India is home to millions of hardworking domestic helpers who work tirelessly to clean our homes, cook delicious meals, and take care of our family members. Domestic help is affordable for most working-class people in India; however, most of the helps struggle with limited financial literacy and resources.
Due to lack of financial literacy, most helpers find it difficult even to save money for emergencies and future goals. Financial illiteracy further leads to financial stress, debt, and no access to essential services like education, healthcare, and housing.
Having domestic help in your home is a privilege, and with that privilege comes the opportunity to empower them with financial knowledge and resources. With right guidance and support, you can help them become more independent and create a better future. Here are a few simple things you can do to help your domestic help handle their finances better and access services that can improve their economic prospects.
1. Teach them the importance of savings
One important aspect of financial well being is savings. Encourage your domestic helper to set aside a portion of their income each month to build an emergency fund or invest in a long-term goal. Teach them how a savings account helps to keep money safe, earn interest over time, and meet savings goals faster.
Remind them that savings account interest rate also matters. So, they should open a high interest savings account to grow their savings faster and improve financial stability.
2. Set up a savings bank account
Once your domestic helper understands the importance of savings, help them open a bank account online. Explain to them the features of savings account such as deposit/withdraw facility, ATM services, 24*7 access to funds, and other benefits.
Introduce them to helpful tools like savings account calculator that can assess the monthly interest they can earn on their savings balance. This will give them a sense of independence and the ability to track their savings progress. Look for banks and financial institutions that offer accounts with low fees and minimum balance requirements, so they can start saving without worrying about additional costs.
3. Access to financial support and information
Share details about retirement funds, funeral and life policies, and family support services with your domestic help to help with their long-term planning and saving. Explore different financial institutions that offer these services so that they can plan ahead and manage their finances better.
Motivate them to join investment clubs or savings groups where they can learn more about managing finances. Remember, the more they learn about financial management, the better their chances to create a stable future.
4. Educate them about digital finance tools
Introduce them to mobile banking, e-wallets, and budgeting apps, which are user-friendly and easily accessible from their smartphones. These tools can help them monitor their expenses, transfer money, and track their savings. You can also guide them on how to open a bank account online, start a fixed deposit online, check balances, and make payments online through these tools. In this way, you can simplify their financial management and encourage them to save and invest early.
To wrap up
It is important to recognize the value domestic helpers bring to your household and invest in their financial well-being. A financially secure helper can take care of their family better, educate their children, and lead a better quality life.