Being financially literate does not mean you have to take over, it simply means you are confident, capable and independent with money, if you ever need to survive in society alone
Though not limited to Muslim women, money has always been left to be handled by men. For years, women’s attitudes towards finances have been distant and unaware due to fathers, brothers and then husbands. At times, we may be content with this, regarding it as one less worry on our shoulders. However, to think that a topic which has the potential to control your confidence, freedom and rights is one you know very little about, can be detrimental to your security and progress as a woman.
When it comes to Muslim women, we need to push to take on an active role in understanding money and finances - simply in order to remain secure and protected in the long term. Understanding basic processes not only promotes knowledge, but plays a huge part in self-confidence and most importantly, independence.
1) As Muslim women in 21st Century Britain, we can take control of our money and finances regardless of if we are single, married or divorced
2) We will understand that we are accountable for our own financial literacy
3) Ultimately, we need to recognise that as minorities in Britain who may lack other advantages, understanding money has never been more important to survive, thrive and provide if needed
Why Muslim women?
Lack of financial literacy is prevalent amongst women worldwide, whether in an underdeveloped country or developed; women usually know less about money and finance than men. For Muslims, it’s important to counteract this, especially when we are likely to work less (Muslim women are three times as likely to be unemployed, and twice as likely not to be in the jobs market in the first place, compared to women generally - Women and Equalities Committee). If we are working less and have left it to Male counterparts, we may find ourselves taking little interest in finding out about where the household income is going and what are the important things to know when it comes to money.
Working less also means we may be at a financial disadvantage in comparison to Christian British or other religion counterparts; and with a gender pay gap, women who are earning less therefore would need to work even harder to save money in the long term to have a stable life.
In fact, as Muslim women we are less likely to take an interest in what’s happening with the finances because more often than not, household finances are left to the male due to religious, cultural and traditional norms.
So how can you become financially literate? Firstly, we need to understand that being financially literate does not require you to go out in the world and work, nor does it mean you should be earning a set amount of money. Being financially literate means to understand how money works so you can essentially protect yourself in your home and the outside world.
Budgeting and prioritizing,
In terms of budgeting and prioritizing, whether you are single, married or divorced it is vital to understand how your household needs are met. Apps and websites have made it easier these days to track your monthly budget. How many of you can confidently say you have a plan in place to track your household spending? Or even know how your monthly budget is set? Living comfortably and not having to work still means you need to understand how your household expenses are paid and budgeted. If you do not know how your household money is being used and what payments are prioritised, then you need to find out right now. This is to gain an insight into priority spending, money handling and taking charge of any future crisis alone if ever needed.
Take the time out to speak with members of the household who have experience in paying the bills and ask them how they handle a monthly budget. Maybe even try to plan out the budget yourself for a month or two and see how you do?
Saving and tracking money
Saving for longer term goals, a house, car or your children’s education means you need to prioritise your spending and set monthly or weekly goals to save a certain amount of money. This means you will need to learn to track household spending which comes hand in hand with budgeting. Looking at the broader picture, becoming financially literate means you will be able to survive and provide for your dependents if a situation arises. Being thrown in the deep end is not ideal and easily avoidable if you take some time out to understand how much your household is saving, is it enough to survive on for 6-12 months if needed?
Although you might be someone who regularly tries to limit your spending, it is another thing to keep your eyes open to how much is actually being saved.
How taxes work and paying bills
Financial management also involves knowing how the country you live in works. Unfortunately, schools do not teach children how to do their taxes, which means that those who go out of their way to learn the system learnt it, and those that don’t, still have no clue how the system works.
Whilst I was fortunate enough to work from a young age and learn certain things by myself through understanding my payslips and paying bills – I know there are a lot of Muslim women who may not have come across a situation where they would need to handle their taxes, council tax or bills. Relying on a family member can be easier and the default at times, but it is up to us to step out of that comfort zone and educate ourselves because you never know when circumstances might change. For example, Income Tax and National Insurance is deducted automatically when you get paid, whereas Council Tax is not. Although, in terms of bills, because I had been working from a young age, I had taken charge of my phone bill and small expenses like the TV licence, however I did not initially know how or when council tax is paid until I researched myself.
This article is not a guide or lesson on “how to do your taxes” or “how to understand household finances” – it is merely an encouragement for you to go out there and learn. Ask, Google, read and discuss to gain this knowledge.
These are just a few of the topics Muslim women should learn and discuss to enhance their financial literacy. Knowledge does not mean you have to take control and take over, it simply means you are confident, capable and independent if you ever need to survive in the British society alone. I encourage Muslim women to take control of their knowledge and take the time out to research exactly how their household expenses are being consumed. This is one of the many steps we need to take to ensure security and protection, and in turn become well-informed role models for the next generation of Muslim women.