Confident and Capable – Women Taking Charge of their Money
The following article is by Kim Potgieter, Certified Financial Planner, author and coach; who gives us some valuable insight into money management strategies that can not only provide women with independence but also help one thrive in the financial world:
For as long as I can remember, societal norms and media portrayals have often sidelined women in managing money. If you’re like me, in your 50s, you may have grown up hearing that “money is a man’s world.” I saw firsthand how my mom struggled with the allowance given to her by my father, having no say in our family’s financial situation. Even today, many women remain disempowered and sometimes controlled by money. This is one reason I became a financial planner. I wanted to understand our relationship with money and redefine what it means. It’s been a long journey, but I now understand that money is a tool that enables our lives. It’s up to us to decide how our habits and mindset around money can support us in living our best lives.
Recognising the Disadvantage
Historically, financial planning has been a domain dominated by men. Many of us were taught, by our parents’ example, that men should take responsibility for the family finances, leaving women out of money conversations altogether. According to the latest World Economic Forum Global Gender Gap Report, in South Africa, women earn between 23% and 35% less than men for doing the same work. A recent study found that in 2021, women earned 78 cents for every rand earned by men, down from 89 cents in 2008 – a significant setback for gender equality.
Embrace Your Strengths
Despite these challenges, we have made great strides. Women now head up households, serve as breadwinners, and hold leadership positions in businesses and communities. As of 2022, 42% of households in South Africa were female-headed, and women account for 40% of national income, with 58% taking charge of day-to-day household purchases.
The truth is, women are inherently good with money. I have repeatedly seen in planning meetings how women harness their power, wisdom, and intuition to make smart choices with money. In my experience, women see money as an enabler of choice – enabling more free time, flexi-hours, and support for our families. Women are also generally quite willing to change habits and make sacrifices to achieve goals.
By embracing your unique gift and innate ability to point out the right direction for your family, you can make sound decisions and steer their financial futures in the right direction.
The Importance of Financial Empowerment
With women living roughly six years longer than men, it’s likely that at some point, whether through choosing to remain single, death or divorce, you will be in control of your family’s finances. We must plan for the unexpected and take responsibility for our money, not just because of potential what-if scenarios but because no one understands our life goals and dreams better than we do.
Reflect on these scenarios:
If something happened to your partner, how equipped are you to take over financial control for you and your family?
Many women head up single-parent households. Will your children and extended family be looked after if something happens to you?
Are you spending all your effort (and money) ensuring everyone else is looked after? What will happen when you’re no longer working? How will your needs be met in your later years?
The point is that being involved with money and empowering ourselves to manage money ensures security for ourselves and our families.
Empowerment through Action
You are your greatest asset: Given our extended life expectancy, women are well-equipped to extend their income well after the traditional retirement age. Tap into your creativity, skill, wisdom, and intuition to find insightful, out-of-the-box ways to broaden your portfolio life and enlist all your assets to sustain a prolonged income.
Overcoming the Nurturer-only Mindset: One of our greatest gifts and strengths is the role of nurturer, caring for children, parents, and loved ones. As the centre of our families, we also need to be financially secure ourselves – you need to be doing well to take care of everyone else. By allocating money to invest in your secure future, you are looking after your own needs and ensuring that you won’t be a financial burden to your family in your later years.
Value yourself enough: Embrace your worth, capability, and potential. Value yourself enough to believe that you are deserving and able to not only manage your money but also invest in yourself.
Identify your life goals: Be clear about what the money is for. Spend time designing a life plan, visualising your goals and objectives, and then ensuring your financial goals align with them.
Create and implement a financial plan: Look at your habits and ensure they support reaching your financial and life goals. Once you experience the benefits of investing and compound interest, discipline becomes a way of life.
Plan for the Future: You have choices – to look after your family, deal with challenges, and ensure you have enough for yourself. But it starts with setting boundaries and paying attention to your money.
It’s always a good idea to team up with a financial planner. They have the skills and expertise to guide you in making objective decisions to ensure you are not left vulnerable while looking after everyone else’s needs.
You can check out more from Kim Potgieter by heading over to her website, where you’ll find a wealth of resources and information on essential money management tips and conversations.