When it comes to achieving financial freedom and securing a stable future, women are increasingly stepping into their power; investing smarter, planning earlier, and thinking long-term. But the journey to building generational wealth requires more than just saving, it calls for education, strategy, and confidence.
Generational wealth isn’t just about passing down money. It’s about shifting mindsets, creating opportunities, and breaking cycles of financial instability. For women, especially in South Africa, it means taking charge of their financial narratives, setting long-term goals, and using the right tools to ensure their children and their children’s children have a stronger foundation to build on.
With the right strategy and support, generational wealth becomes not just a dream, but a reality within reach. Co-head of FNB Stockbroking & Portfolio, Palesa Moletsane unpacks how women can take control of their finances and build legacies that last.
Glamour: Can you briefly introduce yourself and your role at FNB?
Palesa: I’m Palesa Moletsane, co-head of FNB Stockbroking & Portfolio Management, which comprises share trading business and the portfolio management business . I lead our share trading business—empowering clients to invest independently via the FNB App or shares site. We also offer expert-managed portfolios from investments of R2.5m in the Portfolio Management business.
Glamour: Why is it important to have focused conversations about women and wealth creation?
Palesa: Despite progress, a significant wealth gap persists; driven in part by enduring gender pay disparities. Globally, women earn approximately 83 cents for every dollar earned by men. In South Africa, the gap is even more pronounced, with the disparity widening as women age. To address this, it is essential to empower women to actively participate in wealth creation (starting with what they have and where they are). It is crucial to have the conversation with women as they are widely recognized as nation builders, they tend to reinvest in their families and communities, creating a ripple effect that drives broader economic growth. Moreover, women often have distinct financial goals and risk profiles. As a financial institution, understanding these differences is critical to designing solutions that are relevant, inclusive, and impactful.
Glamour: What advice would you give to a woman just starting her investment journey?
Palesa: The power of compounding isn’t a myth; it’s a strategy. Once you’ve chosen your investment vehicle, automate your contributions with a debit order or scheduled payment. It’s like paying yourself first, and your future self will thank you. What’s important is to choose what suits your goals, start where you are, and stay consistent.
Glamour: How much should someone ideally invest monthly if they’re starting small?
Palesa: It depends on your investment vehicle. With FNB-branded ETNs you can start from just R10, though R100 is recommended for meaningful exposure. ETNs will give you an opportunity to participate in the performance of the listed entities, such as those listed on the JSE, or international exchanges without direct ownership of the share. For Tax-Free Savings Accounts or unit trusts, a monthly contribution of R300 is ideal to build consistent, long-term growth.
Glamour: What are some accessible, low-risk investment options for beginners?
Palesa: There are a couple of investment vehicles client can invest in:
- a Tax Free product: invest up to R36,000 a year or R500,000 over your lifetime and enjoy tax-free returns
- Low-cost, passive investments listed on the JSE, such as Exchange Traded Notes “ETNs” which tracks performance of companies listed in local/global exchanges e.g. FNB Nvidia ETN. Or Exchange Traded Funds “ETF”, which mimic indices like the JSE Top 40 it offers the flexibility in terms of how much you can contribute, and you can cash out at anytime. However, the longer you keep invested, the better the returns.
- Unit trusts, not listed on the JSE but professionally managed and accessible via Linked Service Platforms “LISPs” such as FNB Investor Platform at a minimum of R300 a month.
Glamour: What are the most effective investment vehicles for building generational wealth in South Africa?
Palesa: When it comes to investments, understanding financial goals is a prerequisite for sound investment advice. However, to answer the question: In South Africa, we face a challenge: a relatively weak savings culture. To address this, I often recommend starting with a retirement fund, which provides long-term financial security, and complementing it with a Tax-Free Savings Account, allowing up to R36,000 per year or R500,000 over a lifetime in contributions—free from tax on returns. Then for legacy planning and continuity, it’s equally important to have a valid will in place. This ensures that dependents are cared for, and that wealth is transferred efficiently, supporting the goal of building generational wealth.
Glamour: How can women balance short-term financial needs with long-term investment goals?
Palesa: Women, often in caregiving roles, may find it challenging to prioritise their own financial well-being. However, it's essential to start by clearly defining both short-term and long-term financial goals. Using budgeting tools—like the Smart Budget feature on the FNB App; can help identify what’s realistically available to save. From there, setting up automated debit orders ensures consistent contributions toward both immediate needs and long-term investment goals. Paying yourself first isn’t a luxury - it’s a strategy for financial empowerment.
Glamour: What common mistakes do women make when it comes to investing, and how can they avoid them?
Palesa: Many women delay investing due to self-doubt, often seeking advice from unqualified sources, or none at all. This hesitation leads to missed opportunities for compounding growth. When they do invest, they may lean too heavily on low-risk options or concentrate their investments, limiting potential returns. Additionally, prioritising others over their own financial goals can hinder long-term wealth creation.
Glamour: How can women align their investment goals with life milestones like starting a business or taking a career break?
Palesa: Start with the end in mind. Define your financial goals early to guide your investment strategy. Before major life transitions—like a career break or starting a business—build an emergency fund to cover 3–6 months of expenses. This provides flexibility and protects long-term investments. Seek professional advice to align your strategy with your goals. And for continuity, especially when pursuing entrepreneurship, ensure your legacy is secure through estate planning tools like wills and trust.
Glamour: What tools or accounts are best for setting up intergenerational wealth, such as trusts or tax-free savings accounts?
Palesa: Every investor is unique, and selecting the right investment vehicle depends on individual goals and circumstances. A Tax-Free Savings Account is a great starting point, offering flexibility to invest in cash, shares, or unit trusts, while benefiting from tax-free growth. Building a portfolio with passive investments such as ETFs or ETNs can provide long-term growth. Over time, engaging an investment expert to manage your portfolio can help optimise returns and align your strategy with evolving goals
Glamour: How important is estate planning in the journey toward building generational wealth?
Palesa: You may be familiar with the phrase, “Nothing is certain except death and taxes.” This timeless truth underpins the importance of estate planning. Regardless of one’s financial standing, death is inevitable, making it essential to prepare for it thoughtfully and strategically. Estate planning goes beyond the mere transfer of wealth. It’s about preserving continuity, protecting your legacy, and ensuring that what you’ve built continues to benefit the people and causes you care about most. A well-structured estate plan provides clarity, minimizes potential disputes, and offers peace of mind for both you and your loved ones.
Glamour: If you could offer one key piece of advice to every woman looking to build generational wealth, what would it be?
Palesa: It is never too late. Just start, invest consistently, and prioritise yourself financially and protect what you have built.
Recent stories by:
Thobeka Phanyeko
Are you considering investing offshore? This is what you need to know
Wellness Wednesday: Registered Counsellor, Melissa Davids on the Art of Building Micro Moments
Motivation Monday: This is how you can rewire your brain through movement
In Flight? Cozy up with these pocket books we love
