The Weight Of Firsts: How First-Generation Female Earners Can Navigate Their Finances

Even in the 21st century, for many women across India, the act of earning is still a radical departure from tradition. Being the first female earner in a family isn’t just about making money, but learning how to adapt to this newly-grasped financial independence, often without a blueprint.

You see, for generations in their families, these ladies have seen household finances being handled by men, leaving women, especially these young first-generation earners to figure out saving, investing, and budgeting from their incomes on their own, while balancing societal and familial expectations.

Such is the story of Preeti and Shilpi, two young residents of Delhi who are rewriting the script of financial independence in Indian households.

Says Priyanka Bhatia, co-founder of Women on Wealth, a platform that helps women achieve financial freedom, “First-generation women income earners often face significant financial challenges, starting with the cultural and familial expectations placed upon them. Many feel a deep sense of responsibility to support their families, so they often prioritise household needs over their own financial goals.’

Bhatia opines that this can make it difficult for them to build personal savings or invest in the future. “Compounding this issue is the lack of inherited financial knowledge, as these women may not have grown up with guidance on budgeting, investing, or long-term wealth-building strategies. Without this foundational knowledge, making financial decisions can feel overwhelming.”

Breaking the Cycle

For Shilpi Kumari, 24, the journey towards financial freedom meant breaking the traditional mindsets of Indian families which are accustomed to seeing their daughters in ‘comfortable careers’ such as teaching or higher academic pursuits. However, as she built her career by working in a startup as a Hindi Subject Matter Expert, she slowly transformed those perceptions.

Preeti Sinha, 28, faced an even tougher road. She did her first job at age 17, as a tele-caller in an NGO, a decision that was met with resistance at home. She decided early on to not pursue academics, but this choice was not barren of her need to lead a financially independent life. Eventually, in her 20s, Preeti took out a loan to start her own beauty parlour after spending a few years upskilling herself in this craft.

When she started working, she found herself facing a barrage of questions from relatives - “Why do you need to work? Would she be able to manage money?” Her father, initially skeptical, questioned why she wanted to work instead of relying on the family’s income. But financial necessity spoke louder than tradition. After her elder sister’s wedding left the family burdened with debt, Preeti knew that sitting back was not an option.

Both women encountered financial confusion in their early days. With no prior experience managing money, they struggled with questions of how much to save, where to invest, and how to navigate financial independence while also supporting their families.

Money Talks: Learning To Budget, Save, and Invest

Shilpi’s first paycheck brought her a sense of accomplishment, but also a whirlwind of confusion. “I didn’t know how to manage my money. Should I save it? Should I help my family? How much should I spend on myself?” she recalls.

However, her father, a banker, became her unexpected financial mentor. “Early in my teen years, my father had taught me the importance of budgeting, maintaining separate accounts, and setting aside savings,” she says. He helped her understand the importance of budgeting and guided her through the process of opening fixed deposits (FDs).

She soon learned to separate her income into savings, necessities, and discretionary spending. “I started tracking my credit card and UPI usage to keep in check my cash flows,” she says.

Eventually, her financial independence allowed her to celebrate small but meaningful milestones, like gifting her mother a dress with her own money, a moment that cemented her sense of self-reliance.

Preeti’s learning curve was steeper. Unlike Shilpi, she did not have a mentor within the family to guide her. Instead, she meticulously tracks every rupee she earns and spends on a notepad on her phone. “My accountant is my mother, I hand over whatever my earnings are from the parlour to her, and in return, I take Rs 2,000 to Rs 3,000 as monthly pocket money for my personal expenses,” she states.

“I save what I can from this, but I don’t shy away from splurging on myself every now and then,” Preeti remarks.

Her income is unpredictable, some months are good while others are lean. This uncertainty has made her cautious, pushing her to always think ahead. “I understood early on that my financial security is tied to the success of my business, and I make deliberate decisions to invest in high-quality products for my parlour, keeping in mind long-term sustainability over short-term savings,” she shares.

Changing The Narrative

For both women, financial independence was not just about self-sufficiency, it was about changing the perception of what women could achieve within their own families.

Shilpi’s parents, once skeptical, have gradually become supportive. Seeing her navigate work life with confidence, their views have softened. “My family's attitude changed towards women earning money, but more than that, their attitude changed toward what a woman can do.”

Preeti’s journey had a ripple effect on her younger sisters. Once she broke the barrier, they too started exploring job opportunities. “My father, who once doubted my decision to work, now boasts about my achievements to relatives,” she says. Her income has not only helped stabilise the family’s financial situation but has also inspired a generational shift in their outlook toward women and work.

While earning money was the first hurdle, ensuring long-term financial security remains an ongoing challenge.

But Shilpi says she’s ready to tackle any kind of financial crisis. “My father has taught me good financial habits, I check my bank statements and credit card dues regularly, this is a habit as natural to me as scrolling reels on Instagram,” she states. She is now exploring investment opportunities beyond fixed deposits, looking into mutual funds and insurance to safeguard her future.

For Preeti, financial independence is more than just a steady paycheck, it’s about making strategic decisions for the future. Despite her business’s ups and downs, she is focused on building an emergency fund and eventually expanding her parlour.

For these first-generation women earners, financial literacy is a crucial next step. Without a precedent to follow, they must actively seek knowledge, whether through financial advisors, self-learning, or trial and error.

5 Smart Money Moves: Financial Guide for First-Generation Women Earners

1. Prioritise Personal Financial Stability: Before extending financial help, it is essential to focus on building an emergency fund that can act as a safety net for unexpected expenses.

2. Start Investing Early: Begin with simple and accessible investments like mutual funds, SIPs, or retirement accounts. Diversify investments across asset classes to reduce risks and ensure steady financial growth over time.

3. Develop Strong Financial Habits: Track income and expenses, maintain a strict budget, and prioritise debt repayment, especially high-interest loans. Consistently saving and learning about finance will help strengthen money management skills.

4. Leverage Financial Tools & Resources: Use budgeting apps, financial literacy platforms, and online communities to gain insights, track spending, and make informed decisions. Seeking professional financial advice can also help in creating a tailored investment plan.

5. Embrace Continuous Learning: Stay updated on personal finance trends, tax benefits, and investment opportunities. Financial education is an ongoing process, and staying informed can empower better decision-making for long-term wealth creation.

Source: Women On Wealth

Health Insurance in Financial Planning

A critical aspect often overlooked by first-time earners, especially women, is the importance of health insurance or term plans.

Many young women may prioritise immediate financial concerns, rent, savings, and loan repayments while putting off insurance. However, a medical emergency can wipe out years of careful financial planning in an instant.

Says Santosh Agarwal, Chief Business Officer, Policybazaar.com, an online insurance marketplace, “The risks of inadequate or no insurance coverage are substantial. Without health insurance, a major illness can lead to insurmountable debt, potentially pushing the family back into a cycle of financial vulnerability. It's not just about the immediate financial burden; it's about the long-term impact on their ability to achieve their dreams and secure their future. These women are often breaking new ground for their families, and insurance will allow them to do so with greater confidence and peace of mind.”

What To Consider When Looking For A Health Plan?

• Coverage Amount: The sum insured should be adequate to cover potential medical expenses. Consider the rising costs of healthcare and choose a coverage amount that provides comprehensive protection.

• Pre-existing Conditions: Be transparent about any pre-existing conditions and understand how they are covered by the policy.

• Waiting Period: Be aware of the waiting period for specific treatments or procedures.

• Additional Riders: Explore add-ons like OPD cover and consumables for enhanced coverage.

Source: PolicyBazaar.com