THE FINANCIAL PLANNING OF LOW INCOME HOUSEHOLDS FOR THE XHOSA INITIATION RITUAL
Date
2014-01-20
Authors
Madikane, Thandekile
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Abstract
South Africa is characterised by low levels of household savings, with households preferring to
divert surplus cash to life’s luxuries. Low levels of household savings in South Africa are due in
part to the country having a poor savings culture. The lack of savings as well as lack of financial
planning, among other things, results in people (especially the poor) being unable to effectively
plan their finances for long term wants and needs.
The purpose of this research is to investigate exactly how low income families are financially
planning for the Xhosa circumcision initiation ritual, given that costs for this ritual can be
excessive. For the purpose of this research report, a qualitative method of research is applied.
The sampling method includes non-probability sampling – that is purposive of judgemental
sampling. In the research process individual interviews are utilised as well as relevant literature to
this study. The interviews were conducted in N.U. 13 in the township of Mdantsane, in the
Eastern Cape.
The major findings of this study are that low income households find difficulty in savings which
is tremendously increased for low income households with children. It was found that low
income households are in fact saving and financially planning for their various wants and needs,
but utilise informal savings methods as opposed to consulting formal financial institutions. With
regards to financial planning for the initiation ritual the major finding of the research is that
although saving occurs, it is not done in a timeous manner, leading many of these low income
households to bear negative financial costs as a result thereof.
Description
MM (P&DM) thesis
Keywords
Low income households, Xhosa initiation rituals