- Title
- The influence of financial education on the financial literacy Of higher certificate students at the Nelson Mandela University
- Creator
- Nyati, Nokwanda Vuyolwethu
- Subject
- financial literacy
- Subject
- higher certificate
- Subject
- South Africa
- Date Issued
- 2023-04
- Date
- 2023-04
- Type
- Master's theses
- Type
- text
- Identifier
- http://hdl.handle.net/10948/62320
- Identifier
- vital:72380
- Description
- South Africa has low levels of financial literacy. This includes students, even though they are educated. The literature reveals South African students struggle to grasp personal finance concepts, specifically related to saving, monitoring debt and budgeting. It is well-known that financial education improves financial literacy, however, financial education is not implemented as a stand-alone subject for students at primary and high school level in the South African context. Financial education is only implemented into specific learning areas in the curricula such as Economic Management Sciences, Mathematical Literacy, Mathematics, Accounting, Business Studies and Economics. At university level, some students from specific faculties are exposed to a financial education module. A gap in the literature warranted a longitudinal investigation among students to discover the impact of university financial education on financial literacy. There is a lack of research to assess the financial literacy of students by measuring their financial knowledge and financial skills objectively. It is crucial to determine whether a relationship exists between financial education and financial literacy involving South African students. Hence, according to this, the primary objective of the study was to investigate the influence of financial education on financial literacy of Higher Certificate (Business Studies) students at Nelson Mandela University. The rationale behind choosing these students as a sample is because the programme comprises a Fundamentals of Personal Finance module which focused on day-to-day financial education. Two literature review chapters were conducted to accomplish the primary objective of the study. The first literature review focused on the nature and importance of financial education, core components of financial education, sources of financial education, personal finance module as well as the impact of financial education on financial literacy. This led to the second literature review, which examined the exposure of financial education on financial literacy levels. In addition, financial literacy components and the relationship between financial education on financial literacy were discussed. Thereafter, the hypotheses of the study were developed to empirically test the sample on their financial literacy levels before and after exposure to financial vi education by measuring financial knowledge, financial skills, financial attitude and financial behaviour. An online questionnaire was used to collect data from the respondents before exposure to the Fundamentals of Finance module to determine their financial literacy levels. The same questionnaire was completed by the respondents to discover whether financial literacy levels stayed the same, declined or improved after exposure to financial education. Through convenience and criterion sampling, 233 usable questionnaires were collected before exposure to financial education which translated into an effective rate of 64.54 percent. Following this, 77 usable questionnaires were collected after financial education exposure which was interpreted as an effective rate of 61.60 percent. The low response rate was due to the level of computer literacy amongst the respondents, some respondents may have not had access to a laptop, computer desktop or mobile device, and the respondents were busy preparing for examinations. The empirical data was analysed through STATISTICA by performing Confirmatory Factor Analysis (CFA) tests, reliability tests (Cronbach Alpha), descriptive statistics related to the demographics of the respondents, mean scores and standard deviations. Further statistical analyses were conducted through Pearson’s Product Moment Correlation Coefficient tests to determine the nature of the relationships between financial knowledge, financial skills, financial attitude and financial behaviour. Paired t-tests were conducted to discover the differences in the mean scores in the financial literacy levels of respondents before and after exposure to financial education. The empirical results revealed significant relationships between financial education and financial knowledge; financial education and financial skills; financial education and financial attitude; financial education and financial behaviour. This led to all four hypotheses of the study being accepted. The financial knowledge, financial skills and financial attitude of Higher Certificate (Business Studies) students did not improve after completing the Fundamentals of Personal Finance module. Only the financial behaviour of these students improved after financial education exposure. The results of the study provided the basis for the development of recommendations to improve financial literacy levels by providing financial education content that is suitable for individuals in different stages of their lives.
- Description
- Thesis (MA) -- Faculty of Faculty of Business and Economic Sciences, 2023
- Format
- computer
- Format
- online resource
- Format
- application/pdf
- Format
- 1 online resource (xiii, 216 pages)
- Format
- Publisher
- Nelson Mandela University
- Publisher
- Faculty of Faculty of Business and Economic Sciences
- Language
- English
- Rights
- Nelson Mandela University
- Rights
- All Rights Reserved
- Rights
- Open Access
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NMU Business School
| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details Download | SOURCE1 | NYATI, V.pdf | 2 MB | Adobe Acrobat PDF | View Details Download |