Factors influencing middle income black professionals’ intention to seek financial planning assistance
- Authors: Mtimba, Sinaye Akhumzi
- Date: 2018
- Subjects: Finance, Personal , Financial literacy Financial planners Middle class -- South Africa -- Finance
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/22813 , vital:30099
- Description: With the rising day to day expenses especially post retirement when income streams are running low, financial planning helps to better manage such events more effectively. Through a proper financial plan individuals do not just deal with wealth creation and wealth protection but are able to start from the basics of budgeting, were individuals are taught how to live within their means. In South Africa, financial planning has been seen to be focusing on the more affluent clients. This has resulted in a distinct lack of academic literature done on middle income black professionals in relation to financial planning. This is despite the increase of the black middle class population which has been accompanied with an increased purchasing power exceeding that of the previously wealthier white middle class. The growth of the black middle class in South Africa has been accompanied with stumbling blocks, ranging from the lack of financial literacy of the black middle class, negative attitude towards the financial services industry that influence financial decision making, and the pre-existing perception that are built on the lack of financial awareness, a legacy left by the history of division that South Africa had. Therefore the main aim of this study was to investigate the factors that influence middle income black professionals’ intention to seek financial planning assistance. Both secondary and primary data were used to help achieve the primary research objective of the study. An in-depth literature review on the financial planning industry in South Africa that included the nature of financial planning, the role of the financial planner, the six step financial planning process, the importance and benefits of financial planning, current trends in the financial planning industry, financial planning and the middle income black professionals and the factors that influence the middle income black professionals’ intention to seek financial planning assistance was conducted. Selected study of the literature revealed six factors that might influence an individual’s intention to seek financial planning assistance, namely Attitude, Awareness, Family financial norms, Financial self-efficacy, Trust and Perceived rewards. A theoretical framework was proposed illustrating the relationships between the factors influencing middle income black professionals’ intention to seek financial planning assistance that were to be empirically tested. A positivistic research paradigm was followed and a quantitative approach was implemented. Snowball and convenience sampling was used and a total of 300 questionnaires were distributed to middle income black professionals in the Eastern Cape. For the purpose of this study, middle income black professionals refer to qualified working individuals in the middle income bracket, including teachers, nurses, administrative workers, office-based municipal workers and employees in the private sector, such as those working in the banks and retail supervisors. These were distributed to verify their intentional behaviour with regards to seeking financial planning assistance. From the 300 questionnaires distributed, 271 usable questionnaires were yielded. Statistical techniques including descriptive statistics, Pearson’s product moment correlations and multiple regression analysis were performed on the gathered data. Demographic data relating to the gender, age and first language of the respondents was collected. An exploratory factor analysis was undertaken, and Cronbach’s alpha coefficients were calculated to assess the validity and reliability of the measuring instrument. As a result of the factor analysis the operational definitions were rephrased. The Cronbach’s alpha coefficients reported were all greater than 0.7, deeming the scales measuring the various dimensions reliable. Descriptive statistics were calculated to summarise the sample data, and Pearson’s product-moment correlation coefficients were established to investigate the associations between the variables. Significant positive correlations were reported between all of the variables. The results of the descriptive statistics showed that the majority of respondents agreed that Attitude (77.73%), Financial self-efficacy (61.13%) and Perceived rewards (76.98%) were the most influencing factors. The results of the multiple regression analysis revealed that three factors had a significant positive influence on the dependent variable Intention to seek financial planning assistance, namely Attitude, Awareness and Perceived rewards. The factors Family financial norms, Financial self-efficacy and Trust were rejected as there was no significant relationship found between them and the Intention to seek financial planning assistance. Based on the results, it is recommended that financial service providers focus on financial education by engaging with the middle income black professionals through accessible media such as radio and television. Furthermore, financial service providers should shift from a sales orientated philosophy to a lifestyle financial planning advice philosophy that encourage value for the service rendered to the client and sells benefit than product. The Department of Education should put in place basic financial planning curriculum that can be deliverable at schooling level and is examinable in order to improve the basic financial knowledge and awareness amongst the next generation. Lastly the middle income black professionals are encouraged to read their documents when taking out financial products as well as financial related articles to develop their financial knowledge.
- Full Text:
- Date Issued: 2018
- Authors: Mtimba, Sinaye Akhumzi
- Date: 2018
- Subjects: Finance, Personal , Financial literacy Financial planners Middle class -- South Africa -- Finance
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/22813 , vital:30099
- Description: With the rising day to day expenses especially post retirement when income streams are running low, financial planning helps to better manage such events more effectively. Through a proper financial plan individuals do not just deal with wealth creation and wealth protection but are able to start from the basics of budgeting, were individuals are taught how to live within their means. In South Africa, financial planning has been seen to be focusing on the more affluent clients. This has resulted in a distinct lack of academic literature done on middle income black professionals in relation to financial planning. This is despite the increase of the black middle class population which has been accompanied with an increased purchasing power exceeding that of the previously wealthier white middle class. The growth of the black middle class in South Africa has been accompanied with stumbling blocks, ranging from the lack of financial literacy of the black middle class, negative attitude towards the financial services industry that influence financial decision making, and the pre-existing perception that are built on the lack of financial awareness, a legacy left by the history of division that South Africa had. Therefore the main aim of this study was to investigate the factors that influence middle income black professionals’ intention to seek financial planning assistance. Both secondary and primary data were used to help achieve the primary research objective of the study. An in-depth literature review on the financial planning industry in South Africa that included the nature of financial planning, the role of the financial planner, the six step financial planning process, the importance and benefits of financial planning, current trends in the financial planning industry, financial planning and the middle income black professionals and the factors that influence the middle income black professionals’ intention to seek financial planning assistance was conducted. Selected study of the literature revealed six factors that might influence an individual’s intention to seek financial planning assistance, namely Attitude, Awareness, Family financial norms, Financial self-efficacy, Trust and Perceived rewards. A theoretical framework was proposed illustrating the relationships between the factors influencing middle income black professionals’ intention to seek financial planning assistance that were to be empirically tested. A positivistic research paradigm was followed and a quantitative approach was implemented. Snowball and convenience sampling was used and a total of 300 questionnaires were distributed to middle income black professionals in the Eastern Cape. For the purpose of this study, middle income black professionals refer to qualified working individuals in the middle income bracket, including teachers, nurses, administrative workers, office-based municipal workers and employees in the private sector, such as those working in the banks and retail supervisors. These were distributed to verify their intentional behaviour with regards to seeking financial planning assistance. From the 300 questionnaires distributed, 271 usable questionnaires were yielded. Statistical techniques including descriptive statistics, Pearson’s product moment correlations and multiple regression analysis were performed on the gathered data. Demographic data relating to the gender, age and first language of the respondents was collected. An exploratory factor analysis was undertaken, and Cronbach’s alpha coefficients were calculated to assess the validity and reliability of the measuring instrument. As a result of the factor analysis the operational definitions were rephrased. The Cronbach’s alpha coefficients reported were all greater than 0.7, deeming the scales measuring the various dimensions reliable. Descriptive statistics were calculated to summarise the sample data, and Pearson’s product-moment correlation coefficients were established to investigate the associations between the variables. Significant positive correlations were reported between all of the variables. The results of the descriptive statistics showed that the majority of respondents agreed that Attitude (77.73%), Financial self-efficacy (61.13%) and Perceived rewards (76.98%) were the most influencing factors. The results of the multiple regression analysis revealed that three factors had a significant positive influence on the dependent variable Intention to seek financial planning assistance, namely Attitude, Awareness and Perceived rewards. The factors Family financial norms, Financial self-efficacy and Trust were rejected as there was no significant relationship found between them and the Intention to seek financial planning assistance. Based on the results, it is recommended that financial service providers focus on financial education by engaging with the middle income black professionals through accessible media such as radio and television. Furthermore, financial service providers should shift from a sales orientated philosophy to a lifestyle financial planning advice philosophy that encourage value for the service rendered to the client and sells benefit than product. The Department of Education should put in place basic financial planning curriculum that can be deliverable at schooling level and is examinable in order to improve the basic financial knowledge and awareness amongst the next generation. Lastly the middle income black professionals are encouraged to read their documents when taking out financial products as well as financial related articles to develop their financial knowledge.
- Full Text:
- Date Issued: 2018
The role of family structure and financial socialisation in influencing students' financial capabilities
- Authors: Antoni, Xolile Lucas
- Date: 2018
- Subjects: Finance, Personal , Families -- Economic aspects Finance -- Social aspects
- Language: English
- Type: Thesis , Doctoral , DPhil
- Identifier: http://hdl.handle.net/10948/21505 , vital:29531
- Description: This research used three theories to develop a theoretical framework that investigated the role of family structures and financial socialisation in influencing students’ levels of financial knowledge, attitudes, self-efficacy and behaviour (financial capabilities). It also examined the mediating role of family financial situation in the relationship between the family structure and the mechanisms of financial socialisation. The theories of consumer socialisation, family financial socialisation and family structure model, guided the development of a proposed theoretical framework and development of five major hypotheses. To answer the research questions of the study and test the hypotheses, this study followed a quantitative survey research design. Undergraduate students in the Faculty of Business and Economic Sciences completed 350 questionnaires. Using exploratory factor analyses results, the theoretical framework was updated, and statistical relationships tested. Simple regression analysis results showed that students who were born or raised in an intact family structure reported more financial socialisation in terms of the mechanisms of financial socialisation than students who were born or raised in non-intact family structures. Simple regression results showed that intact family structures had positive significant relationships with four of the six components of the mechanisms of financial socialisation. Furthermore, intact family structures had negative significant relationships with two components of the mechanisms of financial socialisation. Multiple regression results showed four components of the mechanisms of financial socialisation (teaching and monitoring, reinforcement of financial behaviour, modelling of financial behaviour and financial conflict) had positive significant relationships with financial capabilities. The components of financial socialisation agents (peers and media) had positive significant relationships with three components of financial capabilities (financial behaviour, money is respect and freedom, and money is good). In addition, family financial situation partially mediated the relationship between intact family structure and three components of the mechanisms of financial socialisation, namely, parental teaching and monitoring, modelling of financial behaviour and parental relationship. Furthermore, family financial situation perfectly mediated the relationship between intact family structures and one component of the mechanisms of financial socialisation (reinforcement of financial behaviour). Three components of the mechanisms of financial socialisation (parental teaching and monitoring, reinforcement of financial behaviour and modelling of financial behaviour) also perfectly mediated the relationship between intact family structure and one component of financial capabilities, namely, financial behaviour. Similarly, one component of the mechanisms of financial socialisation (parental teaching and monitoring) also perfectly mediated the relationship between intact family structure and one component of financial capabilities (financial self-efficacy). These results assisted in the development of a new empirically tested model to investigate the role of family structure and financial socialisation in influencing students’ financial capabilities. This study showed that family structures was an important variable that should not be excluded in financial planning as it influenced all the components of the mechanisms of financial socialisation. Financial socialisation agents also had an influence on financial capabilities and, thus, the parental financial socialisation should not be investigated in isolation. It was also important to identify the mechanisms of financial socialisation as seen in this study, as the components of the mechanisms had different influences on students’ financial capabilities. For this study, parental teaching and monitoring, reinforcement of financial behaviour and modelling of financial behaviour proved to be the most important components of the mechanisms of financial socialisation, which ultimately influenced students’ financial capabilities. This study has proved that family structures and financial socialisation influence the financial capabilities of students. To improve financial capabilities of students, parents should increase their level of modelling of financial behaviour and decrease the level of secrecy about money in the household. Parents should also instill positive financial attitudes in students, monitor their financial behaviour, and reinforce positive financial behaviour. This study contributes to the much-needed body of knowledge in financial planning by showing through empirical results that family structure has an influence on the components of the factor mechanisms of financial socialisation, and the factor financial capabilities. As little information exists to explain these relationships, this study makes a valuable contribution to new knowledge in this area.
- Full Text:
- Date Issued: 2018
- Authors: Antoni, Xolile Lucas
- Date: 2018
- Subjects: Finance, Personal , Families -- Economic aspects Finance -- Social aspects
- Language: English
- Type: Thesis , Doctoral , DPhil
- Identifier: http://hdl.handle.net/10948/21505 , vital:29531
- Description: This research used three theories to develop a theoretical framework that investigated the role of family structures and financial socialisation in influencing students’ levels of financial knowledge, attitudes, self-efficacy and behaviour (financial capabilities). It also examined the mediating role of family financial situation in the relationship between the family structure and the mechanisms of financial socialisation. The theories of consumer socialisation, family financial socialisation and family structure model, guided the development of a proposed theoretical framework and development of five major hypotheses. To answer the research questions of the study and test the hypotheses, this study followed a quantitative survey research design. Undergraduate students in the Faculty of Business and Economic Sciences completed 350 questionnaires. Using exploratory factor analyses results, the theoretical framework was updated, and statistical relationships tested. Simple regression analysis results showed that students who were born or raised in an intact family structure reported more financial socialisation in terms of the mechanisms of financial socialisation than students who were born or raised in non-intact family structures. Simple regression results showed that intact family structures had positive significant relationships with four of the six components of the mechanisms of financial socialisation. Furthermore, intact family structures had negative significant relationships with two components of the mechanisms of financial socialisation. Multiple regression results showed four components of the mechanisms of financial socialisation (teaching and monitoring, reinforcement of financial behaviour, modelling of financial behaviour and financial conflict) had positive significant relationships with financial capabilities. The components of financial socialisation agents (peers and media) had positive significant relationships with three components of financial capabilities (financial behaviour, money is respect and freedom, and money is good). In addition, family financial situation partially mediated the relationship between intact family structure and three components of the mechanisms of financial socialisation, namely, parental teaching and monitoring, modelling of financial behaviour and parental relationship. Furthermore, family financial situation perfectly mediated the relationship between intact family structures and one component of the mechanisms of financial socialisation (reinforcement of financial behaviour). Three components of the mechanisms of financial socialisation (parental teaching and monitoring, reinforcement of financial behaviour and modelling of financial behaviour) also perfectly mediated the relationship between intact family structure and one component of financial capabilities, namely, financial behaviour. Similarly, one component of the mechanisms of financial socialisation (parental teaching and monitoring) also perfectly mediated the relationship between intact family structure and one component of financial capabilities (financial self-efficacy). These results assisted in the development of a new empirically tested model to investigate the role of family structure and financial socialisation in influencing students’ financial capabilities. This study showed that family structures was an important variable that should not be excluded in financial planning as it influenced all the components of the mechanisms of financial socialisation. Financial socialisation agents also had an influence on financial capabilities and, thus, the parental financial socialisation should not be investigated in isolation. It was also important to identify the mechanisms of financial socialisation as seen in this study, as the components of the mechanisms had different influences on students’ financial capabilities. For this study, parental teaching and monitoring, reinforcement of financial behaviour and modelling of financial behaviour proved to be the most important components of the mechanisms of financial socialisation, which ultimately influenced students’ financial capabilities. This study has proved that family structures and financial socialisation influence the financial capabilities of students. To improve financial capabilities of students, parents should increase their level of modelling of financial behaviour and decrease the level of secrecy about money in the household. Parents should also instill positive financial attitudes in students, monitor their financial behaviour, and reinforce positive financial behaviour. This study contributes to the much-needed body of knowledge in financial planning by showing through empirical results that family structure has an influence on the components of the factor mechanisms of financial socialisation, and the factor financial capabilities. As little information exists to explain these relationships, this study makes a valuable contribution to new knowledge in this area.
- Full Text:
- Date Issued: 2018
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