When it comes to saving, more than half of the women save less than 10 per cent of their income and 14 per cent save nothing, according to LXME Women & Money Power 2022 report.
Financial awareness among women remains work in progress. According to a report titled ‘LXME Women & Money Power 2022’ by LXME, a financial platform for women, 55 per cent of the women surveyed for the study were either not investing (33 per cent) or were not aware of investments being made in their name (22 per cent).
The survey was conducted among 4,000 participants across different age groups, life stages, and occupations across metros, tier 2 and 3 cities.
Saving and Spending Habits: While women are often considered savers, the level of saving is often not substantial, finds the survey. A majority (78 per cent) of the survey participants said they saved less than 20 per cent of their income; 56 per cent said less than 10 per cent of their income and 14 per cent said they do not save any money. The top three categories on which these women spend their earnings were groceries, child’s education and personal shopping.
Investment Decisions: The trend of women depending on others to make their investment decisions was apparent in this study’s results as well. More than half, 55 per cent, of all women surveyed said they did not make their own investment decisions. There was a high dependency on family and partners regarding investment decisions. Almost 38 per cent said that they invested with assistance; most (76 per cent) took assistance from partners and family.
The survey found that only 7 per cent of the women said they invested on their own via various self-learning tools.
In this regard, non-metros were ahead as almost half (51 per cent) of women from non-metros said they made informed financial decisions; for women from metros, this was 41 per cent. This indicates a higher intent of learning among women in non-metro cities, the report stated.
Investment Trends: Gold is a hot favourite as 42 per cent of the women respondents said they invested in the yellow metal. Gold is followed by fixed deposits (35 per cent), Public Provident Fund (23 per cent), and traditional instruments like chit funds (17 per cent). Only 14 per cent women responded in the positive to investing in mutual funds and just 10 per cent in stocks. Overall, only 13 per cent women invest in financial assets whereas 35 per cent prefer traditional instruments.
Priority of Financial Goals: The study further affirmed that retirement planning is not a priority for women savers and investors. Family’s security and children’s’ education were stated as the primary drivers for 67 per cent women whereas only 12 per cent said they invest for self-security, retirement and starting their own business. A minuscule 1 per cent said they invested for retirement.