Women and Wealth: Why Financial Independence Is No Longer Optional

When women grow financially, families grow stronger — and so does the nation.

As a chartered accountant, I have worked with families across income groups and professions. One reality stands out — women today are more educated and capable than ever. They manage homes, raise children and contribute to businesses, yet financial decisions in many households remain male-dominated.

In an era of equal partnership, financial independence for women is not about competition but security and dignity. A financially informed woman strengthens her family and, if life takes an unexpected turn, can confidently raise and educate her children. That is the true essence of women’s empowerment.

Financial Participation

India has made strong gains in women’s education. Female literacy has crossed 74 per cent, and young women are entering fields once out of reach. Yet this progress is not mirrored in financial participation. Female labour force participation remains between 32 per cent and 37 per cent, well below the global average of nearly 49 per cent.

Even among earning women, many are not involved in investments, tax planning or long-term decisions.

There are encouraging signs, however. Women’s participation in stock market investing has crossed 24 per cent, touching nearly 28 per cent in some states. Financial awareness is rising — a shift that is both social and economic.

The financial landscape has changed in the past decade. Rising inflation, higher healthcare and education costs, and evolving tax rules have made planning more complex.

In this environment, financial independence for women is no longer optional. Economic uncertainty — job losses, medical emergencies or business setbacks — can affect any family. A financially aware woman can manage crises calmly and make sound decisions.

Women’s longer life expectancy also means longer retirements and a greater need for independent savings. Without planning, later-life dependence becomes a risk.

As living costs rise, relying on one person’s financial knowledge increases vulnerability. When both partners are informed, families are more secure.

Legal awareness matters too. Missing nominations, unclear ownership and tax gaps create avoidable stress. Financial literacy helps prevent such complications.

Untapped Economic Power of Women

Economists note that higher women’s workforce participation could significantly boost India’s GDP and drive long-term growth. India aims to raise female labour force participation to 55 per cent by 2030.

Financially empowered women build secure households and contribute directly to national development.

Financial Gaps

Across income levels, certain gaps are common:

·         No emergency fund

·         Overreliance on savings accounts that lose value to inflation

·         Inadequate term and health insurance

·         No structured retirement plan

·         Investments without regular review

·         Limited awareness of tax benefits

These are not income issues but gaps in planning and discipline.

Small Steps

Financial independence does not require a high salary. It begins with simple, consistent actions:

• Build an emergency fund covering at least six months of expenses.

• Start SIPs for long-term wealth creation.

• Take adequate health and life insurance.

• Keep nominations and documents updated.

• File income tax returns regularly, even below the taxable limit.

• Review financial goals annually.

Consistency matters more than the amount invested.

Partnership

The role of women in Indian families has evolved. Today, a woman not only manages the home but also contributes to income and shapes her children’s future.

Financial awareness ensures that:

• She supports family goals with confidence.

• She makes informed, independent decisions.

• She secures her children’s future, even in adversity.

This is not just financial independence — it is family stability and social progress.

Guidance

Seeking advice from a chartered accountant or financial advisor is wise. Professional guidance helps structure investments, optimise taxes and align plans with long-term goals. However, awareness must remain with the individual — no financial document should be signed without full understanding.

Strong Women

Women today are professionals, entrepreneurs, homemakers and leaders. Their financial participation must match their contribution at home and in the economy.

Financial independence provides:

• Security in uncertain times

• Confidence in decisions

• Dignity at every stage of life

Most importantly, it ensures a woman is never helpless. She can stand strong for herself and her family.

In today’s economy, financial literacy for women is essential. When women grow financially, families grow stronger — and so does the nation.

(The writer is a Chartered Accountant based in Thane. Views personal.)