Breaking the Cycle: Why Financial Literacy is the First Step Toward Women’s Independence

In today’s evolving world, financial literacy isn’t a luxury—it’s a necessity. It empowers individuals with the knowledge to budget, save, invest, and make informed decisions about their financial futures. Yet for millions of Indian women, this foundational skill remains out of reach.

Did you know that 80% of Indian women struggle with financial literacy? A staggering statistic that reflects not a lack of capability—but a lack of access, opportunity, and education.

In a country where a large proportion of women are homemakers, financial literacy becomes even more crucial. Women are not just caregivers; they are household managers—responsible for allocating resources, planning expenses, and ensuring the welfare of their families. Without basic financial understanding, they remain dependent, despite being central to economic decision-making at home.

The problem runs deeper than household budgeting. According to The Hindu, over 92% of Indian women engage in unpaid domestic work. This limits their formal economic participation and visibility.

Moreover, gender pay gaps, limited employment opportunities, and financial exclusion further deepen the divide. As the Washington Post aptly noted, unequal debt burdens and delayed repayments are realities women face across the globe—especially when they start their financial journey later and with fewer resources.

Why Do So Many Women Lack Financial Literacy?

Several interlinked factors contribute to this gap:

• Cultural norms and gender roles: In many Indian households, financial matters are traditionally handled by men, leading to women being excluded from economic conversations and decision-making.
• Limited education: Girls, especially in rural areas, are often pulled out of school early or not encouraged to pursue higher education—limiting exposure to financial concepts.
• Lack of access: From banking infrastructure to digital tools, women often have less access than men to financial services.
• Social conditioning: Many women believe finance is "not for them" or too complex, a mindset reinforced by generations of exclusion.
• Information gap: Government schemes and financial tools exist—but awareness is severely lacking.

Government Schemes That Support Women—But Few Know About

The Indian government has launched several schemes aimed at uplifting women financially. Orient Mahila Vikas Yojana, Stree Shakti Package, Udyogini Scheme, Mahila Samridhi Yojana, Stand Up India, and Pradhan Mantri MUDRA Yojana are aimed at supporting women entrepreneurs.

However, there is a critical lack of awareness about these schemes— not only in rural areas but also in urban communities. This disconnect between policy and people creates a gap that prevents women from leveraging these resources for empowerment.

How Do We Bridge the Gap?

To curb financial illiteracy among women, especially in underserved communities, a multi-layered approach is needed:

• Grassroots financial education: Conduct local workshops and training sessions in regional languages focused on budgeting, saving, loans, and digital banking.
• School-level inclusion: Integrate financial literacy into school curriculums—especially for girls from early grades.
• Digital literacy + financial literacy: Many financial tools are now digital. Teaching women how to use mobile banking, UPI apps, and digital wallets is essential.
• Promote government schemes: Use local outreach, NGOs, and community leaders to raise awareness about government financial support.
• Role models and mentors: Showcase relatable success stories of women who have become financially independent through skill and literacy.

Likhari Foundation: Turning Skills Into Strength

At Likhari Foundation, we believe true empowerment begins with knowledge and confidence. That’s why financial literacy is an integral part of our skill development programs for women and girls. Whether it’s tailoring, digital design, or home-based entrepreneurship—we don’t just teach a skill, we teach how to earn, save, and grow from it.

Our mission is to ensure that every woman we work with doesn’t just become skilled—but becomes self-reliant.