The Role of Indian Women in Household Savings

When we talk about good financial decisions and smart financial choices, the focus always lies on investments. There are a million different websites, forums, web pages and groups dedicated to finding the most lucrative and smart investment options in a bid to be better financially and to be financially stable. Be it the case of individuals, small communities, small businesses, mid-sized business organizations or even big conglomerates – the focus is always on investments. However, one of the most important yet overlooked aspects of personal finance is savings. In India, households have the largest share when it comes to the overall savings rate and their savings equal to about 23 percent.  Indians are culturally programmed and predisposed to saving a substantial part of their incomes.This holds true even more in the case of low-income or middle class families.

Usually in low-income households, men are more attuned to financial systems and are generally responsible for ‘earning’ and women are given the responsibility of saving as well as managing household expenses. This tips the scales and gives women an edge when it comes to savings as compared to men.

While more and more individuals are becoming responsible for their own finances, the women of the family play a huge role in the savings of the household. As bizarre as it may sound, women have a huge impact on the savings of the house. Since, they are more often than not the ones who are end users of utilities and groceries (which are reported to be anything from 30% to 70% of total monthly income); they are in control of how much is saved or spent. In case of Governments, they now understand the huge potential women have in relation with saving and that is why in countries like India there are specialized saving schemes as well as tax brackets for women.

Women are considered to be better are financial planning and management even by people who are undertaking freelance financial planning jobs and freelance accounts jobs. In cities and even villages, concepts like saving schemes and self-help groups as well as small women co-operatives are the perfect opportunities and incentives to save and be part of a community of sorts. These underrated groups are a huge contributor to the country’s economy but are often overlooked due to a number of reasons. However, this phenomenon is changing and women are being recognized for the role they play in personal finance.