Financial literacy among the educated: An exploratory study of selected university students in South Africa

Abstract

The challenges associated with financial illiteracy are increasingly becoming a topical issue. Consequently, there is a growing body of literature explaining the antecedents and consequents of financial illiteracy. While most of these studies report on the experience from the developed world, very little is known on the subject matter in emerging economies. This study attempts to address this paucity in the body of knowledge by investigating the nature and extent of financial literacy in South Africa. Given that the literature acknowledges that financial illiteracy is a problem faced across the entire spectrum of society, including the uneducated and the educated, this study investigates financial illiteracy among university students, a section of the South African population that could be classified as being educated. A self‐administered financial literacy scale was administered to a sample of 214 students from a large South African metropolitan university. Overall, results indicate moderate levels of financial illiteracy; suggesting that even among the educated, there is a need to reinforce basic financial concepts. Some implications for financial service providers in interacting with literate consumers who may be financially illiterate are provided. © 2012 Wiley Periodicals, Inc.

A comparison of international HRM practices by Indian and European MNEs: evidence from Africa

“…The analysis shows no significant difference between their employment of a skilled workforce. In this respect, the inability to employ skilled workers is a feature of the external labour market and it is important to consider the socio-economic context of African countries, more specifically the problems of unemployment, illiteracy, and the shortage of professional skills exacerbated through economic and political instability (Horwitz and Mellahi 2009;Ibeh, Wilson and Chizema 2012;Shambare and Rugimbana 2012). While there are no differences between Indian and European MNEs in this regard, there is a need to consider how these two types adapt their HRM strategies to cope with these difficulties in recruiting skilled labour and the extent to which they are prepared to develop these skills internally.…”

“…Labour market efficiency and competitiveness within SADC has been hampered by a combination of factors including: the poor perception of artisan and technical work, poor understanding of the available learning opportunities and a lack of specialist skills, flexible employment systems and structured rewards and benefits systems (Ibeh, Wilson and Chizema 2012;Shambare and Rugimbana 2012;Horwitz 2013a).…”

Bankers and financial advisers in an emerging economy: are they financially literate?

“…This sector is particularly important in the South African economy because it is the sector that provides core financial assistance and functions such as transacting, deposit taking, lending and indemnity to South African consumers (Chetty, 2011). The studies conducted in South Africa did not only find financial literacy levels to be low amongst the university students, college students (Oseifuah & Gyekye, 2014) and the educated (Shambare & Rugimbana, 2012) but even among those who already possess both tertiary education and the actual working experience (Matemane, 2018).…”

Incentivized Time Preferences, Level of Education in a Household and Financial Literacy: Laboratory Evidence

“…Further, understanding gender differences in time preference choices might assist in designing interventions necessary to reduce disparities. A number of studies have explored the level of financial literacy across gender, economic status, social status and area of specialization (Batty, Collins, & Odders-White, 2015;Lusardi, Mitchell, & Curto, 2010;Shambare & Rugimbana, 2012;Oanea & Dornean, 2012;Mandell, 2008). However, very little information is available on the interaction between financial literacy level, gender differences and time discount rate as a measure of time preferences.…”