How Women in SA Lead the Way in Building Wealth

What happened

Dr Thomas Brennan, CEO and co-founder of Franc, recently introduced the company's Wealth Index. This index uses a variety of factors to measure an individual's financial well-being, including financial behaviour, demographic characteristics, and levels of financial anxiety. The striking finding from the Wealth Index is that women consistently show stronger wealth-building habits compared to men.

Why it matters

Understanding who builds wealth better and why is crucial for improving financial literacy and economic policy. Franc's Wealth Index sheds light on how financial behaviour—not just income—impacts overall wealth security. Knowing that women tend to manage money more prudently can help businesses, financial advisors, and policymakers create tailored support mechanisms.

In South Africa, where economic inequality and unemployment remain major challenges, empowering women financially can have broad ripple effects on society and the economy. Women often prioritize savings, budgeting, and debt management, which are key for building sustainable wealth. These behaviours reduce financial stress and help households withstand economic shocks.

What this means for South Africans

For everyday South Africans, this finding is encouraging. It emphasizes the importance of good financial habits rather than only focusing on how much money one earns. Small business owners, employees, and job seekers can learn from the disciplined approaches many women use to secure their financial futures.

For example, women are more likely to maintain emergency savings and pay off debts on time, reducing the risk of financial crises. They may also plan for retirement and invest more cautiously, ensuring better long-term security.

Additionally, women’s financial prudence can lead to more stable household finances, which is particularly important in South Africa where many families rely on multiple income streams to survive. Encouraging these habits across all genders can help improve national financial health.

Impact on consumers, jobs and small businesses

For consumers, the Wealth Index highlights the value of financial education and mindful money management. It suggests that adopting certain behavioural traits—such as budgeting, avoiding unnecessary debt, and prioritizing savings—can improve overall wealth, regardless of income level.

In the job market, recognising women’s financial strengths can encourage employers to support financial wellness programs, which can boost employee morale and productivity. Companies might also offer tailored financial advice to help workers build better money habits.

For small business owners, especially women entrepreneurs, strong financial management skills are vital for business success and survival, particularly during uncertain economic times. The Wealth Index findings could inspire more financial literacy initiatives aimed at women in business, providing them with tools to grow sustainably.

Risks and limitations

While the Wealth Index offers valuable insights, it’s important to remember it measures broad trends and behaviours, not guaranteed outcomes. Not all women automatically build wealth better than men, and individual circumstances vary widely.

South Africa faces distinct challenges, such as high unemployment, inflation, and economic inequality, which affect people's ability to save and invest regardless of behaviour. Moreover, systemic barriers like access to credit and financial services still disproportionately affect women.

Finally, financial anxiety and mental health issues can impact wealth-building efforts. The index includes financial anxiety as a factor, acknowledging that emotional stress around money influences financial behaviour.

Nonetheless, by understanding these behaviours and challenges, South Africans can develop better strategies to improve financial well-being for everyone.

(Source: Franc CEO Dr Thomas Brennan on the Wealth Index)

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