On her graduation day, Tamana’s eyes sparkled with dreams—getting her first paycheck, purchasing her first car, furthering her education, visiting the places she longed for, supporting her parents, investing in property, or someday starting her own business.
A year after landing her dream job, Tamana unexpectedly faced a medical emergency that needed urgent funds. She realised she had no savings after splurging over the past year on gifts for loved ones, a down payment on her dream car, the latest smartphone she yearned for, and dining at top restaurants. While recovering, she reflected on her mistakes and how to better manage her financial health.
Like Tamana, many young women pursue higher education, enter the workforce, or start their own venture, but often lack knowledge of how to manage their earnings. Managing money is more than just handling finances; it's a crucial life skill. When young women learn to earn, save, invest, set goals, and plan confidently, they gain more than financial security — they gain the freedom to make choices that shape their future, fostering financial well-being and independence.
Although we learn many things at home from a young age, many households protect girls from the world's challenges. Money management is one such challenge. It’s a challenge as big as driving in a busy city.
{{/usCountry}}Although we learn many things at home from a young age, many households protect girls from the world's challenges. Money management is one such challenge. It’s a challenge as big as driving in a busy city.
{{/usCountry}}In driving, it's crucial to recognise when to accelerate and seize opportunities offered by other drivers, when to exercise caution and slow down, and when to stop to check if you're on the correct route. Starting to save early is like beginning a journey with plenty of fuel, plus additional emergency supplies in case of detours or mistakes. Borrowing too much credit is akin to driving with an almost empty tank, risking being stranded far from your destination. Achieving financial success involves regularly reviewing your goals and avoiding impulsive decisions.
By managing money effectively, young women can attain financial independence, which involves having sufficient funds and resources to live their preferred lifestyle, pursue desired activities, and support causes they care about without external financial support. It acts as a safety net during challenges like job loss, health crises, family issues, and difficult marriages. Achieving this independence fosters confidence in discussing money and investments. It is empowering because it allows women to set their own goals and create plans without being dependent on others. Learning money management skills also enables women to participate in household financial decision-making on matters such as investments, real estate, children’s education, healthcare, and retirement planning.
Just as reading a driving manual isn't enough to learn to drive, understanding money management requires practical experience over time. It's normal to feel some fear when learning a new skill, but this anxiety can gradually turn into confidence. Mistakes and setbacks are inevitable, yet they help you better prepare for future challenges.
Six financial habits every young woman should consider adopting:
- Tracking income and expenses regularly – through a budget
- Saving and investing regularly – the earlier you start, the better
- Identifying personal financial goals based on future needs assessment and reviewing them regularly
- Ensuring sufficient coverage for term and medical insurance
- Establishing an emergency fund or contingency plan
- Enhancing financial literacy and awareness
Just as it takes time for a seed to grow into a fruit-bearing tree, simply understanding finance won't turn someone into an expert money manager. Maintaining a positive attitude and giving proper attention to learning about money management will encourage growth and progress.
Improving money management skills builds confidence, which enhances leadership and negotiation abilities, leading to growth in various aspects of life. It also lowers stress, boosts financial well-being, and increases overall life satisfaction. Women who achieve financial independence become role models, promote intergenerational change, and support causes through philanthropy and community involvement, making meaningful contributions to society.
To ensure a stable financial future, young women should establish mindful spending and saving habits early on. These habits will help them achieve financial goals and handle unexpected life events. Financial independence is more than just money; it is about expanding one's choices and fostering a sense of empowerment.
(The views expressed are personal)
This article is authored by Shalini Kalra Sahi, fellow (FPM), Management Development Institute Gurgaon.