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SA women lag behind in financial literacy

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(Shutterstock)
Cape Town - Mothers and wives are increasingly becoming primary household breadwinners in South Africa and therefore need to be financially savvy, according to Liberty legal marketing specialist Michelle Human.

She is not so sure whether the financial literacy of South African women is up to scratch.

Women are undeniably playing an increasingly central role in the earning and administration of household finances.
 
Today, four in 10 US homes with children under the age of 18 now include a mother who is either the sole or primary breadwinner for her family.

Statistics indicate that this number has quadrupled since 1960 and is now at its highest level ever.
 
The motives are relatively easy to understand. It is the norm for married women to join the workforce.

It is also common for single mothers to raise children on their own. This clearly signals a massive shift in modern family dynamics.

With more empowered women coming forward to actively manage household incomes, it is important for them to have the necessary financial education.

According to Visa’s 2013 International Barometer of Women’s Financial Literacy, local statistics suggest this is not the case.

South African women are among the least financially literate in the world, measuring in at 23rd out of 27 countries surveyed.

Furthermore, many local mothers neglect to discuss money matters with their children.

Alarmingly, only 16% indicated that they speak to their offspring at least once a month about finances.
   
These figures are distressing, but Human believes the challenge can be overcome through willing participation and a thirst for financial knowledge.
 
“Just as women are playing a more prominent role in the earning of household income so they should be seeking out information to improve their financial literacy,” she says.

“Traditionally, female responsibilities were strongly focused on the family and its wellbeing. For this reason many women shied away from investments, passing the buck to their husbands or financial managers."

Today, there is no good motive why mothers or wives cannot exert influence over how household income is spent.

"We now live in a far more equitable society when it comes to gender, and women must be willing to educate themselves,” she says.

This process need not be an insurmountable challenge, according to Human.

There are several financial resources available to female breadwinners designed to teach them key investment knowledge at no cost.
 
“Anyone seeking out sound assistance or advice should approach a certified financial adviser," says Human.

Liberty head of marketing for the emerging consumer market Killy Bacela adds that part of their workplace and community financial training programme is aimed at women.

“We engage South African women by providing basic financial literacy and investment workshops at no cost," she says.
 
"In addition, 80% of trainers that we use for our financial education programme are women running their own micro training enterprises – we do this to empower women.

"Women are an important segment for us. With these training resources available, we want more women to be exposed and to seek out financial management knowledge in order for them to take control of their financial wellbeing,” adds Bacela.

- Fin24

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