to a self-imposed confidence gap that has women doubting their mathematical abilities, with research suggesting that most girls lose faith in their facility with numbers as early as high school despite scoring higher grades than boys. The data is indicative of intergenerational stereotypes that have money matters and investment discussions conventionally coded as a man’s domain. 

The notion is seconded by finance content creator Anushka Rathod, who shares, “Growing up, topics around fashion, jewellery and cooking were discussed frequently with me while my brothers discussed where to invest, credit scores and the state of the economy. Because we are told that we should be interested only in certain topics, women become less confident in their ability to make financial decisions as they get older.”

Studies would suggest that 82 per cent of women defer to their spouses for long-term financial planning because they believe they lack the knowledge, but the status quo is being gradually overturned as women seek financial independence. Shreyaa Kapoor, former analyst at Bain & Company, says, “I regularly talk about freelance opportunities with my Instagram audience. I have been witnessing a greater volume of women in the 35-40 age group reaching out to understand freelancing better as a space so that they can have flexibility around work timings and still be financially independent.”

The journey towards financial literacy may seem like a long one, but it is never too late to start.  Rathod and Kapoor shed light on the crucial financial questions you should be asking at home:

Money conversations to have with your partner

Financial compatibility can seem tricky when a spender marries a saver, but getting on the same page about your finances is the first step towards securing your future. When you work on your monthly budget, schedule a check-in on these pertinent areas:

• Where does the money from our respective salaries go?

• How can we equally contribute to household expenses?

• What does our emergency fund look like?

• How much risk are we comfortable with when making investments?

Money conversations to have with your parents

While it might seem like a strange role reversal to inquire about your parents’ finances, the payoff comes with being able to assist them in times of uncertainty since it is highly likely that their investments are illiquid. To put their minds at ease, here are the conversations you need to have:

• What are your retirement goals?

• What are our assets and liabilities as a family? 

• What are the places where the cash, gold or papers for our assets are stored?

• Have you considered insurance? What kind of coverage do you think is necessary?

Money conversations to have with your child

It might seem like a child’s young mind is not ready to cope with hard facts and figures, but it is never too early to start inculcating the financial values that you’d like for them to carry forward in their lives. Here are some handy questions to help them develop a positive yet prudent approach towards money:

• What do you like to spend on for your happiness?

• What are some ways in which you can save up to attain these goals?

• This is what you need to know about where our money goes as a family…

• Do you feel ready to be in charge of a simple budget plan?

Financial stability is a tightrope of weighing risk with reward and while it is likely that mistakes will be made along the way, taking control of your finances is a journey that is best started sooner rather than later.

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