Four financial tips every woman should know

Personal finance

Four financial tips every woman should know

The Covid-19 pandemic has transformed our relationship with money. Not only have we learned about digital transactions, but it has also prompted millions of people around the world to think about their financial safety nets, review their spending, and start investing in long-term financial priorities.

Yet, as the world “returns to normal,” the narrative around women and money remains deeply disproportionate.

According to the World Economic Forum (WEF) 2017 report, a Kenyan woman is paid 55 shillings for every 100 shillings paid to a man doing similar work. In its 2021 Gender Gap Report, the WEF projects that it will take sub-Saharan Africa, including Kenya, 122 years to close the gender gap.

This means that women have less purchasing power, less to save and even less to set aside for their retirement, forcing many of them to depend on other parties to support them in their last years of life. We must close this gap.

In keeping with the International Women’s Day 2022 theme “Break the Bias”, and our ongoing efforts to educate customers about how money works in everyday life. Here are some practical nuggets that women around the world can start implementing.

1. An indomitable desire for financial independence breeds money

Financial independence begins with the ability to better control your money.

It simply means understanding where your money is going with each salary or company payment. You can avoid feeling overwhelmed by taking control of your finances and developing effective habits like budgeting. It’s a good starting point for setting and achieving your financial goals.

2. A wise investor attracts money

For every shilling you earn, seek regulated, professional advice on the best strategies to invest and grow your money.

Find people who are experienced and successful investors in the industry you are looking to venture into, to avoid losing your hard-earned money. With the advent of technology, we now have many options available on our phones that allow us to save money and earn interest on savings.

3. Normalize money conversations with your spouse

According to the Financial Sector Deepening 2020 Financial Diaries study, the responsibility lies with women in rural and urban Kenya to ensure that the family is fed and other basic needs are met.

Know how much your partner earns and where the money is to effectively budget your finances and maintain your standard of living. To have a healthy relationship with money, actively participate in financial decisions, goals, and aspirations at home.

4. Flexible working is an option in 2022

For many women, it comes down to either choosing career advancement or staying home to raise children and care for the family, which has a big impact on their finances.

However, post-pandemic, women and men can now benefit from the fact that the stigma around flexible working options has been lifted.

To avoid the financial shocks that come with a reduction in a parent’s income, primarily that of the mother, look for opportunities that offer work flexibility.

Plus, talk with your partner about how to work flexibly to build shared responsibility at home and increase your income.

With women being the primary caregivers and, by extension, the primary role models for their children, financial education that targets them is key to unlocking Kenya’s economic potential.

It’s time to nurture financially fearless, empowered women everywhere.

About Hubert Lee

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