Enhancing financial inclusion through financial literacy for women in South Africa

Abstract

Financial inclusion falls under South Africa’s development agenda regarding inclusive growth and the society’s transformation, particularly for women in South Africa. Similarly, financial literacy has become a topical subject in the country. The study explores the levels of financial literacy among women in South Africa and its impact on financial inclusion, examines the linkage between financial inclusion and financial literacy and provides an argument that financial inclusion efforts cannot be separated from broader issues of financial education and financial literacy in South Africa. Previous research advocates that financial inclusion efforts cannot be separated from broader challenges of financial literacy. There is a conventional statistic maintaining that high financial literacy levels boost financial inclusion. Also, financially knowledgeable women have been found to hold a sound financial plan for the future and have positive chances of being financially included. This study was qualitative in nature. It took a form of an extensive literature review and primary data that was collected through a structured questionnaire. Through its findings, the study found that financial literacy and financial inclusion are twin variables with a positive relationship. Practical financial literacy programs for women were identified through this study for the enhancement of financial inclusion and to boost South Africa’s economic development. Increased levels of financial literacy can increase women’s participation in South Africa’s financial system and ultimately address the catastrophic challenge of financial inclusion.