Exploring factors influencing the savings culture of South Africans
- Authors: Mabindla-Mlisa, Ziphozihle
- Date: 2025-04
- Subjects: Saving and investment -- South Africa , Financial literacy -- South Africa , Finance, Personal -- South Africa
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/72905 , vital:79276
- Description: The purpose of this study was to identify the primary factors affecting the savings behaviour of South Africans. The study concentrated on exploring South Africans' attitudes and beliefs regarding saving money, analysing the correlation between financial literacy and savings behaviour, identifying the obstacles and challenges encountered in cultivating a savings culture, and assessing how access to financial products and services influenced the savings behaviour among South Africans. In a society characterised by instant gratification and excessive consumption, cultivating a culture of saving has become increasingly essential. Access to savings can be vital during an economic crisis, as it may ultimately determine survival. South Africa, however, demonstrates a pro-consumption culture, resulting in a decline in the savings rate. The country, therefore, displays relatively lower savings levels compared to other countries, and a decrease in the household savings rate throughout the years. This research employed a quantitative methodology. This was accomplished by a survey distributed to a sample of economically active South Africans, using an electronic survey tool developed in Google Forms. A total of 468 economically active South Africans participated in the study. Through this distribution, it was evident that the respondents were predominantly composed of Black females aged 30 to 39, earning over R20,000 monthly, and possessing tertiary qualifications. The sampling methodology was both convenience and snowball sampling, non-probability techniques. The results of this study indicated that, whereas South Africans generally exhibited a favourable disposition towards saving and acknowledged its significance, they encountered considerable barriers that impeded their saving capacity. These barriers included high living costs, low-income levels, and existing debt. Furthermore, financial literacy emerged as a critical determinant, indicating a strong correlation with positive saving behaviours and attitudes. Notably, even among individuals with advanced educational backgrounds, deficiencies in financial literacy and saving practices persisted, highlighting the urgent need for targeted educational interventions. Additionally, the study emphasised the substantial impact of access to financial products on saving behaviours, suggesting that improving access could enhance overall savings outcomes. The recommendations derived from this study aim to enhance the savings culture in South Africa, addressing the country's low savings rate. Key suggestions include: Implementing financial literacy programs in schools and communities to educate individuals on budgeting, saving, and investing. Partnerships between financial institutions and non-profits could facilitate awareness and access to financial advice. Promoting positive saving attitudes through government and employer initiatives, while addressing the high cost of living with subsidies for essential goods to alleviate financial strain. Financial institutions should enhance accessibility to user-friendly financial management tools and offer affordable financial advising services. Investment houses are encouraged to simplify investment account applications and recognize traditional saving practices like stokvels to improve their credibility. , Thesis (MBA) -- Faculty of Business and Economic Sciences, Business School, 2025
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- Date Issued: 2025-04
Financial literacy: a conceptualisation in a South African University
- Authors: Smit, Andrew Stuart
- Date: 2021-12
- Subjects: Financial literacy -- South Africa , Universities and colleges -- South Africa
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/54773 , vital:47660
- Description: Financial literacy is increasingly becoming an important and relevant topic in the modern-day world. Due to the complex developments in the financial services industry such as internet banking, mobile banking and online trading, which are also becoming more accessible to consumers, financial literacy is proving to be a necessary skill to have in order to make effective financial decisions. However, in a global and local context, the financial literacy levels of individuals are generally poor. South Africa ranks poorly among other countries in terms of financial literacy levels. A study performed by the Organisation of Economic Cooperation and Development showed that South Africa finished last out of 30 countries tested in their global financial literacy survey. Financial literacy levels vary among different groups in South Africa. For example, age, gender and financial education all affect the financial literacy levels of South Africans. In South Africa, individuals aged between 18-29 display higher levels of financial literacy than individuals aged 60 and above while financial education influences the level of financial literacy for an individual because it assists an individual in making correct financial decisions. Crucially though, financial literacy among South African university students is poor. Literature reveals that South African University students struggle with personal financial management more specifically saving, spending and managing debt. Therefore, based on this, the purpose of this study is to conceptualise financial literacy within Nelson Mandela University and to gain a comprehensive understanding of the factors that affect financial literacy among the students. To achieve the purpose of this study, an in-depth literature review was conducted on the definition of financial literacy, the nature and importance of financial literacy, the dimensions of financial literacy and financial literacy in a local context. Following this was an empirical investigation into the financial literacy levels of university students through the development of a questionnaire that tested the individual’s financial knowledge, financial attitudes, financial behaviours, financial skills and financial well-being. Moreover, the relationships between the financial literacy levels of individuals and the components were tested as well. For the purposes of this study a quantitative research approach was adopted. The reason for this was it was suited to the purpose of the study which was to test the financial literacy levels of university students. This required collecting and analysing large amount of data. The sample for this study were Nelson Mandela University students who were registered for the 2020 academic year. The target sample amount was 500 students. The sampling method used was convenience sampling it was implemented through an electronic questionnaire. The number of usable questionnaires collected was 484 which resulted in an effective response rate of 96.80%. These responses were captured onto an excel spreadsheet which were then analysed through Statistica. To analyse the empirical data collected, an exploratory factor analysis, content validity, inter-observer reliability, Chronbach Alpha and ANOVA analysis were all used. The empirical analysis revealed that amongst the relationships tested, there were generally weak to no relationships between the financial literacy levels of the university students and the components of financial knowledge, financial attitudes, financial skills, financial behaviours and financial well-being. The results of the study led to a set of recommendations being developed for different stakeholders of financial literacy. These are namely, the stakeholders being the individuals, scholars, academics and the government should focus on explaining the importance of financial literacy to university students and how they can use financial literacy to improve their financial well-being. Furthermore, financial literacy programmes need to be developed to assist in improving the financial literacy levels of South African University students. There also needs to be more representative financial literacy studies performed in order to obtain a more comprehensive understanding of the financial literacy levels of South African University students. , Thesis (MCom) -- Faculty of Business and Economic Sciences, 2021
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- Date Issued: 2021-12