Amongst the financially deprived, women often bear an unfair share. From a cultural and developmental perspective, many women miss out on the emerging adulthood phase of their lives, where financial autonomy is learnt and practised. It is at this stage of emerging adulthood that women, especially rural women in India, are required to get married and are handed off to their husbands, leaving their transition to adulthood abrupt and harsh. This puts them at a disadvantage when it comes to financial literacy and financial decision-making. Financial autonomy requires a degree of financial literacy, which refers to the ability to manage one's finances, budget effectively, and make informed investment choices. However, as a historically oppressed group, Indian women have been excluded from this critical life skill along with basic primary education. This article explores the underlying cases of why women lack autonomy by examining the role of financial freedom and literacy as the key precursors.
Property laws, female employment and financial autonomy
Property has always been an indication of stability in finances and the existence of wealth. Before the Hindu Code Bill, property laws were against the interests of women. After the Hindu Succession Act was enacted at a central level, some states amended the act to provide women with a higher claim to inheritance. One poignant study found that women who married after the Hindu Succession Act was passed received a higher share of the inheritance and enjoyed significant autonomy and personal independence in their marital relationships. In the early 21st century, the Hindu Succession (Amendment) Act of 2005 aimed to provide women with higher financial security in response to the emerging women's workforce, modern feminist movements, and globalization trends. However, critics argue that women's legal and financial rights do not align, which is why it is difficult for women to avail the full benefits of equal inheritance.
Land ownership has also been associated with increased usage of essential financial services. A study found that women who own land are more likely to access credit services and open formal accounts. However, women with male family members’ support, as well as legal possession of land, found it easier to access formal credit.
Since immovable assets are not available to all, we turn now to salaried work. Women's employment status is seen as a choice, unlike men's employment status, which is seen as a necessary aspect of familial life. Traditionally, in the early to mid-nineteenth century, female migrants and workers were widows and lower caste women deserted by their husbands. Their employment was limited to roles such as domestic help, washerwomen, innkeepers, sweepers and prostitutes. However, by the late nineteenth century, even jobs where women played a predominant role began declining. The importance of paid labour in female autonomy is underscored by the work of Nirmala Banerjee, a gender studies researcher and author. In her study, Banerjee notes that technical women workers in a plant/factory married men of their choosing, grew in self-confidence, and even set aside some money for their marriage. In short, employment and financial freedom gave them a facet of independence they would not possess otherwise, as seen in the generations before them.
Economic activities such as working on the farm, daily trading or milk collection are not considered as economic activities but are seen as an extension of the woman's household chores, limiting her employment outside the domestic sphere. Esther Duflo argues that workplace and employment opportunities outside the home are substantially fewer for women. Not only does the lack of financial autonomy decrease personal choice, but it also decreases the ability of the woman to nurture self-confidence and independence.
The state of financial literacy amongst women
In both urban and rural spheres, financial literacy amongst women is significantly lower than men's. Despite the urban advantage, many urban women lack basic financial literacy skills, including knowledge about investment and other financial instruments. Women are also highly risk averse, investing in insurance schemes or keeping their money in savings accounts, earning a fairly low return.
Arguments favouring increasing financial literacy amongst women say that it opens up a world of opportunities, including, but not limited to, the overall economic development of the nation, awareness about exploitative financial scams, and greater independence and self-esteem. Increased financial control in the hands of women has been shown to increase the overall financial well-being of the entire household, particularly children.
In places with less hierarchical gender stratification, such as South India, increased financial autonomy can lead to decreased marital violence. Similarly, a cluster analysis of a South African sample showed that financial empowerment gave the female community the confidence to rise against partner violence. Financial autonomy also provides freedom of movement and builds confidence among women. It opens opportunities to form and join community groups. However, in places with a highly patriarchal family structure, even financial autonomy may not be enough to aid women in gaining personal independence.
In essence, the economic sphere must adapt to provide women with an equal chance at employment and create a safe space for working women, along with raising the next generation. The social sphere must work towards increasing the reach of technical and formal education. Finally, in the political sphere, there is a dire need for inclusive educational acts that are culturally informed for conservative families. Enabling menstruating girls to attend school comfortably can go a long way in ensuring they receive a full education, employable skills, and a secure financial future in the long run. Making education (including financial education) compulsory, along with a robust female entrepreneurship program, can help empower women in a more comprehensive and integrated manner.
Sanjana Guruprasad
