Financially Savvy yet Financially Silent
The Indian woman is the unseen yet indispensable operator of the household. She seamlessly manages grocery lists, school fees, the help, and also the monthly budgeting. Most women manage the finances in the interest of the smooth running of the household. But how many women are entirely aware of the intricacies of the family finances? This is a question few women may not be aware of, or may actually be silent about. According to a report by the National Council of Applied Economic Research (1) financial literacy among Indian women remains markedly low, especially in comparison to men. The report states that only 27% of Indian women are considered financially literate, as compared to 47% of men in India. Another report by Poonawalla Fincorp states that financial literacy in women is actually only 21%, versus 29% of men in India (2). These numbers point to a broader socio-economic gap in not just in access to education for both genders, but in the kind of education that is provided to women at college level.
Understanding Financial Literacy Paradox in Indian Women
Financial literacy is often defined as the ability to make informed decisions regarding money ranging from budgeting, saving, and importantly also in understanding financial products like insurance, banking, and investing avenues etc. While most Indian women are involved in the day-to-day financial management of their households, a very few of them are empowered enough to make independent decisions regarding loans, investments, insurance, taxation, or retirement planning. The distinction between being money-wise and being financially literate is critical to understand the gendered lens of financial literacy.
The gender divide in financial literacy is a reflection of inherent culture of how knowledge is passed on and to whom, and is often not a result of disinterest. From a young age boys are more likely to be introduced to banking, investments, and financial decision-making often by senior male family members (3). Whereas on the other end for girls they are socialized into roles of thrifting and budgeting but not of wealth creation, financial planning, or risk assessment. This stems from the male prerogative to be the breadwinners and financial decision makers as a default, and young girls and women are not encouraged to understand or manage finances independently (4). This divide persists into adulthood for a majority of women.
According to the Observer Research Foundation (5), even in urban and semi-urban households where women are working professionals, they are less likely to be involved in long-term financial planning for the household. Instead, male family members -fathers, husbands, brothers, sons-in-law, tend to dominate these discussions. This pattern holds true even in families with family-run businesses where daughters or daughters-in-law are rarely involved in succession planning unless they proactively demand inclusion.
Financial Inclusion Is Not Financial Empowerment
The paradox of Indian women being financially savvy yet financially silent is both a challenge and an opportunity. The silence is not due to inability. It is exclusion not from disinterest but from a lack of invitation. Empowering women to become financially literate is not just a matter of economic necessity but one of social justice. It holds the promise of reshaping household dynamics and workplace equality.
Access to earning one’s own finances is given as a solid justification for women’s empowerment. However, access does not always translate into individual agency. According to ORF report (5), nearly 80% of Indian women now have a bank account, but over 40% of those accounts remain dormant. This suggests that while infrastructure exists, the capability and confidence to use it meaningfully do not. India’s policy level push towards digital financial inclusion through initiatives like Jan Dhan Yojana, Aadhaar linking, and mobile banking has certainly increased the number of women with access to bank accounts. However, we see that women in India earn on average 34% less than men for performing the same job, exaggerating financial disparities. Approximately 33% of women have active bank accounts, versus 45% of men. The NCAER report (1) also shows that over 90% of Indian women in the workforce are engaged in informal employment, which often correlates with lower wages, job insecurity, and limited access to financial services and education.
Role of Formal Education in increasing financial awareness
A striking contributor to this paradox of being financially savvy yet financially silent is the absence of financial education in India’s formal schooling system. Despite the increasing emphasis on STEM and business education, financial literacy as a practical life skill remains largely absent from school curricula. Most young men gain from the social and cultural capital, and networks on educating themselves on financial tools, but women graduate with little to no understanding of personal finance tools such as mutual funds, SIPs, tax-saving instruments, or life or health insurance policies.
The lack of structured financial education means that the majority of Indian women must either self-learn or rely on male relatives to navigate complex financial landscapes. According to the Financial Express, the absence of targeted financial education not only inhibits women’s participation in financial markets but also compromises their long-term economic security (6).
Countries like Australia, Japan, and Rwanda offer contrasting case studies. NCAER’s comparative study (1) reveals that these countries prioritized financial literacy into school learning and community programs as well. Gender-sensitive financial education also yields measurable gains in female economic participation as seen in Japan. If India followed suit, the inclusion of financial literacy programs could be a large driving force to increase the low Female Labor Force Participation rate in India which stands close to around 30%, way lower than most counterparts in the Global South (1). As such, financial literacy awareness on taxation, succession planning and saving avenues are a need of the hour.
The Influence of the Formal Workplace in Financial Literacy Awareness
A study published in the International Journal of Management and Humanities titled 'An Analysis of Financial Literacy among Working Indian Women' (7) emphasizes factors such as age, income, education, and work experience were identified as influencing women's financial literacy levels. Increasing financial literacy among professional women correlates strongly with improved decision-making autonomy and long-term financial stability. However, at workplaces employee wellness programs must address not just knowledge gaps but also confidence and mindset barriers (7).
Even amongst the highly educated women professionals the silence around financial engagement persists. Despite earning and contributing to the household income many women hesitate to make or even discuss financial decisions independently. The professional sphere may reward women for their technical and managerial competence, but rarely does it foster or encourage financial independence unless self-motivated. This is reinforced by a lack of workplace initiatives aimed at female financial empowerment. This is also reinforced by cultural patriarchal norms of deferring decision-making power to the men of the family. Despite being employed, many women continue to rely on male family members for financial decision-making. This highlights a gap between inherent self-earning capacity versus actually having decision making power in financial autonomy.
However, at a few workplaces, women are helping women out. Peer networks, women-led financial forums, and support circles within certain companies are growing. These ecosystems are where mistakes become lessons and information flows laterally. But not all workplaces offer this and not all women are plugged into these networks which offer women-only financial literacy classes. The empowerment in these circles albeit quiet, is very nuanced and crucial. This also provides a means to navigate appraisals and promotions in the professional workplaces.
Conclusion
Earning is power, but managing that income independently and strategically is the next frontier for Indian women. It’s time to teach our daughters not just how to save, but how to invest, how to negotiate salaries, how to read mutual fund statements, and how to think long-term about wealth, how to file their own taxes, how to plan their earning potential. Hence, true financial empowerment requires more than policy or organizational commitment. It needs cultural transformation which involves creating spaces where women are encouraged to ask questions, and take financial risks, and manage their own economic trajectories without defaulting to male gatekeepers.
Authors: This article is authored by Ishita Kothiyal, and co-authored by Dr. Ketoki Mazumdar.
References
National Council of Applied Economic Research. (2024). Women’s financial literacy: What India can learn from Australia, Rwanda, Japan. https://www.ncaer.org/news/womens-financial-literacy-what-india-can-learn-from-australia-rwanda-japan
https://poonawallafincorp.com/blogs/financial-insights/importance-of-financial-literacy-for-women
Agnew, S., & Cameron‐Agnew, T. (2015). The influence of consumer socialisation in the home on gender differences in financial literacy. International journal of consumer studies, 39(6), 630-638.
Grohmann, A., Klühs, T., & Menkhoff, L. (2018). Does financial literacy improve financial inclusion? Cross country evidence. World Development, 111, 84-96.
Observer Research Foundation. (2022). Gendered gaps in India’s financial inclusion. https://www.orfonline.org/expert-speak/gendered-gaps-in-indias-financial-inclusion/
Financial Express. (Baisla,2024). Financial literacy for women: Empowering through economic education. https://www.financialexpress.com/life/women/financial-literacy-for-women-empowering-through-economic-education/3396430/
7. Priya, R., & Lal, A. (2024). An analysis of financial literacy among working Indian women. International Journal of Management and Humanities, 9(2), 55–61. https://www.ijmh.org/wp-content/uploads/papers/v9i2/B2923019224.pdf
