[Blog] Ep 60. 5 Money Mistakes Indian Moms Make and How to Fix Them

ft. Arpita Sinha, Co-Founder of Cashvisory, Personal Finance Advisor

Motherhood often brings with it a seismic shift in our identities, responsibilities and finances. While Indian moms juggle countless responsibilities, financial independence and security often take a back seat. In this episode of The Modern Indian Parent Podcast, host Rinie Gupta and financial advisor Arpita Sinha, co-founder of CashVisory, break down five key financial mistakes Indian women commonly make, and more importantly how to fix them.

Whether you're a full-time working mom, on a career break, or managing a home-based business, this guide is your financial wake-up call.

Mistake 1: Outsourcing All Money Matters to the Husband

Too many women hand over all financial responsibilities to their husbands from their bank accounts and investments to insurance and retirement planning. This leaves them vulnerable in times of crisis.

👉 Why this is a mistake:

• Limits your financial autonomy.

• Assumes your partner is always making the best financial choices.

• Creates risk during events like divorce, death, or disability.

👉 How to fix it:
Arpita strongly recommends starting with financial visibility.

• List all financial assets and liabilities: Joint accounts, FDs, SIPs, insurance policies, loans.

• Hold monthly money meetings with your spouse to stay aligned.

• Track finances together using a spreadsheet or diary—whatever works best.

• Don’t assume your partner is better at this—Arpita advises that women often discover they're more financially intuitive once they get involved.

Mistake 2: Not Having a Personal Bank Account or Emergency Fund

Many women either give their entire salary to their spouse or never open a personal account. This removes their ability to make quick, independent financial decisions.

👉 Why this is a mistake:

• You lack control in emergencies.

• Personal goals and needs get deprioritized.

• Creates long-term dependency.

👉 How to fix it:
Arpita advises every woman to maintain a personal bank account, even in the most loving, transparent relationships.

• Keep a personal emergency fund that only you can access.

• Set up a joint account for household expenses, but maintain individual accounts for personal spending.

• Decide contributions based on income- Arpita suggests discussing a fixed amount or percentage depending on what suits your family’s structure.

Mistake 3: Saving Without Investing

Indian women are skilled savers but often avoid investments, relying instead on FDs or gold jewelry which are not sufficient for long-term financial growth.

👉 Why this is a mistake:

• Gold is often emotional and not liquid.

• FDs rarely beat inflation.

• You lose money in the long run by not investing.

Imagine this:

A woman comes to Arpita and says, “I have ₹20,000 saved up and I want to invest this money but I’m scared. I don’t know where to begin, and I don’t know which platforms to trust.”

This, Arpita shares, is incredibly common and exactly why she co-founded CashVisory.

👉 How to fix it:
Arpita recommends a guided, beginner-friendly approach to start investing—even if you’re starting small and scared.

• Step 1: Understand your risk appetite
  Not everyone is comfortable with the same level of volatility. CashVisory offers a simple 5-question quiz to help you assess yours.

• Step 2: Match your investment to your risk
  Arpita advises first-time investors to begin with mutual funds, ETFs (Exchange Traded Funds), or index funds. These diversify your money across companies and reduce the risk of losses tied to a single stock.

  

  Step 3: Know the difference
  Arpita explains:

  • Stocks are shares of one company. If the company does well, you benefit. If not, you lose.

  • Mutual funds are bundles of stocks, bonds, or both—spreading risk across multiple companies.

  • Index funds track the performance of major market indices (like the NIFTY 50 or S&P 500), making them a simple, cost-effective entry point.

• Step 4: Use guided tools
  Through CashVisory, Arpita and her team curate personalized mutual fund portfolios based on your risk appetite and goals. You don’t need to sift through thousands of funds—everything is automated and customized for beginners.

• Step 5: Automate and forget
  Once set up, your SIPs (Systematic Investment Plans) can run monthly with minimal effort. The key, as Arpita says, is to just get started.

Arpita also suggests building your own personal investment portfolio—not just joint investments. Whether you’re saving for your parents’ future, launching a business, or just want the autonomy to make financial decisions without asking anyone, your investment journey should reflect your unique goals.

🎁 And for those still unsure? Arpita is offering a free 30-minute consultation via the CashVisory website—no spam, no pressure.

Mistake 4: Spend First, Save Later Mindset

In many households, expenses are covered first, and savings come from whatever is left—usually very little. This backward approach can derail future financial goals.

👉 Why this is a mistake:

• Inconsistent saving leads to poor financial discipline.

• You’re less likely to hit long-term goals.

• Seeing “extra money” in your account can lead to unnecessary spending.

👉 How to fix it:
Arpita suggests flipping the script: Save first, spend later.

• Set a savings target and treat it like a monthly bill.

• Automate savings/investments at the start of the month via standing instructions.

• Use a separate bank account with no UPI or card access to minimize temptation.

• Aim to save 10–20% of your income. Arpita recommends starting with 5% if needed and scaling up gradually.

“Treat your savings like rent, it’s non-negotiable,” Arpita advises.

Mistake 5: Taking a Career Break Without a Financial Plan

Whether due to childcare or burnout, many women pause their careers but few do it with a financial strategy. This can result in insecurity, loss of independence, and disrupted investments.

👉 Why this is a mistake:

• No active income means a drop in contribution to family finances.

• Investments often stop, which can impact long-term wealth.

• Insurance coverage and EMIs can suffer without planning.

👉 How to fix it:
Arpita strongly recommends planning your runway before stepping away from your career.

• Get private insurance (health + term) if you rely on corporate coverage.

• Build a 6–12 month emergency fund that includes your personal and household contributions.

• Continue SIPs and investments during your break—don’t let compound growth halt.

• Discuss liability coverage: Ensure your spouse’s income can cover EMIs and key expenses.

“The goal is to come back to earning without having your financial life in ruins,” Arpita says.

Final Thoughts

These money mistakes aren't about ignorance—they stem from tradition, conditioning, and lack of access. But now that you're aware, you can act.

Arpita suggests:

• Gaining financial visibility is step one.

• Conversations about money should be regular and open.

• Investing isn’t just for men or finance bros—it’s for every mom planning her family’s future.

"You don’t need to be a finance expert to take charge. You just need to start."