Investment Literacy of University Students in South Africa

Damilola Aboluwodi () and Bomi Nomlala ()
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Damilola Aboluwodi: University of KwaZulu-Natal
Bomi Nomlala: University of KwaZulu-Natal

Acta Universitatis Danubius. OEconomica, 2020, issue 16(1), 266-283

Abstract: There is a lack of evidence on the levels of investment literacy among South African university students in business-related courses. Being an investment literate is pivotal in making informed financial decisions that affect long term financial well-being. This study surveyed 344 students studying business degrees at a South African university to assess their investment literacy and the relationship between their investment literacy and their gender, age, discipline, major field of study, race and monthly allowance. The 2012 Financial Services Board survey revealed poor levels of financial literacy among South Africans, especially in areas of savings and investments. This study utilised ANOVA and a logistic regression model to analyse and explore relationships between the students’ mean percentage scores for each investment literacy question vis-a-vis their sociodemographic diversities. The findings suggest that business students are investment literate. However, it was found that female business students are less knowledgeable than male business students and finance-related students are more knowledgeable than non-finance related students. The differences between these groups are statistically significant and imply that not all business students and eventual business graduates are investment literate. Hence, this study advocate for the inclusion of personal investment modules in the students’ curriculum.

Keywords: Investment literacy; Financial literacy; Personal finance; South Africa; Logistic regression model (search for similar items in EconPapers)
Date: 2020
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