Indian women prioritise children's education and retirement planning, prefer low-risk investments: Study

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CRISIL, has undertaken a comprehensive study entitled ‘Women and Finance’. The survey findings pointed to factors like age, income, marital status, presence of dependants, and home location as major influencers of the financial behaviour of women. About 47% of female earners in Indian metros make independent financial decisions, while 98% actively participate in long-term family decisions, highlighting their increasing financial independence.

Women, especially those aged over 45, emerge as leaders in decision-making, prioritising goals like children's education and retirement planning. In terms of investments, working Indian women are often risk-averse, favoring low-risk instruments like FDs (51%) and savings accounts. The investment pattern is influenced by dependents, with those having dependents adopting a more conservative approach.

Home loans are the preferred borrowing choice, and women exhibit a growing preference for digital payment methods like UPI. This underscores the evolving role of Indian women as proactive planners in financial matters. “As shown, the traditional financial landscape has been impacted by the growing proportion of women making independent financial decisions.

In the past, the major reason for women not taking control of their financial decisions was due to the lack of awareness, financial literacy, and knowledge but times are changing in the modern world. These days, women's roles in financial affairs are changing, with a shift toward independence and autonomy. Financial independence among women can be further promoted by financial literacy, societal support and an environment that encourages women’s involvement in decision-making.