Currently, less than a third of the population of India is financially literate. Of these individuals, women in impoverished states make up a disproportionate rate of the financially illiterate compared to men. As financial illiteracy is directly correlated to income levels, it is no surprise that women also live in poverty. The pandemic has further widened this gender poverty gap. This clearly states how important is Financial Literacy in Women’s Empowerment.
Impact of Pandemic on Financial Literacy & Women’s Empowerment
The pandemic’s impact on the Indian economy has highlighted the critical need for financial literacy among women in impoverished states. This is necessary to prevent the reversal of decades of progress toward poverty reduction.
Improved advocacy for increased financial literacy practices is key to relieving the economic strain in many impoverished parts of India as it helps remove a critical barrier to financial inclusion. This enables better risk management, and increased financial service usage, and empowers men and women to control their savings. The past year has shown that financial literacy is crucial after COVID-19 and natural disasters.
Effects of Societal aspects on Women’s Empowerment
Deeply rooted social norms coupled with gender biases have fueled the financial hardships women face in impoverished parts of India today. This made it difficult for them to achieve financial independence which is crucial to their personal and entrepreneurial success. Hence, Financial Literacy in Women’s Empowerment will play a vital role.
Providing women entrepreneurs with equal opportunities, knowledge, and financial portfolios, can be significantly contributed to improved financial empowerment among women in India.
Concluding, Financial literacy is crucial for women’s empowerment in impoverished states of India, where less than a third of the population is financially literate. The pandemic has highlighted the need for improved advocacy and practices to remove barriers to financial inclusion, improve risk management, and empower men and women to control their savings. Addressing social norms and gender biases is necessary for achieving financial independence and entrepreneurial success for women.