Updated January 20th, 2024 at 12:31 IST

98% of Indian women take charge in long-term family finances: Study

Women, aged 25-35, prioritise homes; those, aged 35-45, focus on children's education, and those above 45 prioritise medical care.

Reported by: Business Desk
She drives decisions
She drives decisions | Image:Pexels

Female financial empowerment: As much as 98 per cent of salaried and self-employed Indian women actively engage in long-term family decision-making. Despite the stagnation in female workforce participation and the gender pay gap, women are actively involved in shaping their families' financial futures. Factors such as age, income, marital status, dependents, and home location significantly influence women's financial behaviour, according to a study conducted by DBS Bank & CRISIL.

The study, titled 'Women and Finance, sheds light on the evolving priorities of women in different age groups. Women between 25 and 35 years prioritise buying or upgrading homes, while those in the 35-45 age category focus on children's education. For women above 45, medical care takes precedence, and retirement planning becomes a consideration in the 35-45 age group.

Interestingly, the study reveals that 47 per cent of women make independent financial decisions, indicating growing financial autonomy. Age and affluence play a crucial role in this, with women over 45 emerging as leaders, with 65 per cent making independent financial choices compared to 41 per cent in the 25-35 age group.

Risk-averse financial choices

Women earners in metros are risk-averse, with 51 per cent investing in fixed deposits and savings accounts, followed by 16 per cent in gold, 15 per cent in mutual funds, 10 per cent in real estate, and only 7 per cent in stocks. The presence of dependents significantly influences investment behaviour, with married women with dependents conservatively allocating 10 per cent to 29 per cent of their income to investments.

Age and UPI

In terms of banking preferences, the study finds that 33 per cent of women in the 25-35 age group prefer UPI for online shopping, while only 22 per cent above 45 years use UPI. The report highlights regional variations, such as higher credit card usage in Hyderabad and Mumbai compared to Kolkata.

Moreover, 50 per cent of salaried women have never taken a loan, and amongst those who have, the majority opted for home loans, reflecting the cultural significance attached to homeownership in India.

Prashant Joshi, Managing Director and Head of the Consumer Banking Group at DBS Bank India, emphasises the importance of financial stability for independent female earners and underscores the study's contribution to achieving a more equitable financial landscape.


Published January 18th, 2024 at 09:38 IST

Your Voice. Now Direct.

Send us your views, we’ll publish them. This section is moderated.

Whatsapp logo