For the longest time, buying power and purchasing decisions have been left to the male figures in most households. Until now, that is.
Like most countries in the world, a pay gap exists in South Africa, however, thoughts by Prudential show that this gap is slowly shrinking; giving women a considerable amount of power when it comes to earning potential. What’s their prediction? In the USA, women already claim “52% of managerial and professional roles”, compared to 1980 where they only held 26%, and the expectation is that the average American women will earn more than the average American man by the year 2028.
So, as women are increasingly predicted to “bring in the money”, how will this affect the decisions made in their households? Colleen Larsen from the 30% Club, a foundation focused on getting women into leadership positions, points out that while South African women might get input from their husbands, they generally make the majority of the “day-to-day decisions” about the household.
With the above gender shift in mind, Forbes’ writer, Bridget Brennan, shares some valuable insights into powerhouse women consumers to help further understand how this shift in the pay gap has levelled the playing fields.
- If the consumer economy was given a gender – it would be female. Women around the world drive 70-80% of all consumer purchasing, according to Brennan, which is thanks to a combination of their buying power and influence. She explains that “influence” means that women often sway the decisions, even if they aren’t directly paying for something themselves.
- The multiplier effect. Women account for more than one market. With the majority of women taking the caregiver role in their family – looking after children and the elderly – they often buy on behalf of others too.
- The name game. More often than not, the person who makes the sales transaction and the person who makes the decisions aren’t the same. That’s right, a lot of the time women are making the decisions on behalf of their husbands, which makes her the “gatekeeper for her household’s expenditures”.
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Disclaimer: bsmart does not provide financial advice. The above article is for information purposes only, to share current economic and financial topics and trends. Please consult a suitable and qualified financial services provider if you require financial advice.