By TKay Nthebe
Financial planning is not gender specific or should and should not be the sole responsibility of men – boyfriends or husbands. Women, much like men can take care of their personal finances and manage their money. To celebrate women this month of August, I speak to Nthabeleng Mpharoe-Khoali, a professional working in the financial services industry (FSP) in Lesotho.
TKay: As a young child, what do you wish you were taught about money?
Nthabeleng: I wish I was taught that money comes from different streams, not just from going to school and getting a good job.
TKay: Talk us through you academic and professional journey.
Nthabeleng: I studied Economics at the National University of Lesotho (NUL) and then my Honours degree at the University of Cape Town (UCT). I have working experience in banking and as part of the management team.
TKay: What are the common mistakes women make when managing their money?
Nthabeleng: Taking debt where the purpose of taking the money and the loan repayment term isn’t aligned. An example would be taking a loan for your wedding ceremony and paying it over a very long period i.e., 3years. We need to understand the different lending solutions available. Secondly, the belief that you need to have a lot of money to start saving. You can start with just M100.00
TKay: The myth is women aren’t confident investors.
Nthabeleng: Women look for security. If investing in listed shares for example, I would want to know about the returns and risks associated to have comfort in my decision. When it comes to investing in a business however, as a woman, I’d need a bit more time and more information to decide on the risk. I believe our greatest limitation is the fear of failure.
TKay: How can women use mekhatlo to achieve bigger financial goals?
Nthabeleng: Women need to be intentional about growing mekhatlo from just savings clubs. Let’s graduate from just buying groceries to building investment clubs that invests in different projects such as businesses.
TKay: How can women better prepare for retirement?
Nthabeleng: When you reach retirement there are some expenses that you need to cater for, an example would be medical aid. It is important to sit down, have a look at what your current expenses look like and determine how much you’d need in retirement. Then start working on different income streams that will help you cover your needs in retirement.
TKay: What are your views on preparing a Will?
Nthabeleng: Basotho do not like talking about Wills because we often associate it with death. With the uncertainty of COVID- 19, women need to take responsibility in participating in the financial planning. It is also not the sole responsibility of the husband, so understanding the household’s finances and wealth is key should the husband die.
Nthabeleng: In closing, for the young ladies out there, let’s start saving and exploring different income streams. Having one source of income is a ticking time bomb. For the younger men, let’s have money conversations in our households and keep improving. Talking about money is not a bad thing.
Disclaimer: The views expressed in the article are of the author and guest.
