By: Mmasechaba Gxolo
A new study conducted by Momentum, with the assistance of research company Kantar on enabling the success of women in South Africa, shows that financial independence is the largest gap for women in achieving what they define as success.
Of the women questioned in the Women’s Codes of Success research study, 68% listed financial independence as a key marker of success followed by health and wellbeing at 55% and education at 40%.
The study found there was a huge disparity between how women define success (financial independence) and the places where they were currently focusing their attention (education and well-being).
Firstly, women spend energy and effort on the things they feel more successful at and, unfortunately, finances are not one of them. Secondly, women have realised that education is not adequately translating into financial success, which is not surprising given the context of South Africa’s high unemployment rate. This indicates that women need more tools and advice to get more confident in managing their finances
Momentum conducted this study as part of their annual #SheOwnsHerSuccess campaign in an ongoing commitment to understanding what success means to women and how best to enable it.
What do women’s finances look like?
The study also examines the different levels of financial independence women were comfortable with and revealed that most women defined financial independence as largely foundational.
This means that the women surveyed indicated that having a level of security offered through having savings, being debt-free, or having a stable income was what they viewed as financial independence.
When we start looking at things such as accumulating assets such as a car or a house, this was seen more as financial progress and going beyond immediate needs where women can focus on long-term financial growth. Things such as protection products or wealth-building products were not seen as a form of financial independence.
What this tells us is that there needs to be more work done in helping women understand that one can have multiple financial goals and that they don’t have to be stuck at the foundational phase. This is where the value of financial advice and planning can play a crucial role.
Tailored financial know-how empowers women to understand and navigate the complexities of personal finance including saving, managing debt, and investing. However, the financial planning industry must also support women in achieving their economic independence by introducing products that are designed in a way that meets their unique needs and goals.
We, as an industry, also have to be mindful of how the concept of success for women has changed. Success for women now is complex and non-linear, with no formula. It doesn’t have to meet traditional expectations like studying, marrying, having kids, and owning a house, and as the financial planning industry we need to be aware of that.
A holistic approach to financial planning is essential
According to the study, a woman’s outlook on success is holistic and not just about her inner abilities but also about external support on her journey.
57% of the women surveyed identified good education opportunities as the top reason for progress in their lives, while 51% listed emotional support and guidance and 47% acknowledged mentors and supportive people in their lives.
We need to understand that family, personal, and professional connections are pivotal in enabling women’s success and cannot be divorced from their financial independence journey.
Women often face the burden of providing for others, which derails their financial planning efforts. Many prioritise family health and education over their financial well-being, with 55% delaying personal healthcare needs to cover others' insurance and 40% investing in education for dependents. This balancing act between caregiving responsibilities and financial obligations creates a significant challenge for their financial progress. As a result, many women juggle multiple jobs or side hustles to support their families, highlighting the need for tailored financial advice to help them better manage their finances and achieve long-term financial goals.
It cannot be ignored that women still face major barriers to success, and the study shockingly indicates that only 3% of women say they have no barriers to achieving success. Half of those surveyed lamented insufficient opportunities as one of the key barriers, with 45% indicating financial constraints, and, 34% of respondents highlighted a lack of career development opportunities as a significant challenge to their financial success.
The top barriers to success that women face are beyond their control and point to systemic issues that hinder their ability to financially progress in life. This makes advice even more valuable because financial planners can take these into account to ensure that your future isn’t jeopardised.
For instance, strategies to address retirement poverty caused by the gender wage gap women still face; or situations where one must start working later or take a gap in employment due to child rearing resulting in time lost working for retirement. These are just a few examples.
Momentum’s Women’sCodes of Success research study showcases the importance of investing in financial advice; but also calls on the industry to introspect and interrogate how it keeps up with the changing milestones of success, especially in a woman’s life.
* Gxolo is an insights lead: research and reporting at Momentum Group.
PERSONAL FINANCE