Women’s Participation in Household Money Management and Financial Decision Making: Insights from a Developing Country

While women’s roles in financial matters are often limited in various contexts, studies on household money management illustrate how financial decision-making is closely tied to power dynamics within the household. The objective of this study is to explore how women across different social strata manage their financial resources, highlighting the significance of their competence and confidence in making financial decisions for their families within the context of a developing country like Bangladesh. A stratified sample of 129 women is considered for this study. The data is analyzed to understand participants’ sources of income and how they manage their money, even in emergencies when the family cash inflow is low. The study also explores, how and why the participants make the financial decisions, and to what extent they gain understandings of their broader financial situations. The data consists of a structured questionnaire that includes participants’ income and expenditure, over a one-month period, and various other attributes. The results reveal that, first, money management patterns can be linked to improvement in well-being associated with women. Women are primarily concerned with their contribution to family. Second, women directly involved in income generating activities generally have a better understanding of money management system and hold greater decision-making power within their families. Finally, women primarily spend to meet their families needs. Coupled with the study’s other findings, these results suggest that family relevant constraints need to be minimized to enhance women’s active participation in household money management and financial education can play a vital role in improving their money management skills.