The National Strategy on Financial Literacy: A Conceptual Review of South African Perspectives

Abstract

The relevance of financial literacy in the lives of individuals has attracted several stakeholders from different parts of the world in the quest to provide the required financial knowledge for households to manage their financial wellbeing. Accordingly, previous studies show that financial literacy serves as a mechanism to enhance the ability of households to better allocate financial resources with regard to savings and wealth creation over their lifetimes in a world of uncertainty and imperfect insurance. Thus, this study provides a literature review on global initiatives, strategies and programmes on financial literacy as well the perspectives of financial literacy programmes in South Africa. As such, it is the objective of this study to ascertain from previous literatures the factors that hinders the smooth delivery of financial literacy programmes in South Africa. Thus, the researcher employed a descriptive literature review method to achieve this objective. The findings of this study identifies that there is a growing need for a continuous financial literacy campaign especially in South Africa as the aging populations are confronted with intensified pressure on standardised plan for future financial well-being. However, the challenges of financial literacy programmes in South Africa was ascertained which forms part of the factors that hinders smooth campaign of financial literacy programmes in South Africa. Hence, this study recommends practical intervention factors of financial literacy programme in South Africa, which is expected to assist policy makers in formulating the right financial knowledge delivery programmes in South Africa.

Providing education and financial literacy about stock investment planning for SMK PGRI Pandaan students

“…These two objectives can be achieved if there is a training model and investment empowerment (Nicolini et al 2013). This is also in line with the thoughts of Ifeanyi et al (2019), Askar et al (2020), andNugraha (2020), which details the investment literacy and education coaching and training model through several activities, namely: (1) encouraging the training ecosystem in the school environment to equip students with the right knowledge to make the right investment decisions; and (2) encourage research and innovation, especially digital-based.…”

A Cognitive Analysis of Consumer Literacy Training and Financial Capability Improvement Among South Africans: A Cross-Sectional Study

“…Nanziri and Leibbrandt (2018) have found that financial literacy was positively associated with financial behavior, suggesting that improving financial literacy could lead to better financial decision-making. Similarly, Ifeanyi et al (2019) have developed a financial literacy index for South Africa based on the following six constructs namely: (1) financial management, (2) investment literacy, (3) borrowing literacy, (4) insurance literacy, (5) knowledge of financial products and services, and (6) knowledge of financial institutions and their functions.…”

The Interplay Between Financial Literacy, Financial Technology and Financial Behaviour of High School Teachers in an Emerging Economy

“…Furthermore, South Africa has a number of financial education programmes and initiatives. However, these programmes lack unification and focus of efforts amongst different stakeholders (Ifeanyi, Rena & Prinsloo, 2019). The programmes are not supported by research on how to properly deliver and implement them, with most programmes being narrow, lacking depth and failing to represent South Africa's national interests, and lastly are not governed by best practices and standards for financial literacy education (Ifeanyi et al, 2019).…”

“…However, these programmes lack unification and focus of efforts amongst different stakeholders (Ifeanyi, Rena & Prinsloo, 2019). The programmes are not supported by research on how to properly deliver and implement them, with most programmes being narrow, lacking depth and failing to represent South Africa's national interests, and lastly are not governed by best practices and standards for financial literacy education (Ifeanyi et al, 2019). Consequently, there are not many financial literacy programmes at national level that are specifically designed for teachers/educators for long term results.…”