Pinching pennies may be an old-fashioned sentiment, but it continues to apply to our lives today as most households look to make ends meet against an ever- increasing rise in the cost of living.

As is expected, the increase in, for example, the petrol price hits those who can least afford it, the hardest.

And with various research showing a high percentage of South African households headed by women, progressive financial services provider African Unity Life (AUL) is encouraging women, especially those in middle to lower income groups to take charge of their finances.

“Take responsibility to ensure your financial Freedom. Don’t assume someone else in your family will be doing it for you,” says AUL financial director Ronél Botha.

With gender pay gaps still largely skewed toward men earning more, these women headed households tend to statistically be more vulnerable to an increase in basic goods and services.

“The South African labour market is more favourable to men than it is to women and men are more likely to be in paid employment than women, regardless of race,” Statistics South Africa says in its most recent Quarterly Labour Force Survey.

Botha suggests “Simplify your budget by dividing your priorities into four ‘buckets’, which include:
• Essentials – (rent, electricity, school fees, transport, groceries)
• Emergency – (doctor’s fees, additional transport costs for times when train and bus services are disrupted)
• Savings (retirement savings, funeral policy contributions, life insurance)
• Entertainment

Her advice is to allocate a percentage of household income to each bucket, and then to keep a close watch on spending within each.

Crucial to keeping tabs on expenditure is to adopt a communal approach to finances, which begins at home.

“Get the buy-in from other household members, who can help you save in small ways,” says Botha.

These include:
• Saving on utility costs like switching off lights and appliances when not in use.
• Quick showers instead of taking baths.
• Socialising by cooking and eating together at home, rather than eating out or ordering in.

Botha says the temptation to make unnecessary debt should be avoided.

“Steer clear of tempting offers that allow you to pay off items over extended periods, or revolving loans that seem to give you more cash in hand in the short-term,” she says.

“Paying off these facilities, and the high interest on them, can really eat into your Essentials bucket for months, even years, to come.”

AUL chief executive officer Sonja Visser agrees: “The idea is not to be crippled by living expenses to the extent that you have no money to actually live on, leaving you vulnerable to taking out another loan.”

To help save, Visser suggests trying the following:
• Try to make use of retailer rewards programmes to put extra rands back in your pocket – qualify for discounts and special offers.
• Keep an eye open for month-end specials and where possible buy your groceries in bulk.
• Research free and discounted leisure activities for the family, especially during school holidays.
• Encourage your child to get involved in as many extra-murals as possible offered at their school.
• Save by taking homemade lunches to work and school, instead of buying eats at the tuck shop.

“Times are tough. These tips are not meant to further complicate people’s lives. It is to help encourage a culture of accountability within our households when it comes to our spending. And more so for women, given that women in South Africa are and have been statistically and historically more under pressure financially,” Visser concludes.