Share this Mister Wong Digg Del.icio.us Slashdot Furl Yahoo Technorati Newsvine Googlize this Blinklist Facebook Wikio Hear this text Print E-mail

Men are the traditional breadwinners, receive more prize money in sports, and are offered higher paying jobs, while women have been left to make do with what they get. This perception is changing fast, though, as more and more women take their financial fate into their own hands. Women worldwide are moving increasingly into personal fi nance, demanding more control of their fi nancial affairs. Women also increasingly offer a specialised niche in the financial planning market.

Financial planners might also find women generally to be sounder, more level-headed clients to deal with. They seem to be better at the conservative investments once they get stuck into managing their own financial affairs. In fact, in the US, women-only investment clubs regularly outperform their male counterparts.

Unfortunately, while 98% of all women will one day have to manage their own money, very few are equipped to do so. As finance is not a compulsory school subject, it is time that women started learning about good money management, investment opportunities, retirement annuities, unit trusts, good business practices, the New Credit Act, and the like.

Research recently conducted by Martin Ryman, CEO of PlayUKLottery.com, illustrated how much still needs to be done to shift women away from the traditional mindset that they will be taken care of.

The survey found that 90% of South African women would rather go on a lavish holiday if they had to win extra money; 74% would spend it on expensive beauty treatments.

The research was conducted among 15 000 South Africans and looked at different spending patterns between men and women. Of the women questioned, 79% said they would rather spend the money on designer label clothes or accessories than on benefiting their families.

According to Ryman, women don’t just want their luxuries in the future – 66% of them want them immediately.

It is, however, interesting to note that women younger than 30 tend to be more concerned about the financial well-being of their families, compared to only 25% of those over 30. Financial planning providers should focus on the opportunities offered to develop this younger generation of economically active females as a worthy niche market.

This trend should be seen as good news. Even better, there are simple measures that women can take to empower themselves in the world of finance.

Financial planners should know that, as always, education is key and advise female clients as follows:
• At the bank, pick up as many financially informative pamphlets as possible;
• On opening a new account, compare the different banks with your specific needs;
• Take a valid interest in drawing up the household budget;
• Open a savings account that gives you a good interest rate; and
• Watch business reviews and generally take an interest in international fi nancial news.

If you are single and managing your own budgets and accounts, draw up a budget that encompasses all your income and expenses. Add up all income and deduct the following expenses:

• Housing costs (rent, bond etc);
• Food costs (necessities, not luxuries);
• Transport costs;
• Necessary clothing;
• School fees; and
• Medical expenses.

Then look at what accounts need to be paid off and divide the rest of the money across these, leaving some for emergency expenditure. If you have a lot of debt, do not borrow money to
pay it off; rather draw up a budget and pay the debts off with your own money, paying off highinterest accounts such as credit cards first.

However, if you have a small debt, pay it off as quickly as possible and put that money towards your bigger debts.

When you get married, it is a good idea to have two separate accounts, even if you decide to pool your money. This means that you can remain financially free, no matter what happens to his account or his financial record. Before getting a home loan or buying a car on hire purchase, look at your options carefully. Look at the cost of maintaining the house or car.

Remember that owning a house means paying for electricity, water, rates and taxes as well as your bond. It might be cheaper to rent for a while or to share a flat and save towards a place of your own.

When buying a car, look at the cost of filling it with fuel, servicing it, buying spare parts such as tyres and shocks, getting the exhaust fixed, etc. and work this all into a long-term budget.

In short, women who are coached in sound financial health become wealthy and valuable future clients.

Adapted from the Europ Assistance SA
website: www.europassistance.co.za.

Write comment

Your Contact Details:

Name:

Email: do not notifynotify

Comment:

Title:

Message:

Security

Please input the anti-spam code that you can read in the image.