Role of financial literacy in empowerment of housewives in virar. Essay

Role of Financial literacy in empowerment of housewives in Virar.

Mrs. Dora Rodrigues

Asst. Professor

St.Joseph College Of Arts And Commerce.

Virar (W)

Email ID: [email protected]



The literacy rate in India is 74.04 per cent as per census 2011, showing an increase of 9.21 percentage points. The literacy rate for male population was 82.14% and for females it works out to 65.46%. This clearly shows the difference between literacy rate of male and female population. The biggest challenge our country is facing currently is women empowerment and this can be achieved only by means of educating women. Education does not mean only basic education but very importantly making her financially literate and in-dependent.

Generally in India whether housewives or working, women are the one who manages monthly budget of family, therefore a minimum financial literacy is much desired for every women. The purpose of this study is to give an overview about role of financial literacy in empowerment of housewives.


Financial literacy means person’s ability to understand concept of money: how can one earn profit from it. It is an ability to efficiently and effectively managing personal expenses and handling other financial matters. It includes knowledge about saving, investment options, tax planning. More specifically, it refers to the set of skills and knowledge that allows an individual to make informed and effective decisions with all of their financial resources.

Economic status of women in India is not very sound. Empowering them is the only solution for their problems. Women empowerment means making women independent so they make their own decisions without any restrictions and boundaries. Education is the basis requirement of women empowerment. But only education is not solution, financial education is desired. Sufficient knowledge about personal finance management will make women self-reliant. Women can plan for their future. They can act independently. Thus it can result into women empowerment.

Housewives though manages family Budget, but most of the times for their expenses, they are dependent on their spouse. They do not work outside doesn’t mean they are unproductive. According to 2011 OECD study (The Organization for Economic Cooperation and Development ) “The average Indian woman spent nearly six hours a day doing unpaid work. Economists believe that though it is unpaid, the household work done by homemakers constitutes economic activity and should be included in the national income. By ignoring it, we underestimate women’s contribution to the economy. ”

Literature review:

(Thilakam, 2012) stated that “financial literacy is the ability to understand finance.More specifically, it refers to the set of skills and knowledge that allows an individual to make informed and effective decisions through their understanding of finances.” Financially literate people can make sound financial decision so they are more inclined towards achieving their financial goal, have potential to hedge themselves against economic shocks and associated risks and eventually contributes toward the economic development.

(deka pritisha 2015)Financial inclusion is a great step to for women empowerment in India. But to achieve this, the government should provide a less perspective environment in which banks are free to pursue the innovations necessary to reach low income consumers and still make a profit. Financial service providers should learn more about the consumers and new business models to reach them.

(devi anjali 2016) Economic empowerment of women is must for which financial literacy level of women need to be enhanced. Financial literacy level among rural women and non-working women is less it is therefore necessary to initiate certain awareness program. Government agencies, Banks other NGO’s may take initiative in this regard.

(Judy L. Postmus, Sarah McMahon et. al. 2012)Economic empowerment is significantly and positively related with financial literacy, positive financial attitude and financial wellbeing).Financial wellbeing is the outcome of financial literacy and positive financial attitude whereas level of financial wellbeing determines the economic empowerment of individuals. Women’s economic empowerment is vital to recognize women’s right and to accomplish the greater developmental goals such as, poverty reduction, education, economic growth.

Statement of problem:

Women empowerment is emerging issue of India. The solution to this problem cannot happen overnight, it is a life cycle process. Virar is suburb pat of Mumbai, having a mixture of city area and rural area. The total population of Virar is 1222390 as per census 2011out of which female population is 574218. Though literacy rate is of women in virar is 85.22, but financial literacy is really questionable. Women empowerment is critical problem of India, Virar being semi urban area is more exposed to problems related to women’s.

Objective of Study:

1. To identify the financial literacy among respondents.

2. To identify the role financial literacy and economic empowerment.

3. To find out if housewives in virar have access to financial services.

4. To find out barriers the housewives face in using financial services.

Methodology of study:-

This study is based on identifying the of Role of Financial literacy in empowerment of housewives in Virar with the help of secondary and primary data collection. Descriptive research is used for the study.

Primary Data: For the purpose of identifying role of financial literacy in empowerment of housewives primary data were collected with the help of a pre-tested questionnaire. Housewives between the age group of 30 to 60 were included as respondents.

Secondary Data: Secondary sources like various books, journals and news papers, magazine, various research papers.

Research Design

Sample Size: Sample size taken for the research purpose is 40 respondents which includes housewives between the age group of 30 to 60 from virar.

Tools for Data Collection:

I have used the combination of survey and Schedule techniques for my study. Based on the above mentioned criterion, 40 questionnaires were distributed. All the questions were close ended, different options were given to them to choose from.

Limitation of research:

The sample has geographical constrain as all the respondents are from same city (virar).

Data Analysis:

Age Group

Level of education




Below SSC




Upto HSC








Post graduation








Do you have bank account?

Out of the 40 respondent 36 said yes. But it was also found that most of them do not use it, instead their spouse or children are operating it.

Do you make saving?

Surprisingly out of 40 respondents 37 said yes they make saving. Here it is assumed that housewives make saving or investment out of the money that they get for managing daily expenses.

Where do you save or invest?

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It was found that large portion of respondent are depend upon bank for their saving and investment. But still 22% of respondents are much deprived from financial services. For them there is no difference between saving and investment. Very few invest in mutual funds .There were some respondents who use unorganized system like chit funds, Mahila Bachat Gaat etc. There is high possibility of this housewives getting cheated.

Do you have liberty in managing your personal expenses?

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It was found that respondent between the age group 50-60 were having less freedom in managing their personal expenses, and their personal expenses were mainly controlled by their spouse.

What kind of barriers do you face in accessing financial services?

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It was found that though housewives are looking after monthly budget of family, they lack decision making authority while making Investment. It was also found that even the educated housewives possess less knowledge about financial products. Almost 25% housewives admitted that they lack knowledge about financial products.


The study focused on empowerment of housewives through financial literacy. It is observed that there is a close relationship between level of education, awareness of financial services and empowerment of housewives. The present shows low education level in elderly housewives. They lack understanding between saving and Investment. Their dependency on unorganized sector can create problem for them in future. Young housewives are comparatively financially literate, and they have more liberty in managing their own expenses.


With due consideration to limitation of study, there are certain recommendation.

1. Basic education as well as financial education much required for the age group 50-60. Pioneer co-operative Banks having large customer base can take up this activity as a corporate social responsibility.

2. Most of housewives even after having bank account are depend upon unorganized system. Therefore connecting them to the mainstream financial system is much necessary.

3. Banks can have schemes like recurring deposits or group account specially designed for the benefit of housewives.

4. Some of the respondent fail to make investment as they feel they are not permitted to or they feel it’s not their money. With the help of NGO’s , the negative preconception needs to removed.

5. Government can make certain policy decision regarding payment to that they will not have any feeling dependency.


Anjali devi ",financial literacy among wommen :a sampe study in district of assam ",EPRA International Journal of economic and business reviewvol 4/2 feb 2016.

Judy L. Postmus, Sarah McMahon (2012). Financial Literacy: Building Economic Empowerment with Survivors of Violence, Fam Econ Iss (2013) 34:275–284 DOI 10.1007/s10834-012-9330-3.

Pratisha Padmasri Deka",Financial literacy and financial inclusion for women empowerment: A study International Journal of Applied Research 2015; 1(9): 145-148.

Thilakam, C. (2012). The 2012 International Conference on Business and Management, 6-7 September 2012, Phuket-Thiland.

Newspaper :Economic times 29 Nov. 2017.


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