SAVING HABITS OF WOMEN NEEDS EMPOWERMENT

During Twenty-first century more women are working than twentieth century. Now a days women are heading organization like Coco cola , HSBC banks HDFC banks and also insurance companies. Many women have become successful lawyers , Doctors , advocates and teachers. With women occupying such senior position it is natural for them to save more and more. But it has not happened. In a survey recently conducted it was revealed that women are mor4 of a spender than saver. Women spend more for the family than on her self.. But this habits needs to reversed. Because in a family children idolize the mother rather than the father.
They keep the father in high esteem no doubt but children are generally scared of father and friendly with mother. Sons are closer to mother and daughters are closer to father is a myth really. Why women spend more money than the saving. This emanates from the feeling that she is natural guardian of the family. Any shortfall in the budget and life style is picked up by working mother than the father. Even in the office, it is found that female employees don’t hesitate to buy Tiffin for colleagues compared to male officers.
Many studies have shown that women lag behind men in saving for retirement. In a 2008 survey of more than 1,300 workers or retirees over age 25 by nonpartisan Employee Benefit Research Institute (EBRI) and Matthew Greenwald & Associates, 68% of women and 76% of men said that they "had" saved for retirement; 59% of women and 70% of men said they were currently saving; and 58% of women and 64% of men said they were contributing to a workplace retirement account. Two recent studies of participants in large-company plans show similar results. This is not only the case in India. Even in America women save lower than men folks. The Vanguard, a mutual fund company that also manages retirement plans in USA, reported that in 2007 the average account balance of more than three million participants in their 401(k) plans was $56,723 for women, compared with $95,447 for men. More recently, Hewitt Associates consultants surveyed nearly 2 million participants in large-company 401(k) plans the company manages and found that women had an average of $56,320 in their accounts, compared with over $100,000 for men.
This is the time our society need to empower women so that they can save better for the rainy days. Working single women need to think specifically about saving habits. The saving in banks or in Government plans are safest option but it would not support them fully due to inflationary pressure. A women who could manage their monthly budget with Rs10,000 per month a decade back have found it most diffiult to carry on unless she can earn more than double the amount. This is the effect of inflation.

The potato which used to cost Rs 3 a kilogram then is now costing Rs 28 a kg. What is the way out? If she would have kept all the saving in Nationalized bank her money would have been safe alright but now she would have to depend on borrowed money or depend on the alms of others. Fortunately She kept a portion of her money in mutual fund that gave her a return of 25% of money saved. Every single women and single mother must keep it in mind that safe keeping of asset is not enough. The asset must be capable of providing inflation adjusted return for atleast twenty years. What should women do? They need to invest and save early and judiciously. Where women need to invest ? the investment in EPF is a must. Those who do not have EPF they should start saving PPF surely from the beginning of their career. PPF can be started with Rs 500 per annum. Investment in PPF would not be enough. To beat the inflation it would be mandatory for a person to invest first in Mutual fund. Investment in mutual fund is not as safe as the bank fixed deposit. But women must learn to take little risk in case they want to lead a satisfying life style through out their life. Which are the mutual fund they need to select and how long they need to keep investing?
It would be prudent to study investment journals. Many may not be able to do so.. In that even they need to approach a well-known bank. The banks have their own investment desk. SBI has their own persons. Similarly Standard Chartered has their own investment advisor. These advisors may be able to guide new investors. I would highly recommend that all investor should try to study the website of “Money control.com and value research .com. and invest in four star and five star mutual funds. Any women above fortyfive years of age should be able to reduce the risk buy avoiding full diversified equity funds. They need to subscribe atleast sixty percent of their saving in debt fund. Alternatively they can opt for balanced fund so that risk can be divided.
Single mother has greater responsibility towards their children. So it would be prudent to subscribe to insurance policies so that their children are not handicapped in case of emergent situation. The education and marriage are two important components of life. In order to sail smoothly single mother must plan for correct ULIP policies. India have started of late great ULIP policies though they are costly compared to investment plans of mutual fund. ULIp policy should be subscribe after learning the details of the plan .Each policy tries to be different. Being different is not the solution. It should be cost effective for women folks.
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