The latest Momentum/Unisa Household Financial Wellness Index also analysed statistics about the impact of the Financially Knowledgeable Person (FKP) in the home. In many cases this is a woman. Although they may not be the head of the family, they get their hands dirty when it comes to the household’s money management and have a strong say on their household’s finances.
What are the comparisons between the financial habits of male and female FKP households?
|●||Where 32.7% of male FKP households have a written/electronic budget, 30% of female FKP households have their budgets written down or in electronic format.|
|●||Budgeting styles are also similar, with 25.4% of female FKP households and 25.8% of male FKP households stating that when they budget, they plan exactly how all their money will be used.|
|●||27% of male FKP households stated that they have a comprehensive financial plan, while only 18% of female FKP households have a comprehensive financial plan.|
|●||Only 13.2% of female FKP households have an up-to-date signed will, compared to 20.7% of male FKP households.|
|●||A lower portion of female FKP households stated that they will have access to savings or investments in case of a financial emergency. While 40.5% of male FKP households stated that they have emergency savings, only 30.3% of female FKP households have this in place.|
|●||While 39.6% of male FKP households are contributing to either a retirement annuity or pension plan, only 27.6% of female FKP households are taking this step monthly.|
|●||Self-reported financial literacy levels are slightly lower in female FKP households, with 78.9% registering low levels of financial literacy, compared to 73.5% of male FKP households.|
|●||Although the levels of households making use of professionals as financial advisers are very low, there is a difference between male and female FKP households. While 5.7% of male. FKP households make use of professionals for financial advice; only 3.6% of female FKP households are doing the same.|
What can be learnt from this?
“It’s clear that so much more can be done to help women to achieve financial success and support to progress towards financial success. Our research showed a critical need to improve women’s ability to take control of situations, their financial literacy, their access to affordable and quality financial advice, assistance with financial planning and goal setting (including a plan for old age) and providing them with the opportunity to gain relevant experience in the workplace,” the report concludes.