Education key to financial freedom

Mail & Guardian

10-05-2025

Neglect: Women tend to put the immediate needs of their family first, neglecting their own future regarding their work and old age. Photo: Eric Miller/World Bank
Financial literacy and education is the key to women growing their wealth and becoming financially independent, even as they bear the burden of income inequality and household expenses.
'About 85% of South African women have bank accounts; they often use them simply as a place to receive funds … rather than engaging with both banking and investment products that could really offer long term financial security,' said Buli Ndlovu, executive head of retail and business banking marketing at Nedbank.
'Once we start educating ourselves about what it means to be
A 2024 study by the
Research by Global Findex showed that, on average, half of the women in South Africa now have bank accounts and savings.
'These findings are promising as they highlight the effectiveness of the initiatives put in place by the government to promote access to credit for women,' the report noted.
But the burden of household expenses is holding women back.
'Most of my female clients — I would say more than 80% — make provision for children's education or something, whereas my male counterparts are more heavily weighted towards their retirement planning and investment portfolios,' said Sheila-Ann Robey, a financial planner at Liberty.
'A lot of what a woman accumulates and saves is for the purposes of other people, especially their children. They're not really focusing a lot of their wealth accumulation and generation towards themselves and their futures.'
The report showed that a higher share of women spend more time on childcare and household chores than men. 'The burden of unpaid care work can affect women's labour market participation and career development. Moreover, policies have been slow to acknowledge unpaid care work as an important part of economic activities.'
Against this backdrop, Ndlovu said women need to be more aware of the financial services that banks and institutions provide to help them save and accumulate their wealth.
'Just as a start, be aware of your financial situation, be aware of where you are … and you can be proactive about this and educate yourself.'
She added that savings, retirement plans, investment plans and the value-added benefits of everyday banking are some of the ways that can help build long-term security.
'I'd always advise people to get someone who is qualified and trained to give you financial advice, because … it will help you learn the correct ways of building and maintaining wealth.'
Robey agreed, saying professional support is a good first step, but she encourages her female clients to think about themselves too.
'They need to make some provision for themselves, for their futures. Whether that's for retirement or an investment portfolio or an emergency savings, they have to put themselves first.
'Behaviourally women naturally are savers, and they are naturally risk averse. They lack confidence to enter the equity market from an investment point of view. So that also staggers their growth over a long term in terms of their own wealth accumulation and generation.'
The journey to financial freedom starts with small practical steps, one of them is learning how to budget, Robey said.
'Whether you're a salaried employee or a commission earner, know what comes in, know what goes out. That awareness will change your life if that becomes a habit; budgeting will change your life.'
Next, women should get familiar with how they can protect their income. 'Ensure your income through an income protection policy, life cover, disability cover, severe illness, because if you lose your ability to work, you will immediately become financially dependent on either your parents or a spouse or the government.'
Robey added that investing or having an emergency fund also guarantees financial independence, while estate planning protects wealth and assets after death.
'It costs a lot of money to die. So have a valid will in place, and make sure there's enough estate liquidity.'
Ndlovu said women's financial independence is crucial in the face of gender-based violence and financial abuse in the country. 'People remain in abusive relationships because of their finances and not being financially free. Income disparity, unequal asset ownership and financial abuse in intimate relationships are some of the issues that keep women trapped in cycles of dependency and disempowerment.'
Robey added that women also need to understand different marital regimes so they can protect themselves and their
An antenuptial contract protects the interests of both spouses and an antenuptial with accrual means any asset a partner had before marriage remains theirs and both are entitled to a 50% share of the combined estate growth during marriage. If no contract is entered into then people are married in community of property, which means the property is jointly owned; debt becomes the debt of both; both are placed under debt review and administration; if one is considered a credit risk then both can't get credit; the estate is divided in two on divorce; and you can't buy property individually.
'How you get married to your partner will impact your finances. If your partner dies, your marital regime affects that. If your partner doesn't have sufficient life cover, that will affect you,' Robey said.
The financial experts said women tend to steer clear of difficult discussions about money and, in doing so, put themselves last. These mindsets hinder the opportunities they can use to become financially independent.
It's never too late to start the journey, they said.
'The best time to start looking at your financial plan is yesterday, the next best time is now,' Robey said.