Why Women Need to Learn About Financial Planning and Protect Themselves

Guest article by Monika Prasad, Corporate Communications Consultant in Dubai.

I am a thirty-five-year-old modern woman. My friends call me a feminist, and I accept that I am one. I believe women of this era are intelligent, independent, strong, and sensible professionals in several areas — sometimes outdoing men in many diverse fields. Yes, I am proud to be a woman.

Recently I did a project for a client that focused on women, and I interacted with women from different spheres. Through those conversations, I observed that women's interest and knowledge in their personal finance is not ideal.

How many women reading this agree that they have very little interest in financial planning? I've observed that many women — whether breadwinners or housewives — depend on their husbands to take all financial decisions for them and their kids. The reasons may vary, but the question is: why do women run from finance when it is the woman who manages so many decisions of the house?

Dear women — if you are a housewife, you are the one who exactly knows the expenditure load of your family.

An incident with a friend recently stirred me to talk about this more openly. Her husband passed away unexpectedly, very young. Money can't diminish the emotional trauma and grief of losing someone — but it can make life smoother in difficult times. Had her husband taken good life insurance, she and her kids would be in a better financial position today. These are grave topics, and none of us want to talk about them because we don't pre-empt that this could happen to any of us. The topic of losing a spouse is so stressful that we choose not to discuss it. So the easiest thing to do is stay ignorant.

I would argue that's precisely why we should talk about it: get comfortable with the topic, improve financial literacy, and start taking charge of our financial health so we can handle uncomfortable situations confidently when the need arises.

Reason 1: Life is uncertain

Housewives have traditionally been left out of financial matters — and in many cases, women are hit hardest by a lack of financial planning they assumed the husband would do. But what if the husband is no longer there? Reading, understanding, and taking an active interest in finances builds the confidence to handle financial matters alone.

Reason 2: Women are the finance managers of the family

In many families, the woman runs the household expenses — from groceries to school choices to children's activities. If she can run the household so well, she can take an active role in financial planning too. Women are natural savers; saving in every situation is second nature.

Reason 3: Women live longer

Statistics consistently show that women live longer than men. Women therefore need to take an active interest in planning for retirement — thinking about how to stay financially healthy in later years is the woman's responsibility too.

Reason 4: Divorce rates are high

Estimates put first-marriage divorce rates around 40–50% in countries like the U.S. No one knows what life will hold years into a marriage. Taking charge of your own finances becomes imperative — and for some women, that means earning their own income and becoming a responsible earning member of the family.

And a note for the men

For the men reading this, one piece of advice: have you ever considered the thought of your wife not being there tomorrow? What if she becomes terminally ill? How many of you have taken a good life-insurance or critical-illness cover for her?

Many men say they haven't taken life insurance for their wives because their wives aren't earning members. But have you thought about how much more money it would take to run the family and raise the kids without your wife? A full-time household help, a driver for school runs, a tutor for studies — these are just some of the added costs. Dear men: please revisit your insurance plans and check whether both of you are covered well.

Talk to your financial advisor before it's too late.

This article is general financial education, not personal financial advice.