In South Africa, women often bear the brunt of household duties and parenting responsibilities, which negatively impacts their financial independence and curbs their ability to manage personal wealth effectively. Meanwhile, studies show that even basic monetary knowledge can significantly improve individuals’ financial health. What other factors come into play regarding personal wealth management, and what solutions are available to South African women to achieve financial independence?
Gender-specific financial risks
When it comes to managing personal wealth, South African women face many gender-specific challenges, including the gender pay gap, unemployment and underemployment, and lower lifetime earnings, which negatively impact their retirement savings. Another significant limitation is the level of financial literacy, which directly affects wealth management ability and financial inclusion.
Women are more at risk of becoming indebted than men, research by National Debt Advisors shows. They often carry out more household duties, and with the increasing cost of living coupled with a pay gap, it is easy to see how this can lead to financial insecurity. Moreover, they are often paid less than men for doing the same job, meaning they have to work longer hours to make ends meet. According to the Inequality Trends in SA report of 2022, women in South Africa, on average, earn 30% less than men for doing the same job. This creates increased financial stress, and women become more likely to use credit to cover this gap in their finances.
This alarming trend is confirmed by a 2023 research from Debt Busters indicating that South African women between 30 and 40 have the most debt, and many are in financial distress. They are grappling with lower salaries and rising child and elder care costs. Moreover, SA women mostly have unsecured debt, which means they primarily borrow for day-to-day expenses rather than acquiring assets like their male counterparts.
Financial literacy as a springboard for efficient personal finance
The harsh financial environment that SA women face today requires a solid understanding of basic financial concepts, which is the first step to avoiding ill-advised money-related decisions. Financially knowledgeable adults are less likely to be past due on credit card, mortgage, or student loan payments. Knowledge of financial matters is often a more reliable predictor of past-due payment rates than consumer characteristics, including education, age, race or ethnicity, and gender. Therefore, becoming more financially knowledgeable and keeping abreast of the changes in the financial landscape may be a deciding factor for SA women in increasing their financial health.
Octa, a global financial broker with over 12 years of experience, offers its clients accessible and actionable financial knowledge to help them navigate the financial markets and make well-informed investing decisions. Octa’s recently upgraded trading platform, OctaTrader, allows you to apply expert market analytics and acquire financial knowledge from experienced traders while making more informed, data-driven investing decisions. With fluent comprehension of investing and a firm grip on managing personal finance, the broker empowers its clients to make solid headway in achieving consistent profit.
Lack of financial literacy is not exclusive to women: it affects more than half of South Africans. Past economic exclusion, unequal education systems, and recent aggressive credit marketing have left many unprepared for day-to-day financial challenges. Low financial literacy means many struggle to manage debt, can’t save or invest enough for the future, and remain vulnerable to money scams.
Given that, cash and debt management, budgeting, saving, accounting, and investing skills serve as instrumental building blocks for efficiently managing personal finances. To spread financial literacy in SA and empower women to pursue financial independence, Octa recently conducted a series of online trading lessons called ‘Women Trading Camp’ designed to empower South African women towards stronger wealth management skills.
Octa is an international broker that has been providing online trading services worldwide since 2011. It offers commission-free access to financial markets and various services already utilised by clients from 180 countries who have opened more than 42 million trading accounts. Octa provides free educational webinars, articles, and analytical tools to help traders reach their investment goals.
The company is involved in a comprehensive network of charitable and humanitarian initiatives, including the improvement of educational infrastructure and short-notice relief projects supporting local communities.
Octa has also won more than 60 awards since its foundation, including the ‘Best Forex Broker South Africa 2023’ award from Global Banking and Finance Review and the ‘Most Reliable Broker South Africa 2022’ award from Global Business Review Magazine.
