The Perceptions of Social Workers on the Role of Financial Literacy Education in Facilitating Social Development
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The perceptions of social workers on the role of financial literacy education in facilitating social development by Adriaan Jordaan Thesis presented in fulfilment of the requirements for the degree of Master of Social Work in the Faculty of Arts and Social Sciences at the University of Stellenbosch Supervisor: Prof LK Engelbrecht December 2020 Stellenbosch University https://scholar.sun.ac.za Declaration By submitting this thesis electronically, I declare that the entirety of the work therein is my own, original work, that I am the sole author thereof (save to the extent explicitly otherwise stated), that reproduction and publication thereof by Stellenbosch University will not infringe any third party rights and that I have not previously in its entirety or in part submitted it for obtaining any qualification. December 2020 Copyright © 2020 Stellenbosch University All rights reserved ii Stellenbosch University https://scholar.sun.ac.za Summary Poverty is a rife socio-economic problem plaguing South Africa. As a point of departure, the study aimed to contextualise South African poverty against the global arena to elucidate the need for an increase in poverty alleviation initiatives. The study investigated the perceptions of social workers on the role of financial literacy education as a potential vehicle for poverty alleviation initiatives within South Africa’s social welfare paradigm, as studies conducted in countries with similar socio-economic circumstances have shown that financial literacy education can be effective as a vehicle aimed at poverty alleviation and social development. There has been a lack of local studies that have investigated financial literacy education and as such, the study was undertaken to grow the knowledge basis associated with themes of financial literacy education. The study was qualitative in nature and made use of semi-structured interviews with a main focus on open- and closed questions. Eighteen participants were utilised in the research process and the results indicated that financial literacy education was viewed as a powerful tool that could assist in poverty alleviation and social developmental initiatives. There was indicated that, in order for financial literacy education initiatives to be successful, multiple role-players would need to be involved in the process, and other challenges associated with poor socio-economic circumstances would need to be addressed in tandem with the stimulation of financial knowledge and skills. Finally, various recommendations are presented to social workers, social work organisations, and social work policy formulators based on the conclusions that were drawn. iii Stellenbosch University https://scholar.sun.ac.za Opsomming Armoede is ‘n ernstige probleem in Suid-Afrika. As vertrekpunt beoog hierdie studie om Suid-Afrikaanse armoede te kontekstualiseer ten opsigte van die res van die wêreld, om sodoende die behoefte aan armoedeverligtingsinisiatiewe te illustreer. Studies wat in lande met soortgelyke sosio-ekonomiese omstandighede as Suid- Afrika onderneem is, dui daarop dat finansiële geletterdheidsopvoedingsprogramme effektief kan dien as ’n wyse van armoede verligting en sosiale ontwikkeling. Hierdie studie is dus daarop gemik om maatskaplike werkers se persepsie oor finansiële geletterdheidsprogramme te ondersoek in terme van die Suid-Afrikaanse maatskaplike paradigma. Daar is ’n gebrek aan plaaslike studies wat finansiële geletterdheidsopvoeding ondersoek, en as sulks is hierdie studie onderneem om die kennisbasis geassosieer met die temas van finansiële geletterdheidsopvoeding te verbreed. Die studie is kwalitatief van aard en het gebruik gemaak van ’n semi-gestruktureerde onderhoude, met ‘n fokus op oop- en geslotevrae. Daar is gebruik gemaak van 18 deelnemers tydens die navorsingsproses, en die resultate het daarop gedui dat finansiële geletterdheidsopvoeding grootendeels as ’n waardevolle wyse ter ondersteuning van armoedeverligting en maatskaplike ontwikkelingsinisiatiewe beskou kan word. Daar is aangedui dat indien die finansiële geletterdheidsinisiatiewe sou slaag, verskeie rolspelers by die proses betrek moet word. Verder sou ander uitdagings wat met swak sosio-ekonomiese omstandighede geassosieer word, in tandem met die stimulasie van finansiële kennis en -vaardighede aangespreek moet word. Ten slotte word ’n verskeidenheid van aanbevelings vanuit die gevolgtrekkings gemaak en aangebied aan maatskaplikewerkers, maatskaplikwerk-organisasies en maatskaplikewerk-beleidsformuleerders. iv Stellenbosch University https://scholar.sun.ac.za In memory of my dear friend, Hannah Cornelius. 1996 – 2017 “To live in hearts we leave behind, is not to die” – Thomas Campbell v Stellenbosch University https://scholar.sun.ac.za Recognitions and Acknowledgements I would like to extend my sincere gratitude to the persons and institutions listed below as, without them, I would not have been able to partake in, and complete this study as I did. To my immediate family: my mother Tania, my father Johan, and sister Karla. I thank you for all your love, effort and support, not only during this study, but every day for the last 27 years. Thank you for always going the extra mile and truly leading by example. I hope you will enjoy reading my thesis and that it makes you proud. To my better half, Megan. I thank you for being my rock. Your unending love, motivation and patience have helped me grow as a person and expand my worldview. I know you will say it is my hard work that has got me here (and it is) but may you never underestimate the impact you had (during this study’s process) and have (everyday) on me. To the Department of Social Work at Stellenbosch University. Thank you for presenting me the opportunity to conduct my masters in such an esteemed setting, alongside the most wonderful staff. I will forever be grateful for what I learnt during my four years in your classes, and for how you have assisted me after. To my supervisor and mentor, Prof Engelbrecht. Thank you for believing in me and helping me to equip myself in working towards being a future thought- leader. You have truly gone above-and-beyond for me, and I consider myself very fortunate that I have had the opportunity to work under your guidance. Your dedication and passion for social work is inspiring and I hope to continue producing work that you would be proud to be associated with. To Mrs Rochelle Williams. Thank you for always having a kind word, or a joke to brighten up my day. I truly view you as the soul of the department and it makes my heart warm when I think of your smile. Thank you for all your assistance with the various administrative facets encompassing this document. To my friend, Bianca Bassi. Thank you for your patience, and perseverance in editing this document. I assure you the hours of frustration mean a great deal to me, and I think the completion of that task speaks greatly to your character. vi Stellenbosch University https://scholar.sun.ac.za To my friends, Jos Nel, and Carmen Botes. Thank you for your invaluable assistance in translating and editing my abstract. Your graciousness to assist me, even though I asked you at the last minute, truly speaks to your character. I will forever be grateful for your assistance. To my cousin, Lindy Sinclair, and friends, Luke Smith, Elizabeth van Vuuren, Robynne Botha, and Janette Claasen. Thank you for taking initiative and time to assist me with obtaining participants in a time clouded by stress. Your initiative enabled me to retain momentum and helped in getting my study done. I will forever be thankful. To all the participants who accorded me their time, and allowed me to explore their perceptions, thank you very much. I appreciate all of you sincerely. vii Stellenbosch University https://scholar.sun.ac.za Table of contents Declaration ii Summary iii Opsomming iv Recognitions and Acknowledgements vi Chapter 1: Introduction 1.1 Rationale 1 1.2 Problem statement 3 1.3 Research questions 5 1.4 Goals and objectives 5 1.4.1.1 Objectives 5 1.5 Theoretical point of departure 5 1.6 Concepts and definitions 7 1.6.1 Financial capabilities 7 1.6.2 Financial literacy education 7 1.6.3 Capabilities approach 7 1.64 Social development 7 1.7 Research methodology 7 1.7.1 Research approach 7 1.7.2 Research design 8 1.7.3 Sample 9 1.7.4 Instrument for data collection 11 1.7.5 Data analysis 12 1.8 Ethical clearance 13 1.9 Limitations of the study 14 Stellenbosch University https://scholar.sun.ac.za 1.10 Presentation 14 Chapter 2: Conceptualising poverty in a social developmental welfare paradigm 2.1 Introduction 16 2.2 What is poverty and why is it relevant? 16 2.3. Who experiences the effects of poverty? 18 2.4. The value of education 19 2.5. South African poverty vs the global arena 20 2.6. Legislative social welfare focuses 20 2.6.1. Critical exposition on the review of the White Paper for Social Welfare 22 2.6.2 The Bill of Rights 23 2.6.3 The National Development Plan 24 2.7 The dimensions of service provision 25 2.8. The role of the Department of Social Development 27 2.9. Poverty alleviation from a social developmental welfare approach 28 2.10. Poverty indicators by household expenditure 30 2.11. The capabilities approach and poverty alleviation 31 2.12 Conclusion 34 Chapter 3: Analysing and operationalising financial literacy education initiatives in a social developmental paradigm 3.1 Introduction 35 3.2 The capabilities approach 35 3.2.1. The capabilities approach’s relevance to financial literacy education 37 3.2.2. Practical capabilities approach applications 38 3.2.3. The capabilities approach in South Africa: Who and how? 39 3.3. What is financial literacy education? 42 3.3.1 Financial literacy education and debt traps 44 ii Stellenbosch University https://scholar.sun.ac.za 3.3.2 Financial literacy education programs 46 3.3.3.