FINANCIAL LITERACY AMONGST AFRICAN GENERATION Y STUDENTS: AN EMPIRICAL ANALYSIS OF SELECTED DEMOGRAPIC FACTORS
Abstract
The entire spectrum of society, including Generation Y, face the challenge of
managing their personal finances in uncertain economic, financial and political
times. This challenge highlights the importance of being equipped with the
necessary financial literacy to make informed financial decisions. Financial
illiteracy is a global phenomenon that has become a topical issue. As a result,
there has been a steady increase in the body of knowledge that pertains to the
importance and benefits of financial literacy and the consequences of financial
illiteracy. This study investigates differences in the significantly sized black
Generation Y (hereafter referred to as African Generation Y) student cohort’s
financial literacy in terms of selected demographic factors, namely gender, year
and field of study respectively, within the South African context. Following a
descriptive research design and a quantitative research approach, data were
collected from a convenience sample of 385 African students registered at two
Gauteng based public South African university campuses. Multiple-choice
questions, relating to general financial knowledge, saving, spending and debt,
were used to test the students’ financial literacy. Data analysis included
descriptive statistics, an independent-samples t-test and one-way analysis of
variance (ANOVA). The findings suggest that African Generation Y students may
be categorised as having a relatively low level of financial literacy and that the
sample’s financial literacy did not differ much in terms of gender. The findings of
this study is likely to inform policymakers, educators, universities and financial
institutions on the most effective strategies to employ for implementation with
regards to differing financial literacy levels.
Details
| Other ID | JA33VE96NT |
|---|---|
| Journal Section | Research Article |
| Authors | |
| Publication Date | February 1, 2017 |
| Published in Issue | Year 2017 Volume: 9 Issue: 1 |