Women encouraged to flex their financial muscles

For many South African women, National Women’s Day is about honouring the memory of the thousands of brave women who marched o­n the Union Buildings o­n 9 August 1956 to protest against the infamous Apartheid Pass Laws.

But o­n Women's Day, says Old Mutual Market Development Manager Sylvia Walker, we cannot afford to forget the thousands of South African women who remain trapped in dire financial straits, often out of sheer ignorance o­n financial matters.

For Sylvia - an energetic divorced mother of two - it is not the size of a woman's income that is important, but how she deals with her income – how seriously she takes her money and how she makes it work for her.

"Women must stand o­n their own two feet financially," she stresses. "For instance, there's research to show that fewer than half of all working metro women contribute to a pension or provident fund. The figure for men is appreciably higher.

"We also shoulder other burdens that could be more evenly shared. Women are more likely to save for their childrens’ education than men," she adds.

Lynette Nicholson, Old Mutual Research Manager, agrees. “The recently released findings of our latest bi-annual Saving Monitor show that people are simply not saving enough. As women, we have an important role to play in being the family catalyst to improve savings levels. As mothers, we play a pivotal role in teaching our children how to save and nurturing a savings culture among the younger generation.”

"Yet as women we are inclined to be more cautious," says Lynette. "Women are less likely than men to believe that the o­nly way to improve o­ne's financial situation is to take a few risks."

More women than men believe their finances are not well organised, and more women than men describe themselves as spenders, rather than savers. Perhaps worst of all, being comfortably off is less of a priority for women than it is for men.

As Lynette says, "Is it any wonder that women are also more likely than men to believe that their children will take care of them when they are old?"

Sylvia is forthright: "Financial vulnerability is o­ne of our greatest risks. While women today have more opportunities to be leaders than our elders had, we face many more choices and some pitfalls.
"There are still women relying o­n others to take care of them financially - parents or partners. Some women choose to remain single, but those who get married or live with a partner often make the mistake of thinking that they are secure. I passionately believe that relying o­n a partner is no guarantee of success!"

So what's to be done?

"No o­ne can predict the future," replies Sylvia, "but there are two critical elements we should be considering - protecting our income earning ability, and saving for old age. It's a sad reality, but women outlive men by several years, so many of us will grow old alone, which highlights our dire need to save for retirement."

"And," she continues, "Divorce is rife - o­ne in three first-time marriages ends in divorce. This can be crippling as we suddenly find ourselves having to fend for ourselves and our children. To add to which, there is always the possibility of losing a job, or your partner becoming unemployed - to say nothing of illness in the family. All of these can be devastating financially.

"As women we must empower ourselves!

"We must give serious consideration to the importance of personal financial planning. Begin with drawing up a household budget and paying off your debt. This will give you space to make better spending decisions, to seek the advice of accredited financial planners and invest your hard-earned money more constructively.

"Drawing up a financial plan and reviewing it regularly is every woman's right. But it is up to each and every o­ne of us to initiate this – to take control of our money and to get our plans in place. No-one else will do it for us. We are often so busy taking care of others around us, but starting now, in Women's Month, the time has surely come for us to take care of ourselves and enable our positive financial futures," Sylvia concludes.