Money tips for women
With SA having just celebrated Women’s Day, it is important to look at what more can be done to improve gender equality. This includes the fact that unemployment levels are still 4% higher for women than men and those that are employed earn an average of 27% less than their male counterparts, according to Ipsos’s 2017 Pulse of the People Report.
In light of the unique financial challenges women face, there are a few essential steps that need to be taken towards achieving financial freedom.
Don’t rely on your partner or spouse for your financial security. Even if you are not the primary income earner, it is important that you have a good understanding of the household finances. This includes being fully aware of how much household debt you are jointly responsible for and how much you have in savings.
If someone else is in control of your money, it can compromise the power you have over your own life. Women should always maintain some level of financial independence. For example, if you have agreed to take on the responsibility of being a stay-at-home mom, it is important that you have an upfront agreement with your partner so you both know how you will be remunerated as you still have your own expenses.
Whether it be meeting your friends for dinner or saving to buy your first home, budgeting is essential for goals. Decide how much you need to save each month and ensure that your spending does not compromise this target.
Expect the unexpected. Financial freedom means being able to cope with life’s setbacks without compromising your financial wellbeing. If you’re a parent, have a will drafted and get life insurance so that your family will be taken care of should anything happen to you. Lastly, develop a retirement plan and start contributing to it so you can continue to enjoy financial freedom in your old age.
Having a baby can delay career progression and have an impact on a woman’s earnings. The price women pay for raising a family has been dubbed the “motherhood penalty”. If you wish to start a family, it is important to limit the impact it has on your financial ambitions. Understand what you are entitled to when it comes to maternity leave. Although pregnant women are entitled to four months maternity leave, employers are not obliged to pay them a salary. While on maternity leave, you can claim from the Unemployment Insurance Fund if you have contributed for more than four months. This will give you access to between 30% and 58% of your salary for up to 121 days.
Taryn Schmidt is the Chief Marketing Officer at Wonga SA.