Original Research

Investigating financial literacy to improve financial behaviour among Black consumers

Chantal Rootman, Xolile Antoni
Journal of Economic and Financial Sciences | Vol 8, No 2 | a104 | DOI: https://doi.org/10.4102/jef.v8i2.104 | © 2019 Chantal Rootman, Xolile Antoni | This work is licensed under CC Attribution 4.0
Submitted: 21 December 2017 | Published: 30 July 2015

About the author(s)

Chantal Rootman, Department of Business Management, Nelson Mandela Metropolitan University, South Africa
Xolile Antoni, Department of Business Management, Nelson Mandela Metropolitan University, South Africa

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Abstract

Due to South Africa’s high unemployment rate and large uneducated population, consumers’ low savings levels and high debt levels are of concern. Previous South African research in the domain of financial behaviour focused only on the population’s debt and savings behaviour and the statistics thereof. There is little research on identifying solutions to poor debt and savings behaviour, as well as improvements in financial literacy and behaviour. As it is essential to improve consumers’ financial literacy, increase their financial inclusion and change their financial behaviour to their financial benefit, it is important to investigate the relationships between these financial aspects. This exploratory study investigates aspects relating to financial literacy, financial inclusion and financial behaviour, specifically among black consumers in Nelson Mandela Bay. A total of 335 black consumers were respondents in an empirical investigation. The main results showed that saving and responsible spending behaviours can be improved as consumers’ financial knowledge and inclusion increase. Based on the results, the article presents conclusions and recommendations regarding the financial education necessary to improve aspects relating to financial literacy, financial inclusion and financial behaviour.

Keywords

financial education; financial literacy; financial inclusion and financial behaviour

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Crossref Citations

1. Legislative and Other Selected Challenges Affecting Financial Inclusion for the Poor and Low Income Earners in South Africa
Howard Chitimira, Menelisi Ncube
Journal of African Law  vol: 64  issue: 3  first page: 337  year: 2020  
doi: 10.1017/S0021855320000182