Developing a framework to promote personal finance management among educators in the Gauteng province

Abstract

This study focuses on personal financial management as a tool to address indebtedness among educators in Gauteng. The researchers analysed the statistics from 2012 to 2024 to emphasise the continuous debt management problem among educators in Gauteng. Financial management is the knowledge and skills that empower individuals to safeguard themselves financially and participate meaningfully in the financial products and services market while responsibly managing their personal budgets. In addition, financial management improves individuals' financial knowledge and, ultimately, their financial decision-making abilities. In essence, financial management is the level of knowledge and attitude towards financial matters. Financial attitude refers to the general attitude toward money and finances. When educators achieve the desired level of personal finance management, followed by continuous training, the attitude towards personal finance will be massive and will empower them to manage their finances and their household finances better. The study employed a mixed-methods research method. Qualitative and quantitative data were collected and analysed to achieve the objective and answer the research questions. The primary objective was to "develop a framework to support personal finance management among the educators in Gauteng." Qualitative open-ended interviews and quantitative semi-structured socio-demographic questionnaires were used. The research can be replicated and generalised to cover other organisations with similar trends, such as other educational departments in different provinces and other government institutions. Researchers envisaged resolving complementary knowledge claims, evaluating new information, and making significant conclusions that affect the lives of educators in Gauteng. The study evidenced a lack of personal finance management among educators in Gauteng. It is also evident that there is a high level of indebtedness, lack of saving and lack of investing among participants. Lastly, the study recommended the development of a method to support employees' personal finances with the aim of resolving indebtedness. The proposed method covers the following: Financial literacy training: Implement training to improve the financial literacy of the employees' financial literacy. Partner with financial institutions and advisors to provide services tailored to the educators needs. Employee assistance programs (EAPs): to provide employee support in times of financial crisis. Encourage group savings and cooperatives to provide low-interest loans. Partner with debt counsellors to provide debt counselling and review to employees who are struggling with debt management. Print newsletters: to provide tips on financial management. The key concepts of this study are indebtedness, retirement planning, savings, investing, financial knowledge, financial behaviour, financial attitude, and financial efficacy. In conclusion, this study highlights the vital role of personal finance management in addressing the determinants of indebtedness among educators in Gauteng. By highlighting the importance of financial literacy, behaviour, and attitude, the research highlights the need for a comprehensive framework to support educators in managing their finances effectively. The proposed strategies, including financial literacy training, partnerships with financial institutes, and employee assistance programs, aim to empower educators to make informed financial decisions, reduce indebtedness, and promote long-term financial well-being. This approach can also serve as a model for other government institutions facing similar challenges.