Abstract
Financial literacy is critical for navigating the complexities of today's economic landscape, especially for higher education students transitioning into adulthood and facing increasing financial responsibilities. This study examines the views and perceptions of university students post-financial education. The research employed an interpretive paradigm, utilising a case study supplemented by semi-structured interviews of thirteen final-year university students who were interviewed six to nine months after completing a specific Financial Education Course as a case study. The study's objectives were to determine what influences students' financial literacy, establish how university students perceive and understand financial literacy, determine what motivates students to enrol in voluntary financial education programmes, examine how students experience the Financial Education Course, assess what behavioural changes and impacts on financial planning practices were experienced, and to establish what strategies can encourage and empower graduates to acquire financial literacy.
An interpretivist research philosophy was adopted to gain a deeper understanding of how students perceive financial literacy and experience the Financial Education Course. The research approach was inductive, and a mono-method qualitative research methodology was used. Semi-structured interviews were used to collect data from the participants on how they view financial literacy, what influenced their financial literacy and how their financial literacy evolved after the Financial Education Course. Ethical considerations and best research practices guided both the interview process and participant selection. Data analysis software, Atlas-ti v24, facilitated the thematic analysis of the interview data, revealing rich insights into student perceptions of financial literacy, post-education financial behaviour, and current financial planning practices.
Five key themes emerged from the analysis: 1) Influences shaping financial literacy, 2) Interaction with Broader Community, 3) Outcomes of Educational Programmes, 4) Personal Planning and Approach Towards Finances, and 5) Understanding of Financial Literacy. The principal findings include that external and internal factors influence students’ financial literacy.
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Students feel a sense of responsibility for their financial literacy. Their upbringing, social interactions, and broader societal context influence their understanding of financial concepts. While their formal definition of financial literacy may be limited, their practical understanding is more comprehensive. Students' motivation for financial education stems from a desire for self-accountability regarding finances and saving, a need to reduce dependence on family (including voluntary contributions, or ‘black tax’), and a sense of empowerment gained through financial knowledge. Financial education positively influences students’ perceptions of financial literacy without necessarily leading to immediate behavioural changes. The program fostered a meaningful learning experience, shaping students' financial outlook on their finances.
Students felt empowered by the Financial Education Course and illustrated positive financial behaviour changes since completion thereof. They will highly recommend the course to friends and family, and some students feel the course should be compulsory for all students. Personal financial planning, particularly budgeting and saving, is a key focus for students. While most perceive themselves as financially literate, some still face challenges, particularly in maintaining financial discipline. Students suggest ongoing financial education support from the higher education institution.
The study findings indicate that the effectiveness of financial education programmes should be evaluated not only by their impact on financial literacy and behavioural changes but also by their ability to foster intangible benefits, such as increased student empowerment. The findings suggest strategies for encouraging financial literacy of university students, which include financial education, how it should be structured and financial literacy campaigns.
The research offers valuable recommendations for improving financial education programmes, advocating for mandatory financial education, and encouraging policymakers to prioritise initiatives that promote financial discussions within family structures. Importantly, this study addresses a gap in the literature by exploring South African students' perceptions of financial literacy and how students experience financial education.