PANDEMIC FALLOUT HIT WOMEN HARD
With a disproportionate number of women working in the services industry (tourism, hospitality and beauty, for instance) that was directly impacted by lockdowns, this translated to reduced working hours, job losses and, in some cases, business closures. This meant those fortunate enough to have had savings have likely seen them depleted, while many have had to rely on debt to survive.
“The reality is that the economic and social impact of Covid-19 could push many women into poverty or cause them to lose their financial independence – a scenario that should be of grave concern to all of us,” says Pat Magadla, senior business development manager at Old Mutual Investment Group. According to the 2021 Old Mutual Savings and Investment Monitor, Covid-19 Special Report, 44 percent of South African women are single mothers. When these women are unemployed, their households have zero income, and entire families are at risk of falling into a cycle of poverty that’s extremely difficult to escape, Pat explains. “Gender Equality in the Wake of Covid-19”, a recent study published by the United Nations, shows that women typically earn less than men and hold jobs that are less secure.
Gender poverty gaps will likely worsen by 2030 if governments don’t focus their attention on gender-responsive policies. Small, consistent steps in the right direction can ultimately help you recover if Covid hit your pocket hard. “When women take careful stock of their money and plot a constructive way forward – focusing on what is within their control – it’s an enormously empowering experience that improves not only their financial future but also how they feel about themselves,” Pat says. What’s more, being armed with a recovery plan will put you in the best possible position to benefit from the economic recovery we hope for when this wave of Covid-19 subsides, and climbing vaccination numbers reduce the need for strict lockdown measures.
SIX STEPS
1
Get a clear picture of the debt that you have incurred, as well as the interest rates on this debt.
2
Talk to your financial institution about a realistic repayment plan on your debt.
3
Draw up a budget based on your new circumstances. Involve your family in creating this plan, as their buy-in will help them understand any lifestyle changes that may have to take place.
4
Set goals, and keep track of your progress in achieving them. You can use an online budgeting app like 22seven to monitor your progress.
5
Think about the unique skills that you might have, and how you might be able to use them to generate additional income.
6
Talking to an accredited financial planner can also help you to better understand your financial situation.