As South Africa marks Women’s Month this August, research suggests that while women form the financial backbone of many households, they also experience more financial stress and fewer opportunities to build long-term wealth than men.
Women generate income, manage household budgets, pay for essentials such as food, transport, and school fees, support extended family members, and make the daily financial decisions that keep their households functioning.
However, according to the Stats SA report Women Empowerment, 2014-2024, women’s median monthly earnings were lower than men’s at every educational level. Even women with a tertiary qualification earned only 80% of what men with tertiary qualifications earned.
This income disparity, coupled with women consistently putting family needs ahead of their own financial security, has long-term implications for their financial wellbeing.
The inaugural Money & Me survey by JustMoney, which attracted more than 5,500 respondents nationwide, shows that, in many respects, women make more cautious, responsible choices than men. Yet they remain more anxious about money, more financially exposed, and less likely to accumulate wealth.
“Women’s Month is an opportunity to not only celebrate women’s achievements, but also to acknowledge the pressures they shoulder every day,” says Sarah Nicholson, head of customer experience at JustMoney.
“The challenge is to ensure that, while caring for others, they also achieve financial freedom for themselves.”
Mounting money worries
Financial anxiety is significantly higher among women than among men.
Nearly two-thirds (64%) of women say they are nervous or worried about their income, compared with 55% of men. Asked how they would spend an unexpected R1,000, three-quarters (75%) of women said they would buy groceries, compared with 67% of men.
Persistent financial stress makes it difficult to think beyond immediate needs, reducing the ability to save for emergencies and plan for retirement.
Trust gap
The survey also reveals important differences in the way women access credit.
Women report lower levels of trust in financial institutions and are 21% more likely than men to borrow money from family or friends rather than from formal lenders.
“This suggests many women remain hesitant to engage with formal financial products, potentially limiting access to financial solutions that could help them manage debt or build assets more effectively,” says Nicholson.
Putting others first
Thirty-eight percent of women pay for two or more funeral policies, compared with 32% of men. While funeral cover provides peace of mind, excessive spending on multiple funeral policies may leave women under-insured in critical areas such as income protection, disability cover, and medical aid.
Young women are the most under-insured demographic, leaving them particularly vulnerable to financial shocks.
Playing it safe
Women also tend to adopt a more conservative investment approach. Only 8% of women have invested in cryptocurrency, compared with 16% of men.
While avoiding highly speculative investments reduces financial risk, women should consider wealth-building investments that align with their risk tolerance and financial goals, says Nicholson.
Taking control
Based on these findings, she offers the following tips:
· Pay yourself first. Set up an automatic transfer into a savings or investment account as soon as your salary is paid. Even a modest monthly amount can grow significantly over time.
- Build an emergency fund. Aim to save enough to cover three months’ essential expenses. An emergency fund can prevent you from relying on expensive debt when unexpected costs arise.
- Prioritise the right financial protection. While funeral cover is important, ensure it doesn’t take up a disproportionate share of your budget. Balance it with medical aid, disability cover, and life insurance, depending on your needs.
- Invest for the future. Don’t postpone retirement saving because other demands seem more urgent. The earlier you begin, the more time your investments have to benefit from compound growth.
- Don’t be too conservative. Keeping all your money in a savings account may feel safe, but inflation reduces its purchasing power. Consider diversified investments with greater growth potential.
- Invest consistently. Regular monthly contributions often matter more than large once-off investments. Steady deposits offset the impact of market fluctuations and build the habit of investing.
- Review your insurance annually. Check that you’re not over-insured or paying for policies you no longer need.
- Prioritise paying off high-interest debt. Focus on clearing credit cards and personal loans.
- Track your spending for one month. Many people are surprised at how much they spend on impulse buys, convenience food, and subscriptions.
- Don’t leave financial decisions to others. Whatever your relationship status, understand your household finances, debts, and insurance. Financial independence starts with financial knowledge.
- Invest in your earning potential. New qualifications, digital and AI skills, and professional certifications can increase your income over time.
- Consider tax-free savings and retirement annuities. These help your money to grow efficiently while reducing your tax burden.
- Talk openly about money. Shared financial goals and clear expectations reduce stress and improve household decision-making.
- Keep estate planning up to date. Ensure your will is current and review the beneficiaries of your retirement funds, life insurance, and investment policies.
- Seek professional financial advice. A qualified, reputable adviser will help you develop a strategy that matches your life stage, goals, and risk tolerance.
“Financial confidence isn’t necessarily about earning more,” says Nicholson. “It’s about making smarter decisions with what you have.
“By making your own finances a priority, you can evolve from budgeting to building wealth and creating lasting financial security.”
JustMoney is a South African financial services company providing a range of solutions, from loans to insurance, underpinned by the data and coaching individuals need to make good money choices.
JustMoney believes that money is personal, so its support is too. Customers are more than just a number; they are individuals with unique goals and dreams. From securing a loan or protecting what matters, to finally getting a handle on debt, JustMoney provides a personalised experience powered by insights that fit customers’ lives.