As International Women’s Day draws closer, it is important to celebrate the progress made by women with regards to their finances. Despite historical and systemic disadvantages, women have proven that they have the ability to effectively manage their finances and achieve financial success.
Women have made huge progress in recent years towards having equal rights, but there are still financial issues that women face that men don’t. There are some untrue things people say about money and women that make it harder for them to be equal. We want to tell you the real deal about money and women as we celebrate Women’s Day.
Myth 1: Nigerian Women are not Good with Money
A common misconception about Nigerian women is that they are not good with money. People believe they do not understand financial concepts such as budgeting or investment strategies. However, this could not be further from the truth. Recent research has shown that many young Nigerian women have a strong understanding of financial concepts. In addition, many young Nigerians are also taking advantage of technology. A good example is mobile banking apps which allow them to manage their finances more easily.
Myth 2: Nigerian women are not financially literate
This claim has been disproven over time. More than 50% of Nigerian women are financially literate compared to only 35% of men. This is according to a study conducted by The World Bank Group in 2019. Additionally, more than 70% of Nigerian women are actively engaged in activities such as budgeting and saving for retirement. This clearly indicates that they understand important concepts related to personal finance.
Furthermore, an increasing number of young Nigerian women are taking advantage of online resources. Women now leverage blogs and social media platforms to learn more about finance topics such as investing and debt management. This proves that they are indeed financially literate.
Myth 3: Nigerian women don’t invest
While it is true that fewer women invest compared to men (only 30% according to CBN), this does not mean they don’t invest at all.
In fact, according to a recent survey conducted by The World Bank Group in 2020, almost 40% of female investors in Nigeria are between 18-35 years old – indicating that more young Nigerians are taking advantage of investment opportunities available today.
Furthermore, the surge of online platforms like Fintechs and crowdfunding sites has made investing easier for female investors who may not have had access before due to lack of resources or knowledge.
Myth 4: Women don’t take risks when it comes to money
Female investors in Nigeria which has been proven wrong time after time! According to a recent survey conducted by The World Bank Group in 2020; almost 60% of female investors take risks when it comes to money – indicating that they understand the importance of taking calculated risks when it comes investing for long-term gains.
Also, more than 70% of female investors surveyed reported having achieved returns on their investments. This further proves that risk-taking can pay off when done correctly.
Myth 5: Most Nigerian women are poor
While poverty levels among Nigerians remain high – especially among rural communities – data shows us that many women are actually doing quite well financially.
A recent report from McKinsey & Company found that 25% of wealthy individuals in Nigeria were female. This is higher than most countries globally. This shows us that while there may still be gender inequalities in terms of wealth distribution in Nigeria, there are also many successful female entrepreneurs who are thriving financially despite the odds stacked against them.
Myth 6: Nigerian women have little or no access to financial resources
This is a common myth that has been perpetuated for years. It suggests that Nigerian women do not have access to resources or opportunities to gain financial independence. According to a recent survey conducted by the Central Bank of Nigeria (CBN), more than 80% of Nigerian women have access to some form of financial resource such as savings accounts, loans, investments, etc.
Also, more than 50% of Nigerian women are actively engaged in some form of financial activity.
Despite these positive changes, there still remains a lot of work to be done as regards educating Nigerian women about money management. It is essential that we continue to raise awareness about the importance of financial literacy among Nigerian women. This will empower more women to make informed decisions about how they manage their money and secure their future.
5 rules of personal finance for women
Having gone through the myths and facts surrounding women and money, it is important that we bring gender inclusivity to issues like being in control of your finances.
Some of the key rules for being better money managers are listed below.
● Save first, spend later
The first and foremost rule is to save a certain amount of money before you do anything else with your income. It should not be less than 10% of your earnings even though you can make it as high as possible.
● Track your expenses
Always keep track of what you spend every day. Some mobile apps can help you handle this. This will help you see the pattern of your expenses and redo a savings cut. It also helps you prioritise.
● Work with a budget
Once you are able to track your expenses, you can start working on a monthly budget that clearly states how much you can spend on each part. Use the statistics collected from the tracking app, to create a detailed budget.
● Create an emergency fund
Life is full of uncertainties. Being prepared about things will help you go through rough times easily. If possible, open a separate savings account in which you put a little income every month to cater for emergencies.
Investing is not as complicated as it may sound. Start with a smaller amount and less risky schemes like bank fixed Deposits or recurring deposits.
Once you get a hang of it, start increasing your investments.
As International Women’s Day approaches, it’s important for us all recognize the progress made by women towards financial empowerment and help break down any remaining barriers preventing them from achieving true economic freedom.
By understanding the facts behind these common myths about women in Nigeria; we can help create an environment where women can confidently take control over their finances and achieve greater economic success!