Personal Finance News
3 min read | Updated on February 13, 2024, 17:12 IST
SUMMARY
Women play crucial role in shaping wealth for the family and for business as well, with their proven frugal saving habits and proper financial planning.
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Studies show that the active contribution of women in financial systems results in improved risk management and increased resilience to financial shocks. Women possess a higher attention to detail which is an essential quality for effective money management. Moreover, businesses with at least one female founder tend to generate more income.
Social norms in India are in a state of transformation. Presently, an increasing number of women are successfully running a multi-national corporation and many occupy prominent roles in both corporate and domestic realms.
This reality is not just witnessed in the business world but also in areas of family wealth and finance. Her active involvement demonstrably leads to positive outcomes for the family.
The are several studies that have confirmed the observation and highlighted the importance of women's involvement in financial decision-making.
These facts lay the foundation for the imperative that women play a crucial role in driving financial success in the boardroom and at home.
Women tend to do much better with budgeting, tracking expenditures, and comprehensive planning. Because of their organised approach, resource allocation and decision-making are no longer a matter of guesswork and more structured.
It has been observed that women tend to focus their investment goals in alignment to personal life goals and not just performance and wealth generation. As per a Wells Fargo analysis, women are more risk-aware and therefore diversify their portfolios more effectively, focusing on preservation and asset protection.
With an instinctive awareness of future uncertainties, women prioritise saving and long-term planning. This cultivates a habit of economising and financial preparedness for unforeseen circumstances.
It's not just their resilience that makes women great at financial decision-making, but the behavioural tendency to consider the collective good is what leads to household, societal and corporate betterment.
Wealth generation and financial security should not be viewed through the lens of gender biases and stereotypes. Behavioural tendencies like being risk-aware, patient, goal-oriented, and long-term thinking make up the foundational qualities of women being a positive force in driving growth in the corporate and domestic spheres.
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