Women's Month is a reminder of how far women have come. However, we still have far to go, especially when it comes to financial freedom.
With money comes freedom and power to navigate spaces that previously did not exist for women, but many South African women still find themselves having to jump through hoops to provide for their loved ones.
The price of taking care of loved ones
South Africa has come a long way when it comes to including women in the financial landscape that empowers them to take care of themselves and their loved ones. However, the gender pay gap still sees 61% of women earning less than men for the same amount of work.
Having their finances stretched thin means that women are much better savers than men when it comes to short-term goals, but when it comes to building a financial safety net for the future, many struggle.
Empowering women financially can give women the basics of being able to take care of their loved ones, which 72% of South African women are currently doing, themselves, and also investing in things that can protect their financial future.
Women save more, invest less and live longer
Juggling finances is a tight rope made harder for women who already find themselves handicapped by the gender pay gap. Having financial goals are some of the ways in which women can strike a balance without falling into the red.
The most common way South African women achieve this is through saving. While women are better savers compared to men, they are still paid less, yet face the same financial responsibility in some cases. Data suggests that 42% of South African households are headed by women.
In some cases, a single income is used to take care of immediate and extended family, which can cause many women to fall into the debt trap to meet expenses. Therefore, leaving little to no room to save money for their future which can be a costly mistake.
According to data by ILO, less than half of South Africans (44%) have a budget in place. When it comes to having a financial plan for life's unexpected moments, less than one-third of South Africans (29%) have set aside emergency funds to cover expenses for at least three months.
This causes many to borrow more instead of investing in things that can protect their financial future, with women being the most vulnerable. Is there any hope for women when it comes to bettering their financial situation?
Learning through financial literacy
While the gender pay gap has decreased over the years in South Africa, it still impacts many women. Women's Month is a reminder that more action needs to be taken when it comes to offering women the basic freedom and rights they need to survive and thrive in South Africa.
While change may take some time to come into effect, there are small changes that women can take that will impact their finances for the better. Financial literacy is one of the ways to empower yourself and plan for the future.
Understanding that having the basics such as life cover and investments that you can gradually grow will be beneficial not only for you, but your loved ones. There are financial health checks you can do on your own or with a financial advisor to find ways to make your finances work for you such as:
Re-assess your finances. Knowing where you stand financially can let you plan your finances better and know what needs to be cut back on.
Start setting financial goals. If you don't have financial goals in the form of investments, budget or policies to protect you, now is the best time to start setting these.
Minimise your debt. If the debt you are taking on will not see you receiving more money on the risk you are taking instead of losing money, then it's time to re-evaluate if you need it.
Understand financial wellness. Like being healthy, your finances will need a constant financial wellness check to see if you are still on the right path. Start small and gradually build.
