How can husbands help their wives become financially savvy?

The personal finance landscape has largely remained an unfriendly and intimidating terrain for women. Social constructs have deterred women from being actively involved in matters of the wallet and these notions continue to be prevalent even today. The segregation of roles and responsibilities on the basis of gender has ensured that money remains a domain largely controlled by men.

Lately, with an increasing number of women joining the workforce and becoming financially independent, a welcome change is underway. A growing younger coterie of female retail investors is refusing to let their finances be in the control of men. However, the number of women who invest independently remains abysmally low compared to men and women will have to continue walking that extra mile to be taken as seriously as men in money matters.

The consequences of women’s absence in the realm of money management are not just limited to women having less money than men. A report published by the World Economic Forum states, “Gender differences in financial inclusion have far-reaching effects on women’s quality of life and autonomy, their families and their communities, putting them at risk of financial fragility and poverty, especially in times of crisis.”

In order to make financial inclusion a reality for more women, men have an important role to play. For starters, male partners can bring about meaningful changes at the grassroots level. This is because for many women the inaccessibility of a chair at the table where money is discussed is rooted in the patriarchal leanings of their marital home. The same becomes the norm for future generations too and families normalize not exposing daughters to the subject of personal finance.

Creating a safe space

Roshan Agarwal, a 32-year-old businessman based in Pune narrates, “My wife came from a family where she was told that money is best managed by men and that women need not be bothered about financial management. Even when she started working, she got her brother and her father to invest on her behalf. Things were different in my family where I have seen my mother and sister playing proactive roles in the financial decisions of the household. I decided to change that and started involving her in decisions pertaining to our day-to-day investments and expenses.”

For many women, deep-seated inhibitions and a lack of confidence prevent them from asking questions and having frank conversations about money even if they have support from their families. Agarwal’s wife, Shruti narrates, “Initially I would feel embarrassed to ask questions. I thought it would show me in a very poor light in front of my husband and in-laws. However, they helped me overcome that hesitation by showing patience and a real desire to help me learn. This instilled confidence and motivated me to undertake learning exercises on my own through resources on the internet.”

While Shruti was blessed to have a husband and in-laws with progressive mindsets, things are not as rosy for many women who find it incredibly hard to find any support to start their financial planning journey. Tanya Mehra, a 40-year-old teacher based in Lucknow says it took a while for her husband to embrace the idea of me being an active participant in the financial matters of the household.

“While my husband did not deter me outright from having a say in money matters, he never sought my involvement either. That did not deter me from trying to up my financial literacy game and eventually, he was on my side and helped me learn the nuances of money management. As a first step, he made it a point to take me with him whenever he met his financial advisor or visited the bank. Later, he would sit with me and explain everything in simple terms,” recollects Mehra.

Climbing the ladder one step at a time

As partners, men have to be mindful of the approaches they adopt when helping women become capable of managing their finances. Taking baby steps and keeping their comfort levels in mind can make the process enjoyable and enriching. Agarwal says, “Most women already have too much on their plates what with work and them having a lion’s share in household chores and childcare responsibilities. Their participation should be initiated in a way that it doesn’t feel like an extra chore to them. Starting simple is crucial – for instance, getting someone to dabble in stock trading when they have just learnt the definition of investing is counterproductive.”

At the same time, granting autonomy during the learning process is equally important. There is no point familiarizing your wife or partner with personal finance concepts if you are going to micromanage her activities or stop her from making any decisions. Again, the rule of starting small finds applicability here, and in this case, too, husbands can help wives get a first-hand experience of investing by choosing smaller amounts.

Mutual fund investments can be a judicious choice for easing the journey of women who have just started learning the ropes of money management. You can start a systematic investment plan with as little as Rs 500 and the wide array of mutual funds that cater to all ranges of the risk spectrum and the time horizon ensures there is something for everybody. Also, given that mutual funds encompass a variety of asset classes, investing in them can pave the way for developing a thorough understanding of the dynamics of different asset classes.