47% women take independent financial decisions, 51% prefer low-risk instruments: Report - ET BFSI (2024)

In India, where many women may not have grown up with the cultural expectation that they should drive financial decisioning, it can be even more of a challenge to personally take up the reins.

About 47 per cent of women take financial decisions on their own, reflecting the momentum in financial independence, while 65 per cent of women aged over 45 years take financial decisions independently compared with 41 per cent aged 25-35 years, revealed a latest survey by CRISIL and DBS Bank India.

Women are no longer just a silent pillar of their families, they are active and participative decision-makers. Based on the National Family Health Survey, urban women's involvement in key household decisions surged to 91 per cent in 2019-20 from just 49 per cent in 2005-06.

A staggering 98 per cent of urban women being at the forefront of long-term family decisions- whether it is planning for their children's education or managing household finances, these women are taking charge, highlighted the joint survey by Crisil and DBS Bank India.

Interestingly, 47 per cent of women seek advice and information from family members when making financial decisions, valuing the trust and shared experiences that come with kinship.

On the other hand, 27 per cent lean towards a more professional approach, posing their queries to financial advisors or chartered accountants. However, this number reduces to less than 5 per cent in Chennai and
Coimbatore, where more than 70 per cent women seek family opinion as their first preference to decide on their finances, as compared to an all-India average of 47 per cent, the survey said.

Financial Objectives of women

Across India, women predominantly prioritise three main financial objectives: children’s education, home acquisition, and wealth accumulation. As per a World Bank report released in 2021, globally, healthcare and children's education are top two financial priorities for women with a share of 34 per cent and 15 per cent respectively.

For women aged 25-35 years, buying a home is top priority, while in the next cohort of 36-45 years, it changes to children’s education. For those over 45 years, medical care becomes the topmost priority, revealed the survey.

Salaried women, with a consistent income stream, show a strong inclination towards home ownership or upgrades, with 24 per cent prioritising it as a long-term goal. In contrast, 16 per cent of self-employed women, despite the unpredictability of their earnings, share this aspiration, the survey added.

About 32 per cent of married women prioritise children’s education and
healthcare needs, while 24 per cent of unmarried women place a higher premium on realising personal aspirations, including planning for wedding and vacations.

Women in India tend to be risk-averse in financial choices, with about 51 per cent of the investments parked in fixed deposits and savings accounts, followed by 16 per cent in gold, 15 per cent in mutual funds, 10 per cent in real estate and merely 7 per cent in stocks, highlighted the survey.

Around 54 per cent of salaried women save more than 30 per cent of their income, while 49 per cent of self-employed set aside a similar proportion. Almost half of both salaried and self-employed women allocate more than 30 per cent of their income for investments. 57 per cent of salaried women lean towards fixed deposits and savings accounts, while 49 per cent of self-employed women make a similar choice.

About 21 per cent of salaried women prefer investments in real estate and gold, while one-third of self-employed indicate a similar choice, highlighting the latter’s inclination towards tangible assets and business safeguards, said the survey.

Approximately 43 per cent of married women with dependents invest conservatively by allocating 10-29 per cent of their income, while 25 per cent of married women without dependents choose to invest substantially more, allocating over half of their income, mainly in fixed deposits and savings accounts, it added.

There is a clear shift visible towards accumulation of long-term assets
such as real estate with increasing age. This is evident from the fact that while only 12 per cent of women aged 25-35 years prioritise real estate investment, 38 per cent of women aged above 45 years do so.

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