As we discussed in the last post the housewife presents a typical example of insufficient financial literacy and it will be a service to the society if some sincere attempt is made in this direction.The reason that most of the housewives keep away from family finance are many. The primary reasons are
1.the male earning partner dominating and snubbing any interest shown by the wife.
2.The wife herself is not interested much and places lot of faith in her partner’s capabilities to manage the financial affairs of the family.
3.both of them are not very educated and the survival itself is very difficult with limited income.
Though the above reasons may appear to be present in many families it does not mean that they can allow things to continue the same way forever.Whatever be the household income and whatever be the education of the members it is very important that both the husband and wife along with the grown up child sit and discuss the family finances regularly without fail. on the salary date the family should sit together and the breadwinner should tell the family what his income is…what are his statutory deductions like provident fund etc and show the wife the balance amount credited in the bank account or hands over as cash to her.This will make the child understand the importance of money, as also a feel of the family conditions.Thereafter the family monthly loan liabilities,recurring expenses etc should be clearly dealt with and a permissible amount is set aside as liquid savings to be held in a bank account for meeting the contingencies.
More about banking and investment next….