It is reported that financial literacy is crucial for women managing family and caregiving responsibilities, as it promotes personal empowerment and financial independence.
The rise of women breadwinners
According to the most recent SA General Household Survey by Stats SA, almost 40% of South African households are financially led by women.
This finding reflects the significant societal changes that are taking place, driven by the global call for gender equality and greater recognition of women’s contributions both at home and at work.
Mariné van Brakel, Deputy CEO at RCS, a financial wellness platform, emphasises the importance of financial literacy in empowering women to secure their futures and those of their families.
“Equipped with a clear understanding of basic financial concepts and how to master aspects like budgeting, saving, and managing debt responsibility, women can make more informed decisions about their future and the future of their families.
“Supporting women in becoming more financially literate not only promotes economic stability within families but also drives financial inclusion and helps build a more equitable financial services ecosystem,” she says.
Closing the knowledge gap
In terms of financial literacy, there are some fundamental best practices that all households should adopt on their path to better financial security:
1. Create and maintain a monthly budget.
2. Develop a habit of saving
3. Build an emergency fund for the unexpected
4. Manage one’s debt responsibly.
5. Focus on paying off high-interest debt first.
6. Always stay vigilant and watchful for fraud or scams.
7. Do not rely on others’s opinions or influence to make big financial decisions.
Better debt management as part of financial wellness
Research by Experian South Africa indicates that women have shown lower default rates on credit agreements and overall lower credit risk since the Covid-19 pandemic, suggesting that managing debt responsibility can improve financial wellness.
“These findings are encouraging. What we need to do more of, however, is show women how to use credit as a way of bolstering their long-term financial planning and ultimately, building wealth. With strong financial literacy skills, women can build a safety net that protects them from economic hardships and enhances their long-term security. It is also essential for women to educate those around them, as Experian data indicates that women tend to be more responsible, says Van Brakel.
Keeping score
The first step to better credit management is to keep track of your credit score. Knowing your credit score helps you understand your credit health.
From stress to success
Women’s independence has increased significantly, challenging traditional norms and allowing them to lead, make decisions, and shape their careers. However, this progress also brings increased financial stress due to increased responsibilities.
The Star