In the following section, we’ll show you how to do financial planning for women, no matter the stage in your life.
Financial Planning for a Teenager
Income: Young girls still in school or college can easily begin earning by taking tuition or freelancing. They can also save up money that they get from relatives or pocket money. In addition, doing odd jobs around the house at this early age can help them become financially responsible later in life.
Investment: Teenagers can begin investing in mutual funds as soon as they have all their documents in order. Other investment vehicles include fixed deposits, post office funds, etc.
Savings: Even at this age, children should be taught that saving half of their earnings is a good rule of thumb. If this lesson is learnt too late, people can become heavy spenders and poor savers.
Financial Planning for Single Woman
Income: Nowadays, all women strive for financial independence. They usually choose the safer route of becoming salaried employees. However, it should be understood that having just one income source is risky. Therefore, single women should try to supplement their regular income with a side job.
Investment: The risk appetite of young women in their 20s is different from those in their 40s. Hence, 20-year-old single women should focus on investing for financial goals such as education, marriage and parenthood.
Therefore, investing in higher-risk equity mutual funds is appropriate for 20-year-olds. In comparison, 40-year-old women should focus on investment for retirement and choose low-risk debt mutual funds.
Savings: While being 20 does not mean you should not enjoy your income, it also does not mean you can be foolhardy. If you have done your financial planning well, you will know that you will require considerable savings to achieve your goals. Hence, follow the traditional rule of “save half” and live on the rest.
Financial Planning for Single Mothers
Income: If a single mother is working, her focus will be oriented towards raising her child. However, she must not forget that retirement planning is just as important.
Investment: Invest in keeping retirement, children’s education, higher education, marriage and your future in mind. However, highly risky investments can be avoided. Instead, invest in instruments with a lock-in period so you do not feel the temptation to spend the money. Also, try to keep a six months’ emergency fund.
Savings: A single mother may not be able to save as much as she would like. However, whenever possible, freeze some of your assets in FDs, RDs, etc.
Financial Planning for Working Women
Income: If you are married and a working woman, you have the additional cushion of your spouse’s income. Hence, you can use your income to buy life and health insurance covers for your family.
Investment: However, managing a home and a family will leave you with little to devote to your finances. Hence, you should make use of apps to track your management of finances. Invest also on behalf of your children to secure their education and higher studies.
Savings: Though it is difficult for households to save a lot, you must stay focused on your financial goals. Maintain a healthy saving habit, and you should be able to achieve your target for retirement.
Financial Planning for Homemakers
Income: Homemakers save money from the monthly household budget. Hence, with no fixed income, they are at a disadvantage. However, they can also supplement their income in various ways with side jobs.
Investment: Homemakers can invest in FDs, RDs, and other low-risk investment instruments if they choose. However, they can also invest in mutual funds and other tax-saving investment vehicles.
Savings: Homemakers can save through FDs, RDs, and savings account.
Thus by doing thorough financial planning through life stages, women can avoid some pitfalls in life and maintain a higher standard of living.