CORRELATION BETWEEN FINANCIAL LITERACY VARIABLES AND HOUSEHOLD SAVINGS BEHAVIOUR IN TWO SELECTED MUNICIPALITIES IN SOUTH AFRICA
DOI:
https://doi.org/10.61841/djzbb919Keywords:
Financial literacy variables, Household savings behaviour, Structural Equation Model, South AfricaAbstract
This study was conducted to ascertain financial literacy variables that have a statistically
significant impact on household savings behaviour. Thus, to achieve this objective, financial
literacy micro-variables were used to obtain quantitative data from the employees of the City
of Tshwane and Mahikeng Municipality in South Africa. Correlation statistical analysis and
factor analysis were performed to identify financial literacy micro-variables that have a
significant impact on household savings behaviour as well as a confirmatory factor analysis
through structural equation modelling. Hence, the findings of this study reveal that financial
literacy variables under the domain of financial control, planning and knowledge have a
positive correlation with determinant variables of South African household savings behaviour
and recommend that stakeholders in charge of financial literacy and savings campaigns in
South Africa should adopt the study's contribution which identifies financial and savings
literacy as core variables that can improve savings behaviour of South African households
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