Harnessing the power of financial literacy and language of money
|Published
Carmen Field is a co-founder and director at Finance Studio, a Xero Partner. Image: Supplied.
By Carmen Field
As we celebrate South Africa’s Women’s Month this August, it’s a good time to shine a spotlight on an often overlooked aspect of women’s empowerment: financial skills development.
In my career journey, I’ve seen first-hand how understanding the language of numbers can transform businesses and communities.
This is particularly true in the world of small business.
Through my career as a Chartered Accountant (CA), I’ve had the privilege of working both locally and abroad in the hustle and bustle of New York and Sydney.
These amazing international experiences have solidified my belief in the importance of financial independence for women and how this can empower us to live life on our own terms.
Empowering women entrepreneurs
South Africa is paving the way in Africa for fostering women’s entrepreneurship. Despite remaining gender disparity, South African women are making strides in the entrepreneurial world. South Africa is ranked second in Africa for the percentage of businesses owned by women and the formal support available to them1. However, the female unemployment rate of 35.5% compared to 32.6% for males highlights the need for further progress.
I believe that financial literacy is one way to unlock potential. Financial literacy is about understanding how money works: how it’s made, managed, invested, and saved. It’s about knowing how to use financial tools and resources to make informed decisions and achieve financial goals. Whether you are a doctor, hairdresser, or software developer, understanding the basic principle of costs versus revenue is crucial. Knowing the financial status of your business can help manage cash flow, which is often the thing that cripples a business.
When women are financially literate, they are more empowered to establish their own businesses, make smart investment decisions, and contribute to their communities’ economic growth. They are better equipped to navigate financial crises, negotiate fair pay, and plan for a secure retirement.
Building financial skills to unlock growth opportunities
In my role as co-founder and director of Finance Studio, it’s rewarding to see the growth ambitions amongst our small business clients. One of our early clients signed up for a 24-month cell phone contract and then sold it for R20,000 and used this money to start their business. I thought this was genius as they could not qualify for bank financing. It's one of the reasons why I love South Africans so much - where there is a will there's a way.
Watching our clients grow and provide employment opportunities makes me feel like we have made a positive influence on the future of South Africa. Likewise, our own growth and remarkable team of talented young accountants and CAs makes me incredibly proud.
Leveraging support to grow financial skills
As a co-founder of our firm, we have always strived to provide exceptional client services, having a financial background helped us to grow sustainably without compromising on the quality of our work.
We want to support our clients to develop their own financial skills. I believe it is not only beneficial but essential for all business owners to be financially literate and to use online tools like Xero to understand the financial status of their business. Without knowing your numbers, you can’t make decisions that will help your business succeed.
Working with an accountant and making use of intuitive tools to help keep track of the business frees up busy entrepreneurs to spend time on what they love.
As we commemorate Women’s Month, we must ensure that women are empowered financially and advocate for financial literacy. Whether you’re a seasoned business owner, a budding entrepreneur, or a woman just starting their financial journey—remember the power of knowing your numbers. Equip yourself with financial skills, leverage digital tools, and take control of your financial future.
Carmen Field is a co-founder and director at Finance Studio, a Xero Partner.
BUSINESS REPORT