The Role of Women in Family Finance – There is no doubt that the role of women in family finances is very large in the sustainability of the family economy, starting from being the main breadwinner or even managing finances at home. However, why is that?
Here are some theories that could potentially be the reason why women have such a strong role in family finances!
Why is the Role of Women in Family Finance Strong?
1. Women are more Diligent and Structured
Managing finances, such as planning an expenditure budget, paying attention to income and expenses that occur within a certain period of time requires more perseverance and thoroughness.
In general, women are said to be more detail oriented, organized, and conscientious than men. They are more likely to have perfectionist, determined, and structured characteristics. We can openly blame this on social pressures that require women to be "perfect" all the time.
High attention to detail and the ability to work in an organized manner are important qualities for someone to have in money management, in this case women are already superior to men in terms of managing family finances in a careful and structured manner.
2. They tend not to be reckless
Women are said to be better investors than men. Experts attribute this quality to the fact that women tend to be more cautious, and prefer to take calculated risks.
A more conservative financial decision-making process has led them to be successful in this aspect. Thus, household financial decisions will be taken with careful thought and a good plan.
Because women tend to be more careful in making decisions and prefer to take calculated risks, they are the best decision makers in family finances.
If you are too aggressive in taking risks, you can burn your money quickly.
3. Thinking Ahead
The tendency of women to work in an organized manner and prefer to take calculated risks encourages them to think far ahead.
Women can plan financial strategies and budgets, along with income and expenses, for long-term family planning.
The forms of forward thinking that women have are having long-term targets, investing with low risk, and saving to increase the feasibility of living for their families.
Thus, they are better prepared to deal with less than ideal financial situations and are able to handle them well and rise to a better position.
4. Have Long Term Targets
Having long-term goals about what you hope for and want can change your view of how you spend money.
Women generally have more long-term goals than men. Women will weigh and measure the types of income and expenses that will be used to build a more stable life.
Although their partners are almost always involved in the decision-making process, the encouragement will be initiated by women. They tend to make financial decisions that are conservative, cautious, look more into the future, and are more patient or unhurried in making decisions when family well-being is at stake.
The long-term financial goals that women have include saving to buy a house, their children's school and college fees, saving for retirement, meeting their future needs, and saving for a brighter and more stable family future.
5. Enjoy Learning and Asking for Advice
The perseverance and thoroughness of a woman can be seen from their tendency to record financial expenses and income, both inside the household or outside the household.
Take comfort in knowing where your money is being spent, what it's being spent on, and where it's coming from. This may be presented as a motherly habit.
Unlike men who tend to be reluctant to ask others for help or advice, women are better at seeking help and advice when they need it. This allows them to gain multiple perspectives on the situation, and consider a decision-making process carefully.
Well, the points above regarding the role of women in family finances make sense, don't they? In addition to the important roles that women have in family finances, parents have an obligation to educate their children about financial literacy, you know.
Whiz provides interesting features that can help parents in teaching the baby about ways to manage finances!