Female x finance; a formidable force

My mother helped her siblings and us children to study. She also helped other family members and friends wherever she could. What a privilege to have grown up with that example. That taught me, at a very young age, how important it is for women to empower themselves financially; it frees entire generations.?

I tell my friends to have a so-called “boy bye” backup fund, too. This means you save up for when you must walk from a relationship where you are the financially dependent one. The last thing you want to be trapped in, is a relationship forced on you because you are desperate for money.?

If you never need the backup fund, that will be the best news. Then you can always treat yourself – how often the women in my life put others first at their own expense. They will then deserve the joy of spending that purse they had saved up for a rainy day.?

Regarding women and money, the yearly Momentum | Unisa Science of Success Insights report makes for some interesting reading.?

The report has aimed for 10 years to give South Africans the right tools to understand and manage their financial health. It shows that a household’s mindset and how it makes money decisions play a major role in its financial success. It shows if a household feels empowered and combines that with good education and certain financial activities, it can withstand even an unfavourable economy.?

These financial activities include:

• setting goals;?
• financial planning;
• budgeting; and
• using financial advice.??

The report reveals almost all households experience financial troubles at some point but how they respond is what will affect their financial success. They should be “warriors” not “worriers”. Warriors deal with problems and share them with someone they can trust or who has knowledge. They don’t allow themselves “to be pushed around in life”. They take responsibility for their future.??

The report talks about a “financially knowledgeable person” as someone who knows the most about the household’s money affairs. That sounds like my mother. And they are very often women – in this study it’s the case in 56% of households. More than 60% of these women have never been married or are single. Only 18% of these households are financially well.

There is hope for households that focus on their goals and seek advice, according to the report. It warns against always being in “fire-fighting” mode. It is “exhausting and disempowering”. These women will enjoy emotional relief when they can pay off their debt, it says.?

The report suggests that women should empower themselves by being brave and reading about financial matters – even a small step makes a difference. They should see putting their financial health first “as part of their self-care routine”. If women start accepting an active role in financial matters, it will build their confidence and empower them economically.?

There is no reason why they shouldn’t.?

My colleague Paul Nixon, Head of Behavioural Finance at Momentum Investments, claims women are better investors than men. He bases this on thorough research. His studies show that women are far less inclined to switch their investments from one fund to another when they invest – especially so regarding retirement savings. Women are also less inclined to change their investments just because the past performance disappointed them. Paul’s research has proven time and again that when investors jump between funds, they almost always lose money.

For their sake, and for the sake of my nephews and nieces, I’m betting on my sisters following in my mom’s admiral financial footsteps.?

About Geldhelde:?

This editorial is linked to Momentum Geldhelde, a money show that helps South Africans to manage their finances better. Viewers can catch season 4 of Momentum Geldhelde every Thursday on VIA TV (DStv channel 147) at 18:00. The show tackles pertinent financial issues facing South Africans today. Momentum is part of Momentum Metropolitan Life Limited, an authorised financial services and registered credit provider. ?2022 Momentum Metropolitan Life Limited.?

*About Momentum Investo:

Momentum’s Investo makes it easy for clients to invest regularly and to stay invested. With their understandable and competitive product offering Investo helps clients to stay focused and enjoy excellent value when they remain committed to their savings goals.