Understanding Financial Priorities and Practices of Urban Indian Women
A recent study by DBS Bank India, in collaboration with CRISIL, titled ‘Women and Finance,’ sheds light on how urban Indian women manage their finances, revealing the influence of age, income, and familial responsibilities on their financial behaviors. Approximately 47% of women in Indian metros independently manage their finances, and a striking 98% are involved in making long-term family financial decisions. This marks a significant shift towards financial independence among women, particularly those over 45, who lead in making crucial decisions about children’s education and retirement planning.
Investment Choices and Financial Independence
The study found that urban Indian women tend to be cautious investors, with a majority favoring low-risk financial instruments such as fixed deposits and savings accounts, especially if they have dependents. Home loans are preferred for borrowing, reflecting a conservative approach to financial risks. The increased use of digital payment methods like UPI also highlights a shift towards modern financial practices, reinforcing the role of women as key financial decision-makers in their households.
Long-Term Financial Planning and Digital Engagement
The evolving financial priorities of Indian women vary with age, with younger women focusing on home ownership, middle-aged women on their children’s education, and older women on healthcare and retirement planning. The growing engagement with digital banking tools, with a notable preference for UPI among younger women for transactions like online shopping, points to the increasing digitization of financial activities. These insights underline the critical need for enhanced financial literacy and support systems that empower women to take charge of their financial futures actively.
This study highlights not only the evolving role of women in managing finances within Indian households but also underscores the importance of financial literacy and societal support in fostering economic independence and planning. As more women assume control over financial decisions, the potential for economic growth and social development in India continues to rise.