Over the past few decades, the role of women has evolved significantly. More women are entering the workforce and often becoming the primary breadwinners. In addition to managing family and caregiving duties, many women also shoulder the financial responsibilities necessary to support themselves, their families and their households. In a world where financial independence equates to personal empowerment, it's crucial for more women to become financially literate.
The rise of women breadwinners
According to the most recent SA General Household Survey by Stats SA[1], 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, emphasizes 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:
- Create and maintain a monthly budget
- Develop a habit of saving
- Build an emergency fund for the unexpected
- Manage one’s debt responsibly
- Focus on paying off high-interest debt first
- Always stay vigilant and watchful for fraud or scams
- Do not rely on other’s opinions or influence to make big financial decisions
Women should educate themselves financially so that they can make sound investments to grow their wealth over time. Take advantage of resources like online courses, or financial advisors to learn more about managing money, investing, and planning for the future.
Better debt management as part of financial wellness
One of the ways in which people can improve their financial wellness is by managing their debt responsibility. Research by Experian South Africa[2], found that since the COVID pandemic, women have defaulted on their credit agreements less often than men. The report also stated that in general, women pose a lower credit risk than their male counterparts.
“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.
This is where the partnership between RCS and the Welltec Group’s Credit Gateway platform comes in. Using the platform, one can obtain a free credit report and credit score in under five minutes. All that’s needed is a valid South African identity number. It’s important to highlight that requesting the report will not have any negative effect on one’s credit rating.
The platform is easy to use and can be accessed through a link that is provided on the RCS website (www.rcs.co.za). The financial wellness platform will assist customers with the necessary tools to make credit more manageable.
From stress to success
Today, women are more independent than ever. Despite the lack of complete gender parity across all industries, significant progress has been made in challenging traditional norms. More women now have the opportunity to lead, make decisions, and shape their own lives and careers. However, this progress also brings increased financial stress due to greater responsibilities.
According to DebtBusters’ most recent Money Stress Tracker survey, women are 10% more stressed about their financial situation, with at least 4 out of every 5 women claiming to suffer from financial stress.
Part of the solution, in van Brakel’s opinion, is for women to become more financially literate – to learn how to manage their money responsibly and in a way that makes sense in their unique contexts, as well as cater for the unexpected in the future. Expectations for women to perform at every level of their lives is high and women are certainly ready to rise to the challenge.
“As the popular saying goes: ‘knowledge is power,’ and in the case of South African women, financial literacy is the key to unlocking greater power and potential,” she concludes.
[1] https://www.statssa.gov.za/publications/P0318/P03182021.pdf
[2] https://www.justmoney.co.za/articles/which-gender-best-manages-their-debt/
