According to the World Bank, financial inclusion addresses equality in terms of access to useful and affordable financial products and services that meet individuals’ and businesses’ needs. For a long time, many societies have grappled with inclusion regarding finances.
One aspect of financial inclusion that is still a concern in Kuwait is gender inclusion. In a 2014 research study, there was a glaring difference of 10% in gender financial inclusion. By 2017, 83.31% of males owned a bank account compared to 73.46% of females. Such an improvement comes against a backdrop of policies and programs encouraging women in Kuwait to take a more prominent role in financial matters.
Gender inclusion in financial matters means that all financial services, opportunities, and establishments are open to all people. It transcends mere equality and male and female stereotypes should not be allowed to define such financial opportunities.
This post looks at the impact gender has on financial inclusion and decision-making.
To appreciate the impact equality in finances can bring to a society, one has to appreciate the innate differences in male and female behaviors and finances. One of the most apparent differences is men’s proclivity for risk-taking. Men tend to be more open to using available financial products and services, including investing platforms, debit cards, or others.
Another point of divergence is in the urgent long-term goals, such as retirement. While both men and women are concerned about retirement well-being, men are more likely to save than women. Another key difference is in the view of money management. While women emphasise the day-to-day state of their household’s finances, men’s priorities are in growing their wealth over time.
While women might not regard themselves as investors, they are actually more sensitive than men to the realities and requirements of successful investing. They have unique financial instincts which are essential to saving and investing efforts. Women are more cautious when taking investment risk to achieve financial returns and are more open to financial advice for their investment and savings decision-making.
Ultimately, women appear to worry more about the risk of their investment and look at shorter-term goals. Men, on the other hand, are more open to risks with an eye on long-term returns.
With financial inclusion, more women not only have access to financial products and services but also to information about the same. They can leverage the qualified advice to make better decisions not only at the household level but also in entrepreneurship and for other long-term investments.
Removing the barriers for women in financial matters has a huge advantage both at the individual level and for the society. Take a look:
- Financially empowered women invest in more diverse assets, which promote their households livelihoods.
- With access to information, women get into business and take more calculated risks, which propels growth in the national economy.
- A society where women prosper is a better society according to the UN. The president of the UN National Assembly, Sheikha Haya Rashed Al Khalifa, says increasing women’s access to financial services is not only a boon to economic development, but benefits the entire society.
- Concrete decision-making is one of the topmost advantages of having financially savvy women. This is one of the results of financial inclusion in Kuwait
With so much financial information now available online, every woman can make better financial decisions. It’s a personal initiative that can include:
- Saving more for retirement.
- Starting an emergency fund.
- Reducing debt and embracing better spending habits.
- Learning more about investing & finance
- Creating a plan for all your money.
- Automated savings.
- Setting SMART financial goals.
- Focus on growing net worth.
With the increasing financial inclusion in the country, you have every reason to thrive financially. It all starts with learning about money, determining your investment goals, and setting up a concrete investment plan.
At SmartWealth, we believe that everyone should have the chance to invest and build a better future, regardless of gender or background.
To learn more about our investment options and start working towards financial independence, please visitor our social media channels to learn more about investing and personal finance.