Girl Math 2.0: How ‘playing it safe’ can cost young women lakhs in potential wealth

The internet has spent the past few years joking about ‘girl math’ — the whimsical logic where anything bought with a gift card is ‘free’ and returning clothes somehow ‘earns’ you money. It was funny, relatable and harmless. But it also continues a tired narrative of women being clueless consumers who remain passive observers of their own bank accounts.

“Women in India have been given the same financial advice for decades: save in gold, keep money in fixed deposits, and avoid risk. While the intention may be safety, the long-term cost of being overly cautious can quietly erode wealth. Financial independence for women is not just about earning, it begins way before the first investment is done. It’s about understanding and compounding money over time,” said Shivangi Sarda, a senior analyst (Derivatives and Technical Research, Wealth Management) with Motilal Oswal Financial Services.

She also warned that there was a significant “hidden cost” to playing safe. And as the years pass, women may find themselves missing out on lakhs in potential wealth creation. 

“Most traditional instruments tend to generate returns of around 6–8% annually over the long term, while equity markets historically have delivered closer to 11–12% CAGR over long periods. The difference may sound small, but over time it compounds dramatically,” Sarda explained. 

Taking the example further: A woman could lose more than 60% of potential wealth creation over two decades by choosing ‘safety’ over ‘growth’. And this gap only becomes wider when bigger amounts or monthly investments are involved.

The starting point

Financial literacy is not part of the typical curriculum for most girls — with much of the focus on pocket money and piggy banks. This sometimes shifts to ‘too safe’ investment options such as buying gold or putting money into fixed deposits. 

“A piggy bank protects money from being spent. It does not protect it from inflation. That is the real lesson. When money is simply kept aside—in cash or in a very low-interest account—it may look safe, but its buying power quietly shrinks over time. The ‘money’ stays the same, but what that money can buy becomes less. For example, if a teenager keeps Rs 1,000 untouched for a few years, it may still be Rs 1,000 on paper. But if the price of books, school supplies, transport, or even a simple outing has gone up in that time, that same Rs 1,000 will be far less in value,” reminds IndiaBonds co-founder Aditi Mittal.

She also says that children should be taught early that savings is only the first step before “learning how money can  grow”. Sarda cited investing to explain further — noting that even teenagers investing Rs 1000 per month would build a significantly higher corpus than those who wait until they are ‘ready’ to invest as adults. 

“Consider this simple scenario: A girl starts investing ₹1000  per month at age 15 and earns a long-term equity return of about 12% annually. 

By age 25, she has invested just ₹1.2 lakh, but it grows to roughly ₹2.3 lakh. Now imagine she stops  investing at 25 and lets the money compound. 

By age 60 that early investment alone could grow to  ₹1 crore+. But if she waits until 25 to start investing ₹1000 per month, the corpus at 60 would be  only around ₹35–40 lakh. 

That 10-year delay can create a wealth gap of ₹60 lakh or more,” she explained. 

Where should one start?

Investments can run the gamut from ‘boring’ bonds to risky stock market bets. But which is the right move for parents or young investors to consider? 

“Many parents open savings accounts or recurring deposits for children, believing that this is investing  for their future. But the truth is most minor accounts invest in low-yield instruments which barely  beat inflation. 

“The bigger myth is that children cannot invest in equities. In reality mutual funds and  stocks can be held in a minor’s name under guardian supervision. Long investment horizons make  children ideal equity investors. Starting early does not require large sums…”

“The biggest risk in investment is not volatility, it is waiting too long to begin and losing out on the  magic of compounding,” said Sarda. 

A minor in India can hold a demat account or mutual fund portfolio — with an adult acting as the formal operator till they turn 18. Parents can also invest in government schemes (such as the Sukanya Samriddhi Yojana for girls under the age of 10 or look at children’s gift mutual funds. Perhaps an even simpler option would be to continue regular investments while ‘tagging’  specific folios for a child. 

NOTE: Minors cannot directly trade (buy/sell) in shares. There are also very different tax implications for parents operating  minor accounts and those ‘tagging’ folios within their own investments.

Meanwhile Mittal makes a strong case for ‘boring’ investments that deliver a fixed income in times of uncertainty. She adds that life goals such as education, home ownership, caregiving, or retirement “are not funded by  excitement but through disciplined planning”.

“Equity markets may create excitement, but fixed income teaches something far more  valuable: stability, discipline, and the importance of preserving capital when uncertainty rises. When  markets turn volatile, people begin to appreciate the value of cash flows they can see and plan  around. In difficult economic phases, the ‘boring’ part of finance is often  what keeps financial plans intact,” she said.

Financial starter kit

Sarda opines that financial independence begins when women stop outsourcing every decision to an ‘expert’. And while it might be impossible to learn everything overnight, she suggests three “essential numbers” that can be the perfect starting point.

Compounding Rate (CAGR) – This tells you how fast your money is actually growing annually.  Understanding CAGR helps you compare: 

• mutual funds 
• FDs 
• Gold
• equities 

Inflation-Adjusted Returns – A 6% return sounds good until inflation is 6%. If inflation averages 5–6%, a 6% return essentially  means your money is barely growing in real terms. Knowing how to calculate real returns = return – inflation helps women preserve purchasing power 

Future Value of SIPs – Even small investments grow significantly with time. A simple SIP calculator helps answer what will  ₹1000 monthly become in 20 years? Or how much should I invest to reach ₹1 crore after 5 years? 

Starting when ‘ready’

There is typically no ‘perfect’ time to make financial investments or a foolproof method to follow. Both Sarda and Mittal told FinancialExpress that the biggest pitfalls they saw women falling into were these ‘delays’ and a tendency to wholly outsource their financial choices. 

“I meet incredibly accomplished women — doctors, lawyers, senior executives — who say “I’ll start investing seriously once I understand it better.” Meanwhile, inflation is running. Time is passing. The myth is that financial literacy must precede financial action. It doesn’t. You don’t need to understand ‘bond convexity’ to buy a high-quality AAA-rated bond. You just need to start,” Mittal reiterated.

“One of the most common myths even highly educated women fall for is that my partner or family  member understands finance better, so they can manage the investments. This may work but it  creates financial dependence, even when the woman is earning well. Every woman should at least  know where the money is invested, what the portfolio allocation is and how to access or rebalance it. Financial literacy is about retaining control and having the confidence to add to the table,” Sarda added..

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult a qualified professional before making investment decisions.