Journal of Reviews on Global Economics, 2019, 8, 1121-1134 1121
E-ISSN: 1929-7092/19 © 2019 Lifescience Global
The National Strategy on Financial Literacy: A Conceptual Review
of South African Perspectives
Mbukanma Ifeanyi, Ravinder Rena
*
and J.J. Hein Prinsloo
NWU Business School, Faculty of Economic and Management Sciences, North-West University, Mahikeng
Campus, Private BagX 2046, Mmbatho 2745, Republic of South Africa
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.
Keywords: Financial Literacy, National Strategies, Programmes Challenges, Practical Intervention Approach.
1. INTRODUCTION
Following the 2007-2008 global financial crisis, the
discussion on vulnerable and less informed investors
gained more momentum, as they were probably more
exposed to the crisis (Guiso & Viviano, 2014).
Ironically, the genesis of the financial crisis, which
started in developed countries around the world, is
traced back to the price bubbles of homes that have
been fed by giving consumers huge access to credit, to
lure consumers to make unwise investments (Adair &
Adaskou, 2017; Xu, Briley, Brown, & Roberts, 2017).
More prominent financial knowledge, together with
culture to apply the exercise of financial knowledge,
diminishes the probability that households, at any wage
level, will fall prey to deceitful deal operators and buy
items or administrations that are not to their greatest
advantage (Fernandes, Lynch Jr, & Netemeyer, 2014).
It is usually recognized that people regardless of
age are frequently engaged in economic decision-
making operations related to their earnings, distribution
and use of their revenue. These activities come with its
own financial implications and in order to make
informed financial decision, individual’s needs to be
financially literate. The study of Lusardi and Mitchell
(2014) revealed, that the poor level of financial literacy
*Address correspondence to this author at the NWU Business School, Faculty
of Economic and Management Sciences, North-West University, Mahikeng
Campus, Private BagX 2046, Mmbatho 2745, Republic of South Africa;
E-mail: ravinder.rena@nwu.ac.za, ravinder.rena@gmail.com
among individuals plus the inadequate resource
management limits the assurance of proper future
financial well-being of individuals. Perhaps, the need
for financial literacy to help individual make sound
financial decision that will favour their future financial
well-being. Hence, this study aims to review related
literatures within the scope of financial literacy and
identify challenges as well as recommend the way
forward on financial literacy in South Africa.
1.1. Objectives of the Study
The objective of this research is to have a thorough
literature review within the scope of national financial
literacy programmes. In addition, ascertain the
challenges that hinder the smooth delivery of the
programmes as well as recommend practical
intervention factors for financial literacy programme in
South Africa.
1.2. Research Methodology
Research methodology of studies includes a
systematic and theoretical evaluation of the techniques
applied to a field of research. It includes the theoretical
assessment of the body of techniques and values
related with a branch of understanding (Yang & Tate,
2012). Perhaps, numbers of literature research
methods on this context exist namely; narrative review,
vote counting, meta-analysis and descriptive review
(King & He, 2005). For the benefit of this study, a
descriptive literature review was employed. Thus, a