Gone are the days when only men were expected to take care of the household finance. With changing times and inflation pushing the household budgets to go haywire, women – both working and housewives- have started taking a keen interest in managing finances and have excelled at it.
The economy is dogged by uncertainties every now and then, so it has become important for women to keep their families financially secure. The onus of this is the same on women who are homemakers. The traditional way of saving money in containers has now been taken over by Savings Accounts in banks and Investment channels that can multiply your money.
Though a housewife is technically not an earning member, she has a major role to play in running the household finances. It was a traditional belief that housewives and finances cannot go together as they have very little knowledge about finances. There has been a marked shift from this traditional belief as homemakers today are well educated and well-versed with the changes in the world. They are well-equipped to deal with financial challenges.
Let us take a look at a few financial planning aspects that housewives need to know.
What if the worst was to happen?
Let us look at an instance where the husband and the sole breadwinner is absent due to an unfortunate circumstance. In the event of the unfortunate demise of the husband, if the wife is not aware of the state of the household finances, she is sure to be left clueless. This will not be the case if she has prior experience as a part of the decision-making procedure.
Ideally, both the man and his wife should be equal participants in the process of handling finances and should make financial decisions as a team.
Traditionally, working husbands figure out the loans, house rent, electricity and telephone bills etc. The women are usually responsible for the groceries and other home requirements. Instead, more of the budgeting should be done by both parties. A division of labour is not harmful, provided both parties are capable of taking charge of the finances in the absence of the other.
Women have a knack for saving out of even a shoe-string budget and saving up for the rainy days. So, they are sure to do a great job in terms of planning for their family’s fiscal future!
Women work endlessly to secure their family’s future. So, there’s no doubt that they can do even more by being included in the financial planning process. When no one can prepare you for the worst, it is best to be financially educated to deal with it.
Financial planning tips for housewives
- Firstly, the wife should start taking a keen interest in the financial planning and keep herself abreast about the Insurance and investments done for the family members. As a housewife, you can also open a bank account in your own name, where savings you have made from the monthly budget can be deposited. You can also open a Fixed Deposit, and multiply your money. For example, an FD of Rs. 10,000 can become Rs. 13,700 at a CAGR of 6.5 percent after 5 years.
- The housewife as a mandatory step could ask her husband to make her a joint holder in all the investments. If that is not possible, as in the case of a pension plan, etc. then her name should be included at least as a nominee. This secures the wife and her children under unforeseen situations.
- As a housewife, you should keep a proper record of all investments, login details, documents and other paperwork, etc. to be in control of finances during any untoward incident. This should include documents pertaining to Health Insurance plans, PPF, Life Insurance, bank Fixed Deposit receipts, etc.
- Another very important aspect is deciding husband’s final will and testament. The housewife needs to be present when it is drafted so she has a say in it and is completely aware of its contents.
With a little effort, research and interest, a housewife can be financially empowered to deal with an unforeseen situation.
This article was originally published on bankbazaar.com and re-published with permission.