A micro-finance company has a policy of lending only to women, and they boast of high recovery rates.
Their observation is that women repay loan instalments dutifully, then save or spend on education for children. Everything else comes after that in their list of priorities.
Women also have a reputation of being spendthrifts and blowing money on shopping for non-essential items, to fulfil a fancy.
The reality may lie somewhere in between, depending on the background, lifestyle, status and income level.
The basics of money management and financial planning however remain the same. It is the old principle of Economics we learnt in school –
Resources are limited, wants are unlimited
It means we have to prioritise. Prioritisation means understanding what is needed right now, and what can be deferred for sometime.
If resources are limited, one needs to choose. What is the choice involved?
Author: Reena Saxena
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