ADDRESSING FINANCIAL CHALLENGES FOR WOMEN: INSIGHTS FOR WOMEN’S MONTH
In 2024, despite significant advancements, women still face unique financial challenges that can hinder their economic progress. This is particularly true in South Africa, where disparities in pay and other financial issues remain prevalent. Understanding these challenges and how to overcome them is crucial for women striving for financial independence. Here are the top five financial challenges women face and practical steps to address them.
- The “Invisible” Glass Ceiling
The glass ceiling is a significant barrier for many women, limiting their career advancement and earning potential. In South Africa, women hold only 29% of senior management positions, highlighting the need for more representation and support in leadership roles.
TIP: Seek out female mentors and supportive networks that can provide guidance and opportunities for career growth. Building relationships with other professional women can help you navigate and overcome workplace challenges.
- The Gender Pay Gap
The gender pay gap remains a critical issue. South African women earn, on average, 23% less than their male counterparts. This disparity not only affects their current income but also has long-term implications for retirement savings and financial security.
TIP: Advocate for fair pay by being informed about your industry’s salary standards and negotiating assertively during job interviews and performance reviews. Additionally, consider enhancing your skills through further education or professional certifications to increase your market value.
- Overlapping Duties and Unpaid Labour
Women often juggle multiple roles, including unpaid labour at home, which can impact their financial well-being. In South Africa, women perform the majority of unpaid household and caregiving work, which can limit their time and energy for paid employment and career advancement.
TIP: Share household responsibilities with family members and consider hiring help if affordable. Time management and setting boundaries between work and home life can also help balance these overlapping duties.
- Inadequate Financial Literacy
In South Africa, studies show that women are less likely than men to have formal financial education, impacting their ability to manage money effectively. Therefore, many women lack sufficient financial literacy, which can lead to poor financial decisions and increased vulnerability to debt.
TIP: Invest time in financial education. There are numerous resources available, including online courses, workshops, and books. Understanding budgeting, saving, investing, and debt management can empower you to make informed financial decisions.
- Fear of Ambition
Societal expectations often discourage women from being ambitious, impacting their financial growth. Ambitious women may face criticism or be labelled negatively, which can deter them from pursuing higher-paying jobs or entrepreneurial ventures.
TIP: Embrace your ambition and set clear financial and career goals. Surround yourself with supportive individuals who encourage your aspirations. Remember, your ambition is a strength, not a liability.
Overcoming Financial Challenges: Practical Steps
Achieving financial independence requires a proactive and informed approach. Here are five steps to help women overcome financial challenges:
Step 1: Create a Realistic Budget
A well-planned budget is essential for tracking income and expenses. It helps you identify areas where you can cut costs and allocate funds towards savings and investments.
TIP: Use budgeting tools or apps to simplify the process and ensure you stick to your financial plan.
Step 2: Build an Emergency Fund
An emergency fund provides a financial cushion during unexpected events, such as job loss or medical emergencies. Aim to save at least three to six months’ worth of living expenses.
TIP: Start small and gradually increase your savings. Automate your savings to make consistent contributions.
Step 3: Start a Side Gig
A side hustle can provide additional income and help you achieve financial goals faster. It can also offer a sense of financial security and independence.
TIP: Choose a side gig that aligns with your skills and interests. Online platforms and freelance opportunities are excellent places to start.
Step 4: Hire a Financial Advisor
A financial advisor can provide personalized advice and help you develop a comprehensive financial plan. They can assist with investment strategies, retirement planning, and risk management.
TIP: Research and choose a certified financial advisor who understands your specific needs and goals.
Step 5: Seek Support and Advice
Do not hesitate to ask for help when needed. Financial challenges can be overwhelming, but support from professionals, family, and friends can make a significant difference.
TIP: Join financial literacy groups or networks that offer advice and support for women.
Conclusion
Despite the unique financial challenges women face, it is possible to achieve financial independence with the right strategies and support. By understanding these challenges and taking proactive steps, women can secure their financial future and contribute to a more equitable economic landscape. If you have any further questions or need assistance for your business, please do not hesitate to send an email to info@pe.tdp.co.za.
In celebration of Women’s Month, we are excited to announce a competition for women to share their best practical financial advice to educate and inspire other women. Share your advice in the comments section of our social media post advertising this blog. The prize includes a spa spoil – an hour’s back, neck, shoulder, scalp, and face massage, as well as a gel manicure OR pedicure at Hidden Beauty. Our director, Jaco Barnard, will adjudicate the best piece of financial advice. The competition closes on Monday, 26 August, and the winner will be announced on Wednesday, 28 August. Let’s inspire and help each other towards financial success!
