Are women worse affected by financial illiteracy?
Behavioural scientist Mavis Ureke believes that South African women are worst affected by the country’s high levels of financial illiteracy. Speaking during Women’s Month (August 2019), Ureke discussed the low standard of financial education in South Africa, the financial difficulties many citizens face as a result, and the disproportionate impact that low financial literacy has on the Rainbow nation’s women.
In recent years, financial service companies and charities, from Sanlam to Wonga, have been producing resources on “how to improve your financial literacy”. The profile of financial education has been on the rise for a number of years, yet its impact on particular demographics is not frequently discussed. This is in large part due to the sheer scale of financial illiteracy (and lack of access to financial services) in the country.
A country-wide issue
Recent studies suggest that the average South African runs out of money by the 15th day of each month, facing a struggle to fund essentials like food, petrol, rent and bills for a further 15 days. While financial inequality and a constantly rising cost of living contribute to this picture, many citizens do not have the financial knowledge to adequately plan their finances in order to budget effectively, make use of the most beneficial savings approach for them, and access loans in a responsible way.
Women, nurturing & finance
Mavis Ureke believes the women of South Africa are especially vulnerable to the difficulties prompted by financial illiteracy, as they often take caring roles and responsibilities within families. Many women are caregivers for both children and older generations within a family. They are also more likely to be sole breadwinners or bill-payers within a household. Ureke’s research suggests that even married South African women are more likely to shoulder household bills than their male counterparts.
With more mouths to feed and expenses to consider, it is particularly important for women to understand the principles of good financial management and to be aware of the types of financial services available which could benefit or damage their finances.
Ureke claims that South African women are socially conditioned to be nurturers and nourishers. This, she argues, accounts for the disproportionate financial responsibilities which fall on the shoulders of women. This is also the reason why financial literacy is so important for women, who require financial knowledge in order to manage these demands as skillfully as possible.
Access to financial education
Although financial literacy is not on the South African educational curriculum, many women’s financial knowledge may be affected by the country’s gender education gap. Recent figures suggest that 23% of black South African women have not received any education, while 28% are not literate.
Without access to basic education, it’s hard to imagine how one could build a successful and stable financial future, or access services which enable future growth. Without this essential stepping stone towards financial literacy, how can women manage their finances as effectively as possible, or access materials which will help them to develop their financial literacy?
Perhaps before South Africa expends more resources on promoting financial literacy in schools, it should instead tackle the sexism and gender inequality which pervades its education system as a whole?
