The Role of Gender in Household Financial Decision-Making: A Survey-Based Analysis in Urban India

Abstract

This research paper explores the role of gender in household financial decision-making within urban India, focusing on the disparities between male and female respondents in financial literacy, investment behaviors, risk preferences, and decision-making authority. A survey-based methodology was employed, targeting 500 households across five major urban centers in North India. The study found that males generally exhibited higher financial literacy, were more likely to engage in riskier investments such as mutual funds and stocks, and predominantly controlled major financial decisions. In contrast, females preferred safer investments like gold and fixed deposits and were primarily responsible for daily expenses and savings. Education and employment emerged as critical factors influencing financial behaviors, with higher educational attainment and active economic participation correlating with better financial literacy and decision-making capabilities. These findings underscore the need for targeted financial education programs, policies promoting higher education and employment for women, and improved access to professional financial advice. By addressing these disparities, stakeholders can enhance women's financial empowerment and promote gender equality in financial decision-making, contributing to the broader economic development and stability of urban India.