scholarly journals Financial Literacy and Stokvels Savings of Low-Income Households in South Africa

2021 ◽  
Vol IX (Issue 4) ◽  
pp. 130-139
Author(s):  
Lindiwe Ngcobo
Keyword(s):  
South Africa ◽  
Low Income ◽  
Financial Literacy ◽  
Low Income Households

scholarly journals Reported Behavioural Patterns of Electricity Use among Low-Income Households in Makhanda, South Africa

2021 ◽  
Vol 13 (13) ◽  
pp. 7271
Author(s):  
Uzziah Mutumbi ◽  
Gladman Thondhlana ◽  
Sheunesu Ruwanza
Keyword(s):  
South Africa ◽  
Low Income ◽  
Sustainable Consumption ◽  
Electricity Consumption ◽  
Developed Countries ◽  
Electricity Use ◽  
Behavioural Patterns ◽  
Education Levels ◽  
Basic Services ◽  
Low Income Households

Households consume up to 20% of overall electricity consumption globally; hence, they are important role players in efforts towards promoting sustainable consumption. Research on electricity use behaviour is important for informing intervention strategies; however, relative to developed countries, research on this subject is lacking in developing countries where electricity access is limited. In South Africa, electricity use behaviour among poor neighbourhoods remains little studied and understood. This study was carried out among low-income households in Makhanda, South Africa, characterised by high poverty and unemployment rates, low education levels, and limited access to basic services. Using a self-reporting approach, electricity use behaviour of low-income households was assessed against a list of common household electricity use actions. A survey of 297 households was conducted. The findings show mixed results, with households reporting both good electricity use behaviour (e.g., cooling down hot food before refrigeration and using washing machines on full load) and wasteful actions (e.g., leaving appliances on standby). Our results show that electricity use behaviour was influenced by socio-psychological values including universalism, benevolence, hedonism, and power. Some of the reported electricity behavioural patterns are consistent with those previously reported among high-income households. The theoretical and practical implications of these results are discussed.

scholarly journals AN ANALYSIS OF PERSONAL FINANCIAL LITERACY AMONG ADULTS IN VHEMBE DISTRICT, A RURAL MUNICIPALITY IN SOUTH AFRICA

2021 ◽  
Vol 9 (1) ◽  
pp. 55-66
Author(s):  
Adam Ndou ◽  
◽  
Sam Ngwenya ◽  
Keyword(s):  
South Africa ◽  
Low Income ◽  
Financial Literacy ◽  
Financial Services ◽  
Financial Management ◽  
Quantitative Research ◽  
Well Being ◽  
Primary Data ◽  
Research Approach ◽  
Vhembe District

Consumers in rural and low-income areas are the most financially vulnerable and are facing challenges with their finances and depend mostly on unsecured loans to finance their daily expenses. This has been exacerbated by global financial crises, which left many consumers in financial strains. The purpose of this paper is to measure the level of financial literacy focusing on the areas of day-to-day money management, financial planning, choosing appropriate financial services and products, and financial knowledge and understanding. The quantitative research approach was used to collect primary data among adults in Vhembe District Municipality (VDM), a rural and low-income municipality in South Africa. Primary data were analyzed through descriptive statistics. The results indicate that the level of financial literacy among adults in VDM is low at 38.73%. The low levels of financial literacy have serious consequences for an adult’s personal financial management skills and lead to their inability to make correct financial decisions. It is apparent that an individual’s level of financial literacy has become important in how individuals manage their finances in today’s complicated financial world. The paper concludes by suggesting interventions that could help adults to improve their level of financial literacy, manage and sustain their financial well-being.

scholarly journals Frugality Is Hard to Afford

2019 ◽  
Vol 56 (1) ◽  
pp. 1-17 ◽  
Author(s):  
A. Yeşim Orhun ◽  
Mike Palazzolo
Keyword(s):  
Low Income ◽  
Financial Literacy ◽  
Liquidity Constraints ◽  
Good Deal ◽  
Financial Resources ◽  
Policy Makers ◽  
Catch Up ◽  
The Impact ◽  
Low Income Households

Intertemporal savings strategies, such as bulk buying or accelerating purchase timing to take advantage of a good deal, provide long-term savings in exchange for an increase in immediate spending. Although households with limited financial resources stand to benefit the most from these strategies, they are less likely to make use of them. The authors provide causal evidence that liquidity constraints impede low-income households’ ability to use these strategies, above and beyond the impact of other constraints. Exploiting recurring variation in household liquidity, this study shows that when low-income households have more liquidity, they partially catch up to higher-income households’ ability to use intertemporal savings strategies. The findings provide guidance to marketing managers and researchers regarding targeted promotional design and measurement of deal-proneness. For policy makers, they suggest a new path for decreasing the higher prices low-income households have been documented to pay for everyday goods. Policies have traditionally focused on increasing financial literacy or access to supermarkets. Our work suggests that providing greater liquidity can help low-income households make better use of savings opportunities already available to them.

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