Women in SA ‘trapped because of sugar daddies’

It’s said that many women in SA are “trapped because of sugar daddies”.

According to a statement by African Bank, this was said by Bonang Mohale, CEO of Business Leadership SA in an interview on 702 earlier this year. The bank further stated that Bonang said the gender gap in the country should be closed so that women can get equal pay compared to that of men. This, as well as employing more women, would place them in a more financially sound position and prevent them from being influenced by sugar daddies.

Lindiwe Miyambu, African Bank’s Group Executive: Human Capital added many young women would love to live a carefree lifestyle filled with delicious lunches, Jimmy Choo handbags and lattes.

“Of course, we all know that this is not practical. Today’s modern woman is expected to be independent in all matters, especially those relating to money and the earlier she starts planning the better. Ideally you need to find a way that you can still live well today, while finding a way to save and invest for tomorrow,” said Bonang.

Unfortunately many women still battle with getting to grips with financial matters and there is still a fairly large confidence gap – the measure of a woman’s confidence in her ability to attain her financial goals.

She said in a global study by Prudential, it showed that only 14 per cent of women were very confident they will meet that goal. And just 20 per cent said they felt prepared to make smart money moves.

Lindiwe continued to say in South Africa that percentage may be even lower.

She offered four useful tips for the modern woman to keep ahead and stay financially sharp.

• Don’t rely on others for your financial security:

Handing control of your finances to someone else is a sure way to lose track of them. Make sure you educate yourself about basic financial management and investment.

• Consider investing as part of a broader financial plan:

While investing early and often can help anyone in their 20s to begin building wealth, that doesn’t mean investing is the answer to every problem. Some graduates may still have student loans to pay off and may be just spread financially too thin to even think about investing. In this case the best thing to do is carefully monitor your spending habits and make savings and budgeting part of your daily routine until you are more financially stable.

• Unleash the power of compound interest by investing early:

There is no doubt that compound interest is the most powerful force in the universe. When you’re in your 20s, it’s easy to think you have a lot of time to get your financial life together. Unfortunately, waiting can make a world of difference.

• Realise that money is a tool:

If you’re in your 20s and ready to build wealth, it all starts with recognising the money you earn is nothing more than a tool to make smart choices regarding spending, savings and investing. Learning to become a diligent saver and investor early on is the key to being able to live the life you desire. You need to remember that while you’re trading your time for money today, in the future you will be able to use your money to give you the time to do more of the things that really matter in life.

Lindiwe advised young women to set both short- and longer-term investment goals and then plan accordingly.

“Know the difference between high interest investments and other savings vehicles which can all benefit you in the long run. The earlier you start the better.

“Remember that your financial identity is part and parcel of your existence and that keeping ahead of your finances is a great way to maintain or establish your independence. These tips should help you understand and establish the building blocks of financial know-how,” she said.