Women shouldn't take a backseat

OPINION

By Sylvia Juuko

Do women need more help regarding managing money, compared to men? I believe both men and women need help when it comes to personal financial matters.

However, some personal finance enthusiasts argue that anyone who provides financial literacy intervention must be cognizant of the fact that when it comes to money and investing, the gender dimension cannot be downplayed.

Studies have shown that when it comes to day-to-day money management and investment, men are characterised as daring, while some women are considered more cautious and risk-averse.

You can also argue that there are differences between men and women and this can be partly reflected by how each gender handles money.

While this view has been contested and referred to as "myths in gender financial stereotypes," there are other issues, like the gender pay gap and the social strata that disadvantage women when it comes to financial matters. This could explain how and why they treat their financial affairs in a specific manner.

The above notwithstanding, women need to take the front seat when it comes to money matters for a number of reasons.

For starters, as managers of households, it would be a disaster if your money management skills are wanting. And, if you have a spouse and a family, it is no longer about you.

You have to ensure that the tool that puts into action the family's financial plan i.e. the budget, is agreed upon, drafted and implemented to the letter, for the smooth running of the household.

Irrespective of the low or high income in your household, you need to have an idea where your money goes and the type of income sources. You also have to be clear about what you want this budget to do for the household in the short and long-term, which can be outlined as financial goals.

Apart from that, you need to know how much your monthly costs are against the household income and account for the variances.

For a household, being on top of your money situation means smooth running of affairs in which you can deal with both current and future expenses, as well as tackling emergencies.

That way, you can tell when you are on or off-track budget and work on getting back on course. Once you can balance all these elements, this can be done without snuffing fun out of your household.

Another key contribution to the household is managing debt, where it exists or responsible borrowing whenever you decide to take that route. If you made a financial mistake of taking on large amounts of consumer debt, your household must be strained with the constrained income.

To make matters worse, if you have a spouse who has not disclosed the extent of the debt they took on without prior discussion and agreement, it should be reflected by the stress levels you have to deal with, regarding finances. When each of the adults in the home has their own version of what expenses should look like per month, it can be a cause of conflict.

That is why you cannot take a backseat on some of the important decisions, like how and when the household takes up debt. There are instances where women have to take leave of formal employment to take up full-time child care.

Similarly, there are situations where women are not undertaking formal employment and it is their spouse who supports the family.

Even in such circumstances, women need to actively participate in decision making and managing finances. It is important that you have a discussion regarding the financial arrangement that suits your situation and work out how to handle the affairs of the home.

Staying at home does not mean you should be passive and be comfortable because you are taken care of. In addition to childcare and other chores, find time to educate yourself about financial matters, such that you add value to the financial discussions and decision-making.

When you are financially literate, you can navigate any challenge or emergency that impacts the household income. All in all, women should take the reins in money matters to minimise financial pressure in the household.

 You have to actively seek information and be empowered with financial knowledge, so that you can participate in money decisions, contribute to expanding your means and build assets that can support the household's current and future needs.

This is an achievement that is worth celebrating.

 The writer works with Bank of Uganda Personalfinance222@ gmail.com