As we have just celebrated International Women’s Day on 8 March, it is important to recognise that financial independence is a key pillar of gender equality. As such, it is essential for women to stay on track with prioritising their finances.
While many financial barriers are beyond women’s control, self-doubt and a reluctance to seek expert advice often stand in the way of financial progress.
As an advocate for women being financially independent and encouraged to ‘vuka bazenzele’ (grab every opportunity), it’s important to recognise the different realities many women face. These realities vary whether women are homemakers, supporting their partners financially or victims of financial abuse. In some cases, women are left to fend for their children by any means necessary. This may include taking on jobs that can help make ends meet.
Financial independence for women
Many women entering marriage may not be aware of contracts that could protect them financially. This lack of awareness is due to a lack of education on the legal implications involved. Consequently, they may automatically be married in community of property. They have no understanding of the impact when things go wrong. For instance, they may be responsible for their partner’s debt.
It is so important to shift the narrative of women lacking financial independence. We need to encourage conversations at home around money. It’s crucial to plan together and check in on each other’s spending habits.
Mothers often prioritise their kids or people back home. However, they may forget to do things for themselves. This often results in neglecting their finances. In turn, it can lead to resentment. That’s why it’s key to find a balance.
According to the 2024 Momentum Group BMR Household Finance Survey, of the women who are the Financially Knowledgeable Persons (FKPs) in their household, only 8.3% have a professional financial adviser. In contrast, 73% rely on their own knowledge. The research uncovered that women who consult a professional adviser on average have more wealth. These women have more wealth than those getting their advice from other sources.
Supporting women in achieving financial freedom
The implication of not accessing professional advice is so serious for women. It limits their ability to generate wealth. It also limits their ability to secure the financial future of their families. Women aspire to financial independence, but barriers remain. It’s crucial to push forward and work with an adviser to achieve better financial outcomes.
Although men often hold the role of breadwinner in South African households, 62% of women are responsible for their household’s day-to-day money management. These women are considered to be the FKP. Meanwhile, 21% share the responsibility with their partner.
Despite this, 39% of respondents indicated that one of the biggest barriers to achieving their financial goals was self-doubt. Even while being at the helm of their household’s finances, there is a disconnect between how women see their financial responsibilities and how they see themselves.
Self-doubt emerged as more of a barrier than insufficient qualifications, socioeconomic background, or gender pay disparities. It was only topped by lack of opportunity, financial constraints, and gender discrimination.
Imposter syndrome is a persistent feeling of being a fraud despite evidence of success. It is a common condition that disproportionately affects women. Research indicates that women are more likely to attribute their achievements to luck rather than their own expertise. If you’re doubting yourself, it’s not a good strategy to rely on your own advice to build wealth. This doubt creeps into every area of your life.
Financial advice for women
Considering most women are relying on their own advice, it’s interesting that just a small minority of women use a financial adviser. Only 5% of women are satisfied with their finances. As women, we struggle to ask for help when we need it. We have a natural inclination to please and accommodate others. With that comes the tendency to diminish our own needs.
It is also important not to just seek advice in tough times, but in good times as well. An athlete does not just have a coach when they are learning the sport. They also have a coach when they are competing at professional levels. This ensures they continue winning.
This is where a professional adviser can work with you in formulating a financial plan. It will not only ensure you stay on track financially, but also show you how much you’ve accomplished. Your progress isn’t by luck, and you are capable of more than you believe.
We currently have over 2,500 qualified advisers around the country who can assist with planning. They can help you reach your financial goals. These advisers are qualified to provide holistic advice on products and services. We believe that together we can build a more secure financial future.
Lindiwe Gumede | CMO | Metropolitan | mail me |
