Women’s Month: Financial tips tailored to women

Cebisa Mfenyana from Metropolitan

Men are from Mars and women are from Venus… perhaps a bit of a stretch, but there is some truth to the saying too; men and women are fundamentally different. They don’t look the same, they don’t sound the same and they don’t think in the same way.

There are some subtle differences too. For example, on average women live longer than men, and are more risk averse than their counterparts.Women also take a broad or "collective" perspective, and they view elements in a task as interconnected and interdependent – they can juggle many balls at the same time, whereas men tend to focus more on one thing at a time. 

“As a woman, it is important to understand these differences, especially when it comes to managing your money and planning for the future” says Cebisa Mfenyana from Metropolitan. 

In honour of Women’s Month this August, Cebisa provides women with financial advice on how to manage these key differences between the sexes: 

Maternity leave vs. paternity leave: In South Africa, women are entitled to take four months maternity leave when they have a child, while men are only allowed three days! Some companies will cover your full salary during this time. But, for those that don’t, it is important to start saving at the beginning of your pregnancy for any expected shortfall in income during those months. 

Starting a family is expensive and as a parent you will need to start managing your finances accordingly. Consider if it is more economical for you or your partner to stay home and look after your child, or if it is better to budget for a nanny or day care. You will also need to start saving for your child’s education. 

On average men earn more than women in South Africa: An unfair reality, but true. As a result, the average man will be able to contribute more to his retirement fund, emergency fund and general savings fund. As women we need to think ahead regarding our financial decisions and put measures in place so as to be prepared for all of life’s unexpected events. 

Women tend to live longer than men: There is plenty of evidence that confirms that women in general could outlive their retirement savings. One way of managing this is to contribute to a retirement fund as soon as possible so that you are able to enjoy the benefits of compound interest in retirement. Keep your retirement savings safe and secure in retirement vehicles such as a Preservation Plan when you change jobs or by taking out a Retirement Annuity. In this way, you can ensure a comfortable retirement. 

Women are susceptible to specific illnesses: It is an unfortunate reality that there are some illnesses that are specific to women, such as breast and ovarian cancer. A lesser known fact is that women are also six times more likely to die from heart disease than from breast cancer. Prevention is better than cure, so be sure to go for regular medical check-ups and maintain a healthy lifestyle. If this is a concern for you – especially if you have a history of one of these diseases in your family – speak to your financial adviser about insurance options that cover a variety of illnesses and diseases. It is better to be safe than sorry. 

Pink tax: Pink tax refers to the fact that women sometimes pay more than men for essentially the same product or service. For example, it is generally more expensive for women than for men to have their hair done. On top of this, women also have additional expenses that men don’t have, such as sanitary ware, more underwear items, gynaecologist appointments, as well as beauty regimes such as manicures, pedicures, and buying make-up and other beauty products.   

“Taking into account all our differences and what we, as women, have to deal with – it is best to be prepared for all of life’s opportunities and challenges. Speak to a qualified financial adviser so you can navigate life’s financial challenges as a woman with more knowledge and ease.”