Ghanaian Women Thrifty Than British Counterparts

A new research has revealed that low-income women in Britain are nearly half as likely to save money as women living in Ghana, despite the latter living in a country where many live on less than $2 a day.

The research, carried out by FreshMinds in the UK and URIKA Research in Ghana, was sponsored by Barclays, CARE International UK and Plan UK.

Also, a savings survey undertaken by Banking on Change , a partnership between Barclays, CARE International UK and Plan UK, has found that women in Ghana are far more likely to save money, with 94 percent of them saving each month, compared to just 55 percent in Britain.

The research said only 27 percent of those questioned in the UK believe that saving is a priority. The partnership aims to lift around 400,000 people out of poverty in 11 developing countries by developing and extending access to basic financial services in the form of community-managed savings groups. 

The partnership's experience found that women and girls tend to be most involved in the management of the community savings groups. Therefore the research focused on women in low-income households in the UK and Ghana, comparing attitudes to savings, debt and future expectations.

Findings also show that just over a quarter (27 per cent) of women in Britain believe saving is a priority compared to 92 per cent in Ghana.

'Women in Ghana have proved that saving a little regularly can help achieve a more resilient financial future.  The partnership  is able to engage with hard-to-reach groups and widen access to basic financial services, providing women like those in Ghana with the expertise and support to secure a brighter future for their families,' said Catherine French, Chief of Staff, Barclays Retail and Business Banking.

Regular savings enable group members to manage their household finances making them more resilient to financial emergencies and better able to invest in small enterprise.

It was also found out that less than two-thirds of young women in the UK (57 per cent) expect to earn more in the future, compared to 87 per cent in Ghana.

Only half of women in the UK believe they have the skills to earn more money, as opposed to nearly three-quarters (73 per cent) in Ghana while less than half (41 per cent) of the young women in the UK want to run their own business, compared to 90 per cent in Ghana.

Additionally, only a third of women in the UK consider themselves ambitious compared to 79 per cent in Ghana. 

Marie Staunton, Chief Executive of Plan UK said: 'These findings tell us that women in Ghana have the ability to lift themselves, their families and their communities out of poverty.  They have incredible ambition - they just need the tools to help them realise their vision.  That's why we support village savings and loans groups, through Banking on Change, which enable women who don't have access to banks to put aside a little money every week, or every month, and make a lasting change.'

Christine Svarer, Head of Private Sector Engagement at CARE International UK states: 'This survey shows that no one is too poor to save. We know that savings are a safety net - with tiny amounts of money, people can literally save their way from the edge of poverty and go on to invest in the future of their family. The women in Ghana we surveyed are leading the way and we have much to learn from them.'

Women in Ghana also proved more optimistic for their children's prospects, with nearly all (97 per cent) believing they will have a higher level of disposable income than themselves compared to less than two-thirds (64 per cent) in the UK.

Financial skills proved equally lacking among women in both countries in terms of ability to save, with 55 per cent in Ghana and 52 per cent in the UK feeling they lack the skills to save.

And women in both countries associate high levels of guilt with borrowing money - 55 per cent in Ghana and 67 per cent in the UK.

123 women in the UK and 106 women in Ghana between the ages of 18 and 34 were interviewed between 9 December 2011 and 6 January 2012.  The interviews were semi-structured, containing qualitative and quantitative questions.

The UK survey was conducted by telephone interview with women from across the United Kingdom.

In Ghana the women were interviewed face-to-face in the regions of Greater Accra and Volta. 

Fifty-six percent of the UK women interviewed have household annual incomes of £15,000 or less (after tax) a year while in Ghana, 77 percent have an annual income of GH¢2,400 or less (equivalent to £901) a year.

By Samuel Boadi