By: Sonali Priy Kapoor (Founder and Managing Director of The Hatch Project (THP))
Every March, we celebrate the contributions of women to history and society. Alongside these celebrations, financial inclusion and gender equality remain critical topics of discussion, especially in developing economies. However, celebrating women is much more than a month or a day, it is about empowering them and helping them conquer the world.
The statistics sound encouraging:Women form 50% of the population in India. However, the reality might be far from beautiful. India ranked 139th out of 144 countries, with a 66% gender gap, in terms of economic participation, according to, 2018 report by the World Economic To drive economic growth, it is crucial to empower them as one of the major reasons for this gap is the lack of financial independence of women.
Let’s start by understanding the difference between being financially independent and being financially empowered. Financial independence is the ability to make a living that empowers people to pay for their living to sustain themselves, while financial empowerment is to be in control of the finances and investments. A financially empowered person understands how to spend money, make wise financial decisions, and has full authority to utilize resources to reach their goals.
Several women in India don’t have complete control over their finances despite being financially independent. They’ve not acquired the financial literacy to convert their earnings into investments, savings, mutual funds etc. A little effort to educate them financially can help them achieve true financial empowerment. Financial independence not only fosters a sense of self-satisfaction but also builds healthy morale. It empowers women to make their own decisions and take control of their lives. This confidence and fulfillment lead to self-sufficiency, both emotionally and financially.
To begin their journey toward financial empowerment, women can start by setting financial goals, creating a budget, paying off debt, saving for retirement, staying on top of bills, and building an emergency fund. For a more comprehensive approach, the following steps can be explored:
- Be involved in financial decisions
Participating in family investment decisions can help women gain valuable knowledge, both about the family’s finances and their own. Don’t hesitate to ask questions or seek advice from the family’s financial advisor. Planning for emergencies starts with understanding key details like budgeting, setting financial goals, and evaluating risk versus reward. - You are your own investor
Women should begin exploring investments early in life. As they manage their personal finances, the importance of investing naturally emerges. Early investments not only foster financial independence but also teach the distinction between saving and investing. It’s never too early to learn about financial markets. Women can also seek expert guidance to choose the right investment avenues. - Tackling emergencies swiftly
Financial independence is key to navigating all kinds of challenges, whether it’s toxic domestic environments or financial and medical emergencies. It empowers women to handle crises without depending on others, and to be prepared for income loss or other uncertainties. Retirement planning is another critical phase, where financial apps and resources can offer valuable support in setting retirement goals. - Empowering women in promotions and hiring
The gender pay gap remains one of the most persistent barriers to women’s equality. According to LinkedIn’s Opportunity Index 2021, 85% of working women missed out on raises, promotions, or job offers due to their gender. Help the women in your life gain confidence in asking for raises and recognizing their worth. - Support and connect with other women
One of the most impactful things we can do for women is to pay it forward. Share tips on business opportunities, financial strategies, and personal growth. Encourage women to seek mentorship, advocate for one another, and be open about challenges. Fostering these connections helps build a network of support in both personal and professional life.
Despite the progress women have made, finance and investing are areas where many still feel left behind. Financial independence is crucial for today’s women—not to prove a point, but to break stereotypes and ensure they can support themselves when needed. It offers financial security, enables women to make their own decisions, and provides a sense of achievement and empowerment. This is how we move forward in the fight for gender equality.