Are women better at managing their money?


Women are usually regarded for their efficient management of resources. The question, however is, are women better at managing their money? This is a pertinent question because there are several considerations that are specific to women, such as women living longer and having the responsibility of looking after extended family. Jennifer Makgabenyane, Head of Corporate and Investment Banking at First National Bank Ghana, unpacks where women can level up with finances.

  1. Budgeting

Having a budget helps with keeping track of spending and allocating money to needs in the household. We have seen that when one proactively engages with a budget approach, more money is allocated to savings and investments. Interestingly, women engage less with budgeting than men, which may have an impact on their longer-term financial wellness. Having a budget, either written or digitally using any of the free financial planning tools available online, means there is a likelihood that cash could be freed-up to help with short and long-term goals.

  1. Credit

Using the right credit at the right time for the right reason can be a very powerful tool. Using credit to sustain a lifestyle or living beyond your means can impede long-term wealth creation or potentially start a downward spiral of debt. While the difference here between men and women is not significant, we see that over the last year, men have been taking up more unsecured credit than women. The idea is to reduce unsecured credit to a manageable level with the freed-up cashflow from the budgeting exercise, and then applying the principle to reducing secured debt.

  1. Savings

When it comes to savings, women are slightly better at saving than men. Women consistently have more savings on hand than men do. Approximately 2 percent more women have 1 months’ worth of saving compared to men, data shows. The ideal aim is to have 3 months’ worth of income available in a fund that can be easily accessed, specifically for unforeseen expenses such as a medical bills or a car engine replacement. It may seem like a lot, and potentially unachievable but start small and set small goals to build up an emergency saving.

  1. Protecting family

When it comes to protecting loved ones, there are a few things that should be considered like life or funeral cover, and having a will in place. Life cover is specifically aimed at ensuring that financial dependents can maintain their lifestyle if something happens to the breadwinner. Funeral cover, for instance, is aimed at providing for the immediate expenses after the death of a loved one. More women tend to take up life and funeral cover as opposed to men. The question always is: Is the cover enough? That is where you will need to get professional advice to guide you in the right amount of cover required for your specific circumstances.

Having a will in place is another important consideration when it comes to protecting a family. A will ensures that dependants and their financial interests are taken care of. With a will, you can also ensure that the people you want to inherit your estate, do inherit it.


These are some of the core components that women need to look at to set themselves up for wealth creation and financial independence. First National Bank’s investment portfolio provides holistic integrated advisory services based on business and individual financial needs. These ensure the right financial principles are used at the right stage in a person’s or family’s life or business stage.

>>>the writer is Head of Corporate and Investment Banking at First National Bank Ghana

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