Most male readers will not read further thinking this article addresses only females. And few will start guessing why Madhupam is writing this? Valentine is gone, why is he mixing Mars & Venus. Well, do not go by topic, as this article focuses on financial planning for women aspect, but is equally important for male as well.
Reason- financial planning is a couple thing. Maybe your spouse is an earning member or not, but when we talk about financial planning it is for all the responsible persons who are involved. A spouse may not be supporting financially but he/she is contributing to making that financial plan work.
Is Financial Planning for Women only?
Financial planning is a family concept – inseparable & dependent outcomes. So maybe I am addressing to the woman of the house, but it is for you both. 
I can experience woman’s problem of “signing on dotted lines” is reducing as I see many females engaging through our website/blog. I get many new female readers who sign up on our website for information or a query. Hence I am confident of a very good future in field of financial planning for women.
It’s time we approach the points that females should ensure in financial planning:
Difficult to discuss but HE better be insured
She must ensure that her husband has bought an adequate Term Insurance plan. The word adequate is important. There are calculations which enable the calculation of the cover. It is very important that right insurance is bought at a right age. Also make sure your husband does not divert to non-required, costly insurance policies which have very less cover. These policies reduce your investing capability. They also provide very fewer returns.
Also, as life progresses, do not forget to assess insurance cover when your husband takes a new loan like a home loan or a business loan. Idea is to cover all future liabilities.
She should suggest her husband to buy Life Insurance Policy under Married Women’s Property (MWP) Act.
MWP Act: Lot of times it has been seen that after the demise of the husband, the insurance proceeds are taken by relatives or creditors. But if a policy (including term plan) is taken under MWP Act, no one can claim the amount apart from the wife. Even court cannot hand over money to any loan company. This protects wives and kids future.
So even in cases where husband’s assets may be claimed by creditors, family disputes, property distribution, bank loans or business loss, but they go to wife & children of the deceased.
The role of financial planning for women also covers other insurance contracts like Mediclaim or car insurance should be in the vision of the spouse. Especially medical expenses are huge holes in personal finance. No harm in asking direct questions about it.
Let secrets be for spies only
Woman of the house should ensure that financial documents including a statement of all assets and investments are maintained properly. In case of digital lockers or softcopies/records, the passwords for all financial investments must be with the woman of the house.
Ensure that all investments made are in joint names with anyone or survivor options (both the holders can transact). If this is not possible in some cases, the nominee for insurance policies and other investment documents should be clearly registered.
If your husband has made investments or opened accounts before marriage most likely the nomination would be absent or in name of another family member. Check if a correction is required and nominations are re-registered again.
Money YOU bring is equal to money HE brings at home
If you are a working woman you should buy adequate life Insurance for yourself because in that way you can ensure economic support in the case of some uncertainty in future. Many goals depend on both of your regular contributions. The family & husband will continue getting the financial support in case of some mishappening.
Surprise ME but without using YOUR Credit Card
You should ensure that your husband is using his credit card in an efficient manner. He should have maximum one
or two cards. You have to ensure that monthly expenses are done by debit card or cash and are not rotated to next month using credit cards. Credit cards are for emergencies or online transactions. Many households after salary, make a big payment to credit card companies and think this normal and urban practice.
I swear we plan & buy
Apart from bigger loans like house or car, you must think twice before availing smaller loans like loans for appliances, or personal loan for vacations. It is better to plan and accumulate instead of a loan, spend and repay with interest.
You are director of smaller picture
Men often tend to forget small things because of inexperience. For eg, one of my clients had planned a house of Rs 40 Lakh. While discussing plan his wife came up with another small goal of furnishing which was around Rs 4 Lakhs. This is 10% of the original goal. This is the reason we (financial planners) want to include spouse during plan making.
I am the son of my house
A working woman should invest a certain sum of her money towa
rds her own parent’s financial independence. If parents do not have adequate source of earning, it is time you take charge in consultation with your husband. I don’t think any sensible men of today will have an objection. In fact, he can help you using his financial management skills. Financial Planning for Women means no one form family should be in clutches of money scarcity.
Let’s set the culture right
Financial independence will set you truly free. This should be the culture among you and children. Setting values or educating in money matters is not your husband’s job alone. You also have to contribute to passing formal and informal skills to children about earning a living for your family and supporting yourself during the worst events. Saving & Budgeting habits can be best taught by practicing them in good spirits.
This week is festival of colors. But true colors of your family is YOU & YOUR Presence.
I hope it always prevails. Touchwood.
Share this article on the strong role in financial planning for women and also share your comments if you have taken any of the initiatives mentioned above in the article. I will be happy to know.
