Education key to financial freedom

Taking steps such as budgeting and investing will help women build financial independence

- Aarti Bhana

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 financially free, and how to start going about it, we can achieve it."

A 2024 study by the Commission for Gender Equality found that although women are still less represented in the labour force and are the majority in low-earning jobs, there are improvements in their access to finance and public assets, as well as ownership of private assets.

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."