FINANCIAL LITERACY AS AN INSTRUMENT

Abstract

South Africa is characterized by high levels of illiteracy in general as well as high levels of financial literacy in particular. The lack of financial literacy, among other things, results in people (especially the poor) being unable to access financial services and people then make uninformed financial decisions. The purpose of this research was to understand whether financial literacy (in low-income households) could be a vehicle for accessing and using financial services. For the purpose of this research report, a qualitative method of research was applied because a qualitative approach is, amongst others, a method of inquiry that seeks to understand social phenomena within the context of the participants’ perspectives and experiences. The major findings of this report show that, as much as financial literacy is a necessary vehicle to ensuring access and usage of financial services, it is not a panacea for the problems of financial access and usage, and furthermore, that financial literacy is a process, not an event