Financial Mistakes Women Make

Avoiding common issues early in the career will help create better financial future

- Meera Siva

To err is human. But to understand the problems and then take corrective steps, would mean a richer woman. Various studies conducted globally shed light on some common mistakes that women make, and how it negatively affects their financial well-being. Knowing these pitfalls and taking steps to rectify them can be a simple way for you to get ahead financially.

Product knowledge

Reading about new financial products in the market is not the most fun activity for anyone. And women, for various reasons, loathe to spend time on this. As a result, they cozy up to a few asset classes and avoid many others. For example, equities would be an asset that can potentially offer better long-term returns — a requirement to meet financial goals; but this may not be in your comfort zone and is skipped.

Not just limited choice but not understanding a product may lead to inadvertently investing in unsuitable ones. For instance, often products touted as ‘safe’ may carry high risks, listed in fine print. And even if it works out as promised, there may be commission and transaction costs — possibly the reasons why these products are being pushed — that may lower your return.

It is therefore important that you get basic financial product knowledge.