Where Your Present and Future Meet was the theme of this year’s sold-out #SheInvests conference, held in Sandton near the end of August. #SheInvests, the JSE’s flagship Women’s Month event, is an educational platform that encourages women to take charge of their financial journeys by offering insights into investment opportunities, fostering confidence in money and entrepreneurship matters, and creating space for women to connect and learn from financial experts.

‘While most women take up the duties of managing the household budget, there are societal and structural reasons they require more financial education than men,’ says Vuyo Lee, the JSE’s Director of Marketing and Corporate Affairs.

‘Firstly, women have less access to formal education, including financial literacy, and therefore are not equipped with knowledge on financial planning and the different types of financial services from a young age. Secondly, women hold most of the jobs in the informal sector and lower occupational levels, and therefore earn less than men and do not have discretionary income to save. Lastly, most women do not have the confidence to make financial decisions on their own, as men have traditionally taken the role of deciding where and how to invest and save. Experience and opportunity are key in driving financial education and building knowledge.’

Lee says financial exclusion hinders SA’s broader goals of inclusive economic growth for all citizens, not just women. ‘When South Africans are financially excluded and do not have access to financial services, this limits the ability of small businesses to survive and grow; affects access to education and healthcare for lower income people, therefore reducing future earning capacity; lessens South Africans’ resilience to financial shocks; and we find that vulnerable groups continue to be marginalised as they cannot participate in economic opportunities. The risks to the country are low savings and investing, difficulty in sustaining and growing employment, constraints in tax revenue collection from businesses and individuals, all of which in turn traps the country in a cycle of low growth and increasing inequality.’

SA has a very low savings rate, partly driven by poor habits and financial constraints. Increased financial literacy is key for all South Africans to confidently participate in the financial markets, says Lee. ‘By embarking on financial literacy, we educate the members of the public on how investing in listed financial instruments works, its benefits and how it fits into one’s investment journey. We build their knowledge base and provide tools so that they can make rational financial decisions, avoid panic during downturns and invest their money wisely. Financial literacy is also important to eliminate investors becoming victims of scams and financial fraud.’

The JSE sees itself as playing an important role in addressing the gap between financial access and financial understanding.

‘Through our various initiatives, such as #SheInvests, we address the issue of the importance of saving before spending and equip people with the tools and knowledge to make savvy investment decisions so that they can confidently navigate their finances.

‘The JSE Investment Challenge, where students learn about basic skills such as budgeting and research as well as different types of financial instruments, has been running for over 50 years, and we have the Virtual Trading Game for adults.

‘In the SME space, our SME Rise funding readiness programme provides businesses with the nuts and bolts of the funding landscape. Lastly, we are currently running a campaign called Claim It to educate people about unclaimed dividends and find shareholders who have dividends due to them.

‘It’s very important for people to understand from an early age that investing in the stock market is accessible to everyone,’ says Lee. ‘Informed consumers are more likely going to invest via formal financial products such as savings accounts, retirement funds and listed instruments. With technology, it is now easier to access financial education and financial services.’

Lee says financial literacy is also a driver of entrepreneurship. ‘Increased access to economic opportunities will reduce inequality and drive shared prosperity for all.’

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