Nasia Seyuba, Head of People at digital financial services provider FinChoice

Talk to your daughters about money

Ladies, this one is for you: If you are the person who makes your household’s buying decisions and responsible for paying the bills, and it sometimes all just feels like a lot, you are not alone.

Across the world, [https://1.%09https/nielseniq.com/global/en/insights/analysis/2024/shaping-success-a-deep-dive-into-womens-impact-on-the-cpg-landscape/]women hold 70%-80% of consumer spending power, and they allocate up to 90% of their income into their families and communities. And yet, [https://2.%09https/n26.com/en-eu/blog/women-and-financial-literacy-closing-the-gender-gap]women score lower than men do when it comes to financial literacy.  

There are two main reasons for this imbalance. The first is that women do not invest in their financial education because they prioritise investing their time and income into their caregiving and household duties and responsibilities. The second is that when parents talk to their children about money, [https://4.%09https/www.slideshare.net/slideshow/2016-parents-kids-and-money-survey-results-59896270/59896270]they talk more to their sons than to their daughters.

Nasia Seyuba, Head of People at digital financial services provider FinChoice, says that in South Africa, where [https://1%20https/www.ebnet.co.za/how-female-breadwinners-can-best-protect-their-ability-to-earn-an-income/]42% of households are headed by women and 7.5 million women are either the sole or the main income earners in their families, it is incredibly important to include your daughters in the financial decisions that you make – and that financial education is especially important when it comes to credit.  

“Responsible money management is partly about budgeting and saving, and partly about understanding and managing credit. Sixty percent of our loan customers are female, with family commitments and home improvements or repairs being the main drivers of these applications. When unexpected expenses like a burst geyser crops up, understanding how to navigate products like a short-term loan is crucial. This can and should be a learning experience for your daughters.”

Seyuba offers five essential credit tips to impart to young women in the family:

• Do not be afraid of credit: You will need a good credit score when you want to borrow money for a car, or a house. Start with a low-risk product and a low limit. And remember, your credit limit is not a target you have to aim for.
• Manage your credit responsibly: Do not borrow more than you can afford to pay back. Always make your monthly payments on time and in full.  
• Look for transparency: Before you sign up for any credit, you should be given enough information to understand fees, interest, and repayment terms.  
• Test the service before you commit: If a credit provider is not readily available via WhatsApp, email, their call centre, or an app, and cannot provide clear, helpful answers to your questions, reconsider giving them your business.  
• Look for convenience: The easier a lender makes it for you to track and monitor your account, or update your payment information, the better your chances of maintaining a good financial standing.  

Seyuba emphasises that family conversations about money and credit should always be free of emotion or blame. The idea is not to put the weight of your burdens onto your children’s shoulders; rather, the aim is to talk about how financial needs arise, and to figure out how to choose the best solutions. She also suggests that you learn new things together. For instance, if your partner handles some of the financial decision-making, ask them to talk you and your daughters through their thought process.

“Financial literacy is a critical part of every girl-child’s education, and both mothers and fathers play a pivotal role in not only providing this knowledge, but also modelling how best to manage their finances,” says Seyuba, “this is part of why we are committed to giving our customers all the information they need to make the best decisions for their credit needs.”