Abstract:
This study assesses the level of financial literacy and its impact on financial decision making
exercised by the tertiary students in South Africa, using the University of Venda (Univen) as a
case study. The study does this in three steps. First, it provides the financial literacy levels of
students at Univen assessed through an evaluation score that the sampled students responded to.
Second, it analyses the relationship between the demographic and socio-economic characteristics
of students and their financial literacy levels. Third, it assesses the possible effects of financial
literacy on financial decision making among students using correlation and regression analysis.
The study uses primary data gathered by the author from the University of Venda registered
students in the form of questionnaires. A stratified random sampling method was used to identify
the students to form the sample of the study, which is 373. Percent slightly above 50 per cent of
these students were found to be financially literate and there were more female students who were
financially literate compared to male counterparts. Using the odds ratios, the study compared the
financial literacy levels of all schools to the school of Management Sciences, respectively. Only
students in Environmental Sciences and Law have higher literacy levels, which are statistically
significant, compared to the students in the school of Management Sciences. The results also show
that the age and the parent’s educational background have a statistically significant relationship
with the student being financial literate. Furthermore the results indicate that there is a statistically
significant relationship on good financial decision making (that is, budgeting, savings and
investments) and being financial literate, compared to being financial illiterate. This result is not
true when borrowing is used as a measure of financial decision making.
