Ladies - learn to manage your money!

South African women need to become financially literate and be in control of their own money matters.

So says Robyn Farrell, managing director of 1st for Women Insurance Brokers.

Commenting on the fact that only 49% of women control the family budget, with 28% leaving it entirely up to the man of the house (according to the findings of a recent survey of South African women), Farrell says it is surprising that so few women are taking the reins in an era when women are generating income for their families, running their own businesses, climbing the corporate ladder and breaking the glass ceiling.

“It’s also surprising that in this age of feminine independence only 38% of women who are married or living with someone believe that it is important for them to have a career outside of the home*,” she says.

“Research shows that at least 50% of women will divorce. They also tend to live longer than men. Against this backdrop, women should actively participate in running the family finances and become financially literate because there will almost certainly come a time when they’ll have to take charge of their own financial matters.”

Historically, women have relied on their husbands to run the finances. Some have even been conditioned to do so. This is true across the world. However, women nowadays generally recognise the need and importance of managing their own financial affairs. Unfortunately, not all of them know how to go about it. Some feel intimidated by financial issues.

Farrell says women should regard the pursuit to financial literacy and financial independence as a journey.

“Take one step at a time. Learn the basics such as how a credit card works, how to create a household budget, the importance of saving and insurance, and understanding commonly-used financial terms.

“From there, learn about how finance agreements, credit agreements, life and disability insurance, provident plans, pension funds, unit trusts, retirement annuities and the stock market actually work.

“Spend time growing your financial knowledge. Read, listen, attend courses or speak to a financial advisor,” she says.

She concludes: “Financial literacy is an essential tool for making informed financial decisions. It’s also key to becoming financially independent. Being financially literate is empowering. It means being able to manage your money matters and be in control of your financial future. And it starts with you.”