Did you know that 80% of women will manage their own finances during their lifetime, either because they have remained single, gotten divorced, or been widowed?
And the reality is that money and finances are different for women.
We know from South African salary surveys that women earn on average 30% less than men and, as they are the main caregivers, are more likely to take a job that prioritises flexibility over salary.
Around half of mothers in South Africa are raising children on their own, and less than a third receive regular financial assistance from the father.
In the case of a woman who gets divorced, if her career had taken a back seat to raise the family, she will struggle to ever catch up on her ex-husband’s earning capability.
There is a good chance she will end up being more financially responsible for the children than she expects.
And to top it off, women outlive men by around seven years on average, so they need to invest more.
The bottom line is that financial stability and investing for the future is more important for women.
Most women manage the family’s day-to-day finances, so why not take control of the investments as well?
This is what you need to be doing:
- Make sure you have your own money plan, your own bank account, credit record and retirement fund.
- Do not rely on your partner’s retirement fund – you will outlive him, and you need to make sure you have enough money to support yourself in your retirement years. Women need to be saving around 20% more than men to provide for their longevity in retirement.
- If you take time off to have a child, or change careers, this could set you back for retirement and other financial goals. Start as early as possible to put money away for your retirement and let the power of compounding help it grow.
Most women run the household budget and therefore they have a fair amount of control over what is spent and therefore what there is left to invest.
Every rand spent is a rand not invested – so it is all in your hands. Take the lead, and own your money matters.