Johannesburg – While the gap between men and women continues to close as South Africa moves towards a more egalitarian society, it is still a wide gap nonetheless.
The Momentum/Unisa 2020 Household Financial Wellness Insights report estimates that women in South Africa, on average, earn an estimated 30% less than men in similar jobs.
But does the same divide exist when it comes to willingness to take on debt?
And, are women more psychologically predisposed to poor financial management?
PayProp, South Africa’s largest processor of residential letting transactions, recently released data showing how much South Africans spend on rent and debt repayments monthly.
It turned out that men spend 47% of their income on debt, while women spend 44%.
This puts men and women on an equal footing, with groups being left with about 25% as disposable income.
To add to the discussion, Momentum financial planner Janine Horn identified some stumbling blocks for women when it comes to debt.
“Our need to gather could be linked back to our primal instinct of taking care of the family by gathering. Many women get hyped up when there are instances like Black Friday,” she said, adding that some women think that the more they buy, the more they save, which is not necessarily the case because they could end up spending more.
Horn’s advice to women is: “Understand your situation and what is happening to you; deal with it in a healthy way; and declutter your life and financial affairs and get rid of debt that is an unnecessary and costly burden.”
Horn said when it comes to financial matters, most women face unique circumstances and challenges.
She said these challenges can result to women’s long-term financial planning and involvement in the detail of household finances taking a backseat.
“For those in the fortunate position of having a job, there’s a lot to juggle in day-to-day activities, such as work, children, groceries and other responsibilities,” she said.
Moreover, according to the Household Financial Wellness Ins ights, women’s daily activities intensified during the lockdown.
With women more at risk of losing their jobs or earning less, many needed to take on more child-care and household responsibilities because support options were limited by lockdown regulations, such as school closures.
“In a patriarchal society such as South Africa, many social and cultural restrictions are placed on women, including their household financial matters. But given that women tend to live longer than men [six years on average], in many cases outliving their partners, they need to become part of the long-term household financial planning process,” said Horn.
Horn said women must know where accounts or investments are held and be included during discussions about finances.
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