We save for holidays, manage expenses, and work towards our goals. But how often do we plan for our long-term financial security? Through conversations with three young women, this blog explores the gap between earning independently and building lasting wealth.
Over the years, women have faced challenges in establishing their relationship with money, financial independence and wealth creation. We have undergone a major shift transitioning from a period where in many households women were not allowed to work or women were expected to quit work to nurture the family, to a period now where women are pursuing careers, managing their own salaries and launching businesses. From there, we have evolved more now, that a 21-year-old entrepreneur creating something of her own is no longer an unimaginable idea and we are witnessing that happening around us.
Gen Z women are creative, ambitious and increasingly capable of creating their own opportunities. But while the transition towards earning independently continues to evolve, an important question remains:
Are we giving our financial futures the same attention that we give our ambitions?
To explore the answer to this question, I spoke to three of my friends to hear their perspective on this. They are all working in different professions and are between the age of 20-28. I asked them one basic question:
How do they associate themselves with money?
One said: “I live with my parents, so all my basic needs are taken care of. What I earn from work, I use that for my other expenses and on things that give me happiness and satisfaction. I ensure that I don’t bother my parents for all those additional expenses.”
Her perspective represents a version of independence that focuses on the present. She earns her own money, pays for her needs and is content with her lifestyle.
Earning enough to support yourself is an important first step. But financial independence can also mean preparing yourself to handle unexpected expenses, making future choices and sustaining yourself when circumstances change.
The other said: “It’s been great to be earning. I’m able to save about 40% of my salary towards short-term FDs that I maintain, to travel every 6-8 months. I’m planning to visit Sri Lanka this December. Want to join?”
This one was my favourite because this is something we all relate to. She has a clear goal, sets aside a portion of her salary and consistently works towards something that matters to her. This is a positive example of planning her finance based on a goal. Young people aren't necessarily uninterested in saving; they simply prioritise goals they want to see and experience. The opportunity is to extend that same discipline to longer-term goals, including retirement and wealth creation.
The last one said: “I do budgeting, keep track of expenses and manage the financial responsibilities of my family. I save wherever possible from my salary, after taking care of my personal expenses.”
She isn't just earning or saving, she's involved in budgeting, managing commitments and making decisions that affect the household. Financial awareness grows when women participate directly in financial decisions. Her approach reflected a sense of responsibility and an understanding of where money goes. But financial participation should also extend beyond managing family’s finances. Perhaps the next step in her financial independence is to equally plan her own financial future by directing her savings towards suitable investments, allowing her money to grow and work for her over time.
All these perspectives left me with some questions, that feels particularly relevant to my generation, worth a thought:
Is being able to afford today's lifestyle the same as being financially secure for tomorrow?
If we can plan for the next holiday, why not extend our plans with the same intention for our financial future?
Are we paying enough attention to where our savings go, how they grow and whether we're actively planning for our own financial futures?
If you have not yet planned for a financially secure future, enroll today to protect you tomorrow!
