Female breadwinners share their best money lessons

Published on 29th July, 2024 at 02:05 pm

While women still experience a pay gap compared to men, this hasn’t stopped them from becoming a financial force to be reckoned with. Over 40% of households in South Africa rely on female breadwinners to keep food on the table, according to Stats SA’s 2022 General Household Survey.

This Women’s Month, we’re celebrating women’s financial resilience, persistence, and creativity. We spoke to three Sanlam women to find out more about their experiences, insights, and advice they have to offer.

Reading time: 5 minutes

In this article you’ll discover:

• How women breadwinners are keeping their households on track
• What they’ve learned about managing their finances
• The best thing they’ve invested in

Women are an overlooked financial force

Up to 43% of South African households have female breadwinners, which is roughly 6.1 million families. Nearly 38% of households in the country are led by women, meaning they are the primary or sole financial supporters. Women are doing all of this while still juggling a significant pay gap of 21.5% to 32.5%, according to a 2023 study by UN Women.

This Women’s Month, we are celebrating the powerhouses that are female breadwinners. They’re putting food on the table every day and helping their families thrive – and they can help us all learn a lot about financial management.

Starting a new venture to support her family

Eight years ago, Michelle Marthinusen and her husband decided it was time for her to stop teaching and set up her own education business – a long-held dream, but which had also become financially necessary. “I became the breadwinner, but he still contributed financially,” she explains.

Her husband contributed 30% of their expenses for the first three years but also ran the home and supported their daughter. The arrangement allowed Michelle to travel and attend to her business, which saw rapid growth. Over time, her husband worked less and less – but lockdown interrupted this story, severely impacting their finances and ending the relationship. Michelle is entirely responsible for her 12-year-old daughter and, though they are now divorced, she still helps her ex-husband with medical aid and insurance.

Supporting two households on a single salary

Randy Mpanza, communications co-ordinator at Sanlam Rewards, relocated for work and now lives alone, but still supports her mother, younger sister, and her daughter back home. She’s learned to be disciplined and to track her spending.

When Randy’s at home, she and her family split the expenses, with her mother handling house and utility bills and her sister helping with smaller items. “I will still do my monthly bills plus make sure the house has food and take care of those little mid-month items,” she says.

Being a single mom, not a super mom

Like Randy and Michelle, Sanlam senior financial planner Carol Maphike is also a single mom. “My financial journey has been a mix of challenges and triumphs,” she says. “I am responsible for most household expenses. Balancing the costs of education, daily living, and saving for the future requires careful planning and a disciplined approach to budgeting.”

She says time management and the right mix of support are critical to avoid burnout and maintain a healthier work-life balance. “It’s important to seek help instead of trying to be a super mom,” she says. Investing in the right help, such as quality childcare, can support both your family and your own well-being.

Tip 1: Track your spending and avoid impulse purchases

“My monthly expenses need to accommodate two places, so my pen and notepad are always at work,” Randy says. Randy covers her own rent and expenses, as well as groceries, school fees, transport, and aftercare for her daughter. “As a mom you also need to budget for the school holidays – the kids need to be entertained,” she says.

Michelle says it’s easy to lose track of your spending. “Impulsive spending is a real issue. Being in a bad position financially is much worse when you don’t know how bad your position is. At the same time, knowing exactly how comfortable your position is will allow you to grab opportunities at the right time. So, always know your score,” she says. “I’ve learned the importance of having a clear financial plan and sticking to it,” says Carol. “Using budgeting apps or spreadsheets can help you monitor your expenses and adjust your budget as needed.”

Tip 2: Keep up with rainy-day savings

“Creating and maintaining an emergency fund has provided invaluable peace of mind, ensuring that I have a financial cushion during unexpected challenges like medical emergencies or car repairs,” says Carol. “Prioritising needs over wants has been a key lesson. Focusing on essential expenses and long-term goals rather than impulsive purchases has led to more sound financial decisions.”

Randy agrees. “Please save, save, save, and save!” she says. “I put money aside for rainy days, but life has been rainy lately and it’s hard if your salary needs to take care of three or more people plus your daily needs. When you start working, whether it’s a 9 to 5, freelancing, or self-employed, make sure you at least put something away. The little goes a long way.”

Tip 3: Plan for the future

Randy suggests doing research on investing, with Easy Equities (Sanlam Group acquired 30% of the fintech company back in 2017) being a good place to start, and to sit down with a financial planner to talk savings, retirement, and wills.

“Adulting is the pits,” she says cheerfully. “I should have started to save way earlier, and that’s why I don’t want my daughter to struggle as much when she is older. I’ve opened a tax-free investment account for her, and I hope this will also teach her about being financially savvy.”

Carol, herself a financial planner, agrees. “My best advice is to start saving early, even if it’s just a small amount. Establishing the habit of saving is more crucial than the initial amount you save, as it builds a foundation for future financial security.”

She adds that when you invest in your own financial education, you are empowered to make informed financial decisions.

Tip 4: Diversify for success

And keep your options open. “Don’t put all your eggs in one basket. Keep your eyes open for opportunities and diversify. Things change, and we need to be adaptable, which is a lot easier when we have some eggs in one or two other baskets,” Michelle says.

Tip 5: Quality time is worth it

“Investing in experiences and quality time with family enriches our lives and strengthens our relationships. Budgeting for occasional family vacations or special outings can provide lasting memories and enhance family bonds,” says Carol.

And the best investments are…

We asked our panel to tell us their best investments:

• Randy has invested in her own emotional growth and mental well-being, which has improved her resilience and happiness. She’s also saving up for her mom’s home renovation, which will better suit the family’s needs and give them more space.
• Michelle puts most of her extra money into growing her business, which in turn has grown her income and put her in a better position to invest and save.
• Carol says a structured investment plan, that includes emergency savings, education for her child, and her future needs such as retirement, has been her best investment.