According to the 2022 Old Mutual Savings and Investment Monitor (OMSIM), South African women are still better at saving money despite a number of obstacles in their daily lives.
These include shouldering the responsibilities of their households and earning less than men.
A Stats SA General Household Survey of 2021 showed that 42.1% of all households were headed by women, while, at the same time, UASA says South Africa has a stagnant median gender pay-gap of between 23% and 35%.
Despite being less likely to take chances with money to increase income than men, John Manyike, head of Financial Education at Old Mutual, says women generally put more money away for the future than the men in their lives.
“The Old Mutual Savings and Investment Monitor (OMSIM) results showed that 38% of mothers consider themselves to be single parents. Despite carrying the responsibilities related to supporting families, only 25% of respondents said they could rely on their children’s fathers to provide regular financial support. A total of 52% said they got only some financial support from their families.
“Women are less likely than men (46% versus 49%) to have unbanked cash savings on hand. They are also significantly less likely (22% against 35%) to go high-tech and invest in cryptocurrencies.”
He says the research also revealed that:
– 41% of women said they would take significant or above-average financial risks in favour of higher returns, which suggests that they are more risk averse compared to men when it comes to investing.
– 25% of women said that they would not take any risks with the money they were saving.
– 34% of women cut down on domestic help to decrease household costs.
– 41% of women said they were purchasing cheaper brands.
– 34% of women are more likely to give up gym membership.
– 75% of women said that they were using loyalty programme points to help make ends meet.
Women and stokvels
Manyike further notes that stokvels empower women by allowing them to take control of the financial matters of their families. The OMSIM research also showed that women are the largest investors in stokvels – women make up 57% of total national membership of 11 million who have about R44 billion saved in stokvels.
“Stokvels create a community for women, especially those living in rural areas, and are used for the opportunities they offer to save, invest, and learn from each other’s experiences.”
He says stokvels are seen by women as tools to be used to help break out of the circle of poverty and reduce their levels of financial dependency.
However, Manyike points out that women are still less confident than men when making financial decisions.
“However, this is changing. When age is used as a measure to examine this gap between men and women, it shows that in Generation Z consumers financial confidence is higher among women than men.
“It appears that time will eventually create the financial changes and bring the financial equality that many have been seeking for years,” Manyike says.
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