Demographic and Sociocultural Determinants of Financial Literacy in South Africa

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  • Michael du Preez North-West University, South Africa
  • SJ Ferreira-Schenk North-West University, South Africa



Financial Literacy, Determinants, Demographic, Sociocultural, South Africa


Financial literacy is rapidly becoming more important as financial markets continue to evolve and new and more complex financial products are introduced. This study investigates the relationship between demographic and sociocultural variables and the level of financial literacy of individual investors in South Africa. This study is significant as it provides policymakers with target areas to provide incentives towards financial education programmes. Secondary data were obtained from a private domain where a private investment company collected primary data using an electronic quantitative survey. The sample consisted of 1, 059 individual investors. The study found that people over 50 years of age, men, whites, people with common-law spouses, and people who owned homes without a mortgage payment reported the highest degree of financial and investment knowledge. Groups that reported a low degree of financial and investment knowledge were individuals between the ages of 35 and 49, females, coloureds, divorced individuals, and individuals living with relatives. Health status and education were positively correlated with the financial and investment knowledge of individual investors. Policymakers should aim to target the groups identified by the study that show a low degree of financial literacy with financial education to promote wealth creation, which could benefit the economy by promoting investment and economic participation while simultaneously trying to address structural issues such as poverty and inequality.


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How to Cite

Preez, M. du, & Ferreira-Schenk, S. (2024). Demographic and Sociocultural Determinants of Financial Literacy in South Africa. International Journal of Economics and Financial Issues, 14(2), 111–119.