M060070643 A Framework for enhancing financial literacy initiatives in Botswana M MORIMA Cl:) orcid.org/0000-0002-7500-8328 . NWU I lueRARY Thesis accepted in fulfilment of the requirements for the degree Doctor of Philosophy in Business Management at the North-West University I LIBRARY ยท MAFIKENG CAMPUS CAll NO.: I 2018 -u- f 4 ACC. NO.: ,. Promoter: Prof W Musvoto NORTH-wEsT UN1vERs1TY Graduation: 31 July 2018 Student number: 2257787 4 DECLARATION I, Masego Morima, declare that this Doctoral thesis is my authentic and original work. It has not been submitted in any form for another degree at this or any other university. The information used and derived from academic research and other sources has been duly acknowledged both in the text and in the reference list. In addition this dissertation shall not, under any circumstances, be presented to any other institution for the award of any degree. Masego Morima Date 05 e ember 2017 North-West University (NWU) Student No: 2257784 SUPERVISOR'S APPROVAL This dissertation is approved for examination as meeting the requirements for the fulfilment of the degree of Doctorate of Philosophy in Business Administration at the North-West University. TOPIC: A Framework for enhancing financial literacy initiatives in Botswana Supervisor: Professor Wedzerai Musvoto 05 December 2017 ii ACKNOWLEDGEMENTS I am grateful to the following people who supported me during my studies and production of this thesis: my supervisor, Professor Wedzerai Musvoto, for his guidance and direction . He believed in me and was always a source of encouragement when I occasionally faltered. I thank my husband, Ndulamo Anthony Morima, for his inspiration. He embraced my dreams and channeled me in the right path to realise it. I thank my son, Ndulamo Anthony Morima (Jr), for his patience. I am also grateful for the Morima, Lebanna, Binda and Mgadla families for their motivation and unwavering support. In addition to those mentioned above, this dissertation would not have been a success if it were not for the cooperation of the institutions which allowed me to conduct research . I am grateful to them for having devoted time in providing the required data. I also appreciate the information provided by the individuals who answered the questionnaire which I administered. I also would like to express my gratitude to Dr Muchativugwa Liberty Hove who diligently edited this thesis. Lastly, I thank members of the panels who critiqued my work during colloquium presentations. Thank you all. iii ABSTRACT The 2008 crisis made adverse impact on individuals, households and the economy at large around the world mostly to countries in Sub-Sahara Africa like Botswana. Dealing with the repercussions of the crisis and the low levels of financia l literacy which were identified to have contributed to poor financial decision making then , countries around the world adopted multi sectoral national strategies for recovery. However Botswana has not yet embraced the idea thereby posing issues of lack of coordination and control for consumer protection. There is also lack of measurement and evaluation of these initiatives which is an impediment to understanding the depth of the problem, restricting stakholders at strategic policy level to make informed decisions. These issues necessitated for the study to evaluate the financial literacy initiatives in Botswana with the aim to answer the research question: What is the framework of enhancing financial literacy initiatives in Botswana? The study followed Mixed Method Research (MRR) based on the philosophical stance of pragmatism; the two are described as attractive partners exalting the research question to be the most important determinant of epistemology, ontology and axiology. From the types of MMR, Exploratory Sequential Design (ESD) was appropriate to deal with the context of Botswana where the phenomenon was less known ; minimal studies, no measures or instruments hence the variables were unknown. Therefore the first phase of qual itative research design was utilised to explore the phenomenon and determine the areas of interest (variables) and develop an instrument for the next step. An interview quide was used to collect data during consultative meetings and semi- structured interviews platforms. Its reliability was achieved by pilot-testing but validated by expert analysis. A purposive or non-probability sampling specifically critical case sampling became relevant as the financial literacy initiatives were heterogeneously implemented such that 21 cases were purposively grouped in sectors representing the population identified . The study accommodated Qualitative Data Analysis (QDA) approach with Braun and Clarke (2006:5) 's thematic analysis process which permits qualitative analysis of "talk" and "narrative" which in this study was provided by the interviews. iv The second phase involved a quantitative research using a questionnaire for data collection from the recipients to establish the impact of the financial education they received . The study utilised Exploratory Factor Analysis (EFA) for instrument validity and reliability having conducted tests: the Cronbach 's alpha reliability coefficient for internal consistency, Bartlett's test of Sphericity and Kaiser-Meyer-Olkin test (KMO) for measurement of sampling adequacy. The sampling of 400 was drawn from the population of Botswana (2.292 million) with the technique that for large populations of (N=5000), 400 is saturation point to produce valid results. The study adopted Bannon (2013: 19)'s seven steps of quantitative data analysis which permitted different techniques employed for different questions: A Statistical Package for the Social Sciences (SPSS) Version 23 (2015) was used for descriptive statistics dealing mainly with univariate and bivariate analysis. For the multivariate analysis, Confirmatory factor analysis (CFA) was used for the self-assessment questions to confirm the variables observed from the qualitative report while Principal Component Analysis (PCA) was utilised for factor extraction of 9 factors for self - assessment test and also for data reduction of variables. In dealing with the reduced variables cluster analysis was then applied for both self-assessment and the performance test. The results of the thematic analysis revealed 6 themes with the main problems identified as: low levels of financial literacy and less consumer protection , lack of financial counselling, use of inappropriate methods, lack of funding for financial education , lack of measurement and evaluation , lack of a defined curriculum, and lack of government intervention for nation-wide coordination. The quantitative data analysis revealed that there are still low levels of financial literacy especially among youth. The main findings are: Financial inclusion but lack of understanding concepts , lack of understanding the difference between investments and savings, lack of obtaining the correct information and lack of confidence in financial decision making. As a synthesis of the two results a framework offering solutions for enhancing financial literacy initiatives was developed and Botswana is urged to implement the following recommendations : 1. National coordination - a national strategy is imperative to deal with issues of regulation , control and necessary enforcement for consumer protection . 2. A V multi - sectoral approach will be most suitable for all stakeholder involvement to combat financial illiteracy. 3. Inclusive financial education - with a defined curriculum and interactive methods financial literacy initiatives must reach out to all, in particular young people 4. The priority areas suggested are: Investment, Budgeting , Portfolio Management, Income and debt Management. 5. Lastly, Measurement & Evaluation is proposed to scrutinise all initiatives and programmes and the government is recommended to encourage research and development of measurement tools. This will offer evidence and impact analysis results for better policy making decisions and for continuous development in the field of financial literacy in Botswana. KEY CONCEPTS Financial Literacy Financial literacy is the ability to use knowledge and skills to manage financial resources effectively for a lifetime of financial well-being. It is knowledge of financial concepts, skills and attitudes to translate this knowledge into behaviors that result in good financial outcomes Financial Education Financial education is the process by which financial consumers/ investors improve their understanding of financial products and concepts and , through information, instruction and/or objective advice, develop the skills and confidence to become more aware of financial risks and opportunities, to make informed choices, to know where to go for help, and to take other effective actions to improve their financial well-being. Financial Capability Financial capability is possessing knowledge, skills and confidence to be aware of financial opportunities, to know where to go for help, to make informed choices, and to take effective action to improve personal financial well-being . An enabling environment is vital for financial capability building would promote the acquisition of those skills . vi Financial Inclusion Financial inclusion refers to the process of promoting affordable, timely and adequate access to a wide range of regulated financial products and services and broadening their use by all segments of society through the implementation of tailored existing and innovative approaches including financial awareness and education with a view to promote financial well-being as well as economic and social inclusion. vii ABBREVIATIONS AERA American Educational Research Association ANZBG Australian and New Zealand Banking Group Limited B of B Bank of Botswana BABC Banc ABC Botswana BAC Botswana Accountancy College Bof BB Bank of Baroda Botswana, BBB Barclays Bank of Botswana BGB Bank Gaborone Botswana BIC Botswana Insurance Company BIHL Botswana Insurance Holdings Limited BIOB Botswana Institute of Bankers BNLS Botswana National Library Services BOI Bank of India Botswana BPOPF Botswana Public Officers Pension Fund BSB Botswana Savings Bank BSE Botswana Stock Exchange BU Botha University BURS Botswana Unified Revenue Services BQA Botswana Qualifications Authority BWRA Both Ways and Respectful Approach CAD Consumer Affairs Department CWPW Consumer Watchdog and Premier Wealth CBOs Community-Based Organisations CFA Confirmatory Factor Analysis CSAs Children 's Savings Accounts EFA Exploratory Factor Analysis ESD Exploratory Sequential Design FLE Financial Literacy Education FNBB First National Bank Botswana viii FRMM Family Resource Management Model LFSB Letshego Financial Services Botswana MB Metropolitan Botswana MESD Ministry of Education and Skills Development MMR Mixed Method Research NBFIRA Non-Bank Financial Institutions Regulatory Authority NCEE National Council on Economic Education NGOs Non-Governmental Organisations OECD Organisation for Economic Cooperation and Development PACFL President's Advisory Council on Financial Literacy PAR Participatory Action Research Approach PISA Programme for International Student Assessment PTE Programme Theory Evaluation SBB Stanbic Bank Botswana SCBB Standard Chartered Bank Botswana TCU Traditional Credit Union TTM Trans Theoretical Model UB University of Botswana ix TABLE OF CONTENTS (HEADING 0) CHAPTER 1 GENERAL OVERVIEW OF THE STUDY-----------------------------------1 1.1 In trod u ct io n----------------------------------------------------------------------1 1.2 General Background of the Study----------------------------------------2 1.3 The Botswana Context-------------------------------------------------------6 1.4 Rationale of the Study ..................................................................................... 11 1.5 Research Questions ........................................................................................ 17 1.6 The Aim and Objectives of the Study ............................................................ 17 1.7 Definition of Terms and Constructs ............................................................... 18 1.7.1 Financial Literacy .... .... .. ............. .... ..... .......... .......... ... ....... ... ... .. ........................ 18 1.7.2 Financial Education .. .. .... .... ... .. .......... .... .......... ... ...................... .......... .. ............. 18 1.7.3 Financial Capability .... ... .. ............ .. ....... .. ............ ... .......... ....... ... ............ ...... ...... 19 1.7.4 Financial Inclusion ............ ...... .. ..... ...... .. .. ............ ............................. .... ... .......... 19 1.8 Research Methodology ................................................................................... 20 1.8.1 Research Philosophy ............. ...... .............. ...... ..... ...... .. .. ... ............................... 20 1.8.2 Research Approach ........ ........................... ............ .... ... ... ... ................ .. ............ . 20 1.8.3 Research Design ............. .. ....... .. .. ..... ...... ... ...... ................ .... ..... ........... ....... ...... 21 1.8.4 Population and Sampling ...... ...... ... .... ....... ...... ..... ....... ... .. ........ ...... ........ .. .. ........ 21 1.8.5 Data Collection .. .................... ......... .. ................. ......... ...... .. ....... ....... ........ ...... ... 22 1.8.5.1 Interview Guide ...................... ....... .. .......... ....... ... ...... .............. ..... ... .... ......... ..... 22 1.8.5.2 Questionnaire .......... ... ... .... .... ....... ... ... ........... ........ ..... .......... ... .... ........... ....... .... 22 1.8.6 Data Analysis ..... ............ ........... ..... .. ......... ....................... .... .... .. .... ... .......... ...... 23 X 1.8.6.1 Qualitative Data Analysis - Thematic Analysis ...... .... ...... ....... ... .. ... ... ... .. ... ....... . 23 1.8.6.2 Qualitative Data Analysis - Factor Analysis ..... .... ..... ... .. ... ....... ... ... ..... .. .. .... ... .... 23 1.8.6.3 Technological Tools .... .. ... .. ......... ..... .......... .. .. ..... .. ...... .. ....... .... ..... .. ....... ... .... .... 24 1.8.7 Validity and Reliability .... ..... ..... .... ........ ....... .... ........ .. ...... ... ... .. ... ..... .. ....... .. ..... .. 24 1.8.8 Ethical Considerations ... ........... .. .... .. ..... .... .... ... ... ....... ...... ... ........ ... ............ ... .... 25 1.9 Significance of the Study ................................................................................ 25 1.9.1 Consumer Level ... ... .. .. ...... ....... ... .... ..... .. .. .. ......... .. .. .. .... ........ ...... .. .. .. ..... ........ ... 25 1.9.2 Institutional Level (Practitioners) ... .... ..... ........ ........ ..... ..... ..... .. .... ......... ... ....... ... .2 6 1.9.3 Policy Level .... ... .. ...... ..... .. ... ..... ....... ..... ... ... .......... ... .. ... .. ... .......... ......... .... ... ... ... 26 1.9.4 Research Level ... ..... ... ... .. ...... ... ..... ........ ... .. ..... ..... .... ... ... ....... ... ....... ... ....... ... .... 27 1.10 Limitations of the Study .................................................................................. 28 1.11 Organisation of the Study ............................................................................... 29 1.11.1 Chapter 1 Introduction ..... ......... .. ...... .... .... .... ... ... .... ... ... .... ..... ... ..... .. ... ... ...... ...... 30 1.11 .2 Chapter 2 Behavioural Change Outcomes of Financial Education ... ...... ....... ..... 30 1.11 .3 Chapter 3 Financial Literacy Initiatives around the World ........ ... ....... ... .......... .. . 30 1.11.4 Chapter 4 Research Design and Methodology .. ... .. ...... ....... .... ...... .. .... ...... ... ... .. 31 1.11 .5 Chapter 5 Qualitative Analysis: Results and Interpretation ........ .................. .. .... 31 1.11.6 Chapter 6 Quantitative Analysis : Results and Interpretation .... .. .... ... ...... ..... ...... 31 1.11.7 Chapter 7 Findings Conclusions and Recommendations ... ... ... .. ..... ......... .. .. ...... 32 1.12 Chapter summary ................. ........................................................................... 32 CHAPTER 2 BEHAVIOURAL CHANGE OUTCOME .............................................................. 33 2.1 Introduction ..................................................................................................... 33 xi 2.2 Personal Financial Planning ............. ....................................................... ....... 33 2.3 Approaches to defining financial literacy ................................................. ..... 34 2.3.1 Financial Literacy- the cognitive approach .... .. .... .. ..... ....... ........ ... .. .. ... .. ... .. ..... ... 34 2.3.1.1 The knowledge Domain ...... ... ... ... ......... ....... .... ...... ..... .. .. ........ ..... .... .. ....... ..... ... . 38 2.3.1.2 The Skills Domain ....... .. .... ............ ... .... ...... .. ...... ..... ... ..... ... .. ..... .. .. ... .... ...... ...... .41 2.3.1.3 The Behaviour and Attitudes Domain .. ........ ... .. .... ........... ...... .. ...... ... .. ..... ...... .. . .42 2.1 Financial Capability - the outcome driven approach ................................... 46 2.4 Financial Education ................................ .. .......... .. ........ .......... .................... .... 50 2.4.1 Financial Education as a Process ..... ...... .. .. .... ... ...... ...... .. ..... ... .. ....... ... ......... ..... 51 2.4.2 Financial Education and the Transformation .. ...... .... ..... ... ....... ................. ...... .... 53 2.4.3 Behavioural Outcome Indicators of Financial Education ... ... .... ....... ...... ... ... ... .. .. 56 2.5 Behavioural Theories of Change .................................................................... 57 2.5.1 Motivation Theory ...... .. .. ...... .......... ...... ................... .. .. ........ ..... .. .. .... .... ........ .... .. 57 2.5.2 Goal Setting Theory ..... ..... .... .... ...... ....... .. .. ..... .. ... .. .. ....... .... ................ ........ ... .. . 58 2.6 Measurement and Evaluation of Financial Literacy .. ................................... . 63 2.6.1 Measurement and Evaluation of Financial Literacy .... ...... .... ..... ... ...... ......... ....... 63 2.6.2 Measurement and Evaluation of Financial Capability .... ...... ........ ... ..... ... .......... . 66 2.6.3 Measurability of Financial Capacity and Mixed Methods .. .... ... ....... ..... .. .. ... .. ...... 67 2.6.4 Types of Measurement and Evaluation ......... ......... .... .... .. ......... ..... ... .. .. .. .... ... .. . 68 2.6.5 Developing and Design ing Measurement and Evaluation Tools ...... ... .... .... .. ... .. 71 2.6.6 Challenges to Measurement and Evaluation ...... ...... ... ... .. .... .. .... ......... ..... .. .... ... 72 2.7 Theories and Models of Measurement and Evaluation ................................ . 74 2.7.1 Programme Theory Evaluation .. ... .. ... ... .... ........ .. .... ... ......... .... ...... .. .. ... ...... .. .... .. 75 xii 2.7.2 The Logic Model .. .... ..... ..... ... .. .... ..... ....... ....... ... .... ..... .. ..... ... ..... ... ... .. ... ........ ...... 76 2.7.2.1 The Logic Model and Transformation Model. .. ......... ... ........ ... ......... .. ......... .. .. .... 79 2.7.2.2 Utility of Logic model in Measurement and Evaluation of FL ........ .... ...... ..... ... .... 79 2.7.2.3 The Logic Model and Mixed Methods .. .................. ..... ....... ... ... ... .. .... ........ ..... ... . 80 2.7.2.4 Limitations of the Logic Model .. ... ... .... .. ... ...... ......... ....... ..... ......... ............. ..... .... 81 2.7.3 The Trans Theoretical Model (TTM) of Behaviour Change ...... .. ...... ... ..... .......... 81 2.7.3.1 The Stages of the Trans Theoretical Model .... ........ .... .... ............................. ..... . 83 2.7.3.2 The Trans theoretical Model and The Transformation Model. .... ...... .......... ..... ... 84 2.7.3.3 The Trans Theoretical Model and the Logic Model ........ .. ............ ....... ........... .... 85 2.7.3.4 The Trans Theoretical Model and Motivation Theory .. ..... .... .......... ...... ......... .... . 88 2.7.3.5 The Trans Theoretical Model and the Social Cognitive Theory .......................... 88 2.7.3.6 The Trans Theoretical Model and Mixed Methods ........ ...... ............ .... .... .. .. ...... . 91 2.7.3.7 The Criticism of the Trans Theoretical Model .... .. .......... .... ... ..... .. ... .. ........ ... ... ... 93 2.8 Chapter Summary ...... ............ ......................................................................... 94 CHAPTER 3 FINANCIAL LITERACY AROUND THE WORLD ............................................... 95 3.1 Introduction ..................................................................................................... 95 3.2 Benefits /value of Financial Education .......................................................... 95 3.3 Purpose and Content of Financial Education .................................. ............ 104 3.4 Target Groups for Financial Education ........................................................ 106 3.5 Approaches to offering Financial Education ............................................... 108 3.6 Causes and Effects of Financial illiteracy .................... ............................... 111 3.7 Solutions: Enhancing Financial Literacy lnitiatives ................................... . 112 xii i 3.8 Studies around the World ............................................................................. 115 3.8.1 Evaluation of Financial Education after the 2008 Crisis: America .............. .. .... 115 3.8.2 Financial Literacy and Savings Asia ............ .. .. .... .... .. .............. .. .. ...... .... .... ...... 116 3.8.3 Measuring Confidence - Australia .. .............. .. .. ..... ... ... .. .. ...... .............. ...... .. .. ... 117 3.8.4 Adult Financial Literacy in Australia .... .... ............. .... ........ ..... ... ....... ......... ... .... . 119 3.8.5 Studies on Immigrants- Australia and New Zealand .... ...... .... ... ..... ...... ........ .. .. 120 3.8.6 Marginalised groups in Canada .... .. .. .... ...... ... ...... .. .. ..................... ... ... .... .. .. ..... 121 3.8.7 Impact Analysis - Brazil ................... .. ........ .... .... .... ...... ...... .... .. .... ................... 121 3.8.8 Progress for Africa ........... ............... ....... ....... ...... ..... ...... ..... .... ... ...... ...... .. ..... ... 122 3.8.9 Quantitative Measures for South Africa .................. ...... ........ .... .... .... ...... .. .. .. ... 123 3.8.10 Progress for Botswana .. ... .. ... .... .... ... .... ... ... ..... ...... .... ... ..... ..... ... ....... ... .... ... .. ... 124 3.9 Chapter Summary ......................................................................................... 125 CHAPTER 4 THE REASERCH METHODOLOGY) ................................................................ 126 4.1 Introduction ................................................................................................... 126 4.2 The Research Philosophy ........................... ............................... ................... 126 4.3 The Research Approach ............................................................................... 129 4.4 The Research Designs .................................................................................. 130 4.4.1 The Qualitative Design .. .. .... .. ............ .......... ..................... ............. .......... ... .. ... 131 4.4.2 The Qualitative Design .. .... .... ........................................ .. .... ...... .. ...... .......... .. .. 131 4.4.3 The Mixed Methods Design .... .. .... .. ...... ....... .. .. ..... .. .. ...... ... .... .............. ............ 132 4.4.3.1 The Selected Design: Exploratory Sequential Design .. .. .. .... .. ..................... ..... 135 4.5 The Research Methods ............................................................................ ..... 136 xiv 4.6 The population ............................................................................................... 137 4.6.1 The population of lnstitutions .. .. ............ ... .. ...... ......... .......... ..... ....... ..... ....... .... . 137 4.6.1.1 Banking Institutions .... ... .. ... ..... .... ........... ........ ....... ... ..... .... ..... ... .. .... ...... ..... .. ... 138 4.6.1 .2 Libraries .. ... ..... ..... ... ..... .. ..... ......... ... ..... .. .......... ..... ..... .. .......... .... ...... .. .. ........... 139 4.6.1.3 Non-Banking Institutions ... .... .... .... ..... .... ..... ........ ...... .... ..... ... ...... ...... ....... ...... .. 139 4.6.1.4 Insurance Companies .... .. ..... .. ... ...... .. ......... ...... .... .. .. .. ....... ... .... ... ..... ... ... .... .... 140 4.6.1.5 Universities and Schools .... ..... .... .. .......... .... ......... .... ........................ ..... .... ... ... 140 4.6.2 The population of Individual Respondents ....... ... ....... .. ...... ...... ..... ..... ...... .... .... 140 4.7 The Sampling Techniques ............................................................................ 142 4.7.1 Sampling for Institutions ..... .. ... ............ ........ .... ....... ...... ..... ......... ... ......... .. ... .... 142 4.7.2 Sampling for Individual Respondents ...................... ............. .. .... .. ............ ....... 143 4.8 Data Collection Instruments ......................................................................... 143 4.8.1 The Interview Guide .... .... .... ..... .......... .. .. ............... ................. .. .... ......... .... .. .. .. 144 4.8.1.1 Section 1: Information on the Institution ... ..... .......................... .... .... ..... ... ......... 145 4.8 .1.2 Section 2: Information on the Programme .................... ......... ... .... ... .. ......... ..... 145 4.8.1.3 Section 3: The Target Group(s) ................ ..... ... ..... ... .................................. ... .. 145 4.8.1.4 Section 4: The Content of the Programme .... ... ... .... ....... ... .. ... ..... ...... .......... ..... 146 4.8.1.5 Section 5: The Methods of Delivery ...... ... ..... .. .. ..... ... ... ..... ...... ......... .. ..... ... .. .. .. 146 4.8.1.6 Section 6: Measurement and Evaluation Framework ...... ... ...... ... .. ......... ..... ..... 146 4.8.1 .7 Section 7: The Benefits Vs Costs to the Institution .. ........ ... ... ... ....... .. ..... .... ..... 147 4.8.1.8 Section 8: The Challenges and Solutions ........ ................ .... ... ... ... ...... ... .. .... .... 147 4.8.1.9 Section 9: The Future of Financial Education in Botswana Section ...... ..... .... .. 14 7 4.8.1.10 Section10: Overall Opinion .... .. .. ... .. .... .... ..... ....... ........... .. .... ..... ... .... ... ... ...... .. .. 147 xv 4.8.2 The Questionnaire ............. .. .... ... .. ........................ ... ............... .. ....... ................ 148 4.8.2.1 Section 1: Biographic Data ...... ........ .... ............ .. .... ....... .. .. ... ....... .... ........ .. ....... 148 4.8.2.2 Section 2: Self-Assessment Questions ........ .. .... ... ... ...... .......... ... ..... .. ........ ..... 149 4.8.2.2.1 Skills Questions ..... ... ... ...... ................... ... .. ... ....... ... ..... ... ... ....... ..... ... ....... ....... . 149 4.8.2 .2.2 Attitudes and behaviors questions .... .......... ......... ...... .. ................ .. .................. 149 4.8.2.3 Section 3 Type of Investor ................ ........... ...... ...... .... ......... .................. ........ . 150 4.8.2.4 Section 4 Performance test .. ....... .... ..... .... ... ..... ... ... .. .. ... ........ .......... ............... . 150 4.8.2.5 Section 5 Future Plans for Financial Literacy .. .. .... .... .. ..... ...... .... .................... .. 150 4.8.2.5.1 Delivery Methods Questions ... ....... .. .. .... ........ .... ... ... .... .. ... ..... ...................... .... 151 4.8.2.5.2 Opinion Questions ................ ................ .. ... ... ... ...... .. ... ..... ... .. .... ... .. ... .......... ..... 151 4.9 Validity and Reliability .... .............................................................................. 151 4.9.1 Validity and Reliability for Interview Guide .. ... .. ........ ... ........ ..... .. .. ... ... ........ ...... 152 4.9.2 Validity and Reliability for the Questionnaire ....... ....... .. ...... ... ..... .. ... .. ... ........ ... . 152 4.9.3 Validity through Pilot Testing and Expert Report .. ....... ..... ........ .... ...... ........ ..... . 153 4.9.3.1 General Comments on Layout and Structure ........... .. ............ .... .. ........ .......... .. 154 4.9.3.2 Level of difficulty ...... ..................... ... .... ... ... .... ... .. ...... .... ...... ... ....... .. ... .. ....... ..... 154 4.9.3.3 Questions on Personal Information ...... .. .. .. .......................................... .... ...... .. 155 4.9.3.4 Self-Assessment Questions ............ .... .. ....... ...... ........... .. .... .... .... .. .. ... .... .. ..... .. 155 4.10 Data Analysis ................................................................................................. 155 4.10.1 Qualitative Data Analysis ...... .. ........ .. .................. ............................................. 155 4.10.1.1 The different Types of QDA, ................ ........... .... ..... .... ...... ...... .... ..... .. .......... ... 156 4.10.1 .2 Thematic Analysis .. .... ... .. ... ... ..... .... ........ ............... .... .......... ........ ..... .. ... .. .. ...... 157 4.10.1.3 The Benefits of Thematic analysis ... .. .... ............................. .. .. .... .... .. ........ ....... 157 xvi 4.10.1.4 Conducting Thematic Analysis ...... ........ ...... .. ... ..... .. ...... .. ... .... .. ... .......... .......... 158 4.10.2 Quantitative Data Analysis ......... ........ .. ... ...... ... .... .... .... ...... ... .... ........ .............. 162 4.11 Ethical Considerations ......................... .. ....................................................... 165 4.11 .1 Ethics and Evaluation ..... ...... ... ....... .... ..... .... ............... ..... ... ...... ...... .. .... ..... ..... . 166 4.11 .2 Ethics for Mixed Methods .... ...... ... ... ... ... .... .. ........... .... ....... ............. .. ...... ... ...... 166 4.11.3 Permission to Conduct the Study ... :. ...... ...... ...... ... ... .. .... .... .. .. .. ....... ....... ....... .. 167 4.11.4 Informed Consent ................................ ...... .. ...... .... ..... .. ... ... ...... .... ...... .. .. ...... ... 167 4.11 .5 Confidentiality and Anonymity ... ... ............ .... ....... ......... .... ...... .... ... ..... .... .. ...... . 167 4.11 .6 No harm to participants ....... ..... .. ... ...... ...... ... ............. .... ........ ... ... .. ................. . 168 4.11 .7 Offering Reciprocity ....... ......... .... ............ .... ....... ..... ... .... ................... ............... 169 4.11 .8 Equity and Justice ......... .......... ... .. .. ... ..... ........... ........ ... .. ..... ..... ...... ... .. ... .. ...... . 169 4.12 Chapter Summary .............................. ........................................................... 170 CHAPTER 5 QUALITATIVE RESULTS ANALYSIS AND INTERPRETATION ..... ...... .......... 172 5.1 Introduction .......................... ...... .............................. ..................................... 172 5.2 Qualitative Data Analysis -The Thematic Approach .......................... ........ 172 5.3 The Thematic Network Process .............. ................................................. .... 172 5.4 Themes and the Research Questions .... .......... .. .. .... .................................... 173 5.5 Theme 1: Financial Education for Consumer Empowerment ................. .. .. 175 5.5.1 Changes in Perception , Behaviour and Attitudes ..... .. ..... ... ..... ... .. ..... .... ...... .. ... 177 5.5.2 Informed Decision Making ...... .............. ... .... ....... ..... ... ...... ..... .. ... .... ... ........... ... 180 5.5.3 Summary of Theme1 - Consumer Empowerment.. .... ................ .. .... ................ 184 5.5.4 Implications for Quantitative Phase (Variables) ...... .. ...... .. .. .. .. ....... .. ...... ......... . 184 xvii 5.6 Theme 2 Financial Education for Stability and Sustainability .................... 187 5.6.1 Target Groups for Financial Stability and Sustainability .. .... ...... ... ... ... .... ... ..... .. 188 5.6.2 Income and Debt Management for Stability and Sustainability .......... .... ...... .... 191 5.6.3 Summary of Theme 2 - Stability and Sustainability ..... .......... .. ... .......... ...... .... .. 195 5.6.4 Implications for Quantitative Analysis (Variables) .......... ... ... ... ........... ..... ......... 196 5.7 Theme 3 Business Growth ............................................................................ 198 5.7.1 Sales and Marketing .. ... ...... .. ... ... .... ..... ............ .... .... ..... ... ...... ... ..... .. .......... .... .. 199 5.7.2 Corporate Social Responsibility .... .. ... ............. ... .... ......... ... ....... .... .. .... ..... ........ 200 5.7.3 Customer Oriented Service ...... ...... ..... .. .. .... .... ...... ........ .. .. ... .... ... .. ... .. ... ... .. ..... 201 5.7.4 Minimal Costs for great Benefits .... .... ..... ..... .. ...... ..... ................ .............. .... ..... 201 5.7.5 Summary of Theme 3 Business Growth .. ... .... ..... .... .. ........ .............. .. .. .. .... .. .. .. 203 5.7.6 Implications for Quantitative Phase (Variables) ............. ........ ... ..... .. .... ... ...... ... 203 5.8 Theme 4 Inclusive Financial Education ....................................................... 206 5.8.1 Reaching out to Different People ...... ...... .. .... ... .. ....... .. ........ ..... ... ..................... 207 5.8.2 Reaching out through Different Methods .. .. .......... ..... .. .. .. .. ....... ... .... ... ..... ..... ... 211 5.8.2 .1 Interactive Methods ..... ... .... .... .... .. .... .......... ..... ... ... .... ... .. ....... ...................... .. .. 211 5.8.2.2 Conventional Methods ... .... ... ........ ... .. .... ... ......... ... ... ..... .... ......... .. ... .. ...... ..... .... 217 5.8.3 Summary of Theme 4 - Inclusive Financial Education ... ....... ... .... ....... ..... ...... . 218 5.8.4 Implications for Quantitative Phase (variables) ..... ... .... .. .... ... .. ... .. .... ... ... .... ...... 219 5.9 Theme 5 Measurement and Evaluation ........................................................ 222 5.9.1 Measurement and Evaluation for Feedback ....... ....... .... ..... ..... ..... ....... ....... .... . 224 5.9 .2 Measurement and Evaluation for Suitability ....... ............... .......... ..... .... ... .... .... . 226 5.9.3 Measurement and Evaluation for Research ....... .. ................. .............. ..... .. ...... 228 xviii 5.9.4 Role of Stakeholders in Measurement and Evaluation .... ...... ....... .... ...... .. ... ... . 229 5.9.5 Summary of Theme 5 - Measurement and Evaluation ......... ...... ..... ..... ... .. ... ... 231 5.9.6 Implications for Quantitative Phase (Variables) ... .... .... ...... ..... ....... ... .. .... .. .... ... 231 5.10 Theme 6 - Government Led National Strategy on Financial Education ....................................................................................................... 233 5.10.1 Regulation and Control ..... ....... .... .. .......... .......... .... ... .... ... ... ....... ..... ..... .. ... .... ... 236 5.10.2 A Defined Inclusive Curriculum ... .... .. ..... .... ....... .... ... ..... ...... .... ............ ...... .... ... 237 5.10.3 Stakeholder Involvement .... .. ..... ... ...... .... ....... ....... ...... ... ...... ...... .... .... ... .. .... ..... 242 5.10.4 Strategies for Implementation .. .. .... .. ........ ... ...... ... ..... ........ ....... .... .......... .. ..... ... 245 5.10.5 Summary of Theme 6 -A Government Led National Strategy ..... ..... ... .... ... ..... 246 5.10.6 Implications for Quantitative Phase (Variables) ... ...... .... ... ... ............. ... ... ... .. .... 247 5.11 Summary of Themes: Convergence towards Enhancement ...................... 249 5.12 Chapter Summary ........ .... ... ......................................................... ................. 258 CHAPTER 6 QUANTITATIVE RESULTS ANALYSIS AND INTERPRETATION ................... 259 6.1 Introduction .......................... ......................................................................... 259 6.2 Section 1 Background Information ............................................... .... ........... 259 6.2.1 Respondents .. ...... ..... .... .. ........ .... .. ... .... ....... .... ....... .. .. .... .... ......... ...... ............ .. 259 6.2 .2 Section 1.1 Gender ... .. .. .. ... .. ....... .. .... .. .. ..... .. ....... ... .... .... .. .... .... ...... .... ....... .. .... 260 6.2.3 Section 1.2 Age .. .... ..... ..... .... ....... .. ... .. ... ....... .. .... ... ...... .... ....... ........... .. ............ 261 6.2.4 Section 1.3 Highest Level of Education ... ... ..... .... ... ....................... .. ..... ..... ..... . 261 6.2 .5 Section 1.4 Stages in family Cycle .. ... ... ...... ........ ... .... .... ...... ... ............. ... .. ...... 262 6.2.6 Section1 .5 Employment Structure ........ ... ... ........... ...... ........ .... ... .... .... ..... .... .... 263 6.2.7 Section 1.6 Type of Monthly lncome ... .. .... ... ...... ..... ... ...... ........ ... .. ..... .. ..... ....... 264 xix 6.2.8 Section 1.8 Monthly Expenditure to Monthly Income ... ... .... .. ...... .... .... .. ........ ... 264 6.2.9 Section 1.9 Monthly Savings to Monthly lncome .... ..... ... ..... ... ... ..... ... .. ..... ... ..... 265 6.2.10 Section 10 Monthly Future Investments to Monthly Income .... ... ..... .... ....... .. .... 265 6.2.11 Section 1.11 Type of Accounts possessed by Respondents .... ....... .. ............ ... 266 6.2.12 Section 1.12 Types of Investment Alternatives .. .. ..... ... .. ..... ......... ... .. ... ..... .. ... .. 267 6.2.13 Section 1.13 Financial Portfolio Record .. ...... ............. ... .... ... ....... ... ...... ... ....... .. 269 6.3 Section 2 Type of Investor ............................................................................ 269 6.3.1 Section 2.1 Major Investment Objective ... ...... ..... .. ..... ... ... .. .... ...... .... .. ..... ...... .. 270 6.3.2 Section 2.2 Allocation of Funds ..... .. .... ..... .. .. ..... ... .. .... .. ..... ... ....... ... ..... .. .... ..... . 270 6.3.3 Section 2.3 Investment Horizon ..... .... ......... ... ..... .. .... .... ..... ... .. ........ ... ...... .... .... 271 6.3.4 Section 2.4 Expectations from Investments ....... .... .. .... .... ..... ... ...... ... .. .. .. ...... ... 272 6.3.5 Section 2.5 Expectations from lnvestors ....... .......... ....... .. ...... ...... .. ...... ... .. .. ... .. 273 6.4 Section 3 Financial Literacy Self- Assessment.. ......................................... 273 6.4.1 Cronbach's Alpha- Measure of Internal Consistency .... .. .. .. .......... .. .. ....... ... ..... 273 6.4.2 Kaiser-Meyer-Olkin Measure of Sampling Adequacy ... ... ..... .. ....... .. ... ...... .... .. .. 274 6.4.3 Confirmatory Factor Analysis ... .. ....... .. ..... .............. ..... .. .... ........... .... ...... .. .. ... ... 275 6.4.4 Principal Component Analysis ... .. ..... ... ... ..... ..... ........... ...... ... .. ..... .... ....... ....... .. 275 6.5 Factors Self -Assessment Confidence Test ............................................... 278 6.5.1 Factor 1 Improvement on behavioural attitudes towards money .. ... ................ . 279 6.5.2 Factor 2 Importance of financial behaviour ...... ....... ....... ...... ... .. ... .... ..... .. ..... .. .. 282 6.5.3 Factor 3 Actions towards reducing spending and making savings ... .... ....... ..... 285 6.5.4 Factor 4 Taxation with extra income and expenses ..... ... ... ......... ..... ... ... ....... ... 290 6.5.5 Factor 5 Banking and managing accounts ......... ...... .... ... ... ... .... .... ......... ....... .. . 292 xx 6.5.6 Factor 6 Tracking and reducing spending .. ...... .... ........ ..... ........ ... ...... ..... ...... ... 297 6.5. 7 Factor 7 Saving through basic accounting ............. ........ ... ... .... .... ............... ... .. 299 6.5.8 Factor 8 Consultation and utilising information ...... ...... .. .. .... ... ... .... ... .... .. ........ . 300 6.5.9 Factor 9 Utilising Services for stability and sustainability ....... .. ... ..... ... .. ...... ... .. 303 6.6 Cluster segmentation and Analysis ... ... .. .. ...... .... .. ........... ............................ 308 6.6.1 Cross - correlation and Predictors Section 3 ..... ..... ....... ... ... .. .. .. ...... .. ......... ...... 315 6.6.2 Segmentation for Section 4 Performance Test ...... .. ..... ... ... ............. ................ 316 6.6.3 Cross - correlation and Predictors Section 4 ...... .......... .. ..... ..... .. ..... .. .... .. ....... .. 324 6.6.4 Segmentation for Section 4 Performance Test - Effectiveness ............ ...... ..... 327 6.6.5 Cross-correlation Section 5 .... ....... ..... ... ........... .. ... .. ..... .. ..... ............. .... .. .... .... . 331 6.6.6 Association between Section 3, Section 4 and Section 5 ............ .... ........... .... .. 332 6.7 Reasons for Having Interest to do a Financial Course In Future ............... 334 6.71 Topics of Interest ................. ......................... ......................... .. ..................... 334 6.72 Role of government to enhance financial literacy initiatives ................. .... 336 6.8 Summary of findings and the research question ............ ......... ... ................ 336 6.9 Chapter Summary ... .... ......... ........................................................... .............. 337 CHAPTER 7 FINDINGS, CONCLUSIONS & RECOMMENDATIONS .......................... ... ...... 338 7.1 Introduction .......................... ... .. .... .............................. .. ................................ 338 7.2 Revisiting the Research Problem ....................... .. ................................. ....... 338 7.3 Revisiting the research Questions and objectives ..................................... 340 7.4 Review of the Literature Research Findings ...... .... ..................................... 344 7.5 Review of the Research Methodology ............. .......... ..... ............................. 347 xxi 7.6 Review of Results of Qualitative Data Analysis .......................................... 347 7.6.1 Major Findings and Problems from Qualitative Analysis .. ... .. ........ ...... ....... ...... 348 7.6.1.1 Low levels and less consumer protection ... .. .............. ... ..... .. ..... .. .... .. .. .... .... .... 348 7.6.1.2 Lack of financial Counselling ............ ..... .... ........ ...... .............. .. ... ... ......... .. .. .. ... 349 7.6.1.3 Use of inappropriate methods ...... ....... ..... .. ..... ...... ..... ...... ........ .. ............ .......... 349 7.6.1.4 Lack of funding for financial education ..... ......... .. ..... ... .. ... .. ....... .... .. .... ....... ...... 349 7.6.1.5 Lack of Measurement and Evaluation ........... ............. .. ......... ... ......... ........ ..... .. 350 7.6.1.6 Lack of Government intervention .. .... .... ... .... ....... ....... ... ... ........ .. .. ............ .... .... 350 7.6.1.7 Lack of a defined curriculum ....... .. ...... .. ... .. .... ....... .. ..... .... ... .. .... .... ........ ...... ..... 351 7.7 Review of the results of the Quantitative Data Analysis ............................. 351 7.7.1 Major Findings and Problems Quantitative Analysis .. .. ... .. .......... .. ... .. ............. . 351 7.7.1.1 Financial Inclusion without understanding ........... .... ............ .. .... .......... .... .... .. .. 351 7.7.1.2 Lack of understanding investment and savings ...... ......... .. ........ .. .............. ...... 352 7.7.1.3 Poor application of skills and behaviours learnt - Budgeting ...... .... .. .... ... ... ..... 353 7.7.1.4 Lack of obtain ing the correct information .... ..... .. .. ..... ... .......... ..... .... ... ..... .... ..... 354 7.8 The Framework: A synthesis of Qualitative and Quantitative Results ........................................................................................................... 355 7.8.1 The structure and Purpose of the Framework ....... ....... .. .. .. ..... ................... ... ... 355 7.8 .2 Consumer Empowerment. ..... .. ..... ............... ... .. ...... .. ..... ........ .. ........ ............... . 357 7.8.2.1 Problems and Effects relating to Consumer Empowerment.. .. ... ..... ...... ....... ... . 357 7.8.2.2 Solutions for Consumer Empowerment from the Framework ........... ................ 357 7.8.3 Financial Stability and Sustainability .. .. .. .... ........... .......... .......... ...... .. .... .... ....... 358 7.8.3.1 Problems and Effects relating to Stability and Sustainability ..... .................. .. .. . 359 xxii 7.8.3.2 Solutions for Stability and Sustainability from the Framework .... .. ... ........ ...... ... 359 7.8.4 Business Growth .... ... ...... ..... ..... .. ........ .... .... .... ....... ... ... .. ... ...... ...... .... .. ...... ..... . 359 7.8.4.1 Problems & Effects relating to Business Growth ... ..... ....... ... .... ..... .. ... .. ....... ..... 359 7.8.4.2 Solutions for Business Growth from the Framework ....... .. .. ...... ... .. .... ..... ......... 360 7.8.5 Inclusive Financial Education ...... ... ... .. .. .... .... .... .. .. .. .... .. ..... .. .. ......... ....... .... .... . 360 7.8.5.1 Problems and Effects relating to Inclusive Financial Education .. .... ... .. ............ 360 7.8.5.2 Solutions for Inclusive Financial Education from the Framework .. .. ... ........... ... 361 7.8.6 Measurement and Evaluation ......... .. ...... ... .. ... .. ....... ...... ... .......... .... ...... ... .... ... . 361 7.8.6.1 Problems and Effects relating to Measurement and Evaluation ................... ... . 362 7.8.6.2 Solutions for Measurement and Evaluation from the Framework ........ ... .. .. ...... 362 7.8.6.2 .1 Measurement and Evaluation for Feedback ..... .. .. ...... .... .. ... ... ....... .... .............. 362 7.8.6.2.2 Measurement and Evaluation to Determine Suitability and Effectiveness .... ... ..... ... .......... ..... .. ....... ... .... ..... .. ... ... .......... .. ..... ..... .... ... ..... .... .. 362 7.8.6.2.3 Measurement & Evaluation to develop tools .......... .. ............... ...... ..... ..... ........ . 363 7.8.6.2.4 Role of Bankers in Measurement and Evaluation .......... ... ........... .... ............... . 363 7.8.6.2.5 Role of Researchers in Measurement and Evaluation ...... ............ ........... ...... .. 363 7.8.6.2.6 Role of Government in Measurement and Evaluation ..... .. .. ..... .......... .... .. ........ 363 7.8.6.2.7 Role of Media practitioners in Measurement and Evaluation ... .... ......... ...... .... . 364 7.8.6.2.8 Role of Trainers in Measurement and Evaluation .... .. ... ........ .. .. ... ... .. ... ..... .. ..... 364 7.8.6.2 .9 Role of Clients in Measurement and Evaluation ......................... .......... .... .... ... 364 7.8.7 National Coordination ............. ............ .... ........ ............ ........ ..... .......... ... .. ...... .. . 364 7.8.7.1 Problems and Effects relating to National Coordination ... .. ... .. ....... ......... ... ... .. . 365 7.8.7.2 Solutions for National Coordination in the Framework ... .. ... ... ... .. ..... ..... ...... .... . 365 xxiii 7.9 Users of the Framework and their Roles ..................................................... 365 7.9.1 Researchers ... .... .. .. ... ... .... .... .. .. ... ... .. ... ....... ... ... .......... ........ .. ... ..... ....... ... ... ..... . 366 7.9.2 Students ................ .... .... .. ..... ...... ..... .... ...... ....... .. ...... ... ........... ..... ..... ... .... ... .... . 366 7.9.3 Financial Education Providers ............ ..... ... ..... .. ... ......... ..... ... ... ........ ............ ... 366 7.9.4 Mass Media Practitioners ....... ......... .... .... ... ......... .............. .. ... ...................... ... 366 7.9.5 Customers: members of the public and clients .................. .......................... .. .. 366 7.9.6 Government & Policy Makers .............. ...... .......................... .... .... .............. ...... 366 7.9.7 Financial Industry Experts and Practitioners ...... ............ .... .... .. .... ........ .. .. .. .. .... 367 7.9.8 Trainers ...... ... ..... ..... ..... ..... ... ....... ......... .. ... ......... ............................. ....... ... .. .... 367 7.9.9 Accrediting Bodies .... .. ..... .... .. ..... ... .... .... .. ... ...... ... ... .. ... ... .... .. .... .. ... .................. 367 7.10 Contribution to research and further opportunities .................................... 367 7.11 Implications for Further research ................................................................. 369 7.11.1 Conduct Measurement & Evaluation ............................................... .. ...... .. .. .... 369 7.11.2 Benchmarking and comparative analysis ...... .... ...... .. ........ .. .... ...... .. ..... .. ......... 369 7.11 .3 Research on methods of delivery ........ .............. .. ....... .. ......... .. .... ...... .... ........ .. 369 7.11.4 Questionnaire and Interview Guide: ...................................... ..... .. ... ..... ............ 369 7.12 Recommendations to Enhance Financial Literacy Initiatives .................... 369 7.12.1 Inclusive Financial Education .... ... ... .......... .. .. .... ..... .... ....... ... ... .. ..... ..... ........... . 370 7.12 .2 Priority areas .. .. ...... ... .... .... .... ...... .... ... .... ....... ... ........ .... .. ..... ... .. ... .... ..... ....... .... 370 7.12.3 Financial Counselling ....... ...... ... .... ........ ... .. .... ... ...... ........................................ 370 7.12.4 Measurement & Evaluation ..... ................... ... .... ........ ... ................................... 370 7.12.5 National Coordinated Strategy ............ ... .. ... .. .. ...... .............. .. ........ ..... .............. 371 7.12.6 Funding for Financial Literacy .... .. .... ...... .. .................. ... ................. ...... ......... ... 371 xxiv 7.12.7 An Industry Driven Curriculum .. ... ...... ... .. ............... ...... ........... ...... ........... ... ..... 371 7.13 Limitations to the Study ............. ............ ....................................................... 371 7.14 Chapter Summary ...... .. ....... .... ...................................................................... 372 REFERENCES .............................................................................. ....... ................... ............. 374 APPENDIX 1 INTERVIEW GUIDE ......................................................................................... 388 APPENDIX 2 QUESTIONNARE ..................................... ... .................................................... 393 XXV LIST OF FIGURES Figure 1-1 : Research World Views--------------------------------------------------------------20 Figure 1-2: The Outline of the Study-------------------------------------------------------------29 Figure 1-1 : Domains of fin a ncia I Ii te racy--------------------------------------------------------38 Figure 1-2: Domains and indicators of financial education---------------------------------52 Figure 1-3: Transformation process model-----------------------------------------------------53 Figure 1-4: Assessing outcomes of financial education-------------------------------------54 Figure 1-5: The conceptual framework of FL for the study---------------------------------55 Figure 1-6: Financial literacy education model (FLE)----------------------------------------60 Figure 1-7: Rejected financial education literacy model-------------------------------------61 Figure 1-8: The logic model for programme design------------------------------------------78 Figure 1-9: Stages of Trans Theoretical Model (TTM)---------------------------------------84 Figure 1-20: Logic model for women 's financial programme--------------------------------87 Figure 1-11: Financial literacy conceptual framework and TTM----------------------------89 Figure 1-3: Decision tree for tim ing-------------------------------------------------------------133 Figure 1-2: Decision tree for weighting--------------------------------------------------------133 Figure 1-3: Decision tree for mixing------------------------------------------------------------134 Figure 1-4: Exploratory Sequential Desig n----------------------------------------------------136 Figure 1-5: Structure for a thematic network--------------------------------------------------158 Figure 1-6: Thematic Analysis Process--------------------------------------------------------159 Figure 1-7: Application of the Thematic Analysis Process--------------------------------162 Figure 1-8: Quantitative Data Analysis Process---------------------------------------------163 Figure 1-4: Summary of Theme 1: Consumer Empowerment---------------------------177 xxvi Figure 1-2: Thematic Network -Theme 1: Consumer Empowerment------------------186 Figure 1-3: Summary of Theme 2-Stability and Sustainability---------------------------187 Figure 1-4: Thematic Networks-Theme 2: Stability and Sustainability-----------------197 Figure 1-5: Summary of Theme 3 Business Growth---------------------------------------199 Figure 1-6: Thematic Networks-Theme 3 Business Growth------------------------------205 Figure 1-7: Summary of Theme 4 Inclusive Financial Education------------------------207 Figure 1-8: Thematic Network-Theme 4: Inclusive Financial Education---------------221 Figure 1-9: Summary of Theme 5: Measurement and Evaluation----------------------224 Figure 1-10: Thematic Network-Theme 5: Measurement and Evaluation--------------232 Figure 1-11: Summary of Theme 6: National Strategy--------------------------------------234 Figure 1-12: Thematic Network-Theme 6: National Strategy------------------------------248 Figure 1-13: Convergence of themes towards Enhancement-----------------------------257 Figure 1-5: Respondents ------------------------------------------------------------------------260 Figure 1-2: Gender----------------------------------------------------------------------------------2 61 Figure 1-3: Age---------------------------------------------------------------------------------------261 Figure 1-4: Highest level of education--------------------------------------------------------262 Figure 1-5: Stages in family life cycle---------------------------------------------------------263 Figure 1-6: Em p Io yme nt st ru ctu re--------------------------------------------------------------2 6 3 Figure 1- 7: Type of mo nth Iy in com e-----------------------------------------------------------2 64 Figure 1-8: Income vs expenditure--------------------------------------------------------------266 Figure 1-9: Types of accou nts-------------------------------------------------------------------2 67 Figure 1-10: Investment alternatives-------------------------------------------------------------268 Figure 1-11 : Financial portfolio record----------------------------------------------------------269 Figure 1-12: Major investment objective--------------------------------------------------------270 xxvii Figure 1-13: Al location of fund s--------------------------------------------------------------------2 71 Figure 1-14: Investment horizon-------------------------------------------------------------------272 Figure 1-15: Expectations from investment-----------------------------------------------------272 Figure 1-16: Type of I nvestor----------------------------------------------------------------------273 Figure 1-17: Improvement on behavioural attitudes------------------------------------------282 Figure 1-18: Importance of financial behaviou r------------------------------------------------285 Figure 1-19: Self-rating on savings and spending--------------------------------------------287 Figure 1-20: Return of an unsuitable financial product to supplier/seller----------------288 Figure 1-21 : Returns and consultations---------------------------------------------------------288 Figure 1-22: Abilities & actions towards savings and reducing spending---------------290 Figure 1-23: Level of knowledge on taxation--------------------------------------------------291 Figure 1-24: Extra Incomes to pay expenses-------------------------------------------------292 Figure 1-25: Level of Knowledge on banking and bank accounts------------------------294 Figure 1-26: Payment of monthly credits card bills-------------------------------------------295 Figure 1-27: Reading about shares and follow market performance---------------------296 Figure 1-28: Contributing to investment fu nd---------------------------------------------------297 Figure 1-29: Tracking and reducing spending-------------------------------------------------298 Figure 1-30: Saving through basic accounti ng------------------------------------------------300 Figure 1-31 : Consultation with a professional broker----------------------------------------301 Figure 1-32: Ability to read before signing------------------------------------------------------302 Figure 1-33: Make use of financial knowledge------------------------------------------------303 Figure 1-34: Reasons for use of a debit card--------------------------------------------------305 Figure 1-35: Complaining about poor service to manager----------------------------------306 Figure 1-36: Preparing a will/testa ment----------------------------------------------------------30 7 xxviii Figure 1-37: Ability to calculate interest on savings------------------------------------------308 Figure 1-38: Measures of cohesion and separation------------------------------------------308 Figure 1-39: Cluster sizes-section 3 Self-assessment---------------------------------------309 Figure 1-40: The respondents in Clusters------------------------------------------------------310 Figure 1-41: Predictor importance of behaviour-----------------------------------------------311 Figure 1-42: Cluster 1 comparison - behaviour importance--------------------------------312 Figure 1-43: Cluster grouping for behaviour importance------------------------------------313 Figure 1-44: Cluster 2 comparison - behaviour importance--------------------------------314 Figure 1-45: Decision T ree--------------------------------------------------------------------------315 Figure 1-46: Cluster quality segmentation-section 4 Performance T est-----------------316 Figure 1-4 7: Group size for section 4 performance test-------------------------------------316 Figure 1-48: Initial groupings belonging to new clusters------------------------------------317 Figure 1-4 9: P red ic to r Im po rta n ce-pe rf o rm an ce----------------------------------------------31 8 Figure 1-50: Section 4 performance test cluster 1 comparison----------------------------319 Figure 1-51: Section 4 performance test cluster 2 comparison----------------------------321 Figure 1-52: Section 4 performance test cluster 3 comparison----------------------------323 Figure 1-53: Section 4 performance test cluster 1 & 2---------------------------------------325 Figure 1-54: Cross- correlation and predictor section 4-------------------------------------326 Figure 1-55: Cluster quality Section 4 performance test - effectiveness----------------327 Figure 1-56: Group size section 4 performance test -effectiveness---------------------327 Figure 1-57: Groups in clusters Section 4 effectiveness------------------------------------328 Figure 1-58: Predictor Importance- suitability & effectiveness-----------------------------329 Figure 1-59: Cluster 1 Comparisons future plans for financial literacy-------------------330 Figure 1-60: Cluster 2 Comparisons effectiveness & suitability---------------------------331 xxix Figure 1-61 : Decision Tree - Investment alternatives--------------------------------------332 Figure 1-62: Reasons for interest to learn-----------------------------------------------------334 Figure 1-63: Topic one I nvestments------------------------------------------------------------335 Figure 1- 64: Topic two budgeting ski 11 s---------------------------------------------------------335 Figure 1-65: Role of government to enhance financial literacy initiatives---------------336 Figure 7-6: Research objectives matched with research questions-------------------- 341 Figure 7-2 : Students' Scores on performance test------------------------------------------352 Figure 7-3: Employee' Scores on performance test----------------------------------------353 Figure 7-4: Confidence levels (students in Junior Schools)-------------------------------353 Figure 7-5: Confidence level (employee, tertiary & union)--------------------------------354 Figure 7-6: A Framework for enhancing financial literacy initiatives--------------------356 Figure 7-7: Solutions to content - Priority areas---------------------------------------------358 XXX CHAPTER 1 GENERAL OVERVIEW OF THE STUDY 1.1 Introduction The purpose of this study is to develop a framework for enhancing financial literacy in Botswana. This is because the current financial literacy initiatives are not adequate in addressing the needs of the consumers in Botswana. Despite these initiatives low levels of financial literacy are evident. According to Sparkassenstiftung fur Internationale Kooperation (2007:7) Botswana typical of a developing countries in Sub Saharan Africa , has a low level of financial literacy and this is apparently more prevalent among adults (Fanta , Mutsonziwa and Naidoo (2015:7). In addition like most developing countries in the world , Botswana experienced the impact of the 2008 global economic recession as consumers were faced with debts, defaulted on payments (especially on mortgages), were retrenched and lost their jobs (Busari and Bamatunde 2009:2). There is also no national coordination (Monticone and Messy 2011 :345) of the initiatives and most of them are offered by the private sector (Monticone and Messy, 2011 :34, Sparkassenstiftung fur Internationale Kooperation 2007:26). According to Monticone and Messy (2011 :345) the prevalence of private sector involvement with little government intervention is a challenge, particularly regarding potential conflicts of interests. This and many more reasons elucidated below have necessitated a guiding framework for implementation . The framework provides solutions which combat these low literacy levels in order to assist consumers to deal with ever-changing financial markets. The country has to raise awareness on the importance of financial literacy (Sparkassenstiftung fur Internationale Kooperation (2007:47). According to Fox, Bartholomae, and Lee (2005:105) financial literacy initiatives improve consumers' and investors' understanding of financial products and concepts and consumers become aware of risks and opportunities (Johnson and Sherraden 2006:6). In addition financial education helps consumers make informed choices (Lusardi 2013:4 ). Through it consumers and investors develop competence, skills and confidence pertinent for personal financial management 1 (Remund 2010:288). Therefore tracking variation and change in financial literacy rates is of interest to educators, policymakers, employers and researchers (Huston (2010:310). According to Collins, Odders-White and Walsh (2012 : 19) a well-designed evaluation enhances the decisions made by educators and policy makers. Many authors Yoong and et al (2013:35), Hanna, Hira and Lyons (2009:89) , Huston (2010:310, Fox, Batholomae and Lee (2005:203) also view evaluation of the financial literacy initiatives as aspect critical to establish the effectiveness of the initiatives and that this offers an opportunity to use information for improvement. It is through this study that a guid ing framework for enhancement is provided and that recommendations are proffered for better implementation of financial literacy initiatives in Botswana. 1.2 General Background of the Study Since the world financial crisis of 2008, personal finance has become a common topic in research , prompted by the effects of household debts which affected economies. According to Klapper Lusardi , and Panos (2011 :1) the world started to show concern and give financial literacy attention . Governments began to appreciate how to campaign for financial literacy to inculcate in the consumer careful use of their money. This is because the causes for the crisis were not only attributed to the collapse of the financial regulatory framework (Bartmann 2017:3) but also to the low levels of financial literacy and lack of risk awareness by individual consumers (OECD 2009:4 ), According to OECD (2009:4) the original causes could have been subprime in real estate the but the consequent challenges occurred because of hasty financial behaviours of consumers who were unaware of risks involved in their financial transactions. The OECD (2009:4) has also noted that consumers demonstrated the lack of financial literacy which affected them during the crisis. It was observed that even small populations contributed serious effects noticed in the global economic meltdown. This makes financial literacy quite important for both individuals and the economy at large as stated by Sparkassenstiftung fur Internationale Kooperation (2007:7): "From the macro-economic perspective, a financially literate population is of major importance in terms of combating poverty. Only if this 2 knowledge is on hand, (micro) finance institutions can reach a sufficient number of customers, and so operate sustainably (in rural regions too)." It is deduced from this that lack of financial education contributes to low levels financial literacy posing adverse repercussions to individual persons and entire financial system- the effects of crisis were felt both at microeconomic and macroeconomic level. At microeconomic level, there were large consumer credit losses (Klapper Lusardi Panos, 2011 :1) , retrenchment or lay-off as the reason for returning home from overseas from places such as the Philippines (Yap, Reyes, and Cuenca (2009:12). According to Yap, Reyes and Cuenca (2009:18) there were also job losses in the domestic labour market, and the jobs lost were more than the new jobs created . Verick and Islam (2010:5) called the situation of unemployment, a global jobs crisis . As Yap, Reyes and Cuenca 2009 : 15, Allen and Carletti (2009:3) narrate, households experienced a reduction in wages and to cope with the ramifications of the crisis, households changed their spending patterns or found new sources of financing for their expenditures. According to Claessens, Kose, Laeven , and Valencia (2009:4) , unemployment in the United States and a number of other countries rose dramatically as a result. Claessens, Kose, Laeven , and Valencia (2009:4) continue to account that this resulted in large scale defaults by households as they ran into debt servicing financial problems. In the context of macroeconomics, incongruous financial decisions of small social units like households cou ld hugely affect the stability of the whole economic and financial system (Claessens, Kose , Laeven and Valencia 2009:4 ). According to Claessens, Kose, Laeven and Valencia (2009:4) the global implosion caused systemic risk. There was a contagion from overseas to developing countries . According to Dolphin and Chappell (2010: 1) this global financial crisis hit emerging and developing economies extremely hard . This is because output, exports, remittance flows, aid and capital inflows became lower than expected (Dolphin and Chappell 2010: 1) . Countries which depended a lot on remittances from abroad like Morocco and Tunisia lost significant percentages in their GDP (Dolphin and Chappell 2010: 12). Major developing countries , such as Brazil , Argentina , South Africa and India were pressured to 3 devalue their currencies against the US dollar and the Euro (Dolphin and Chappell 2010:4 ). According to Lin (2008: 10) emerging and developing economies across all regions experienced a sharp slowdown in output growth which resulted in sizable reductions in their exports. Meyn and Kennan (2009: VII) highlight that those mostly hit were undiversified and highly export dependent economies like Botswana. As a result of experiencing these effects, many countries were prompted to take decisive action. Some countries responded by stressing the importance of consumer protection through financial education (OECD 2009:9, Rutledge, Annamalai Lester and Symonds 2010: 1) as a long term strategy for the stability of the financial sector. National strategies for financial education became an imperative solution . Many governments have taken the lead and this is shown by the level of interest by policy makers on financial literacy around the world and the input made by different stakeholders who have been prompted to act since the crisis. The OECD (2009:9) attests to this by writing that: "If the crisis shed light on the importance of increased level of financial literacy for global financial and economic stability, it has done so in different and uneven ways for the public, policymakers and private decision makers. Accordingly, this increased awareness has notably prompted governments and interested stakeholders to take some remedial policy actions in the financial education area." The same sentiments are shared by Klapper, Lusardi and Panos (2011 :1) as they report of the countries developing national strategies which have coordinated approaches, with a measurement and evaluation element, and with development of policies, regulations and control measures. Since the recession, such actions are directed at making efforts to improve financial literacy. This is elucidated by OECD (2009:3) to say: "The impressive increase in the number of governments which have adopted such nationally coordinated approaches to financial education testifies to its significance: today almost 60 economies are implementing 4 national strategies for financial education worldwide, compared to a handful in 2009." Consumer protection as stated above is one of the goals of financial education and with it the financial stability and sustainability of both consumers and the financial markets are improved. It is achieved by sensetising consumers on their rights and privileges, about products and services, and about investment and saving opportunities. According to Messy and Monticone (2011 :5) low financial literacy is an important demand-side barrier to more effective financial inclusion and so they state: "Well-designed financial education initiatives can reduce demand-side barriers to more effective financial inclusion and can empower vulnerable individuals economically, so that they can better manage household resources and develop income generating activities." Th is is deducted to mean that financial literacy can be used as a vehicle to obtaining fi nancial inclusion and or consumer protection . In some national strategies countries have adapted the national strategies to address a combination financial inclusion and/or consumer protection needs (OECD/INFE: 2013:17). The OECD (2009:3) cites many countries like Canada, Indonesia, Mexico, New Zealand , Argentina, Australia , Peru , Turkey, Armenia , Guatemala, India, Indonesia, Israel , Korea, Malawi , the Netherlands Portugal , Romania , Russia , and South Africa . These countries have recognised the importance of national strategies which aim at improving financial literacy especially of vulnerable groups who may even be financially excluded. According to Messy and Monticone (2011 :5), most of the programmes in Africa have a purpose of improving financial knowledge and skills , raising awareness of financial issues, and strengthening financial inclusion. Messy and Monticone (2011 :5) report that some of the advanced programmes championed by public authorities in their national strategies like Ghana, Namibia , South Africa and Uganda. OECD/INFE (2013:3) narrate that most of these strateg ies are inclusive of specific goals, delivery channels to address different target groups, plans for measurement, sponsorship or resources and plans for review of 5 strategy (OECD/INFE 2013:17). Since the implementation of these strategies financial literacy may still be low but financial inclusion is said to be improving Messy and Monticone (2012:46) because efforts to measure financial literacy are evident. However in Botswana in the background below there is absence of such a national strategy or framework of coordinating financial literacy initiatives around the country. 1.3 The Botswana Context In Botswana there are several financial literacy initiatives but they are mostly conducted by the private sector (Messy and Monticone 2012:46) with minimal government intervention. The absence of such is coupled with lack of impact analysis of such initiatives on the consumers , which means there is lack of evidence, lack of framework and standards for implementation. This provides solid motivation for this study on financial literacy in Botswana to evaluate the existing initiatives around the country hence the research topic: "A framework for enhancing Financial Literacy Initiatives in Botswana" Botswana, being a country in Sub Saharan Africa , was no exception as it was also affected by the world economic recession. With its economy less diversified and dependent on exporting raw materials to the already affected advanced economies, Botswana felt the impact both at macro and micro economic level. As noted by Busari and Bamatunde (2009:2) Botswana had to suspend the production of diamonds and beef where she had the largest market in Europe. According to Dolphin and Chappell (2010:12) this is typical effects of a developing economy integrated into the global financial systems. This happened because the demand for diamonds declined significantly and prices translated directly into decreased investment, currency depreciation and unemployment. According to Dullien , Kotte , Marquez and Priewe (2010: 210), in 2008 third quarter to 2009 first quarter for Botswana the Pula devaluation against the American Dollar was by 15-29 percent. The losses in diamond revenue meant, as recounted by Busari and Bamatunde 2009:2) , there were job losses, retrenchments and reduction in households' income. At micro-economic level consumers especially employees in the mining sector were not prepared for these changes as they lacked financial literacy skills empowerment. The 6 financial literacy initiatives which were available at that time fell short to have addressed problems experienced. The solution to the lessons learnt from above is that Batswana have to be educated on savings and on how to deal changes in the financial markets. The education should be for financial literacy and financial inclusion for present situation and for future environments. According to Jefferis and Kenewendo (2009: 13) excluded segments in Botswana can be targeted through an appropriate financial literacy initiative. This need for financial literacy initiative is emphasised by OECD (2009:9) highlighting that financial education or initiatives must be developed as correctional measures or preventatives steps to prepare for future . In addition to this Master Card Foundation (2011 :6) write that challenges of money management and changes in the economic environment need empowered citizens so that they can make informed financial decisions. According to Lusardi (2008: 19), financial instruments have become increasingly complex and individuals are presented with new and ever-more-sophisticated financial products. Access to credit is easier than ever before and opportunities to borrow are plentiful Lusardi (2008: 19). The number of financial institutions in Botswana has increased, each coming with new financial products offering credit and saving opportunities- A good reason for Botswana to invest in financial education so that Batswana maybe able to face the challenges which come with these changes. According to Sebtad , Cohen and Stack (2006 :5) one of the behavioural outcomes of financial education on consumers is the ability to find ways of increasing income and creating wealth. As pointed out in the Government of Botswana Poverty Eradication Guidelines (2012 :6) , Botswana would like to empower its citizens, so that they may increase their earning power. This income should be used appropriately for individual growth and for contribution into the collective economy. Financial education programmes usually teach concepts such as investment and income and debt management, these being in important in wealth creation . The financial literacy initiatives should be implemented bearing in mind the goals of the poverty eradication programme and Vision 2036 (2016:3) professing "Achieving Prosperity for all". For the past 7 three years in Botswana there have been reports of Batswana making decisions to invest in high risk stocks in companies like EUREX and Stock Market Direct. This means there are draw backs and challenges to achieving this goal. Some consumers had accumulated assets but forfeited them due to lack of knowledge on investment products and opportunities. The warnings to be cautious of such scams came when many Batswana had already invested their savings and retirement funds into these institutions Newel (2012) writes in The Botswana Guardian Newspaper that: "Investors in Botswana have been exposed to an investment scam by a shady organisation known as EU REX Trade PTY LTD, which robs them of their hard earned cash. The scam is known as the 'Ponzi Scheme' which is a scam that pays initial investors with proceeds from new investors under the guise that they are making an actual business investment, when in fact the underlying business is non-existent or unsuccessful." This has affected household debt and engendered bank repayments, defaults as has been reported in The Botswana Sunday Standard Newspaper (2012) highlighting that economists have identified Botswana Banks to be exposed to household debt that could lead to defaults in servicing loans. This is indicative of lack financial awareness, lack of consumer protection and lack of prudence in managing personal financial portfolios. Despite the losses indicated above, there are reports of financial literacy initiatives around Botswana implemented by different sectors: Banking Sector, Non-Bank Financial Institutions, Non- Governmental Organisations, Consultancies, Insurance Companies, and Regulatory Authority. The list portrays private sector playing a prevalent role but according to Sparkassenstiftung fur Internationale Kooperation (2007:23) there are three main players for creation of financial literacy awareness. These have different reasons with diverse rationale for offering financial education to give the consumer an advantage of diversified initiatives to select from . These are: 1. Authorities and other state organisations, such as schools and extra- curricular educational institutions, central banks, supervisory authorities and consumer protection associations 8 2. Non-governmental organisations (national and international)/ private 3. Formal , semi-formal and informal financial service providers In Botswana , the Non-Bank Financial Institutions Regulatory Authority (NBFIRA), (NBFIRA Annual Report 2016:17) has come up with a financial literacy initiative to provide information on personal financial management to the public. According to NBFIRA Annual Report (2016: 17) the objectives of the initiative is to the sensetise the public on their consumer rights. This they believe will enable the consumer to make informed decisions when they choose financial products and services. The NBFIRA Annual Report (2016 :17) informs that the in itiative so far bears fruits due to the fact that there are fewer complaints about companies and organisations regulated by NBFIRA. NBFIRA may have been established by government yet it does not mean it has constituted powers to be in charge of financial literacy initiatives conducted by other institutions making the lack of national coordination to be still a problem. The Authority held different the campaigns around the country as shown in the figure below: Table 1-1: Financial Literacy Campaigns by NBFIRA 2015-2016 Place Activity Dates Bo-tho College _5 -3 1 ay 2015 n 1, Mau and G anz,. 26 -28 J ty 2015 lo eng D, ct Cou ell d 6 -I lo eng Bus Ran Bo ana Ti de Fair 23rd -3 ~ 2015 Verda,Tsabong and ,ddlep Sep ember 20 15 Bobo o g and Seltbe- P i e 0 obe 2015 Mochud, I Decembe 20 I 5 G mare. Sero ga. d S aka e 2 -22 d Janu 2016 Mtddlep andTsabong I I - I Feb 20 I 6 Sowa. ata and e. I 5 - I Feb ary 20 6 Source: NBFIRA Annual Report (2016: 17) Despite not being charged with the responsibilities of national coord ination of fi nancial literacy programmes , the Authority goes out on its own liberty to have stakeholder collaborations. Accord ing to NBFIRA Newsletter (2014:2) it 9 annually holds financial campaign weeks and in 2014 this was done in collaboration with other stakeholders: Botswana Public Officers Pension Fund (BPOPF), Botswana Stock Exchange (BSE), Consumer Affairs Department (CAD), Consumer Watchdog and Premier Wealth . The primary aim of the financial literacy campaign was to change consumer's attitudes by translating knowledge into positive financial behaviour (NBFIRA Newsletter 2014:2). The campaign used "edutainment" - drama, songs and play performed by Maruapula Money Matters Play and Storms road show group, teaching the public about reckless borrowing and the importance of proper financial planning (NBFIRA Newsletter 2014:2). The shortcoming of their efforts is that there is no mention of measurement and evaluation - an element critical to noting areas of improvement to enhance the initiatives. Other collaborative efforts in conducting financial literacy initiatives are that of Letshego Holdings Limited (LHL) and the Botswana Directorate of Public Service Management (DPSM) providing education to government employees through workshops and seminars (Letshego Holdings Limited Annual Report 2016:73). Their aim was to provide savings, payment and borrowing solutions. According to Letshego Holdings Limited Annual Report (2016:73) financial education is critical to ensuring financial inclusion and that the cost of conducting financial literacy is recouped when targeted at the less educated . Unlike other initiatives Letshego conducted both qualitative and quantitative studies which revealed 19% of participants to be unable to balance their budget spending to what they earn , 4% did recognise themselves as being over indebted while 21 % expressed sense of over indebtedness. These percentages indicate the programme to be effective. As a result of measurement and evaluation , the findings have assisted Letshego in knowing the subgroups at risk who are critically in need of more financial literacy training (Letshego Holdings Limited Annual Report 2016: 11 ). Another identified collaboration is that of Barclays Bank Botswana (BBB), in partnership with Stepping Stones International (SSI) in Mochudi. According to Barclays Bank Botswana (2007) the two began an innovative partnership to take the world of money and finance to children at 10 schools across Botswana 10 through a school-based Aflateen programme. Some of the initiatives are reported by Monticone and Messy (2011 :34 ). They inform that Barclays Bank of Botswana had launched a financial literacy campaign in 2010 consisting of train ing sessions for various low-income groups. Monticone and Messy (2011 :34) also give an account of the efforts by Stanbic Bank Botswana (SBB) which is in collaboration with the Ministry of Education and the Botswana National Library Services (BNLS) introduced financial literacy booklets, based on Stanbic Bank material , in secondary school curriculum. Reporting on one more initiative Sparkassenstiftung tor Internationale Kooperation (2007:46) write that Bank of Botswana also used to run Botswana Banking Week financed by various other banks. It used to reach the public through media and public square presentations to celebrate Bank week and educate the public on fraud . However, to facilitate "fair" funding , the banking association is now set to assume organisation of the Banking Week. According to Sparkassenstiftung tor Internationale Kooperation (2007:46) the current initiative at the Central Bank is done by the "Public Education Department" using newspapers, radio shows and television reports to pass on information. It also visits schools and universities and has a question-time slot on a radio show, which listeners actively use. 1.4 Rationale of the Study In light of the above context, efforts made by the different stakeholders indicate the existence of financial literacy initiatives but the problems identified are: low levels of financial literacy, lack of understanding financial concepts and poor decision making , lack of utilising multipliers and getting the correct information , lack of consumer protection , lack of a defined curriculum, lack of measurement and evaluation and lack of nation-wide coordination . Low levels of Financial Literacy among different target groups pose enormous challenges for Botswana: Accord ing to Sparkassenstiftung tor Internationale Kooperation (2007:7) studies were conducted on financial literacy in Mexico, Botswana, South Africa , Namibia and Vietnam from the end of 2006 to the start of 2007. It was identified that Botswana, has low level of financial literacy, a typical scenario of a developing country in Sub Sahara Africa . The levels are low among particular groups such as low income earners, children and young 11 people, and those deemed to be financially illiterate (Sparkassenstiftung fur Internationale Kooperation 2007:26). Women are excluded as Sparkassenstiftung fur Internationale Kooperation 2007:26) writes that, Botswana does not have any initiatives which are specifically designed to meet their needs. For a solution Fanta and Mutsonziwa (2016:1) financial education can be used to promote financial literacy for females , and it is interpreted that it may be so for other groups. Adults in Botswana are another group identified by Fanta , Mutsonziwa and Naidoo (2015:7) to have low levels of financial literacy yet have high levels of financial inclusion . This is a challenge because in Botswana adults form the larger population of workers and income earners. According to Fanta, Mutsonziwa and Naidoo (2015:7) Batswana adults show relatively low levels of understanding of the advantages of owning a bank account, and this does not match the level of account penetration in the country. The implication is that that owning a bank account may not necessarily mean consumers have greater awareness of the product features and benefits. This makes a mismatch between financial literacy and financial inclusion. The expectation is that financial literacy should go beyond mere inclusion which is being able to utilise the products and services and putting knowledge into practice. According to Fanta et al (2014:5) , financially literate people are not only more likely to have awareness of products but they are also more likely to own the products thus contributing to financial inclusion . A solution therefore was needed to not only identify groups at risk but to also address the appropriateness and suitabil ity of target group, content and the methods of delivery for the programmes. Low levels of financial literacy may indicate financial illiteracy and the consequences of that are lack of understanding financial concepts and poor decision making . Fanta, Mutsonziwa and Naidoo et al (2014:18) view financial illiteracy to be contributing to lack of understanding of financial products and services. One factor which compounds to lack of understanding is consumers consulting wrong people for information . According to Fanta et al (2014:18) the proportion of adults currently seeking financial advice from financial institutions and financial advisers, is notably low. Fanta et al (2014: 18) discovered that 12 most adults in Botswana either go to friends and family (49%), or do not get any financial advice (38%), compared to 4% who go to a financial institution and 2% to a financia l planner / broker. Consulting friends or non-professionals contributes to getting the wrong information and making hazardous decisions (Rooij, Lusard i and Alessie 2007: 19). Learning knowledge, skills , and attitudes from peers can be effective especially from multipliers like Social Workers and Unions Representatives. According to Rooij , Lusard i and Alessie (2007:23) the importance of peer effects is realised in saving rate . Sparkassenstiftung fur Internationale Kooperation (2007:27) mention that multipliers are often taught and then used as representatives to communicate knowledge about financial products and services to the rest of the union members or public. The multipliers are utilised in Botswana but not sufficiently, and therefore the issue is to be addressed by the framework as it employs the use of all stakeholders to be involved in improving financial literacy initiatives. According to Haliassos Jansson and Karabulut (2017:2) and Entorf and Lauk (2007:4) the social multiplier effect of exogenous change can be practical in financial education as it can give 'spill over' of what some critical persons have learnt to those who have not had the opportunity to receive the education . If social multipliers and representatives of affinity groups lack this knowledge it would mean a large number of people are not reached by financial education , a problem which can be addressed by the solution provided in the framework- reaching out to different audiences for consumer empowerment. In reaching the goals of consumer empowerment and inclusive education for all the content of financial literacy should be clarified - what is it that the consumers have to learn? The problem in Botswana is that different financial educational providers teach what suits them or their objectives and it is not defined in any policy what the priority areas should be. According to Sparkassenstiftung fur Internationale Kooperation (2007:26) the priority areas for Botswana are that of credit, savings deposits, and insurance for financial services and the promotion of savings through appropriate planning of household income and expenditure. This means budgeting in the household is one of the most crucial skills ; it covers issues of credit use, savings and investment. Sparkassenstiftung fur 13 Internationale Kooperation (2007:26) points out that the Botswana school curriculum is focused on issues concerning enterprise management and entrepreneurship rather than on budgeting and planning skills despite the demand. Most initiatives are reported to lack other basics like insurance content element (Sparkassenstiftung fur Internationale Kooperation 2007:26). The aspect of curriculum extends from defining the priority areas to the delivery modes which are also indicative of what constitutes the programmes or the curriculum . Sparkassenstiftung fur Internationale Kooperation (2007:30) has observed that Botswana has not incorporated basic financial literacy into the school curriculum. The limited programmes show that learning is done through road shows, public campaigns, and events styles like "Banking Week". The advantage however is that, the road or theatre shows are said to communicate key aspects of financial literacy in a playful and entertaining manner. There is also printed media, including manuals, brochures, flyers , posters and newsletters, and are most commonly used as a form of sensitisation . The proposed framework is important to deal with these curriculum issues provid ing solutions on content and methods suitability. Their effectiveness to be known is dependent on measurement and evaluation , which is quite lacking in most of the financial literacy initiatives in Botswana. Most of the programmes identified have made no mention of measurement and evaluation . For instance, as reported by Sparkassenstiftung fur Internationale Kooperation (2007:46) Bank of Bank did not have any mention of assessments or summative evaluation of the campaigns and the programme. The NBFIRA Newsletter (2014:2) and the NBFIRA Annual Report (2016:17) also have no mention of measurement and evaluation . Monticone and Messy (2011 :34) also attest to the lack of measurement and evaluation in the Barclays Bank of Botswana initiative. The lack of measurement and evaluation provides a gap to know and understand the efficacy of the initiatives. According to Atkinson and Messy (2011 : 13) measurement and evaluation assists in identification of subgroups at risk and understanding their level of need. This is so like in the case of the Letshego Holdings Limited programme where research assisted in making a decision to identify such groups and provoked the financial education 14 provider to take action. Letshego Holdings Limited Annual Report (2016: 11) states that: "This study additionally highlights that we need to develop measures to identify these sub-groups during on-boarding and ensure that tailored solutions are provided to them , and early on in the process to improve our social and financial health" This highlights measurement and evaluation as a critical element to note areas of improvement to enhance the initiatives. According to Messy and Monticone (2012 :88) measurement and evaluations have been undertaken in countries like Brazil , Mexico, Latin America and South Africa while Botswana is cited by Monticone and Messy (2011 :6) to be among the countries with limited in itiatives and without measurement and evaluation. This lack has not only shown lack of evidence on the impact of the few initiatives but has also indicated minimal literature on the field financial literacy in Botswana. Thorough assessment of the financial literacy level and , more importantly, of its distribution among the population would be of great help in designing and in improving the effectiveness of financial education programmes. (Monticone and Messy 2011 :36). Collecting further evidence on financial literacy as according to Monticone and Messy (2011 :36) would be useful in the selection of target groups, and in choosing appropriate delivery channels and relevant contents , hence ensuring an efficient use of resources . Measurement and Evaluation therefore is an integral part of the framework proposed to advice on the different types of evaluation and their purpose. Most of the financial literacy initiatives in Botswana are reported to be conducted by the private sector. According to Monticone and Messy (2011 :34) the initiatives in Botswana, involve the private sector to a large extent. The downside of this dominance however is conflict of interest with companies serving marketing needs rather than the needs of customers (Messy and Monticone 2012:46). According to Monticone and Messy (2011 :345) most of the financial literacy initiatives implemented by non-for-profit organisations and the private sector - lack nation-wide coordination . Lack of national coordination also implies little policy attention with no legislative control. This lack is a challenge 15 for Botswana because it does not accord the government an opportunity to concentrate on raising awareness of the importance of financial literacy, to devote funds for financial education and to schedule time for implementation . Sparkassenstiftung fur internationale Kooperation (2007:4 7) write that the precise costs of financial education initiatives are difficult to assess, since in many institutions they are merely a "by-product" and thus not listed as a separate item in the budget. Funding is very critical and if the government places financial literacy as one of its priorities in the fiscal budget, financial literacy will be duly resourced to carryout necessary programmes and activities. Consequently this will increase awareness in the country and possibly raise the levels of financial literacy. Mentioning these issues does not mean the role of the private sector should be unnoticed. According to Sparkassenstiftung fur Internationale Kooperation (2007:23) , and Monticone and Messy (2011 :345) albeit the issues of conflict of interest the private sector must be recognized for their efforts in Botswana. This is because OECD/INFE (2015:8) acknowledges private stakeholders to be able to bring a number of benefits like financial resources and expertise, ability to reach a wide audience, ability to exploit teachable moments and combine financial education with financial inclusion efforts. This means with private sector strengths there shall be availability of resources and expertise yet provision government coordination , with national strategic intervention for the best interest of the consumer is needed- An architype combination which is offered from the financial literacy framework produced by this study. This study therefore is motivated by the problems and shortcomings discussed above: low levels of financial literacy among different target groups, the effects of the recession , the prevalence of private sector involvement, minimal government intervention and lack of nation-wide coordination , the lack of measurement and evaluation , the inappropriate use of methods, non-alignment of financial literacy initiatives to school curriculum, and lack of funding for the initiatives. They necessitated for the study to evaluate the financial literacy initiatives in Botswana and develop a framework which may guide implementation . This framework will be useful for various stakeholders in the involved in the provision of financial education. Its purpose is to provide 16 solutions for enhancing financial literacy initiatives. The solutions are available for: government practitioners, private enterprise, Non-Governmental Organisations, financial practitioners, schools, researcher, trainers , and consumers. 1.5 Research Questions In the context of the above statement of the research problem the following are the research questions formulated: RQ1. What are the reasons for providing Financial Literacy initiatives in Botswana? RQ2. What is the impact of financial literacy initiatives on consumers in Botswana? RQ3. How can the effectiveness of financial literacy initiatives be enhanced in Botswana? RQ4. How may the different stakeholders in Botswana enhance the effectiveness of financial literacy in itiatives? RQ5. What framework may be used to enhance financial literacy in Botswana? 1.6 The Aim and Objectives of the Study The specific objectives of the study are drawn from the research questions above and are presented in the following manner, seeking to : Ob1. Establish the reasons for conducting financial literacy in itiatives in Botswana Ob2. Evaluate the impact of financial literacy initiatives on consumers in Botswana Ob3. Find out the ways of enhancing the effectiveness of financial literacy initiatives in Botswana Ob4. Assess the role of stakeholders in enhancing the initiatives Ob5. Develop a framework of enhancing financial literacy initiatives 17 1. 7 Definition of Terms and Constructs The following terms are defined because they are part of the conceptual framework of the study and they are frequently used throughout the study: financial literacy, financial education, financial capability and Financial Inclusion. 1.7.1 Financial Literacy As a discipline financial literacy is a personal finance concept under microeconomics as it deals with individuals and empowering them with skills and knowledge to make sound personal financial planning. According to Hung, Parker and Yoong (2009:5) there are many definitions of the concept financial literacy one of the commonly used is President's Advisory Council on Financial Literacy (PACFL 2008) definition : "Financial literacy: the ability to use knowledge and skills to manage financial resources effectively for a lifetime of financial well-being ." Sebstad Cohen and Stack (2006:2) spell it out adding the aspect of application of knowledge by saying : "Financial literacy can be defined as knowledge of financial concepts and the skills and attitudes to translate this knowledge into behaviors that result in good financial outcomes" The OECD/INFE (2011 :3) have refined it to be: 'A combination of awareness, knowledge, skills , attitudes and behaviours necessary to make sound financial decisions and ultimately achieve individual financial wellbeing .' 1.7.2 Financial Education According to Hung, Parker and Yoong (2009:5) "financial education is the process by which people improve their understanding of financial products, services and concepts, so that they are empowered to make informed choices , avoid pitfalls , know where to go for help and take other actions to improve their present and long-term financial well-being". This explanation has embedded even the benefits or outcomes of financial literacy as it outlines what is expected of the individual after receiving the education . It is backed by the OECD (2005:26) highlighting that: "Financial education is the process by which financial consumers/ investors improve their understanding of financial products and concepts 18 and , through information , instruction and/or objective advice, develop the skills and confidence to become more aware of financial risks and opportunities, to make informed choices, to know where to go for help, and to take other effective actions to improve their financial well-being. " 1.7.3 Financial Capability Instead of financial literacy some people use different terms such as financial capability (Holzmann 2010:4, Kempson and Atkinson 2008:8, Kempson , Petretti and Scott 2013:3) , or financial knowledge while others indicate financial literacy to be encompassing of the last two terms mentioned , or that financial literacy is synonymous to financial capability ( Monticone and Messy (2011 :5). According to Kempson and Atkinson (2008:8) financial capability is about a person displaying certain knowledge, skills, and confidence: "A financially capable person is one who has the knowledge, skills and confidence to be aware of financial opportunities, to know where to go for help, to make informed choices, and to take effective action to improve their financial well-being , while an enabling environment for financial capability building would promote the acquisition of those skills" In short Holzmann (2010:4) says that financial capability is reflected by the following actions: 1. keeping track, 2. making end meets, 3. planning ahead , 4. choosing products, and 5. staying informed. 1.7.4 Financial Inclusion The term is also sometimes confused with financial literacy- while financial literacy is the level of skills , knowledge and attitudes learnt, financial inclusion deals with issues of access in to the financial market being a participant. The OECD (2005:26) defines it in following manner different from financial literacy: "Financial inclusion refers to the process of promoting affordable, timely and adequate access to a wide range of regulated financial products and services and broadening their use by all segments of society through the implementation of tailored existing and innovative approaches including 19 financial awareness and education with a view to promote financial well- being as well as economic and social inclusion. " 1.8 Research Methodology The research design and methodology of this study is expounded more fully in chapter three. The philosophical approach for this study is pragmatism which is selected from among the various world views provided by Creswell (2013:6) Figure 1-2: Research world views Philosophical World views Designs Quantitative (e.g., Postposltrvlst RESEARCH APPROACHES Ex~rlments) Constructivist Ouahtahve (o.g., Oualitabve Transformahve Ethnographies) Ouanlitative Pragmatic Mixed Methods(e.g., Milted Methods Explanatory Sequential Research Method/ Question Data COllecbon Data Analysis Interpretation Validation Source: Creswell (2013:6) 1.8.1 Research Philosophy The world view of Pragmatism guides this study because according to Karley (2013:23) and Shannon-Baker (2015:322) of it provides a map for evaluation research , management and organizations and this research is evaluative in nature: an evaluation of financial literacy initiatives in Botswana. According to Karley (2013:23), it is also able to provide an epistemological justification for mixed approaches and methods which were selected for conducting this study. 1.8.2 Research Approach The study utilised Mixed Methods Research (MMR) approach . According to Johnson and Onwuegbuzie (2004: 17), philosophically, Mixed Methods make use of the pragmatic system of philosophy. The two are appropriate for this study because both hold that the most important determinant of epistemology, 20 ontology and axiology is the research question (Karley, 2013:23).This study is driven by the research question: what is the framework of enhancing financial literacy in Botswana? 1.8.3 Research Design According to Sekaran (2003 :56) a research design is a plan or blue print which creates the foundation of the entire research work. Exploratory Sequential Design as a type of mixed method research design is the blueprint of this study. This is because, according to Palinkas et al (2010: 48) an Exploratory Sequential Design is needed for an exploration of the phenomena with the first phase utilising a qualitative design to inform the quantitative design, the logic for mixing the two being that of "Connecting". As explained by Onwuegbuzie and Combs (2011 :4) , and the purpose of mixing the two is instrumental development (Creswell 2006:75). In this study a questionnaire was developed after obtaining variables from qualitative research. This kind of action usually happens in mixed methods approach when according to Gray (2013:35) less is known about the phenomena and measures or instruments are not available, the variables are unknown, or there is no guiding framework or theory. Such was a case for this study where variables and measures were not available about financial literacy in Botswana. 1.8.4 Population and Sampling The initial population of the institutions was 25 but only 21 institutions gave consent to be interviewed. The researcher used purposive sampling because Patton and Cochran (2002:11) say qualitative research is usually purposive. According to Ryan , Scaperns and Theobald (2002 : 137) in selecting a sample a researcher must ensure that the selection criterion is adequate given the objectives of the research being conducted . The 21 institutions are few because the idea was to explore the phenomena and Creswell (2006:77) write that for such reason the sample is adequate as the population is also not known . The individual respondents for the questionnaire represented the population of Botswana. A sample of 400 individuals was drawn from the Botswana population as at 2017 being 2.292 million provided by the United Nations 21 Department of Economic and Social Affairs (2017:23). According to Leedy and Omrod (2014: 222) the technique to use for large populations is to draw a sample as the formula indicates: N=5000 equals to 400, with 400 being enough to reach saturation point. The same technique and formula has been borrowed to define the sampling adequacy for this study. 1.8.5 Data Collection Since this is a mixed method research , data was collected in two different ways: An Interview guide was used to collect data for qualitative phase while a questionnaire was used in the collection of quantitative data . 1.8.5.1 Interview Guide The researcher used Semi-structure interviews because they are known to provide reliable , comparable qualitative data (Crabtree 2006:2). Most of the questions were open ended. There were no recordings made on video tapes as all the interviewees were against it and because their corporate policies could not permit it. The interviews assisted in gathering data about the initiatives. 1.8.5.2 Questionnaire The questionnaire contained mostly close-ended questions with variables obtained from qualitative data analysis. It is designed with particular rating for each of the self-assessment questions mostly on their customised likert scale. The self - assessment questions were mainly targeted to test the confidence of the individuals as they are the ones who rated themselves. There were also performance questions which basically needed the correct answer for the question , testing their level of knowledge against the knowledge they claimed form self-assessment ratings . The questionnaire assisted in revealing the impact of financial literacy initiatives on the respondents . Structured open ended questions were provided in section five of the questionnaire to obtain opinion on suitability of content and methods of delivery. 22 1.8.6 Data Analysis Planning for data analysis and understanding the process to follow for each of the approaches in the mixed method research is important for easy and systematic presentation of results . Provide source. Since the study has an exploratory sequential design a chronological approach to data analysis form qualitative to quantitative became suitable for subsequent connection (Palinkas et al (2010: 48) consolidation and synthesis . 1.8.6.1 Qualitative Data Analysis - Thematic Analysis Data analysis in this study was conducted by a thematic approach for thematic analysis using processes and procedures from Attride-Stirling (2001 :386) and Braun and Clarke (2006:5). According to Braun and Clarke (2006:5) it is a systematic process which has six phases involving: coding of narratives, producing basic themes to be synthesised into global themes. The researcher went through the process and wrote a qualitative data analysis report which forms chapter five of this study. 1.8.6.2 Qualitative Data Analysis - Factor Analysis The process and procedure for quantitative analysis was borrowed from the works of (Bannon 2013: 19) which provided a seven step process to follow. According to Williams Brown and Onsman (2010:1) "factor analysis is a multivariate statistical approach". It has a function to reduce large amounts of data set into manageable information to be easily understood and analysed as authors say: Yong and Pearce (2013:79) it helps to isolate constructs and concepts while Williams Brown and Onsman (2010: 1) write that it assists to group variables which some link together and separate those which do not correlate. This study has used factor analysis for various tasks in the analysis of quantitative data. Exploratory Factor Analysis (EFA) as a type of factor analysis , using the Principal Component Analysis as a multivariate technique was used for factor extraction and reduction . Confirmatory Factor Analysis (CFA) was used for the self-assessment questions because according to Williams, Onsman and Brown (2010:3) "Confi rmatory factor analysis is a statistical technique used to verify the factor structure of a set of observed variables". In 23 addition to this Cluster Analysis was utilised for both self-assessment and the performance test for the reduced variables . According to Cornish (2007: 1) Cluster analysis is a multivariate method which aims to classify a sample of subjects (or objects) on the basis of a set of measured variables into a number of different groups such that similar subjects are placed in the same group. 1.8.6.3 Technological Tools Different types of tools were used by the researcher in quantitative data analysis. A Statistical Package for the Social Sciences (SPSS) Version 23 (2015) used for descriptive statistics, factor and cluster analysis . The Microsoft Excel spread sheet was used for compiling a data dictionary in preparation for conversion into SPSS. 1.8.7 Validity and Reliability Issues of validity and reliability are very pertinent to research and thefore have also been considered for this study. According to Thanasegaran (2009 :37) "the extent to which a test measures what it claims to measure" while reliability is concerned with consistency and repetitive use of tools of measurement yet yielding the same results (Golafshani 2003:2). This study utilised Exploratory Factor Analysis (EFA) for instrument (questionnaire) validity and reliability having conducted tests : the Cronbach 's alpha reliability coefficient for internal consistency, Bartlett's test of Sphericity and Kaiser-Meyer-Olkin test (KMO) for measurement of sampling adequacy. This was borrowed from Lauw Fouche Oberholzer (2013:445) in their study. The reliability was also enhanced by the use of some items (adapted into the context of Botswana) from other studies like that of Arellano Camara and Tuesta (2014: 15) and Thomson (2012 : 14) because they have been tested therefore valid and reliable. Validity for the interviews was done by the use of consultants - expert analysis in the field who critiqued the instrument (interview guide) checking if they were designed to measure what they intended. The interview guide itself provided reliability as the questions for the semi - structured became a set of standard protocol (Baskarada 2014:9) for providing the answers. In addition applying to both 24 instruments the items were designed in correlation with the research questions ensuring alignment and validity to the study 1.8.8 Ethical Considerations According to Bhattacherjee (2012 :1 37) ethics are the moral distinction between right and wrong. A researcher must show high level of conduct. The first issues attended to by the researcher had been to obtain an ethical clearance conduct from the University. Permission also was sort from the University to carry out research . Permission was also requested from the government of Botswana to do a study in the country. Letters of request were then sent to the different organisations requesting to conduct interviews or administer a questionnaire. Informed consent was also sort from the individuals before administering. During Interviews corporate protocols of the company were observed. No harm was inflicted on participants. 1.9 Significance of the Study The study is important especially the results in the development and the provision of a framework that could be utilised by the following : consumers at individual level , practitioners at institutional level , policy makers at strategic level for decision making , and by researchers contributing to the body of knowledge. 1.9.1 Consumer Level According to Miller and et al (2009:6) the ultimate goal of financial literacy is to empower consumers to take action to improve their financial well-being . This means that financial literacy is not a once off activity but the information that is transmitted to the recipient must make an impact. In this light it therefore necessary to conduct an impact evaluation on the financial literacy initiatives after finding out what the institutions have offered to them. Collins, Odders- White and Walsh (2012:19) support the value of research on the impact of financial education by saying : "If research can identify optimally-targeted financial education , its results will increase the potential to improve financial decision-making among youth and adults , and will ultimately enhance the financial well-being of citizens". The results of the evaluation will also indicate to 25 the providers of the education what skills , knowledge and attitudes are relevant and needed by the consumers. This will enhance the content, the way they are taught and refine the purpose for the initiatives. 1.9.2 Institutional Level (Practitioners) Eventhough financial literacy is a micro economics concept, the impact it has on individuals may translate to institutions and the country at large. As is written by Sebtad , Cohen and Stack (2006:4) , "ultimately, financial literacy can have higher-level social and institutional impacts". It is through this study that the researcher would like to evaluate the financial literacy initiatives in Botswana and that this evaluation will highlight to institutions the improvements to make. Evaluation of the impact of Financial Literacy initiatives may also prove useful for financial planners attempting to gain an understanding of their clients ' knowledge base (Hanager 2012:2).This implies that in Botswana the various institutions will from this research gain an understanding of the impact of their initiatives on the targeted groups. Besides institutions practitioners need to know about the gaps in their area and this why Robson (2012:7) includes practitioners in the group of people that need research information indicating that their role is to make a positive difference in the lives of people regarding their personal finances. 1.9.3 Policy Level This study also informs policy makers on ways to improve the financial experience of the public as a way of enhancing their financial literacy initiatives. This indicates that governments and policy makers need to be advised on strategies to help the whole public on financial literacy. In addition they are advised to concentrate on specific or critical areas. Government and institutions may focus on one target group depending on their needs. This is so as is stated by some authors like Cude and et al (2006: 102) who say that "in recent years , educators, policy makers, and university officials have focused on one aspect of college students ' financial practices - their use of credit, and most specifically credit cards. " In Botswana there is no policy outline on financial literacy, how the 26 education has to be conducted by whom, where it should be conducted and how it shou ld be evaluated. Another value for the need to advise government on policy is that of being well informed to design suitable programmes. When using a questionnaire Hanager (2012:2) alluded that "If a coordinated effort were applied to collecting data from this brief questionnaire, policy and program decisions would be better informed". In addition Yoong and et al (2013: 64) have this to say: "Results from impact evaluations are key inputs in helping funders, policy makers, and other stakeholders determine how successful a program is, and they are also key inputs into conducting cost analysis." Writing about marginalized groups in Canada, Robson (2012: 14) says that financial literacy programs help capture feedback from consumers to inform market, advocacy and policy responses . It is therefore not only government that may be informed but the non- governmental organisations which lobby and advocate for marginalised groups. 1.9.4 Research Level In emphasising the importance of evaluation in research and contribution to the body of knowledge, Atkinson and Messy (2011 :2) purports that measurement and evaluation is essential to reveal the groups which are adversely affected and that the evaluators and relevant stakeholders may know how to assist them. This signifies the value of evaluation through research to assist in knowing the impact that the financial initiatives have and gives an idea of where stakeholders may concentrate in future endeavours. Huston (2010:296-297) also states that: "despite its importance, the academic literature has given little attention to how financial literacy is measured" or evaluated , and that far fewer studies specifically emphasize measurement of financial literacy as an objective". Practitioners may therefore use this study in their practice to add value to their programmes and initiatives. The following is a summary of the significance and contribution of the study at different levels. โ–  Individual level: The evaluation will help consumers understand their level of financial literacy and learn where they may still need information to improve their personal financial planning . 27 โ€ข Institutional Level (Practitioners): The evaluation is expected to give insight Practitioners on how to make improvements on the initiatives to suit the targeted consumers in the next endevour. They may also use the developed evaluation framework for both process and impact evaluation. โ€ข Government and Policy Level: The evaluation provides advice on policy and implementation strategy of financial education and training. The framework will also give government information on how to make strategic decisions about aspects of how to coordinate the initiatives. โ€ข Research Bank level: The evaluation contributes to the research bank on a subject area in Botswana where literature on evaluation of financial literacy is sorely lacking. In the area of measurement and evaluation the instruments utilised are available to be further scrutinized by researchers for further development. The study has therefore contributed to the body of knowledge. Theoretically the literature in the study with the analysis of the concepts , models and the synthesis on the theories of goal setting and motivation provide a source of knowledge: The study has a stance that financial education contributes to behavioural change: knowledge , skills and attitudes. 1.10 Limitations of the Study This study is not without limitations. This is because in Botswana there is limited revered scholarly literature on financial literacy or financial inclusion. The information which is available is mostly from newspaper reports which lack reverence on the field . This makes it difficult to compile and establish the number of initiatives available in Botswana such that there could be some of initiatives which exist but unintentionally not included in the study. This point makes it difficult to generalise findings on measurement and evaluation , on suitability of content and methods, on purpose and the behavioural outcomes of the initiatives- areas which are very critical for evaluation in this study. In addition to this , most of the initiatives in Botswana being carried out by the private sector, the researcher had to go through a lot of different protocols to get interviews. Over and above all consumers do not like personal questions about how they spend their money, how they earn income, how they deal with their 28 debts or how they behave towards issues of investment, such that some interesting type of groups were left out to respect their rights. 1.11 Organisation of the Study This study consists of chapter one and two concerned with the theoretical background of the study and an in-depth review of literature around the topic, context and scope of the study. The other sections present the methodology, the results and the recommendations of the study. The chapters are organised in the following manner: chapter one presents the introduction of the whole study; chapter two and three provides the conceptual , theoretical and empirical framework of the study, chapter four is the methodology of the study which outlines the philosophy and the research design of the study, chapter five contains the qualitative data analysis report, while chapter six gives a report on the quantitative data analysis. The conclusion as well as the recommendations derived from the analysis and are provided in chapter seven . The following figure has the outl ine of the study: Figure 1-2: The outline of the study A FRAMI.1\rORK OFINHANONC FIN.ANClAL LITIRACYINITI.ATIVIS INBOI W.ANA CHAPTER I General Cherrie-..: of the Study CHAPTER 2 Beha.rioural Chaโ€ขnge Ontoomes of Fmannal Education CHAPTER 3 Financial Liteโ€ขracy Initiatives 1.J1ound the \\ orld โ€ข CHAPTER 4 The R ea:rrh fethodology .I.. CHAPTER 5 Qnalita.tin Da.ta. Analysis โ€ข- CHAPTER 16 Qnantita.ti e Data. Anlyins CIL\PTIR Findings., Cโ€ขoncl usions and Rerommenda.tions 29 1.11.1 Chapter 1 Introduction This chapter introduces the study. It describes the background of the research and the significance of for the current study. It also summarises the conceptual framework which entails the meaning of financial literacy, financial education and financial capability: financial capability stretching beyond the cognitive aspects of financial literacy, into the domains of attitudes and behaviours. Financial education discussed as an important tool to promote the financial literacy. The chapter continues to discuss the importance of financial literacy and education , the causes and effects financial illiteracy, and the solutions which may be implemented to enhance financial literacy initiatives. In addition the chapter defines the scope of the study and the context of Botswana, limiting the borders within which the research is conducted . Over and above this , it highlights the theories and models which explain the resultants of financial education hence the theoretical perspective of the study_i mainly behavioural and motivational theories. " ,k\lV\:191 oN\N - 1.11.2 Chapter 2 Behavioural Change utcomes of Financial Education Chapter two contains the definition of the term personal financial planning and the terms associated with it: Financial literacy, financial education , financial inclusion and financial capability. It highlight the approaches to financial literacy- the cognitive driven approach and the outcome driven approach. It gives the importance (value) of financial literacy, causes of financial illiteracy, and the solutions to deal with financial illiteracy. The chapter also discusses behavioural theories of Motivation and Goal Setting as the theoretical background of the study. It also presents the Programme Theory Model the Logic model , Trans Theoretical Model linking them to measurement and evaluation of financial education . 1.11.3 Chapter 3 Financial Literacy Initiatives around the World The chapter discusses the different financial literacy initiatives around the word providing and empirical evidence to the theories and models in chapter two. It furthers identifies problems facing financial literacy and provides solutions from literature which may be used to enhance financial literacy initiatives. 30 1.11.4 Chapter 4 Research Design and Methodology The research design and methodological approach to this study is explicated in chapter three. It discusses philosophical stance of the study which is the pragmatism with a Mixed Method Research (MMR) approach . The type of MMR utilised is exploratory sequential design moving from an exploratory study using qualitative design to the quantitative design. The following are also stated in this chapter: the aim of the research, research objectives, the research questions and sub questions. It also includes the population , sampling methods and techniques. The chapter further explains the process of acquiring data and the instruments used which are structured interview questions for qualitative but a questionnaire for the quantitative approach. Lastly it explains data analysis approaches which are Thematic Analysis for qualitative data but confirmatory data analysis for quantitative data . 1.11.5 Chapter 5 Qualitative Analysis: Results and Interpretation Chapter five of this study presents the qualitative data analysis of the structured interviews and it revealed six themes which contributed to the design of a framework of enhancing financial literacy initiatives and the development of a questionnaire for quantitative data collection . The variable from each theme are outlined indicating their relevance to be included in the questionnaire. The chapter also narrates how Qualitative Data Analysis (QDA) approach was conducted using a Thematic Analysis process to arrive at the results . It also gives an illustration of the themes in thematic networks. 1.11.6 Chapter 6 Quantitative Analysis: Results and Interpretation This chapter presents the results of the quantitative data analysis after Confirmatory Factor Analysis of the variable identified from themes in chapter four. The chapter outlines how the analysis was conducted and how the results have been presented . The results answered the research question: What is the impact of financial literacy initiatives in Botswana. 31 1.11. 7 Chapter 7 Findings Conclusions and Recommendations This chapter presents the Framework of enhancing financial literacy initiatives. It explains the purpose of the framework and gives guidelines to different users on how to utilise it. It gives possible solutions to the problems identified from qualitative and quantitative analysis. The chapter also contains the conclusions and recommendations of the study. The summaries of all the preceding chapters are also given. It is also in this chapter that the limitations of the study are shared. 1.12 Chapter summary Financial markets are forever changing demanding the consumer to be well informed so that they make better decisions. This empowerment comes through financial education with the rationale that they will be able to improve their personal financial management. Some companies, agencies and institutions have financial literacy initiatives to assist. It is important therefore to evaluate these initiatives and measure the impact of financial education on the consumers . This will always give opportunities to know the levels of financial literacy in Botswana and help make recommendations for improvement. W ith reports of lack of consumer empowerment reported yet the absence of national coordination of the initiatives, there is need to provide a framework to guide implementation. Sparse and fragmentation initiation with no central regulation does not provide standards for implementation or measurement, element wh ich can surely enhance the initiatives. This framework will assist the government at policy level to decide on a strategic agenda and all stakeholders approach to implementation - A much needed turn around to combating low levels of financial literacy in the country especially among the vulnerable groups. 32 CHAPTER 2 BEHAVIOURAL CHANGE OUTCOME 2.1 Introduction The second chapter discusses personal financial planning and provides the definitions of associated concepts which are: financial education , financial inclusion and financial capability. It discusses the conceptual framework of the study by highlighting the different approaches to defining financial literacy. It further discusses theories (motivational theory and goal setting theory) models (Programme Theory Evaluation (PTE), The Logic Model and the Trans- Theoretical Model of Change) linked to the transformational process which aids financial education to translate into behavioural change outcomes. 2.2 Personal Financial Planning Financial planning is a concept in the economics discipline dealing with individuals making decisions on how to financially provide for themselves. It is an aspect of microeconomics but its contribution to the wider spectrum of financial markets cannot be underestimated because individuals make businesses grow (Drexler Fischer and Schaar 2010: 19). According to Claessens, Kase, Laeven and Valencia (2009:4) their exclusion from the financial markets may contribute to systemic risk . This means that financial literacy impacts on entrepreneurs' ability to grow and achieve sustainable results contributing to economic growth (Musei , 2015: 11 ). According to Mandell (2009: 1) the crisis in the United States of America provoked stakeholders to find out the problems which led to it so that measures could put in place to avoid a repeat of such in future. It was realised that one of the factors which led to the crisis was financial illiteracy- a problem to be solved by the use of financial education. The implication is that, if consumers were literate enough , and understood that were subprime for loans they would have planned better and prevented such a crisis . They would have assessed the services provided and rejected those which brought them into debt. According to Monticone and Messy (2011: 17) personal financial planning tied with financial education which informs clients to make better decisions.This 33 positions the value and place of personal financial planning and education in the whole arena of economics as a discipline. The consequences of lack of planning and managing personal finances do not only affect individuals, it can translate into huge detriments to the society at large as witnessed during the world economic crisis period . In vice-versa when there is value created for the individual the larger economy is accorded benefits . According to Monticone and Messy (2011 :17) "improving financial literacy can have positive spill-over effects on the economy and the society as a whole . By fostering long-term saving , financial education can promote the development of formal financial markets and infrastructure, ensuring that the financial sector makes an effective contribution to real economic growth" (Musei , 2015: 11 ). The place of financial literacy therefore is in microeconomics yet a part of the macroeconomics. It is more especially under information economics, as consumers need to be educated so that they may not be victims of information asymmetries. Hence there are very important terms to define relating to personal financial planning : financial literacy, financial capability and financial education . 2.3 Approaches to defining financial literacy There are several approaches to defining financial literacy but the ones discussed in this study are the cognitive driven approach and the outcome driven approach 2.3.1 Financial Literacy- the cognitive approach According to Hung, Parker and Yoong (2009:5) the concept of financial literacy has varied definitions from different authors and researchers . Sebstad Cohen and Stack (2006 :2) , Mandell (2007 : 163) though have the same defin ition "Financial literacy is the ability to evaluate the new and complex financial instruments and make informed judgments in both choice of instruments , and extent of use that would be in their own best long-run interest". This definition focuses on aptitude and the importance of financial literacy that shou ld be shown by an individual in making the right financial choices. It can be inferred that being well-informed is critical in making those choices and that 34 such choices should not only be for immediate remedies but as well as have far-reaching value addition. Hilgert, Hogarth and Beverley (2003:3) define financial literacy simply as "knowledge". Knowledge gives a cognitive approach to defining financial literacy because knowledge is about comprehension and understanding. This approach as analysed by Holzmann, Mulaj and Petrotti (2013: 19) affirms possessing financia l knowledge to be able to understand and grasp notions on concerning financial products and services, and even the ability to utilise that understanding in personal financial management. Lusardi and Tufano (2008 :1) , focusing on debt management, affirm that it is "the ability to make simple decisions regarding debt contracts, in particular how one applies basic knowledge about interest compounding, measured in the context of everyday financial choices. " In making deductions from this statement, Lusardi and Tufano (2008: 1) underscore financial literacy to be enough for the creation of awareness on financial issues and this may be all which is needed by the consumer. According to Sebstad Cohen and Stack (2006:2): "Financial Literacy is the knowledge of financial concepts and the skills and attitudes to translate this knowledge into behaviors that result in good financial outcomes. This definition introduces the domains found in financial literacy which are: "(1) knowledge, (2) skills , (3) attitudes and (4) outcomes." However Kempson , Petrotti , and Scott (2013:9) say there is what is called: "evidence of financial capability ," They contend the above definition to be outdated as it accommodates only the intellectual aspect of what constitutes financial literacy. According to them there is also the behavioural aspect which through its display in human interaction is "evidence of financial capability," The behavioural aspect accommodates the view that knowledge must be applied to show that is has become useful to the individual. These many definitions that have been alluded to by Hung , Parker and Yoong (2009:11) with additional analysis from the researcher are illustrated below. 35 Table 0-1: Definitions of financial literacy Source Conceptual Definition I The Researcher' Analysis I Hilgert, Hogarth , & Financial knowledge (Page 3) The focus is on one domain of the Beverley (2003:3) concept of financial literacy. Although this is the central domain it does not fully define the concept. FINRA (2003:2) 'The understanding ordinary investors The "understanding" aspect have of market principles, instruments, highlights that an individual has to organizations and regulations" (Page comprehend the concepts used by 2). investors, the players in the field of investment. This view has narrowed itself only to the one concept of knowledge of the concepts of financial literacy. This relates to the domain of knowledge in the concept of financial literacy Moore (2003:29) "Individuals are considered financially The focus is on the competency and literate if they are competent and can characteristics of a financially demonstrate they have used knowledge literate person who puts knowledge they have learned. Financial literacy into practice. It also alerts how cannot be measured directly so proxies difficult it is to measure financial must be used . Literacy is obtained literacy directly and therefore through practical experience and active alternatives must be used to arrive integration of knowledge . As people at a close measurement. Still what become more literate they become is important is the aspect of increasingly more financially knowledge which is common in sophisticated and it is conjectured that most definitions. this may also mean that an individual may be more competent" (Paqe 29). National Council on "Familiarity with basic economic There is implication of just being Economic Education principles, knowledge about the U.S. aware from the word familiarity and (NCEE) (2005:3) economy, and understanding of some it would not matter if the key economic terms" (Page 3). comprehension is not deep. The connotations of understanding just like those analysed above depict that there are economic concepts form ing the key areas for the knowledge domain of financial literacy. Mandell (2007: 163- 164) "The ability to evaluate the new and This definition. unlike the (NCEE) complex financial instruments and (2005:3) , demonstrates that it is not make informed judgments in both enough to just have familiarity but choice of instruments and extent of use individuals must also have the that would be in their own best long-run ability to comprehend complex interests" (Paqes 163-164 ). instruments. Lusardi and Mitchell Familiarity with "the most basic Just like (NCEE) (2005:3) an (2007c: 36) economic concepts needed to make awareness of the economic sensible saving and investment concepts is enough to be able to decisions" (Page 36). save and invest. The focus is only on savings and investments but everyday budgeting and consumption has to be learnt. Lusardi and Tufano Focus on debt literacy, a component of The focus is on every- day financial (2008:1) financial literacy, defining it as "the choices and the use of basic ability to make simple decision knowledge. Other than debt reqardinq debt contracts, in particular manaqement individuals must also 36 how one applies basic knowledge about be able to manage savings and interest compounding , measured in the investments. context of everyday financial choices" (Page 1) . ANZ Bank (2008: 1) , drawn 'The ability to make informed This focuses on the appl ied aspect, from Schagen (200: 17) judgements and to take effective answering the questions on what decisions regarding the use and should be the result of financial management of money" (Page 1) . literacy, and what are the competency outcomes expected. Lusardi (2008a:2, "Knowledge of basic financial concepts, The domain of knowledge emerges 2008b:2) such as the working of interest as like in the other definitions above compounding , the difference between and this helps draw the conclusion nominal and real values, and the basics that it is central to the concept of of risk diversification" (Page 2). financial literacy. The concepts that are mentioned may be contextual depending on the audience and the environment where the financial literacy programme is implemented . The list of concepts is also more than what has been mentioned . Source: Hung , Parker and Yoong (2009:11) In view of the above, financial literacy is deemed to give ability and its measurement to attest someone is financially literate, is when that ability of making financial decisions is exercised. Th is implies the reasons for financial literacy. The overall reason is the one provided by the definition of The President's Advisory Council on Financial Literacy (PACFL 2008) "Financial literacy: the ability to use knowledge and skills to manage financial resources effectively for a lifetime of financial well-being. " This definition brings about the expected outcome of financial wellbeing for financial literacy which may fall under the importance of financia l literacy. Hung, Parker and Yoong (2009:11) say that this might be viewed as a consensus definition yet: "it largely rests on the ability to use knowledge and ski lls towards achieving financial wel l-being, and is hence quite behaviourally based. While practically relevant , such a focus limits insight into mechanisms that have an impact on financial literacy." They argue that financial knowledge, skills, and behavior, as wel l as their mutual relationships, ought to be considered in an overarching conceptualization of financial literacy. This study therefore adopts the conceptual model by Hung, Parker and Yoong (2009:11) which encompasses four instead of three domains of financial literacy and their mutual relationships. 37 This is adopted as the conceptual framework for this study as illustrated in a diagram below: Figure 0-1: Domains of financial literacy ~ / I I I \ \ I I / Source: Hung, Parker and Yoong (2009: 11) 2.3.1.1 The knowledge Domain This is the domain in the definition of financial literacy revolving on understanding and comprehension of concepts. The individual has to understand the content and the meaning that is portrayed . Every financial literacy initiative is aimed at imparting selected content at the level of understanding of the targeted audience. Hung, Parker and Yoong (2009 :15) states that: "knowledge means having an understanding of personal financial issues indicating financial knowledge and understanding" Kempson and Atkinson (2008 :2) agree with this because they write that understanding financial issues is indicated by being able to comprehend how to use money and how to make financial decisions to meet personal needs. According to Kempson , Petrotti and Scott (2013 : xii) topics which are usually tied and matched with financial knowledge are "compound interest, inflation , and risk diversification." This surely is not the only knowledge for target audiences of financial literacy initiatives as financial concepts are broad: issues 38 such as budget, investment, portfolio , debt and come into close focus. The cognitive component of financial literacy includes: "being knowledgeable , educated, and informed on the issues of managing money and assets, banking, investments, credit , insurance, and taxes" and "understanding the basic concepts underlying the management of money and assets (Willies, 2008a:4 ). There is surely a variety of issues that a particular consumer may have to learn or absorb. Lusardi and Mitchell (2011 :2) explain that the most vital point is for the individual to know information which is relevant to their situation and circumstances, helping him survive throughout the stages of his life In their analysis of what constitutes knowledge Kempson , Petrotti and Scott (2013 : xii) view knowledge should consist of: "1. Mathematical skills which is usually called numeracy, 2.the simple awareness of the existence of financial issues, products, and institutions". The above is shared by Guiso and Jappelli (2005) and Carpena et al (2011 :2) also adding to say that the third category is being able to do what is expected by a financial service provider like: "how to open a bank account or how to use an ATM card". They outline that there are three distinct dimensions of financial knowledge which are (1) numeracy skills (e.g. computing interest rates), (2) basic financial awareness (e.g. bank account opening requirements), and (3) attitudes towards financial decisions (e.g . belief in insurance products). Among these three aspects, it is clear that individuals must develop a positive attitude to managing their finances . However according to Carpena et al (2011 :2) financial literacy does not quickly benefit a person to know the value of what they have learnt but what is important is that it makes the person have behavioural change in the way they manage their personal finances. This means financial literacy is not a once off initiative but a gradual process and translation of knowledge that starts from basic awareness. If the application of knowledge is expected to be applied at a complex level immediately it becomes a barrier to developing individuals. Another inhibition to the application of knowledge is monetary incentives as they do not induce better performance, cognitive constraints rather than lack of attention are a key barrier to improving financial knowledge. While such financial knowledge may be necessary for making good financial decisions Carpena et al (2011 : ii) have broader definition of knowledge implicating 39 financial behaviors to be included in the definition . Among these authors are Mandell and Klein (2007) who find lack of skills , lack of inspiration, lack of discipline, lack of timely response to issues, to constitute impediments to the translation of knowledge. This indicates there should be more explanation other than financial knowledge to contribute towards the conceptual analysis of financial literacy. Other challenges to achieving financial literacy are as viewed by ASIC (2011 :4) to be: confronted with lots of alternatives in decision making , lack of discipline , ambiguous environments and a lot of information to deal with and not being sure of the extent of knowledge has. Outlined challenges above show a possibility of many variables contributing to utilisation of the knowledge learnt. According to Hung, Parker and Yoong (2009:15) how much the individual think they know can be an impediment. They say that studies now claim the extent of what someone knows may be less or more that what actually is and they call this: "over/under confidence". This means individuals do not usually know the extent of their actual knowledge. This may affect consumers as some may think they have enough knowledge to handle financial issues. Therefore financial literacy "confidence in planning effectively for future financial needs", means feeling sufficiently self-assured to make decisions relating to one's personal finances . In relating perceived knowledge and confidence it can be said that knowledge itself makes someone confident in making decisions. Rooij , Lusardi and Alessie , (2011 :3) write that: "Respondents with more confidence in their financial knowledge have a higher propensity to plan and high level of financial knowledge reduces planning costs , i.e. , reduces the economic and psychological barriers to acquiring information , doing calculations and developing a plan ." According to Lusardi & Mitchell , (2007) consumers must tackle this problem by reading , by gathering relevant information and from time to time check how much they really know. They should also have intrinsic motivation in wanting to know and enhance their decision making skills. Will ies (2008a :4) says that fo r a person to be able to apply financial literacy effectively, it needs the individual to build confidence which is at moderate level. This will help them not to have the fallacy that they know while they are insufficient. They should be able to 40 understand the level of knowledge they have so that they may not think they can tackle difficult situation when it is really contradictory. Willies (2008a:4) write the disadvantage about overconfidence is that a person may think they are self- reliant and not get help. Willies (2008a:4) says that those who are under confident are timid are not willing to consult and get the right information hence they often select wrong financial choices. Arellano Camara and Tuesta (20 14:12) state that "Individuals have imperfect information about their abilities, so that high levels of self-confidence associated with not so high levels of knowledge could give rise to decisions that are more beneficial than combinations associated with greater knowledge but low levels of self- confidence. " 2.3.1.2 The Skills Domain The skills domain also demands the application of knowledge. Hung, Parker and Yoong (2009:15) states that: "skills means being able to apply knowledge to manage one's personal finances." According to Thomson (2012 :11) it means being able to comprehend information , notice differences and similarities, judging and using what has been reviewed in their circumstances. These basic skills as Thomson (2012 : 11) writes are: "mathematical literacy, such as the ability to calculate a percentage or to convert from one currency to another, and language skills, such as the capacity to read and interpret advertising and contractual texts. " This is basically the ability to transfer what has been learnt into practice and use the knowledge for what it was intended for: - Knowledge transfer. Kempson and Atkinson (2008:2) is in support of this by saying use of skills is being able to apply knowledge learnt even in foreseeable and unanticipated circumstances, and they being able to come up with solution to the challenges the financial environment has presented . According to Falahati et al (2011 :6086) differentiating knowledge from skills , financial knowledge refers to financial information and literacy; however, financial skills are the ability to apply such knowledge to make financial decisions and planning . Consumers need these skills to deal with situations in different financial settings and the changes that may arise within the same environments. This is because Kempson et al (2006) define financial skills as: 41 "the ability to understand and manage across a range of financial contexts including both predictable and unpredictable situations". This emphasises the importance of research and application of knowledge. However this has not been the case in most evaluation researches of financial literacy programmes and this is attested by Falahati et al (2011 :6086) as they state that: "Although most studies consider financial knowledge as a basic element of financial decision making and planning, only a few focused on financial skills . There is a difference between providing information as knowledge and the ability to apply it". According to Cackley (2011 :3) skills learnt must be applied in everyday situations. Pellinen et al. , (2011) simply states that: "know-how shown in the practices and habits formed in everyday and long-term financial management. " In view of the deliberations made by Falahati et al (2011 :6086), Cackley (2011 :3) Kempson et al (2006) , it is concluded that knowledge should not be construed to be an end in itself but it should be put to practice for personal financial management in authentic and real financial situations. 2.3.1.3 The Behaviour and Attitudes Domain The purpose of financial literacy is not only to manifest the cognitive aspect but it is crucial to include the non-cognitive attributes. Thomson (2012: 14) purports that: "Financial literacy involves not only the knowledge, understanding and skills to deal with financial issues, but also non-cognitive attributes: the motivation to seek information and advice in order to engage in financial activities, the confidence to do so, and the ability to manage emotional and psychological factors that influence financial decision making. These attributes are considered as the goal of financial education , as well as being instrumental in building financial knowledge and skills. " The above statement assist to make a conclusion that financial education does have to end at receiving information or gathering knowledge there has to be applicability of such for the wholeness of a person. Its impact reaches other 42 areas of life: emotions and psychological stability. If these goals of financial education are met the financial literacy programme would add such value to consumers. The attitudes to be cited are those of prudence in money management, consistency in budgeting, sound investment and financial responsibility. According to Mundy and Musoke (2011 :54 ), it is important to start developing these attitudes from an early age because these translate into helping individuals make better financial decisions when they are adults . This is why some researchers focus their attention on financial literacy for children. Attitudes are reflected in the behaviours that people portray. Anders et al 2011 :7) and Tustin (2010: 1096) define the financial attitudes construct to include items displayed in the table below: Table 0-1: Constructs, behaviours, attitudes and analysis Item in Construct Behaviours Attitudes Analysis by the Researcher Tustin (2010:1096) Anders et al (2011 :13) Anders et al (2011 :13) Anders et al (2011 :13) Views on general Spending behaviour Attitudes Toward Confidence and calmness: experience in dealing Saving behaviour Financial Situation and consumers must develop the attitude with money (boring , Debt Management Future: of calmness and develop and create stressful and behaviour: Focuses on Focuses on attitudes rapport with money- in using it, overwhelming) major debt and how to about whether keeping it and investing it. manage debt, including respondents feel residential loans, financially secure now vehicle and student and whether they loans, and other types believe their financial of loans. situation will improve. Financial susta inability , Saving Behavior: Attitudes Toward Sense of responsibility, financial stability , savings Focuses on saving Saving: Measures consistency, patience: Issues of behavior, use of bank attitudes toward saving stability and sustainability need an accounts, reasons for including where attitude of consistency and patience saving , and how often respondents secure when increment and interest is slow. and where one is likely their information, if they to save money for plan to save, and how future goals. important saving is to them. Relevance of financial Saving Behavior: Attitudes Toward Sense of planning: Consumers must planning across different Focuses on saving Saving : Measures understand the value of planning and income groups, behavior, use of bank attitudes toward be able to derive value from it. Lown accounts, reasons for saving including where (2010:5) writes that financial saving , and how often respondents secure knowledge and planning are clearly and where their interrelated: women who display one is likely to save information , if they plan higher financial literacy are more likely money for future goals. to save, and how to plan and be successful planners. important savinq is to them Changes in money Response to Financial Attitudes Toward Agility and flexibility: As the management over time, Change: Focuses on Financial Situation and financial environment changes and how the Future: consumers must be agile enough to respondent has in the Focuses on attitudes respond to new challenges. past or will in the about whether future , respond respondents feel 43 to a significant change financially secure now in financial situation, and whether they such as an believe their financial unexpected cash gift or situation wi ll improve. expense of significant size Financial difficulties, Spending Behavior: Attitudes Toward Responsibility: An attitude that is income adequacy to Documents Spending: Focuses on needed to manage households, meet living expenses, respondent's spending attitudes toward making provisions and facing behavior including how spending, including challenges. they pay bills, whether priority expenses and they wait whether respondents for sales or use believe themselves to coupons , and whether be "smart spenders". they track and plan their spending . Financial planning to live Attitudes Toward Attitudes Toward Sense of planning , contentment: Saving: Measures Saving : Measures They should be an attitude mapping comfortably, attitudes toward attitudes toward out how they use their resources to be saving including where saving including where comfortable and meet their needs respondents secure respondents secure their their information, if they plan information , if they plan to save, and how to save, and how important important savinq is to them savinq is to them Frequency of consulting Saving Behavior: Attitudes Toward Quest for knowledge: Being Focuses on saving Saving: Measures inquisitive is the right attitude towards fin ancial advisor(s), behavior, use of bank attitudes toward learning, consulting and asking accou nts , reasons for saving includ ing where questions is positive . Consumers saving , and how often respondents secure must make it their own initiative to get and where their advice. one is likely to save information , if they plan money for future goals. to save, and how important savinq is to them . Paying credit bills on time Building and Managing Attitudes Toward Credit Responsibil ity, prudence, or credit card bills in full Credit: Focuses on and Debt: Measures comm itment: Individuals who pay to avoid finance charges , respondent's attitudes bills are able to manage their debt are debt, experiences building toward credit and debt, prudent, responsible and committed and managing credit , including using credit to managing their resources. They such as use and going should not let the cost of debt be of credit cards , debit into debt for major compounded by the increase of cards , prepaid cards, items. interest from defaults in payment. and whether respondents have looked at their credit report or know their credit score . Financial readership and Saving Behavior: Attitudes Toward Quest for knowledge and a duty to thoughtfulness in Focuses on saving Saving: Measures be informed: Consumers must financia l judgment. behavior, use of bank attitudes toward develop this attitude so that they may accounts , reasons for saving including where know the financial trends affecting saving, and how often respondents secure them. and where their one is likely to save information, if they plan money to save, and how important saving is to them Satisfaction with current Strategic Use of Attitudes Toward Use Contentment, futuristic: Consumers financial situation and Formal Financial of Financial Resources : must make decision on how they will savings for retirement, Resources : Focuses Focuses on attitudes retain the same comfort in future as 44 on the use of formal toward financial they have in the current state. This is financial resources , resources that are also part of planning and showing from banking to long- available, how one responsibility over the use of term investments and secures information resources. retirement savings about financial products. resources and their use, the level of importance those resources have, and a self-assessment of skill level in utilizing financial resources appropriately. Sources: Tustin (2010:1096) and Anders et al (2011 :13) Responsibility is one of the major attitudes reflected in the table above and according to Kempson and Atkinson (2008:2): financial responsibi lity is the ability to be able to understand the overall picture of the influence of the resolves one make about the self and other people. In addition the ability to know what is expected from them by the society as a whole. Remund (2010:284) argues that: "Financial literacy is a measure of the degree to which one understands key financial concepts and possesses the ability and confidence to manage personal finances through appropriate short-term decision- making and sound , long-range financial planning , while mindful of life events and changing economic conditions" . This depicts responsibility, an attitude of being able to have the sense to deal with situations and circumstances. An individual who has awareness that change occurs in the economic and financial environment and may bring new dynamics has an attitude of financial responsibility. This responsibility is shown in different settings or social units like the family, church, work etc. The major activities which reflect responsibility are planning, budgeting , investing and being able to pay debts/liabilities as and when they are due. Mastering all this ultimately gives confidence in financial decision making. This should not however only be attributed to the impartation of financial education as Holzmann Robert (2010:7) state: "Even if the attitude issues can be overcome by financial education, a desire to, say, plan their finances is instilled in consumers, there may be 45 powerful impediments to change behaviour to follow through with the saving plan ." This communicates that financial education may not be a single factor to changing behaviours and attitudes and some may not be controlled by the initiative or programme implemented. This is supported by authors like Willies (2008a:45) who contend that the impact of financial education to have the basis of psychology rather than knowledge to be the major influence people's action and behaviours. A display of confidence is also an attribute that indicates positive attitudes towards financial matters as discussed earlier under perceived knowledge but Willies (2008a :42) further says that confidence is not a measure of literacy because some of the least knowledgeable consumers appear to be the most confident. Although this criticism is acknowledged and further elaborated in the theoretical segment in the next chapter of this study, it does not mean the value of financial education is non-existent and that attitudes may not be differentiated from the efforts of financial literacy initiatives. 2.1 Financial Capability - the outcome driven approach Since some authors from the aforementioned discussion find it important to discuss financial literacy beyond knowledge, skill and attitudes, the researcher has also found financial capability a vital term in building the conceptual framework of the study. This is supported by Frc:iczek and Klimontowicz (2015:63) stating that: "While examining financial literacy, it is necessary to discuss financial capability. That kind of capability is the result of the development of individuals' financial knowledge and skills". It is therefore interpreted that these have to blend together: Knowledge (concepts and content) , skills (the ability to apply application) and the attitudes (manner and behavioural outcome) to display capability. In support to this contention Remund (2010:284) says that: "Financial capability has recently been introduced as the next possible iteration of the financial literacy concept. " This intertwines financial literacy with financial capacity. It is further said by Frqczek and Klimontowicz (2015:62) that the concept of financial literacy turned into concrete measurable criteria for financial literacy so consequently it has to 46 be included in the financial literacy formula or as one of the aspects to be measured in the evaluation of financial literacy. Kempson , Petrotti and Scott (2013: xiii) say that the view of what financial literacy is has changed and that there is progressive action towards accepting attitudes and behaviour to be major components of financial literacy. The circumstances in which people reside and interact should also be taken into consideration. The implication is that both intrinsic and extrinsic motivation plays a part in influencing financial behaviour. This is because Kempson , Petrotti and Scott (2013: xiii) state: "To reflect the increased focus on behavior rather than simple knowledge, the term "financial capability" has come into use to extend the concept beyond the narrower idea of "financial literacy." Therefore from the above deliberations the definition of financial literacy integrates both the cognitive approach with the outcome-driven approach . This integration, according to Holzmann, Mulaj and Petrotti (2013:81 ), represents a shift in conceptualisation and measurement from a cognitive-based to an outcome-driven approach . Explaining the approach Holzmann, Mulaj and Petrotti (2013:81) state that: "According to the outcome-driven approach, if an individual makes a good financial decision, he or she is considered financially capable regardless of whether the decision followed a cognitive or a non- cognitive route ." From this explanation the focus is on the final outcome rather than on knowledge received by the individual but what is important is the result showing application of that knowledge. In addition to this , the characteristics of a financially capable individual are outlined by Holzmann (2010:4) saying that financial capability proposes that at the end of the day financially capable individuals should demonstrate a desired financial behavior such as drawing-up a budget, and planning and saving for old age. These are some of the outcomes considered in the impact analysis of financial literacy initiatives conducted on the recipients of financial education in this study. These characteristics are augmented by Kempson and Atkinson (2008 :8) affirming that 47 "A financially capable person is one who has the knowledge, skills and confidence to be aware of financial opportunities, to know where to go for help, to make informed choices , and to take effective action to improve his or her financial well-being while an enabling environment for financial capability building would promote the acquisition of those skills. " As much as the outcome driven approach is highly recommended , the concept of financial capability is not without criticism. Carpena et al (2011 : 17) attest financial education to influence financial awareness and attitudes and acknowledges that there is causal framework between financial literacy training and financial outcomes. According to Carpena et al (2011 :17) eventhough this causal relationship has been established , it is difficult to measure it and come up with an evaluation framework which incorporates financial capability. While the broader concept of financial capability seems to be promising Kempson , Petrotti and Scott, (2013:3) say that for providing standardisation from the diversity found in cultural contexts , in educational backgrounds it is not easy yet to do for measurement and evaluation . In addition Kempson , Petrotti and Scott 2013:3) argue that a common ground has not been found wh ich defines financial capability making it difficult to have standardised instruments and information which adequately to assist policy makers to play their part in campaigning for financial education to reach the target groups. Despite the above challenge Holzmann (2010:22) says that the main progress which has been made in financial capability is in some studies which have been carried out. According to formula Holzmann (2010:22) financial literacy in terms of measurement and evaluation is quite in its infancy and not yet that developed. Holzmann (2010:22) also says that the results from these researches would be consistent with the lessons from behavioural finance which suggest that psychology and not education matter for financial behaviour. This means that there should be more testing , including of alternative interventions such as "edutainment" (Holzmann 2010:22). However imparting education needs psychology to deal with the minds that receive the skills , knowledge and attitudes to fashion desired behaviours. From this then it may be said that while it may not be at the same degree both education and psychology 48 matter in financial behaviour. Kempson (2008:8) brings in another challenge to say that: "Even with this broader definition , problems in identifying effective interventions persist. The key challenge in adopting a more holistic definition is that the interventions become more diverse in their design and may follow different theories of change. As the range of interventions expands, careful thinking is required to develop a standard results framework that allows for accurate comparison of findings across projects and countries." The stated challenge indicates complexities in making standardised measures for financial capability implying slow progress in measurement and evaluation of the concept - it is not easy to establish homogeneity in such diversity. A further limitation highlighted by Kempson , Petrotti and Scott (2013:3) is that the advanced economies are the ones wh ich have evidence of financial literacy and financial capability of researches and studies while this is lacking in developing countries . Kempson , Petrotti and Scott (2013:3) state that: "It is not clear to what extent this approach applies to less developed countries where skills related to day-to-day money management are more important and the type of knowledge usually identified as a sign of financial literacy in high-income countries is less obviously relevant. In short, there is a dearth of tools to measure financial capability in low- and middle-income countries ." This is a characteristic which also describes Botswana being a developing country with minimal research on the measurement and evaluation of financial literacy or financial capacity, and with no standard evaluation framework. It is interpreted from the statement that there is not easy to borrow and adopt the measures from advanced economies because the constructs , the circumstances and the perspectives with the developing countries reflect a wide variation in comparison and contrast. This is why developing countries like Botswana do not have much literature to analyse and use in a study of this kind. 49 2.4 Financial Education Financial literacy assists in personal financial planning and it is transmitted to individuals through a process using different approaches in order to achieve expected outcomes. This process is called financial education and it is defined by Hung, Parker and Yoong (2009 :5) as: "Financial education is the process by which people improve their understanding of financial products, services and concepts , so that they are empowered to make informed choices , avoid pitfalls , know where to go for help and take other actions to improve their present and long-term financial well-being. " In view of this definition the two concepts differ as financial literacy is what the individual acquires while financial education is the process by which this financial literacy is acquired . This differentiation is further highlighted by Huston (2010:310) stating that: "Financial literacy education , which is aimed at improving a person 's level of knowledge and/or ability, can and should be tailored to suit different demographics, life stages and learning styles - certainly not as a one-size-fits-all approach . Thus, it is important to clearly differentiate financial literacy from financial literacy education ." The vital idea from this claim is that financial literacy is mainly about the questions: "WHAT" What is being learnt and financial education being about "HOW" How is this Learnt? (Huston 2010:310). Organization for Economic Cooperation and Development (OECD, 2005) defines financial education as: "A process by which financial consumers/investors improve their understanding of financial products and concepts and , through information , instruction , and/or objective advice, develop the skills and confidence to become more aware of financial risks and opportunities to make informed choices , to know where to go for help, and to take other effective actions to improve their financial well-being ." 50 From this definition three common but vital points have been raised : 1. Financial education - that it is a process to providing financial literacy: implies the use of the transformation model where there are inputs that have to go through a process to transform something to bring about output/ outcomes. 2. The benefits /value of financial education: denotes the outcomes and importance of financial education . Improve consumers/investors ' understanding of financial products and concepts (Fox, Bartholomae, and Lee 2005: 105) Develop skills and confidence of the consumer/investor (Remund 2010:288) Consumer/investor become aware of risks and opportunities (Johnson and Sherraden 2006:6) Helps consumer make informed choices (Lusardi 2013:4 ). 3. Approaches: "through instruction and objective advice": indicates the delivery modes that are used to offer financial literacy (Hastings, Madrian and Skimmyhorn , 2012:30). The purpose, the approaches , and the benefits of financial literacy are discussed elaborately in chapter three but the next section is an explanation as to how financial education is a process stating the inputs invested and outputs expected . 2.4.1 Financial Education as a Process According to Hung Parker and Yoong (2009:7) defines financial education as a process referencing PACFL (2008) they state the following: "Financial education is a process through which financial knowledge and skills are gained, rather than the knowledge and skills themselves. Hence, financial education should be considered a concept that promotes financial literacy. " This process of financial education as Arellano, Camara Tuesta (2014:3) writes is important and pertinent for developing competences that an individual may use financial decision-making. The combination of knowledge and practice in the area of finance defines the cognitive as well as the outcome part which is the individual financial capabilities. Fn:Iczek and Klimontowicz (2015:63) 51 mention that both terms, financial literacy and financial capability, are strictly connected with financial education , which is considered to be the solution to the problem of financial illiteracy. These arguments make an intertwined web of financial literacy and financial capability showing a thin separation of the two and that both of them should be included when measuring and evaluating impacts and outcomes of financial education . In terms of linking the domains of financial literacy to financial , Robson (2012: ii) borrowed the work of Kempson et al (2005) and (Atkinson , et al , 2006) . Although Robson (2012: ii) has developed this framework, it has been adjusted to suit the terms that have already been adopted for this study: the domains are Knowledge, Skills and Attitudes instead of being called aspects. What is illustrated as domains will instead be called the indicators of financial capability. Therefore the following framework (like a matrix) has been adapted to show the link. Figure 0-2: Domains and indicators of financial education 0 e e 0 e Ma ,ng ends Keep ng Choo ng Pl ,nn ng St y ng nlormed/ m I tr ek products had 11 ng h Ip Knowl Und r,tandm how Und rst n ho to keep trac tochoosโ€ขp ucts Att tud d Hotiv lion nd ivabon ood confidence in eepmg track B hav,our In s11yin ,nrormed pnU 1Feed ck Source: Heizer and Render (2009: 14) The resources, the content are the inputs; the inputs go through a process and it is during this process that different approaches are utilised . The ultimate and overall aim is to have outcomes and in the case of financial education as a service lays the benefits/value of financial education . The model also has a feedback loop creating an environment for evaluation to get feedback about the outcomes, the inputs and the whole transformation activities. According to Lown and Nelson (2013:15) and Sebstad Cohen and Stack (2006:5) the idea of transformation process is cemented: More of the inputs are the financial literacy initiatives run in different ways some employing methods such as seminars and workshops. The target groups are also part of the inputs as they are expected to change after the transformation process. Other aspects which are transformed are the content itself as when evaluated and reviewed it calls to be adjusted for the target groups. The financial outcomes comprise of what is done by the consumers at the end of the transformation.- what has been expected to happen at the end should be displayed by the behaviour of the individual who received the education by: planning , saving controlling debt an in overall showing financial satisfaction and stability. The following is a model developed by (Sebstad Cohen and Stack (2006:3). According to (Sebstad Cohen and 53 Stack (2006:3) there is an illustration of the above interlink especially in assessing the outcomes of financial education. Figure 0-4: Assessing outcomes of financial education IMPA TS fln.indal .. .. Cl n l b and p .. ming fin.inci.11 Fln n l Experiences outcom s lnstl u n t โ€ข improved fi perform..in โ€ข lncre sed responsl n ss to the finan l s rvic needs of th poor Source: Sebstad Cohen and Stack (2006:5) According to Sebstad Cohen and Stack (2006:3), the utility of the transformation process model above in financial education is mainly visible in programme design and in measurement and evaluation of the programme Besides the use of the transformation process, programme design and evaluation Lyons et al (2006:221 ), advise that there is need to include some basic information about evaluation concepts and methodology, such as information in the logic model or models in conjunction with the stages of change. This illustrates a connection of the model with other models discussed in this study and as such the link is elaborated further in chapter three where these models are analysed . Having analysed the concepts financial literacy and established financial education as a process the following is the conceptual financial framework of financial literacy for this study: 54 Figure 0-5: The conceptual framework of financial literacy for the study The Conceptual Framework of Flnanclal Literacy The Cognilfve Appr-ch The Oulcoa.e Driven Approach e .g lnsn.action Clauroom Entertalment Advice Couruell1n,g Media Intemetbued uutru.ctton Source: Researcher (2017) 55 2.4.3 Behavioural Outcome Indicators of Financial Education The objective of financial education is to transform individuals and change their personal financial behaviours. This does not mean there is consensus on the indicators of such behaviours. What is highlighted is that there should be behavioural measures of program outcomes, (Kempson and Atkinson , 2008:8) and whether or not they are positive behavioural outcomes, should be generalisable to other areas of a person 's financial decision-making. Sebstad , Cohen , and Stack (2006:4) stipulate that: "The choice of outcome indicators should be guided by a detailed conceptualization of an "impact path" which traces the relationship between a particular type of financial education ; client level changes in financial knowledge, skills and attitudes; change in financial behaviors and financial outcomes; and higher-level social and institutional changes." In doing this assessment it should be based on a theoretical perspective and approach foundation. As for impact assessment, Lyons et al (2006:217) write that changes may be general (on behaviour) but also very financial specific for impact measurement and evaluation . The general indicators (Lyons et al 2006:217) used frequently are levels of satisfaction , and knowledge gained and the ones which are less frequently used include changes in skills and confidence levels, changes in intended and actual behaviour, and changes in attitudes and satisfaction levels. These are the indicators that sway more to the outcome driven approach towards financial literacy. Lyons et al (2006:217) say that it is only recently that financial education providers have begun to use more specific indicators to capture actual change such as dollar changes in individuals' financial portfolios (i.e ., increases in savings and income and reductions in debt and expenses). Other specific indicators (Sebstad , Cohen , and Stack 2006:4) "that do not focus on dollar changes include the development of financial plans, changes in spending habits, and building or rebuilding credit reports and credit scores." According to Sebstad , Cohen , and Stack (2006:4) what can be 56 outlined to be used for measurement is a challenge because there is no experience in developing countries and no agreement on what should determine the success of the initiatives .This is however the opposite of what characterises the developing countries (Lyons et al., 2003:209). Developed countries may have programs which are more mature but evaluations have not reached consensus on the matter. Therefore Robson (2012:7) argues that there is no specific theory attributed to financial literacy because financial literacy is still a new and an evolving field of study both in theory and practice. 2.5 Behavioural Theories of Change Eventhough there may be such lack of consensus a fundamental point exist for financial literacy to have found its place specifically in field personal finance and broadly in behavioural economics. Then there is need to discuss the theories from behavioural science despite the struggle and challenges outlined above. According to Robson (2012:7) psychologists and others in the behavioural sciences continue to struggle to understand the multiple links between knowledge, attitudes and observed behaviour and this is also applicable in the field of personal finance. However researchers like Xiao et al (2014:4) believe that behavior change theory can be used to develop effective financial education programs to help consumers nurture desirable financial behaviors. The theory of behavioural change is advocated for by authors such as Braunstein and Welch (2002) , Fox, Bartholomae and Lee (2005: 105) Hilgert, Hogarth and Beverly (2003: 309) behavioural economics and financial outcomes, Mandell and Klein (2007:107-114). 2.5.1 Motivation Theory Among the behavioural theories of change there is mention of the theory of motivation explained by Mandell and Klein (2007: 107- 114) suggesting any financial initiative should be conducted for the interest to change financial behaviour of the consumer. A study on high school students demonstrates motivation to an important driver (Mandell and Klein 2007:107) of financial literacy. In measuring and evaluating the impact of financial literacy, the 57 central theme should be how the education influenced the behaviour of the recipients afterwards. The expectation is to have change on how individuals or a targeted group respond to financial matters. Hilgert Hogarth and Beverly (2003:311) formed a "Financial Practices Index" based upon (self-benefiting) behavior in cash-flow management, credit management, saving and investment practices. When comparing the results of this index with scores on a financial literacy quiz, they found a positive relation between financial literacy scores and Financial Practices Index scores. " The results suggest that the application of financial knowledge should be able to benefit the consumers and the environment in which they reside. 2.5.2 Goal Setting Theory The theory of motivation and goal setting are in correlation. According to Mandell and Klein (2007a: 107) "based on motivational and goal setting theory, financial literacy programs should be more effective when they are motivated by perceptions and concerns about financial well-being later in life. " The Mandell and Klein (2007a: 107) study indicates goal setting theory is connected to motivational principle but it does not mean that it covers all motivational issues. Mandell and Klein (2007b:23) used the motivation theory with this principle and concluded that financial behaviour of college students relates to their goals. According to Mandell and Klein (2007a: 107) "Goal setting theory is grounded in the belief that conscious goals and intentions drive results ." Their study is driven by expectancy and goal setting theory of motivation. Referencing Locke (1968) and Locke and Latham (1990) Mandell and Klein (2007a : 107) says the principle is: "Expectancy relates to the likelihood that specific actions will yield a certain outcome; alternately that performance is based on effort Goal setting theory is grounded in the belief that conscious goals and intentions drive results" This means that when people have expectations they are motivated to take action to achieve their goals. According to Mandell and Klein (2007a: 107), "specifically, clearly defined and more challenging goals yield higher 58 performance than vague, easy or do-your-best goals. To be effective, goal setting theory assumes that individuals must be committed to the goal , must get feedback and must have the ability to perform the task." Mandell and Klein (2007a: 107) write that to be effective: "goal setting theory assumes that individuals must be committed to the goal, must get feedback and must have the ability to perform the task ". The interpretation is that financial education should not be vague or an end to itself but individuals should know what they need to use it for. They should have clear goals which motivate them to learn . This is also because Mandell and Klein (2007a:107) state that: "Motivational theory suggests that measures of financial literacy should be related to financial behaviour that is in the consumer's best interests" and these best interests being the basis (goals) for learning. In support of the expectancy and goal setting theory of motivation associated with financial literacy, Elliott Ill (2012:6) says that: "low-financial literacy scores are associated with a lack of motivation for developing financial literacy skills" This, according to Elliott Ill (2012:6) is what Mandell and Klein (2007: 106) finds consistent with expectations and goal-setting theories of motivation: "Consistent with expectations and goal setting theories of motivation , the Jump$tart survey results show that level of aspiration is one of the most important determinants of financial literacy." This articulates that the low levels of aspiration are an impediment to learning and to becoming financially literate. Elliott (2012:6) also attests that the findings in their study are in line with Mandell & Klein , (2007:113), suggesting that the success of financial literacy classes is connected to the way children view the future and the activities they want to do in future or what they would like to achieve when they grow up. To prove the relation between motivation and financial education , Mandell & Klein , (2007:112) tested the importance of motivation as a leading factor for financial literacy. In conclusion of their study, Mandell and Klein (2007a:112), state that: "the students' belief that financial difficulty results from poor decision-making, the importance of having enough money to pay bills and the greater motivation to save for retirement are significantly related to financial 59 literacy scores." Lack of motivation too has been found to be an impediment to success in attaining financial behaviour and goals. Consequently Mandell & Klein , (2007: 113) suggest that programs should align the content to what the individuals would like to achieve so that the program may be contextualised to solving their life situations or problems. This has the implications to the issues of purpose and content of financial education programme, pertaining to contextualising it to the target's environment and level. In this case , it relates to the level of their aspiration and motivation to learn that curriculum. This study therefore supports the theory that financial education translates into financial behaviour, and that financial education is valuable to those who have received it. Even though it is not explicitly stated by Mandell & Klein , (2007), the model utilised is that of Financial Literacy Education which premises that good financial decisions and behaviour are attained from financial education. Its applicability to this study is also in relation to the conceptual framework adopted for this study as illustrated in the abridged version below: Figure 0-6: Financial literacy education model (FLE) I ... . . . I financial Education : ,.. fmanc1al Literacy I Good Financial Dec is ions & Behaviour I Source: Willies (2008b: 11) However, Willies (2008b:2) refutes this theory to say that the empowerment of individuals through financial education does not necessarily translate into good financial behaviours: "Financial education is frequently bundled with other forms of assistance. As a result, the contribution of the education to any improved financial behaviour or outcomes is uncertain ." The argument placed forward by Willies (2008b:2) is that researchers do not give reliable findings - financial literacy does not turn consumers into "responsible" and "empowered" market players (Willies 2008b:4) and therefore a rejection of the ideal model illustrated below. 60 Figure 0-7: Rejected financial education literacy model Financial Education Financial Literacy Good Financial D ns & Behaviour Source: Researcher (2015) According to Willies (2008b:4) the concern is that "despite some resourceful data collection methods, ingenious research designs, and rigorous statistical analysis techniques, studies have been unable to overcome issues affecting data rel iability, research design , measure validity, and interpretation of results ." Their concern focused mainly on methodological insufficiencies rather than against the claim , indicating though that the studies are not valid enough to support it. Another author who gives light on shortfalls of methodological consideration for the evaluation of financial education is Fox, Bartholomae, and Lee (2005:208) who write that there is, in most cases, lack of evaluation in the component of programme design and as such the expected behaviours are not appropriately researched . These are issues on the delimitations not on the theory but on how research is conducted to end up making claims for it. This might mean also that the concern is on the del imitation of the studies conducted rather than on the contention that there is a causal relationship between financial education and financial behaviour. On another controversy, Kozup and Hogarth (2008: 135) argue that there is no one solution to the financial literacy problem which means that financial education cannot be the only catalyst to financial capability but the other factors: "Information, education , advice, policy, and assessment are all necessary-none alone is sufficient" Kozup and Hogarth (2008: 132) also point out that today there are many financial education providers, faced with different challenges and prospects (Kozup and Hogarth 2008: 128) presenting inconsistent results in measurement and evaluation . The inconsistency is echoed by Hung , Parker and Yoong (2009:5) indicating lack of consensus in how and what to measure resulting in biases or minimal impacts: a sign that there is no commonly agreed systematic measurement and evaluation for financial literacy. 61 According to Kozup and Hogarth (2008:27) the success of financial education should be linked to what the individual plans to achieve rather than to general teach ings of financial education planned by the provider. This is interpreted to mean that financial education outcomes largely rest in the background of goal setting theory. In relation to the goal setting theory, Kozup and Hogarth (2008: 127) concluded that behavioural changes depend on the dreams and goals of a person not on what is determined for them to achieve. This is because the consumer is not interested in the "theoretical rationale" given by the providers but they are interested in the "practically rationale" Kozup and Hogarth (2008:27) meaning that consumers are driven by what they think is important to them and is practical to achieve satisfaction of their needs and wants . The education therefore has to be practical appealing to their context and environment, and must be augmented with other strategies for complete intervention as the "whole may be greater than the sum of its parts" (Kozup and Hogarth 2008: 135). In addition to critiquing financial education and its outcomes, Clancy, Grinstein-Weiss and Schreiner (2001 : 12) question whether the amount of financial education matters. According to Clancy, Grinstein-Weiss and Schreiner (2001 : 12) education may have "diminishing returns" meaning that perhaps there comes a point where what is invested (time, resources and all other inputs) in the consumer can no longer yield anything more of the expected results. Despite these predicaments and challenges Hung, Parker and Yoong (2009:5) encourages the implementation and evaluation of financial education programmes. The implementation should be coupled with conducting evaluations in order to find out areas of improvement. According to Mandell and Klein (2007:2), clients should be encouraged to give feedback on what they have learnt as their involvement contributes to improvements in service and product delivery. Mandell and Klein (2007:2) highlights that the financial service industry has become increasingly complex and continues to change, revolutionising the financial markets. This means such measurements and evaluations and the involvement of the clientele can be of assistance to make informed decisions on how to deal with the changes. 62 2.6 Measurement and Evaluation of Financial Literacy In reminiscence of the benefits of financial education outlined in the conceptual framework of this study, it cannot be helped but connect these with the importance of measurement and evaluation in financial literacy, measurement and Evaluation of financial capability, the types of measurement and evaluation to utilise, ways of developing tools and the challenges facing the researchers in conducting measurement and evaluations. 2.6.1 Measurement and Evaluation of Financial Literacy According to Siegel (2011 : 15) evaluation research is a complex form that can have in itself many different purposes but its overall goal is to assess the impacts of programmes, policies or legal changes and to determine whether they have achieved its intentions with the practical focus to communicate the results and their implications to clients and decision-makers for the future development of the program or policy. Westat (2010:4) cements this writing that evaluation provides information for communicating to a variety of stakeholders. This information is used in decision making and might even have policy implications that may bring new laws and regulations. As mentioned in the significance of the study, evaluation is also important for all the stakeholders to get results and use them for decision making. In support of this Huston (2010:310) says that "Tracking variation and change in financial literacy rates is of interest to educators, policymakers, employers and researchers. According to Collins, Odders-White and Walsh (2012: 19) a well-designed evaluation will enhance the decisions made by educators and policy makers about financial educational mandates, resource allocation across financial education strategies, and the opportunity costs of classroom time. This alerts that measurement and evaluation needs to be planned as it involves resource allocation and that it helps all stakeholders to make informed decisions. Both process and impact evaluation are vital for improvement but the most pertinent is that of impact evaluation because according to Yoong and et al (2013:38): 63 "Impact evaluation is a powerful tool for learning about whether or not a financial capability program is accomplishing the goals and objectives set out for the programme. The purpose of the programme should not be isolated from evaluation strategies and this highlights the importance of the component as a yardstick to check if the education offered translated to what was intended." To reiterate on the importance of evaluation , Fox, Batholomae and Lee (2005:203) write that a meaningful program evaluation tied to its effectiveness. These views suggest that evaluation should be a part of the programme right from the beginning . The success of any programme is largely dependent on evaluation as the information may indicate red flags where aspects may need to urgently be attended to especially in the process evaluation or during the implementation stage of the program. In terms of the outcome evaluation , the assessment of the outcomes may indicate what should be done in future to deal with mistakes and challenges encountered . Measurement and evaluation information is a history and a baseline mark f~~ future improvements. ยท '::)~ Many authors Yoong and et al (2013:35), Hanna, Hira and Lyons (2009:89) \\ Huston (2010:310) Fox, Batholomae and Lee (2005:203) stress the value \--~-ยท and importance of evaluation of financial literacy programmes citing it as a way of finding out their effectiveness and the opportunity to use information for improvement. Koralalage, Lyons and Palmer (2011 :9) also say that evaluation assists educators to make informed decisions about the achievement of the objectives, the gaps and the improvements to be made. They state: "By evaluating the program, the educator identifies whether the desired outcomes of the program are being implemented as anticipated . If not, the educator can discover the program's barriers, weaknesses, strengths, and possible alternatives. A good evaluation provides input into these areas and helps educators make program improvement decisions." 64 This is supported by Atkinson and Messy (2012:2) as they write that programme monitoring and evaluation is important so that it is scrutinised if it is doing well or not. Firstly it helps to save resources and realise the returns of the programme. Secondly the unsuccessful areas to improve are quickly identified to make amends. Atkinson and Messy (2012:2) continue to comment that "when robust evaluation findings are generalised to a wider population it becomes possible to predict the overall impact of a programme on a much larger scale and set well-defined policy targets ." Th is meaning that the results of measurement and evaluation in financial literacy are important to assist in decision making . Measurement and evaluation is also important to inform sponsors about the value of their money and possibly attract them for future programmes. Lyons et al (2006:209) comments that sponsors need to know everything and must have evidence of what has been achieved . The quality of reporting has to be improved to not only capture statistics but to make sponsors aware that what they have funded is worth it. They need details of achievement of outcomes of the initiatives. Atkinson and Messy (2012:2) also add up that: "evaluation evidence can also inform national financial education strategies by identifying the most efficient programmes and influencing future funding decisions". Future funding implies sustaining programmes and allowing new innovations and trends in financial education to be implemented. Atkinson and Messy (2011 :3) also purports that measuring the level of knowledge and understanding of the population and assessing their behaviours with regard to their finances is important and basic to identifying excluded groups or those who are highly affected . Atkinson (2014:7) lists the importance of measuring and evaluating financial literacy to say that it enables the following capacities, to: โ€ข Identify overall levels of financial literacy and differences by subgroup โ€ข Look at factors correlated with levels of financial literacy (e.g. gender) โ€ข Identify aspects of financial literacy of highest concern (e.g. savings level , credit use) โ€ข Get find ings to inform policy, gain public support, and find funding . 65 โ€ข Make comparisons. Across region/ country โ€ข Measure change across time (baseline and follow-up) โ€ข Look for major shifts in public behaviour/attitudes โ€ข Ask relevant questions on e.g. awareness of public campaigns/ national financial education providers/ private sector initiatives In summary a framework for the evaluation should provide solutions on how to gather information . It should inform about the effectiveness of delivery (Fox, Bartholomae and Lee 2005:203). Effective evaluation is important to provide focus and direction for future projects and programme. 2.6.2 Measurement and Evaluation of Financial Capability Most researches usually focus on the measurement and evaluation of financial literacy with the exclusion of financial capability and this is why at this point it is quite necessary to analyse those that specifically acknowledge measurement of financial capability. Most of researches in the United Kingdom use the term financial capability rather that financial literacy. In measuring financial capability Atkinson et al (2006: 11 ), comment that: "Financial capability is a relative , not an absolute, concept. It might be possible to define a basic level of financial capability that is required by everyone in a given society. Beyond that level , the degree and nature of the financial capability required by any given individual will depend on their circumstances". However Holzmann (2010:4) has identified domains or aspects which can be measured from individual consumers or a cluster of groups. According to Holzmann (2010:4) financial capability is demonstrated as encompassing five domain listed as indicators of financial capability that a person is capable of displaying: keeping track, making ends meet, planning ahead , choosing products, and staying informed. This does not mean there is a consensus Hung, Parker and Yoong (2009:5) but similarities can be drawn from other studies indicating development towards a standard in measurement and evaluation towards financial capability. According to Atkinson et al (2006:11 ): "one of the main conclusions from the development work was that financial 66 capability could be conceived as encompassing four different areas, or 'domains'. These domains were 'managing money', 'planning ahead', 'making choices' and 'getting help'. The survey analysis , however, suggested that the third domain was better named 'choosing products' and the fourth 'staying informed '. These domains from the two authors: Hung, Parker and Yoong (2009:5) and Atkinson et al 2006:11) are not in the same syntax but some share the meaning : keeping track and making ends meet is the same as managing money while planning ahead remains constant and making choices may be termed as synonymous with choosing products. 2.6.3 Measurability of Financial Capacity and Mixed Methods To test its measurability of financial capability Atkinson et al (2006: 11) conducted a study to measure levels of financial capability in the UK. Their method of data collection which is a questionnaire depicts a quantitative approach to the measurement of financial capability. However in the prior stages of the use of the questionnaire they utilised eight focus groups held in three different locations to explore people's perceptions of financial capability and to identify ways of capturing financial capability in a survey. They also used semi-structured interviews to provide a cognitive test of the questionnaire. This is a methodological triangulation as focus groups and interviews are qualitative in nature. Perone and Tucker (2003:3) highlight the use of triangulation as not simply combining different types of data, but attempting to relate the two types of information so as to leave the validity of each type of information intact. This means that they used this to arrive at the validity (Thanasegaran , 2009:37) of the questionnaire, ensuring that it measured what it was intended for. For analysis techniques Atkinson et al (2006:3) used factor analysis (statistical multivariate technique) to obtain levels of consistency in the ways wh ich the survey questions were answered and to create a financial capability score. They claim that the approach is well suited to the types of inter-related questions used in the survey as it makes use of many different pieces of information about each person and that it is also a tried-and-tested statistical approach that which been widely used in academic work. Their main conclusion Atkinson et al (2006: 134 ), was 67 that there was no single indicator of financial capability, but that rather it could be conceived as encompassing four different 'domains', of people's involvement with money and financial products. They found clear indications that individuals may be particularly capable in one or more areas, but lack skills or experience in other areas. In another study conducted by Kempson Petrotti and Scott (2013: 17) the goal of the research undertaken was to determine how financial capability is manifested and what features of people are associated with high (low) levels of financial capability. They set out to answer the question concerning whether it was possible to construct a measure of capability which could be used to segment the population by level of financial capability. Similar to Atkinson et al (2006:11 ), Kempson Petrotti and Scott (2013:17) used the multistep process where the qualitative approach was used to arrive at the quantitative survey: 1. They used focus groups for the development of an operational definition of financial capability and its manifestation , 2. utilised the in depth interviews and cognitive testing to measure those manifestations and as for data collection they made use of the qualitative survey. In the identification of the domains similarly they used factor analysis and assignment of scores. The other similarity is the use of regression and cluster analysis for identification of potential target groups for policy intervention . This does not mean that the research was a replication of Atkinson et al (2006:11 ). It indicates that in the development of measurement tools for financial capability single designs may not be appropriate but what is needed is multi- methods and data triangulation . Kempson Petrotti and Scott (2013:85) arrived at the conclusion that financial capability was found to be a composite of skills , not a single skill which could be measured with a single score. 2.6.4 Types of Measurement and Evaluation There are different types of evaluation and any evaluation research should establish the type of research so that the evaluation design is not general but specific. These types of evaluation depend on the purpose, tim ing , and procedures used (Wall (2007:2). According to Westat (2010:7) : "Educators 68 typically talk about two kinds or stages of evaluation- formative evaluation and summative evaluation . The purpose of a formative evaluation is to assess initial and ongoing project activities while the purpose of summative evaluation is to assess the quality and impact of a fully implemented project. " These types have been categorised using the purpose that they serve in evaluation . To Vanclay (2012:23) summative and formative are terms which are used to describe the purpose of evaluation . They represent a continuum rather than completely separate and discrete entities. This means that each type of evaluation is carried out at a certain time to serve a particular purpose as Westat (2010: 11) views formative evaluation to be at the beginning of the continuum while summative evaluation is done at the later stages of the programme. According to Vanclay (2012:23) the purpose of formative is to monitor progress. This is because the components of formative evaluation are: implementation evaluation and progress evaluation" (Westat (2010:8) . The results of this are usually intended to inform of areas improvement which can be made while the programme is ongoing. Formative evaluation is unlike summative evaluation because Vanclay (2012 :23) says that: "this type attempts to be an ex-post, independent, objective assessment of outcomes which assesses the extent to which the program was responsible for (i .e. caused) the outcomes, and potentially undertaking a cost-benefit or return on investment calculation "In addition Wall (2007:2) writes that summative evaluation , sometimes called outcome evaluation , is conducted for the purpose of interrogating the results of a program. Specific goals of a program are identified and the degree of accomplishment of those goals is documented in summative evaluation . The results of a summative evaluation might point to changes which should be made in a program in order to improve it in subsequent implementations. Vanclay (2012:23) indicates that because of these reasons, summative evaluation tends to require empirical indicators, while formative evaluation tends to be qualitative. Westat (2010: 11) cements that summative evaluation collects information about outcomes and related processes, strategies, and activities that have led to them. The evaluation is an appraisal of worth , or 69 merit. They highlight the usefulness of the results of summative evaluation to state: "Usually this type of evaluation is needed for decision making . The decision alternatives may include the following : disseminate the intervention to other sites or agencies; continue funding ; increase funding; continue on probationary status ; modify and try again ; and discontinue." This study is focused on the summative evaluation because it seeks to evaluate financial literacy initiatives and use the information to inform relevant stakeholders of better implementation. The study too is also interested in the impact analysis and the outcomes of financia l literacy initiatives in Botswana. The formative evaluation which is processes and progress of the initiatives should have been done by the organisations which provide financial education . The following is a table showing distinguishing aspects of the types of evaluation . Table 0-3: Formative and summative evaluation ITEM FORMATIVE SUMMATIVE Categories Implementation - progress or process Impact and outcome based evaluation evaluation Westat (2010:8) Westat (2010:10) Purpose To provide interna l feedback to improve The purpose of a summative evaluation practice while the program or intervention is is to assess the quality and impact of a in progress, rather than waiting until the fully implemented project/programme program is over. Paulsen and Dailey (2002: (Westat 2010:7) 3) Time Done in the early stages of the program Done at the later stages of the program (Wes tat 2010: 11) (Westat (2010: 11) In the middle of the program , to want to see if Usually done at the end of a program it is working in the way you intended. cycle , results are needed to that (Atkinson 2010:8) prove your program is sound Conducted while the program is (Atkinson 2010:8) ongoing - perhaps several times (Wall (2007: Conducted after the program has been 2) implemented and completed (Wall (2007: 2) Types of Qualitative design (Atkinson 2010:8) Quantitative design (Atkinson 2010:8) data Formative evaluation tends to be qualitative summative evaluation tends to require (Westat 2010:10) empirica l indicators , (Westat 2010: 10) Usefulness The resu lts point to changes which can be The results of a summative evaluation of Resu lts made to ensure that the quality of the might point to changes that should be program implementation is maintained made in a program in order to improve it throughout the programme. in subsequent implementations Wall Wall (2007:2 ) (2007: 2) 70 This type of evaluation is needed for decision makinq Wes tat (2010: 11) Sources: (Atkinson 2010) Paulsen and Dai ley (2002) Wall (2007) Westat (2010) The table above summarises the first order categories of evaluation and it has been clear that every type of evaluation has its procedures, time to be carried out and what the results serve. There are particular questions that relate to the type of research and Atkinson (2010:8) has summarised the evaluation questions in the table below: Table 0-4: Questions for the different types of evaluation EVALUATION TYPES BRIEF DESCRIPTION GENERIC KEY EVALUATION QUESTIONS Outcome & Impact Provides answer to the Is the program having the desired Evaluations overall question "are we effects? (Summative) making a difference?" Do these effects differ by group? Is the program having unintended effects (positive and negative)? Cost Effectiveness & Cost These types of analyses Are program effects attained at a Benefit Analyses relate costs to the outcomes reasonable cost? (summative) and impacts that are being What is the average cost per achieved outcome? Design Evaluation I Focuses on whether the How do the services provided by Assessment evaluation program "makes sense," the program contribute to results? (Formative) whether the program is likely What are alternative ways of to achieve results in the way delivering these services that might it is designed produce better resu lts? Implementation Evaluation Measures how well the To what extent has the program (Formative) program has been been implemented as planned? implemented , and the extent What are the main challenges to which the program was encountered in implementing the implemented as planned. program? Source: Atkinson (2010:8) 2.6.5 Developing and Designing Measurement and Evaluation Tools Developing and designing measurement tools can be challenging and needs expertise (Lusardi (2013:4) they may be standard for norm measurement or customised to target groups. (Huston 2010:310) According to Huston 71 (2010:310) there is need to design a more standard approach to measure financial literacy to identify barriers to financial well-being and assist in solutions which enable effective financial choice. This may not be effective because according to Drexler, Fischer and Schaar (2013:20) in the first instance training has to be client matched and therefore in developing the measurement and evaluation tools this has to be consideration . Different tools may be used for measurement and evaluation but these must encompass the goals, purpose, content and expected outcome. The questionnaire developed by OECD INFE (2011 :4) includes a widely accepted working definition of financial literacy which stresses general behaviours, attitudes and knowledge that could be attained in a variety of ways. It was also piloted and it also states the methodologies to be followed when administering it. The above views are cemented by (Atkinson 2008:77) highlighting that the instruments used to collect data also need careful consideration . Questions must be designed specifically around the objectives of the initiative, and take into account the particular circumstances of the participants (such as language or literacy difficulties, age of respondents , difficulties with concentration , and time constraints). A failure to ask appropriate questions not on ly weakens the evaluation but wastes valuable resources. According to Holzmann (2010:5) in evaluation the: "Why and what, for whom, and How" questions are ideal for an evaluation framework. Holzmann (2010: 12) notes that ideally, such a framework provides the detailed link between national as well as individual program objectives, inputs, delivery, outputs, outcomes, and impacts. This framework is also all encompassing as it details the purpose (objectives) , of the programme, inputs (content and resources used), outputs and outcomes (expected results) , impacts (the effect or benefits). This framework drives to the logic model which has been described above. 2.6.6 Challenges to Measurement and Evaluation The evaluation of financial education is imperative but steeped in a lot of challenges. Lyons, Rachlis, Staten , and Xiao (2006:52) caution that the number of financial education programs continues to flourish yet research 72 measuring the effectiveness of these programs has been limited, primarily because of a continued lack of understanding among financial education providers about how to measure program impact. This points out that in Financial Literacy there are more challenges in carrying out research on evaluations than on other topics. However the few like Yoonga and et al (2013:43) who have done the evaluation highlight that impact evaluations and cost-analyses often need to be used more selectively, largely because of the resource and information requirements involved . In the second place and slightly different in consideration is that doing evaluations - and doing them right - is very challenging. Authors such as Palmer and Xiao (2008:88) confirm this by saying , measuring the effectiveness of financial education has been challenging and the results have often been mixed. Botswana being a developing country stated to have minimal literature on evaluation could also pose challenges as Yoong and et al (2013:8) writes that: The environment in developing countries has posed even more challenges for evaluators: Often , important government or program administrative data are unavailable or unsuitable; target populations may be small , dispersed, or difficult to reach; and program resources are generally limited , leading to evaluation studies which lack the statistical power to detect small changes in target population behaviour. Research is expensive especially if it is carried nationwide to develop frameworks and models. In attempting to make a case for financial literacy Miller and et al (2009:6) communicates that monitoring and evaluation of the impact of programs are complicated by the lack of baseline survey data . Very few countries have undertaken nationally representative surveys of financial literacy or financial capability. Botswana is one of the few countries which do not have an evaluation framework which is a cause for concern and a gap in research. Th is makes research difficult and more explorative, provoking a venture into the phenomenon without baseline data or empirical evidence. According to Miller and et al (2009:6) without baseline data, progress toward objectives cannot be measured. They also add that baseline surveys also can be a catalyst for raising awareness on the topic and for a dialogue on what are the key aspects or skills people need to be financially capable. 73 Another challenge in measurement and evaluation is what has been identified by Schuchardt, Hanna, Hira , and Lyons (2009:88) that major differences across programs in core content, delivery methods, and target populations have resulted in considerable differences in the goals and objectives of these programs and what they are each trying to accomplish. This makes it difficult for researchers to identify a common set of reliable measures (i.e ., knowledge, attitude, and behavior indicators) that can be adequately validated in multiple settings. As the programmes show such disparities in content, approach , purpose and outcomes, it is difficult to standardise the instruments and tools of measurement and evaluation . Such a scenario may be a case for Botswana that might lead to contextualisation of the measurement and evaluation framework for each initiative or target group. The idea of customised evaluation is stressed by what Lyons and Neelakantan (2008: 111) states: "Financial education programs cannot be evaluated using a "one-size-fits-all ' approach" It is extremely difficult to come up with a single model or approach which explains individual financial behavior because both individual financial needs and financial education programs vary widely. In the end , as Lyons and Neelakantan (2008:111) write , the impact of financial education on individual consumer decision making and economic well-being cannot be measured by a single all- encompassing approach to program evaluation. This is a clear indication that using a generic measurement and evaluation tool may not measure effectively what is expected . However in developing standards for evaluation there are those criteria that are fundamental and should not be omitted in any of the evaluation tools for measurement and evaluation of financial literacy. These are issues of target group, purpose, content, approaches, and evaluation itself. 2.7 Theories and Models of Measurement and Evaluation Measurement and Evaluation research itself is a topic for investigation and so has a theoretical basis. Siegel (2011 : 15) highlights that evaluation research is a form of applied research because it is conducted to provide 74 organizations with information that can be used in the immediate future. Evaluative research therefore should be based on theory and be applied to the context of the participants and organisation where research is conducted. This is also because evaluators should discuss a contextually appropriate way for those values, assumptions, theories , methods, results , and analyses significantly affecting the interpretation of the evaluative findings (Owston , 2007:616). These statements apply to all aspects and stages of the evaluation process, from its initial conceptualisation to the eventual use of evaluation findings . The following are the theories and models identified to be contextualised to the measurement and evaluation of financial literacy programmes. 2.7.1 Programme Theory Evaluation According to Donaldson and Lipsey (2007:58) there are three most common types of evaluation theories - evaluation theory, social science theory and the programme theory. The focus of this research is mainly on programme evaluation theory but Donaldson and Lipsey (2007:58) note that there is a fruitful approach where the theory of evaluation involves integration of social science theory in the development and use of programme theory to guide evaluation practice and expand knowledge about how programs bring social change. The social changes, in the context of financial education programme are the financial behaviours outcomes. These are the general changes or indicators of having financial capability written about in the conceptual framework of this study: changes in skills and confidence levels, changes in intended and actual behavior, and changes in attitudes and satisfaction levels supporting the outcome driven approach to financial literacy measurement and evaluation . According to Rogers et al (2000:5) the Programme Theory Evaluation (PTE) is considered to have two essential components , one conceptual and the other empirical. PTE consists of an explicit theory or model of how the program causes the intended or observed outcomes and an evaluation that is at least partly guided by this model. The conceptual framework of this study describes the transformation process which resonates with the Programme 75 Theory Evaluation (Sharpe, 2011 :72). Program theory modelling uses three components to describe the program: the program activities or inputs, the intended outcomes or outputs, and the mechanisms through which the intended outcomes are achieved- as financial education is a process there are inputs (resources), the mechanism (delivery modes), and the intended outcomes (Sebstad Cohen and Stack 2006:5) that describe financial literacy and capability since this is also research focused on measurement. Sharpe (2011 :73) argues that multi-method approaches are commonly used for the task of documenting the program (e.g. ethnography, surveys, ratings , observations, and interviews) and these often become the tools to measure the program process or intermediate variables. Formal measures can be constructed to evaluate the services being provided within a program. In view of the above stated definition of evaluation that it is systematic and planned , it is important to know from the onset the model to be used for evaluation . In agreement to this Atkinson (2010:8) writes that at the start of evaluation research it is helpful to map out what is expected to happen as a result of a program. One effective tool which may be used is called a logic model (OECD 2010:4) and is discussed in the next section . 2.7.2 The Logic Model In its definition is sometimes referred to as a tool , theory or just as a model. According to Barkman (2003:3) models are tools to be utilised for a purpose they also give a theoretical perspective. For instance there is the premise that the logic model assist in designing and conducting appropriate evaluation. In narrating the history of the model Mccawley (2002 :1) states that: "The Logic Model process is a tool that has been used for more than 20 years by program managers and evaluators to describe the effectiveness of their programs. The model describes logical linkages among program resources , activities, outputs, audiences, and short-, intermediate-, and long-term outcomes related to a specific problem or situation . Once a program has been described in terms of the logic model , critical measures of performance can be identified ." 76 This history is critical as it determines how long the model has been in existence, it also shows the opportunities of where and when the model can be used in evaluation . Its value is that it paves way to identify measures to evaluate. According to Bamberger, Rugh Mabry (2006: 11) the logic model should be well defined in the project plan as it can be used to guide the evaluation . If not, the evaluator needs to construct it based on reviews of documents and discussions with all stakeholders. In many cases, this requires an interactive process in which the design of the logic model evolves as more is learned during the course of the evaluation . Besides this some of the benefits of the model outlined by Barkman (2003:3) are: it helps identify appropriate evaluation questions. The evaluation questions as part of the research design and must be well structured , it summarizes complex program to communicate with internal and external stakeholders. The implication is it a foundation which contains the underlying rationale and expectations. Lastly it identifies gaps in logic and uncertain assumptions (Barkman 2003:3). An evaluation exercise itself needs participation , and activities which provokes learning as is reflected in the logic model for programme design and evaluation below: 77 Figure 0-8: The logic model for programme design fFFJCI NCY INPUTS ACTIVm eS OUTPUTS OUTCOMeS IMPACTS The financial, What the program ..d oett: What the program Changes that result from the Changes thal resuH from lhe human and acUons taken or wort< produces": lhe outputs: lhese changes are immediate ootcomes, generally material resources performed through wh ch products, goods most closely associated with considered a change in overaD used by the inputs are mobilized to and serv ces which or attributed to the project. "stale.โ€ข Impacts can be similar program. produce specific outputs. result from the lo strategic objectives. activities. , , ,-~ ----- 9-- ... , - ---------- , \ J I ' Funds, staff, ' , I Increased proportion of \ Recruiting youth, ' Participants, I Incr,eased partldpant I community I developing I mater,lals, I nowledge of the banking young adults with some agencies, loca:I I I 1NOrkshops, workshops, system, budgeting, credit level of savings; decreased youth centers, facllitaling Internships, I use, savtngs, and taxatloo; level of roll over of credit lntemshlp sites wor shops, recruiling I partnerships. lncreased partfdpatlon card balances or defaults and placing interns reports I among partldpants In on credit cards 'r1( young, I I .... ________ .,. I ' ____________ adults ,,, I ... __________ ,., banking selVices \ ' ,I ' ' \ , ' --------------- ~ ... ----------------~J Source: OECD (2010:4) 78 2.7.2.1 The Logic Model and Transformation Model According to Lown and Nelson (2013: 15) a logic model illustrates the expected inputs, outputs, and impacts, as well as the assumptions and other external factors which influence programme decisions or achievement of outcomes. In addition Setari (2014:5) highlight that the logic models outline the main components of the evaluated program and allow for the examination of the connections that exists between the components and the outcomes. It allows a revisit to the objectives of research and gives an opportunity to consider how to measure success. According to Setari (2014:5) it helps to describe very clearly why the investments made (inputs), and the particular activities undertaken, will lead to the results hoped to be achieved (sometimes called a "results chain"). The OCDE (2010:4) highlight that inputs and outputs are under the program control expected to reveal efficiency while outcomes are influence by the programme indicating if the programme has been effective or not. This also connects well with Programme Theory Evaluation as depicted by (Sharpe 2011 :72) 2.7.2.2 Utility of Logic model in Measurement and Evaluation of FL In application to evaluation of financial education , the model was utilised by Lown and Nelson (2013: 1) in guiding an effective program evaluation of financial capability focused on women. They used the program evaluation process, and specifically the logic model which guided the development of the survey questions. In their analysis most of the respondents were moderately confident that they could overcome financial obstacles. Lown and Nelson (2013:21) report that since it was a cross sectional survey, and respondents had attended for varying lengths of time, there was the limitation in their ability to measure impact by time horizon. Therefore a longitudinal study is needed to better identify long-term outcomes. They also report that while it is difficult to assess the ultimate long-term impacts of the educational seminar, survey results suggested that the program was effective based on the actions women took as a result of the seminar. In their model as compared to that of Barkman (2003) they have identified a situation: that there is lack of financial awareness and preparation among women in the 79 community. This reminds that it is an important task to identify the situation and set up priorities before conducting an evaluation. Such priorities are funding and sponsorship, (resources) content, delivery methods, expected outcomes as explained in relation of the model to evaluation and transformation process. 2.7.2.3 The Logic Model and Mixed Methods An example of study which utilised the Logic model is that of Lyons et al (2006:221) in which they used focused group discussions, and included some basic information about evaluation concepts and methodology such as information on the logic model or models that look at stages to change. Participants were also looking for instruction on how to write impact statements and design evaluation instruments. They assessed the state of financial education and program evaluation , by collecting quantitative and qualitative data from financial professionals and educators nationally. Data was collected in two stages using (1) focus group techniques and (2) an online survey. A wide range of financial professionals and educators were targeted from academia , non-profit organizations, the private sector, state and federal government, and the military. This is reflective of the use of mixed methods approach using what Bryman (2011 :1142) calls "Methodological triangulation", which refers to the use of more than one method for gathering data. They used an exploratory evaluation which Bamberger, Rugh Mabry (2006:21) says may be done by descriptive analysis using techniques such as observation , interviews of at least a few selected members of the target population , key informant interviews, and perhaps focus groups. Then a survey may be used to collect data about the population. This marks the similarity with th is study for its choice of the use exploratory approach before collecting data form individuals in the identified population . Sharpe (2011 :73) puts the claim that the multi-method approaches are commonly used for the task of documenting the implementation of the program. Tying this to programme theory which accommodates the use of the logic model Sharpe, 2011 :73, employs the use of multi -methods 80 approaches; multiple methods and a variety of tools .These tools should be well developed and tested for reliability and validity to ensure consistency of measurement, authenticity, and applicability (testing what they should) . 2.7.2.4 Limitations of the Logic Model The Logic model like all other approaches and model has its own limitations. Referencing (Taylor-Powell , 1999), Barkman (2003) highlight the limitations of the model with the following points: โ€ข The logic model represents a reality that is somewhat inaccurate: - programs are not linear as programs are dynamic interrelationships that rarely follow a sequential order. Since financial education programmes are people focused the linear approach does not relate well with what has been attested to the use of Trans Theoretical Model (the stages change model) which is said to be circular rather than linear. As some studies have already established an intertwine of the two it is best to bench mark from their methodologies. โ€ข Logic model focuses on expected outcomes, making it easy to miss unexpected outcomes. The implication is that the researcher or evaluator be wary of this and ensure a record of unexpected outcomes or emergent issues โ€ข There is a challenge of causal attribution - many factors influence outcomes. This informs that there are a variety of variable which may not be captured by the model hence not giving a true picture of what caused the behaviour or outcome. The implication for the evaluator is to ensure what exactly needs to be measured is stated from the beginning . 2.7.3 The Trans Theoretical Model (TTM) of Behaviour Change The goal setting theory of motivation is not the only theory which has been used as a theoretical background to financial literacy. According to Ozmete and Hira (2011 :386 - 387) behavioural theories/models commonly used in explaining of behavioural change analysis from three different disciplines: psychology, sociology and economics being : (i) psychological 81 theories/models ; (ii) sociological theories/models ; (iii) economic theories/models respectively. They mention several theories but the one theory that is commonly used to explain financial literacy behaviours is the Trans Theoretical Model (TTM) of Change. This theory is also discussed under this study because it is applicable and resonates much with Mandell and Klein (2007:107-114) motivation theory. The other reason for the discussion of the theory is its utility in evaluating financial management behaviour. According to Xiao (2014:8): "The Trans Theoretical Model of Behavior Change of Prochaska , DiClemente and Norcross (1994) is one tool which holds promise for evaluating financial management behavior, since it has been applied successfully to many other behaviors that people have." According to Xiao et al (2004:56) the Trans Theoretical Model was developed by studying daily human experiences and integrating existing psychotherapy models. According to Ozmete and Hira (2011 :387) it was named Trans Theoretical because it combines change variables from across many existing counselling theories. This model originates from the Health studies and according to Ozmete and Hira (2011 :387) the Trans Theoretical Model of Change (TTM) is commonly used in the health arena to help people stop unhealthy behaviors and/ or develop healthy behaviors. In the early stages of their research , Xiao et al (2004:56) say Prochaska and his colleagues found that behavioural changes are more complicated than those described by many theories. They reviewed existing theories in psychotherapy, including psychoanalytic, humanistic/ existential , gestalt/experiential , cognitive , and behaviour sciences and came to a conclusion that all of these theories had merits in helping people change their behaviours. In this study it was discussed in sync with : the logic model , the goal setting and motivation theory, and the social cognitive theory of learning as these theories and models form the theoretical basis of this study. 82 2.7.3.1 The Stages of the Trans Theoretical Model Evaluation studies using this Trans Theoretical model mention and attempt to apply the five stages identified by Prochaska , DiClemente and Norcross (1994) as the stages which an individual goes through towards the expected behaviour. According to Xiao (2014:8) this model posits five stages of change through which persons go through as they move toward making change permanent. Xiao et al (2004:56), make an observation that originally, the model was conceptualized as a linear progressing through the various change stages but Flores (2014: 34) writes that it was later determined that a spiral pattern is the best illustration of how people change because most individuals relapse and return to a previous stage. Individuals progress through these five stages at varying rates , often moving back and forth along the continuum a number of times before attaining the goal of maintenance. As a result Flores (2014: 34) says the stages of change are often described as spiralling or cyclical rather than linear. This depicts human development as not going in a straight line but could be affected by different factors to regress . According to Xiao et al, (2001) he focus of the model is to help people intentionally show manifestation of financial behavior change. Application of TTM to financial behavior change is a process that involving five integrated stages of: (i) awareness of the problem and a need to financial behavior change, (i i) motivation to make a change in financial behavior, (i ii) skill development to prepare for the financial behavior change, (iv) initial adoption of the new financial activity or behavior, and (v) maintenance of the new financial activity and integration into the lifestyle Kempson and Atkinson (2008:8) list and outline these stages in short: Stage 1: Pre contemplation; Stage 2: Contemplation ; Stage 3: Preparation ; Stage 4: Action ; and Stage 5: Maintenance. The stages are expanded in detail by Berriche Salerno and Calciu (2014:586). The first stage called pre contemplation is one in which the participants see no need to change. Contemplation , as its name implies, is the point at which participants are beginning to acknowledge having a 83 problem and beginning to think about ways to solve it. Preparation is the stage at which the participant is serious about taking action . Action is the fourth stage, and it is the one in wh ich the actual stopping of bad behaviou r or starti ng of good behaviour begins. In maintenance stage, the new behaviour is adopted , maintained and integrated . Figure 0-9: Stages of Trans Theoretical Model (TTM) Source: Xiao (2014:8) 2.7.3.2 The Trans theoretical Model and The Transformation Model The TTM is an integrative model focused on how to modify problem behaviors for positive behavioural change (Schuchardt (2009:85) which means it focuses on bringing desired outcomes of change. Whenever it is used with the logic model it shows its ability to accommodate for its uti lity in programme theory evaluation . Lown and Nelson (2013: 15) illustrated the use of logic models for programme evaluation based on the Trans Theoretical Model of Change (TTM).This means they considered inputs, outputs and the 84 outcomes of the programme which was under review guided by the logic model. 2.7.3.3 The Trans Theoretical Model and the Logic Model A study conducted by Lown and Nelson (2013: 15) illustrated the use of logic models for program evaluation and the research was based on the Trans Theoretical Model of Change (TTM) (Prochaska & DiClemente, 1983). They demonstrate the application of a logic model as a guide an effective program evaluation of a financial capability program focused on women. They state that "The TTM is an integrative model focused on how to modify problem behaviors for positive behaviors change. The underlying construct of the model is the Stages of Change." The evaluation was conducted to: (1) Determine which educational methods and strategies effectively motivate women to act, (2) Solicit ideas for improving the effectiveness of this educational program, and (3) Identify the TTM Stage of change of participants. In pursu it of their research objectives Lown and Nelson (2013: 16) developed a logic model which defined and explained the program concepts. They were able to identify the situation which is: "Lack of financial awareness and preparation among women in the community. " This indicates that when using this model an evaluator must interpret the "situation drive" the overall outcome of the financial education programme. In their model Lown and Nelson (2013: 15) identified the following as overall outcome: Increase financial knowledge and well-being , while the rest of the outcomes were sub impacts of this overall outcome. The integration of the Logic Model and the TTM Stages of Change is cemented by the use of the Financial Planning Personality Profiler (Lown , 2007:37) which was utilised to categorise respondents into five Financial Personality Types as a proxy for Prochaska's Stages of Change (Prochaska & DiClemente, 1983). They write that the personality types corresponded well with Prochaska's stages as follows : planners = maintenance, savers = action , strugglers = preparation , impulsives = contemplation and deniers = pre-contemplation. Their study 85 illustrated the practical relation of the two models with a diagram displayed below: 86 Figure 0-20: Logic model for women's financial programme .srlUII.TI L.ackm L'We DCI !inane ยทIn :ctor -con a -~ n.t -=n -S.On-.e m~ -Gr.a s - be -Equ,pm t ec:hnol โ€ขMore- - cr,euz,d n,ness. Is s .-at e Is u lque w ltural c l Source: Lown and Nelson (2013:1 87 2.7.3.4 The Trans Theoretical Model and Motivation Theory The purpose of the study conducted by Rowley, Lown and Piercy (2012:48) was to : "identify how to motivate women to take more responsibility for their financial future ..." and with this indicating women as their target group. With reference to motivation of this target group and the use of the use of the TTM the researchers conclude that the majority of participants were motivated by an internal desire for change, categorized as underlying goal-cantered motivators (Rowley, Lown and Piercy (2012 :58).This therefore gives the idea of the strength of external motivation is surpassed by that of intrinsic motivation and that the role of the facilitator for financial education should be that of a facilitator who helps the consumer to find what makes them want to change. As a limitation and a caution in the application of TTM Rowley, Lown and Piercy (2012:59) mention that it is the setbacks or relapses of participants in the Stages of Change. It is then advised to employ the TTM conceptual commonality of the setbacks and that counsellors and educators should prepare their clients for setbacks as part of the normative behavior change process. Above all else the Rowley, Lown and Piercy (2012:59) state that: "The findings of this research support the benefits of financial education ." Both in the conceptual framework of financial literacy of this and the motivation theory posed by Mandell and Klein (2007:107-114) the Rowley, Lown and Piercy (2012:59) research confirms that financial education drive to value and brings positive behavioural change. 2.7.3.5 The Trans Theoretical Model and the Social Cognitive Theory In a much more recent research another variation and different element is brought about by Flores (2014:6). The purpose of the study is stated as thus: "A theoretical framework that draws from key constructs of the Social Cognitive Theory and the Trans Theoretical Model serves as an appropriate foundation to analyse where literacy, behavior and self-efficacy intersect and the impact this relationship may have on the financial well-being of college students ." Flores (2014:6 presents the claim that this theoretical framework 88 can help demonstrate whether students from first generation and low-income backgrounds, including other key demographic factors , influence a student's knowledge and confidence about finances and money management. According to Flores (2014:12) self-efficacy as the confidence and/or perceived belief in overcoming financial difficulties while the principle the social cognitive theory of Albert Bandura individuals are more likely to attempt, to persist, and to succeed at activities or tasks when they possess a strong sense of self-efficacy Flores (2014:30) that is: the confidence and belief to achieve. The financial conceptual framework below illustrates the incorporation of the self-efficacy within the social cognitive theory and the Trans Theoretical Model with the stages of behaviour change depicted. According to Flores (2014:35) the relationship between a persons' financial literacy knowledge, confidence and ability to make decisions through the stages exist. Figure 0-11: Financial literacy conceptual framework and TTM Pr nt mp uon Fin ncial Behavior I \ Financial ,,. ion S lf- y Source: Flores (2014:34) According to Flores (2014:96) the results of the study indicated there was no relationship between self-efficacy and financial literacy the utilisation of the 89 framework is a measure to assist in nurturing financial literacy, behaviour and self-efficacy of students moving through the stages they face new concepts or challenges. Some earlier studies which included self-efficacy as one of their construct and also use the Tran Theoretical Model report of success. According to Xiao et al (2004:89) the key constructs of TTM include stages of change, processes of change, decisional balance, and self-efficacy. They applied TTM to consumers who have credit card debt problems and the data were collected from those consumers. The purpose of their study was to help consumers change their behaviors to eliminate credit card debts. Xiao et al (2004:91) report that in the early stages, people apply experiential processes relating to how people become aware of the interest of behavioural change to support their progress through the stages. They continue to say that in the later stages, people rely more on the behavioural processes corresponding to actions taken by individuals to help them become or remain active for progressing toward termination. This study has similarities with Shockey and Seiling (2004:48) as participants documented and shared their experiences which indicate a qualitative approach to research using experientialism. This may be typical of the TTM as the participants move through the Stages of Change. However the studies have some difference as Xiao et al (2004:91) highlight that compared to previous studies including that of Shockey and Seiling (2004: 1) , their analysis has unique features: Rather than just the Stages of Change, all the constructs of TTM which was not the case with previous studies, are included and measured in Xiao et al (2004:91) debt reduction study. Another study which is recent is that of Berriche Salerno and Calciu (2014:587). The purpose of the study was to explore relationships between stages of change among people who mismanage their money (in pre contemplation and contemplation stage) and their intention to adopt approach-avoidance financial strategies of change then examine the mediating effects of decisional balance on these last relationships . Their results indicate progression of approach-avoidance strategies by stages of change. Berriche Salerno and Calciu (2014:593) claim that the above 90 mentioned studies of (Shockey and Seiling 2004 and Xiao et al, 2004) applied the Trans Theoretical Model by merely exploring the relationships between stages of change and other variables like self-efficacy while "efforts to illuminate the mediating roles of decisional balance with approach- avoidance money management strategies of change have not been examined". According Berriche Salerno and Calciu (2014:593), decision balance can be used to measure the progress of customers in the behaviour change process. To interpret Berriche Salerno and Calciu (2014:593), evaluators and researchers must not end at the level of only exploring the relation but should shed light on the connection and reconciliation point of the two (mediating paths) which give insight to understanding the psychological behaviours of the customer through the stages when making decisions. This can contribute to helping practitioners understand the customer to offer better financial services and even design effective financial literacy initiatives. 2.7.3.6 The Trans Theoretical Model and Mixed Methods Most of the studies reviewed tend to use multiple approaches when applying the Trans Theoretical model and this may be so because of it being tied to Programme Theory Evaluation as most of the studies focus on measurement and evaluation- According to Sharpe (2011 :73) multi-method approaches programme evaluation. Xiao et al (2004: 91) used a mixed method particularly, which Hales (2010: 13) terms as methodological triangulation as which involves the utilisation of methods of qualitative and quantitative approaches. Qualitative approaches were used for the measurement development which indicates the use of exploratory sequential design, a type of mixed method design in multiple research approach . A design which has also utilised for this study as elucidated in chapter four. Then it can be concluded that most of the researchers (Berriche Salerno and Calciu 2014:589, Shockey and Seiling 2004: 91) that adopt the TTM utilise mixed methods (specifically methodological triangulation) this is in the exception of Rowley, Lown and Piercy (2012:50) who used the qualitative 91 approach employing the focus group technique. They chose the qualitative exploratory approach because: "Firstly, focus groups allowed participants to voice their opinions and experiences in far less time and with greater breadth than with in - depth , personal interviews and in greater depth than in surveys. Secondly, focus group research is a widely used, effective method for obtaining insights into behavior motivation." As mentioned above the use of motivation and the TTM model have a link because motivation and goal setting can be used to drive participants to get into the next stage of change. Instead of methodological triangulation they utilised what is termed by Meijer, Verlooop and Beijaard (2002: 146) as triangulation by researcher (comparable to interrater reliability in quantitative methods). This is because Rowley, Lown and Piercy (2012:51) state that: "Dual researchers combining to evaluate the data created triangulation , adding to the validity of the analysis" . In their study Shockey and Seiling (2004:41) also utilised mixed method approach but with a different strategy of experiential learning. There were uses of surveys questionnaires with issues of val idity and reliability of data collection instruments tested by experts on a 25 participants before the study was conducted . The qualitative method of research using experiential learning was utilised when for the participants were given the opportunity to record their expenditures and shared their experiences. According to Ozmete and Hira (201 1 :388), Berriche Salerno and Calciu (2014:594) this is typical of the application of the TTM model to engage participants in experiential processes of their Stage Changes. To attest the successful application of the experiential learning techniques Shockey and Seiling (2004:48) states that "Over half of participants (60%) reported that their own personal experiences had been the best way for them to learn about money management". In the qualitative methods the (Xiao et al 2004:89) also utilised the experiential and behavioural processes where consumers interacted with each other and reflected on their personal changes in reducing credit debt. 92 2.7.3.7 The Criticism of the Trans Theoretical Model A theory which is integrational may sound all-encompassing and inclusive of quite a number of variables but it never escapes criticism or review. In highlighting the limitations, Lyons and Neelakantan (2008: 109) write that theories like Trans Theoretical model of change provide insight into how practitioners might help individuals change their financial behaviors. However, their applicability is limited by differences between the field from which they originate and the field of personal finance. Lyons and Neelakantan (2008: 109) bring the solution that, in the application of the theories to finance they need to be modified to incorporate external factors (e.g. , exogenous financial shocks, limited access to financial services, and changes in life circumstances) that may prevent individuals from being able to change particular financial behaviors. It is also worth noting that in case of health, it is indisputably easy to identify positive health behaviors while this may not be the same for financial behaviours. If it is difficult to identify these the model may not be suitable for evaluation purposes, as it is these behaviours that are needed to illustrate if the programme was able to reach the intended outcomes. According to Lyons et al, (2006) this model may be useful for describing how financial literacy programs work, but it has proven difficult to apply as a model for program design or evaluation . This research is about measurement and evaluation of financial literacy in itiatives and therefore seeks to analyse models to and find out the one that will work for Botswana. Though difficult to use for evaluation other researchers have successfully applied it to financial behaviour change as indicated above. In terms of evaluation then the Trans Theoretical Model may remain as a theoretical base but with some of its useful points it could be joined for hybrid with other models of evaluation like the Logic Model of Evaluation to illustrate the impact and outcomes of financial literacy. According to Lown and Nelson (2013: 15) there is need to include some basic information about evaluation concepts and methodology, such as information on the logic model or models in conjunction with the 93 stages of change. This connection will assist in the dispersing the idea that the Trans Theoretical model is ill fitted for programme evaluation . 2.8 Chapter Summary This chapter discussed personal financial planning and the concepts in association with: financial literacy, financial education , and financial inclusion . The different approaches to defining financial literacy which are the cognitive approach and the outcome based approach were highlighted . The value of integrating these in offering financial education is appreciated yet challenges such as the lack of criteria for measurement and lack of measurement tools have been identified. The chapter also discussed the theories associated with financial literacy: the goal setting theory and the motivation theory. It further discussed theories and models of measurement and evaluation of financial literacy programmes: Programme Theory Evaluation (PTE), The Logic Model and the Trans-Theoretical Model. The incorporation of financial capability into the definition of financial literacy as behavioural outcomes motivated the discussion on behavioural theories underpinning financial education. The chapter also identifies behavioural outcome indicators and the challenges in reaching a consensus in naming them for measurement and evaluation purposes. The next chapter forms the empirical evidence of the study by exploring different financial literacy initiatives around the world. 94 CHAPTER 3 FINANCIAL LITERACY AROUND THE WORLD 3.1 Introduction The previous chapter outlined the value of personal financial planning and defined concepts associated with it: financial literacy, financial inclusion , financial capability and financial education. While the chapter also explained theories and models of motivation behavioural change, chapter three presents the empirical evidence of financial education and financial literacy of studies around the world . It outlines the benefits of financial education , the content, the target audiences and the solutions to deal with financial illiteracy. 3.2 Benefits /value of Financial Education The concept of financial literary denotes in its definition that its outcomes knowledge, skills and attitudes expected to yield benefits for an individual. The target is always the consumer but financial education has latent consequences for institutions and policy makers too. The issue also then arises as to who are the rightful beneficiaries of financial education. Authors like Kotze and Smit (2008:8) outline it clearly that all stakeholders must benefit, from financial literacy initiatives. The young and the old alike should benefit being targeted for various topics on finance like debt management, budgeting and planning savings and investment. This will empower them with basic financial skills to successfully manage their personal finances. This means that everyone should have the opportunity to receive such an education weather they are at a tender age or are they are old. Therefore the financial education is universally needed by all so that all may be able to first and foremost have and understanding of financial products and concepts. According to Fox, Bartholomae, and Lee (2005:195) financial education can include any program that addresses the knowledge, attitudes, and/or behavior of an individual toward financial topics and concepts. The OECD, (2005:2) defines financial education as 'the process by which financial consumers/investors improve their understanding of financial products and concepts." These topics and concepts form the content of financial education 95 programme which has been discussed more elaborately above. In this section it is important that the focus is on the value of the content than the content itself. In view of the above it is clear that financial education has been defined to include any program that addresses the knowledge, attitudes, and/or behavior of an individual toward financial topics and concepts. To ach ieve this goal , Fox, Bartholomae and Lee, (2005: 195) agree that financial literacy education programs aim to: "Increase financial "knowledge" with financial education programs generally of three types: education that offers broad financial education on savings, budgeting , investment, and credit management; education on retirement and savings; and education on home buying and management. " There is an indication of mainly the content that is usually included as the curriculum for a financial education programme. Other authors like Gerardi et a/. (2010) decompose the concept financial literacy into money literacy, price literacy and budget literacy. According to Kefela (2011 : 3702), however there are five thematic areas for studying financial literacy which are: "budgeting , savings, debt management, financial negotiations and bank services". According to Hastings Madrian and Skimmyhorn (2012: 10) micro level , individuals should be able to make sound and informed financial decisions. They are in agreement with the OECD (2015:4) which states that: "financial literacy ought to assist individuals to make informed choices". After learning from the initiatives consumers should show the capability and confidence to use financial knowledge to make financial decisions. This is supported by Huston 2010:307) and advises that: "when developing an instrument to measure financial literacy, it would be important to determine not only if a person knows the information but that the person can also apply it appropriately". The implication therefore is that, financial literacy goes beyond gaining knowledge but the benefits of receiving recline into applying it to real life financial situations. 96 Th is is further explained by Atkison and Messy (2011 :4) who write that financial literacy is more than just knowledge; it also includes attitudes, behaviours and skills . According to them financial literacy emphasises the importance of decision making which is viewed as the utility aspect of knowledge acquisition . Braunstein and Welch (2011 :455-456) concluded that in summary the value of financial training resonates well with the traditional adage that financial education has a manifested consequence of producing a well-informed consumer. The OECD (2015:4) definition appropriately refers to the compelling behavioral motivations for financial education. Mandell and Klein (2007:107) attest that the process enables more effective financial decisions with the often stated-motivation "to improve the financial well- being" of individuals and families making those decisions. In addition Mundy and Musoke (2011 : 15) also highlight that giving information to consumers is a way of feeding them with facts , data and specific knowledge to make them aware of financial opportunities, choices and consequences. They contend that this : "Information can also come in the form of advice involving providing consumers with counsel about generic financial issues and products so that they can make the best use of the financial information and instruction they have received ." From this statement, there is the introduction of one of the approaches of offering financial education which is financial counselling and giving advice to target groups. This statement also gives light that information or content for financial literacy may be general rather than specific such that in the discussion of financial education content the general aspects become variables in the research constructs. In terms of offering information however, Hilgert, Hogarth and Beverly (2012:321) say people should make a distinction between giving information and providing education . Education may require a combination of information , skill-building , and motivation to make the desired changes in behavior. The distinction between information and education is an especially important point for policymakers and program leaders making decisions about the allocation of resources . In addition 97 Frqczek and Kl imontowicz (2015: 63) write that financial education enables the change of attitudes and patterns of financial behaviours and the understanding of customers' rights and obligations. It is necessary to make rational, informed financial decisions. This is why it is agreed with Mason and Wilson (2000:5) that "education for financial literacy is meant to provide individuals with the knowledge, aptitude and skills base necessary to become questioning and informed consumers of financial services to manage their finances effectively." Consumers who question services offered to them provoke service providers to give them appropriate information , to improve service, to provide quality products and services . Even though the benefits of financial education are quite colourful , the concept has had its share of criticism from authors and researchers . In reviewing literature Hastings, Madrian and Skimmyhorn (2012 :31) demonstrate that there is contradictory evidence on the effectiveness of financial education and there are no drawn conclusions on what conditions may financial education work. These have been articulated in the previous chapter on the theoretical perspective of this study. Despite these contradictions at institutional level Sebtad , Cohen and Stack (2006:5) write that the impact of financial literacy could be improved financial performance of the institutions offering these financial services. It is not on ly individuals that benefit but institutions become responsive to the needs of the consumer and begin to offer better services. There can also be increased responsiveness to the financial service needs of the poor. This is supported by Miller and et al (2009 :3) and their point is customer awareness helps to improve the efficiency and quality of financial services. The current volatile markets and financial systems require consumers to understand the environment so that they may compare products and services to make better choices. According to Miller and et al (2009:3) service providers must disseminate the information so that they promote the strength of the financial markets as information known by one side gives one party an advantage over the other. With financially literate consumers, their awareness makes them better market players and their perception of the service they receive becomes a part of what drives customer service improvement. 98 It is viewed that clients and the general people that are well informed are aware of their rights and have the confidence to not only speak to get better services but they are also equipped to make better choices. When Remund (2010:279) reviewed of research studies which were conducted since 2000, they found out that many conceptual definitions of financial literacy fall into five categories:'(1) knowledge of financial concepts, (2) ability to communicate about financial concepts , (3) aptitude in managing personal finances, (4) skill in making appropriate financial decisions and (5) confidence in planning effectively for future financial needs.' Confidence becomes a factor to consider and a variable to measure. According to the OECD, (2015:5) definition , financial education "helps consumers/investors develop skills and confidence" and surely Arellano, Camara and Tuesta (2014:3) also make an addition that self-confidence has to be developed as it aids consumers and investors in decision-making. This is because in their confidence model to financial literacy (Arellano, Camara and Tuesta , 2014:6) financial capacities comprise of cognitive factors (knowledge, understanding or acumen, among others) and non-cognitive (personal attitudes). As financial education yields both financial literacy and financial capability, then it is reasoned that confidence can be developed as a result of financial education. Th is is value for both consumers and investors. Financial opportunities are becoming many but they are accompanied by the associated risks which makes financial decision making more and more complex. To deal with these complexities financial literacy education may be the key. The definition (OECD, 2015:5), highlights that financial educations make the "consumer/investor becomes aware of risks and opportunities". The purpose of financial behavior change according to Ozmete and Hira (2011 :386) is to ensure that people are able to manage their personal finance so that they may achieve their financial goals. Johnson and Sherraden (2006:6) present their view to say financial literacy may have benefits but it does not mean that it does not have shortcomings as it is not the answer for everything . However if it is complimented by with financial capability it can help the individual to engage well in economic life. They conclude by stating 99 that: "This is more likely when people are able to convert knowledge into action". On the issue of being able to avoid risks in their investment, Hilgert, Hogarth and Beverly (2012:321) believes that financial education will assist individuals to deal with ever changing and risky financial environments. According to them (Hilgert, Hogarth and Beverly (2012: 321) if people and households are financially literate they are able to sustain their wellbeing and also contribute to the development of the societies they live in. This statement is supported by Mahdzan and Tabiani (2013:42) with a declaration that at the macroeconomic level, if consumers able to put aside money for investment and savings they contribute to their country's economic growth. The money invested or saved is utilised by companies and other organisation to keep the economy going. In return the institutions play a vital role also in economic growth. This is because personal savings boost national savings; as such individual must be given financial education to heighten their understanding of financial opportunities. Financial education therefore is important not only to individual households and families but to their communities as well. This gives the value of financial education to a wider economic setting. In the economic environment consumers are constantly faced with changing environments and Cohen and Nelson (2011 :6) write: "challenges of money management are never static, nor are the solutions. For the poor, the pressure of juggling money never abates as they deal with unpredictable and seasonal incomes, and the financial pressures of life cycle events'. This implies that there is need to empower individuals so that they may be able to deal with forever changing financial pressures in their economic environment. To reiterate on the issue of empowerment Miller and et al (2009 :8) advocate for the empowerment of the consumer as they say: "Financial literacy is an active process, in which communicating information is only the beginning : empowering consumers to take action to improve their financial well-being is the ultimate goal. Financial literacy is critical for promoting access to finance by creating incentives and environments that promote desired financial 100 behaviors such as saving , budgeting, or using credit wisely." As the economic environment change and present trends and challenges people who are financially literate may be able know how to combat them. In research conducted in Australia Worthington (2006:1 ) noted that changes in the financial services market in Australia required that consumer become more knowledgeable if they are going to manage their finances effectively. Rutledge and et al (2010:3) also state that: "Financial literacy initiatives give consumers the knowledge, skills and confidence to understand and evaluate the information they receive and empower them to purchase those financial products and services which meet their needs and that of their families". These claims imply that if people are financial literate they become aware of their consumer rights and therefore start demanding good service from those that offer financial services. Th is follows that in the evaluation of financial literacy and using a well thought framework both the consumers and the service providers may benefit from the conclusions drawn. In the long run it is expected that consumers become more secure and confident to manage their personal finances. Consumer level benefits are added as Sebtad , Cohen and Stack (2006:5) write that in the long the run people are able to accumulate assets which will come in valuable during the time of need providing financial security. Asset building is important for future during times of retirement so that individuals maintain the life they lead when they were in their prime years . In addition on the issue of asset building Bell & Lerman (2005 :8) state that "Financial education , especially for economically vulnerable families , is an important part of an asset-building agenda. Increasingly, sponsors are linking financial education programs to tax refunds , buying a home, required registration for pensions, participation in welfare programs, and other key moments. " 101 This claim not only outlines the benefit but it highlights the areas to cover and evaluate on for a financial education programme. It is also of importance to note that the target audience is for such programme is the vulnerable consumers in the society. Despite the colourful upside of financial education outcomes, literature offers mixed evidence on financial education providing measurable benefits. Fox, Bartholomae, and Lee (2005:2018) are of the view that this is because financial education programs often omit evaluation as a component of their program design. Financial literacy programmes must include evaluation from initial stages to the last. In addition to lack of inclusion of the evaluation aspect (Schuchardt et al., 2009:88) there is a lack of consistency among researchers on how to define and measure program success and an inability to address challenges related to differences in methodology, data collection , and analysis. In particular say Schuchardt et al. (2009:88) existing studies tend to lack adequate methodological controls for potential sampling and selection biases , compounded by an under-estimation of environmental impacts. These inconsistencies in measurement, evaluation and methodological approaches make the development of evaluation frameworks difficult but equally provide open opportunities for research. According to Willis (2008a:4) the pursuit of financial literacy poses costs that almost certainly swamp any benefits and for some consumers, financial education appears to increase confidence without improving ability, potentially leading to worse decisions. Willis (2008b:2) also says that researchers who have done the evaluations do not make a sweeping statement of financial education resulting in benefits , but they have problems of val idity and reliability in collection and presentation of data on evaluation . These mixed evidence alerts the researcher that some of the initiatives may have not been evaluated or if they have, they may have had a large portion of research delimitations. Therefore, to address this , the researchers must always pre-test data collection instruments to ensure validity and reliability. On the point of causation Schuchardt et al (2009:88) write that there is little conclusive evidence to suggest causation : 102 "While evidence suggests that financial education leads to more improved financial behavior, the literature has been unable to clearly establ ish this relationship as a stylized empirical fact. There is still considerable debate among researchers as to whether financial literacy and education actually results in long-term improvements in financial behavior and wellbeing ." In summary the following are some of the benefits of providing financial literacy and these are the impact that this study searches for from the targeted group which received the education from various financial literacy initiatives in Botswana. โ€ข Asset and wealth accumulation (Sebtad , Cohen and Stack:2006:5, Bell & Lerman 2005:8) โ€ข Financial decision making (Braunstein and Welch , 2011 :455-456) โ€ข Reduced vulnerability to financial problems (Sebtad , Cohen and Stack (2006:5) โ€ข Promotes economic growth financial wellbeing Miller and et al (2009:8; Bell and Lerman , 2005:8) โ€ข Community and macroeconomic level growth (Mahdzan and Tabiani :2013:42; Hilgert, Hogarth and Beverly, 2012: 321) โ€ข Empowerment (Rutledge and et al 2010:3) and Miller and et al 2009:8) โ€ข Improves financial services - consumers able to assess financial products (Miller and et al 2009:8; Worthington , 2006:1; Rutledge et al 2010:3). Cohen and Nelson (2011 :6) summarises the definition briefly to say that fi nancial education is the process of building knowledge, skills and attitudes to become financially literate . What is common from al l the definitions is that financial literacy is "the knowledge, skills and attitudes" (these forming the domains of the concept of financia l literacy that have been elaborated above). From these definitions the benefits of financial education were drawn . With regards to financial education what is common about it is that it is a "process" to acquire 'knowledge, skills and attitudes'. Therefore 103 knowledge is the content of the programme that a provider of fi nancial education should select for the target group. The skills are the functions that the individual must perform while attitudes are the behaviours expected to be displayed after receiving such knowledge. If such behaviours and attitudes are displayed and if the skills and knowledge are applied in real life situation it means financial education has a positive impact. 3.3 Purpose and Content of Financial Education Financial literacy initiatives are nowadays offered in the context of what the consumer or the target audience need. This is why providers offer tailor made programmes- this also affects the purpose, the selection of content and the methods of delivery (Willis 2008b:3) . The OECD (2015:5) has included this : "to improve their financial well-being" being deduced from the definition as the overall purpose of offering financial education . In reviewing literature, Huston (2010:303) says that over the last decade, it is indicated that at least four distinct content areas were used to varying degrees: Money basics, borrowing, investing and protecting resources. Th is is why some authors like Suwanaphan (2013 : 1063) have outlined the following areas of knowledge: 'basic knowledge about revenue and expense management (Money basics) , knowledge about debt management (Borrowing), knowledge about risk management (protecting resources), and knowledge about investment management (Investing)" Fox, Bartholomae and Lee (2005: 197) also write that institutions wh ich offer financial education are categorised into three considering the topics they prioritise: "First, there are programmes directed at improving financial literacy by broadly addressing personal finance topics , such as budgeting , saving , and credit management. Second, there are programmes that give specific training in retirement and savings and are generally offered by employers. The third major category of programmes addresses home buying and home ownership. " 104 Therefore the content so far drawn from Bartholomae and Lee (2005: 197), Suwanaphan (2013: 1063) and Huston (2010:303) are that of: money management, investment, budgeting , saving , credit management, income management, asset protection and resources , and risk management. The content that has so far been discovered as common for Botswana situation is: financial management, savings, retirement, insurance, investing, credit or loans. These are the common issues that are discussed in financial literacy education but programmes differ and some may have different goals and topics . What is important is to understand the priorities (content) in financial education so that the programme may be a well fit for purpose to the recipient. The OECD (2015) state that: "Financial education programmes should focus on high priority issues, which , depending on national circumstances, may include important aspects of financial life planning such as basic savings, private debt management or insurance as well as pre-requisites for financial awareness such as elementary financial mathematics and economics." Around the world an example of programme which has been evaluated is that of the Money Smart program. In Chicago as narrated by Lyons and Scherpf (2003:4 ), it selected five key areas: "General banking services, how to choose and maintain a checking and savings account, how to budget your money, the importance of saving , and how to obtain and use credit effectively". Lyons and Scherpf (2003:4) relate that the target sub groups were: "welfare- to-work participants, Spanish-speaking immigrants, Chinese immigrants, public housing residents in Chicago, and community college students" and that the primary goal of the Money Smart program was: "to provide individuals with the necessary information to evaluate and make their own financial decisions". The evaluation model presented was focused on finding the relationship between the financial training offered and moving to being banked . It excluded impact variables that are needed for the Botswana context and therefore may not be suitable for use as a tool for evaluation. 105 However, there are other models discussed in the theoretical framework of this study which may have some aspects relevant for Botswana. In the light of the purpose of financial literacy in Botswana some of the institutions gear towards improving and preserving the financial wellbeing for its customers like Letshego Financial Services Botswana (The Gazette Newspaper 27, November 2014 ), and the content of financial Management. Other institutions like Bank of Botswana celebrate bank week and educate target audiences on fraud , indicating that some have short term and long term objectives. 3.4 Target Groups for Financial Education According to Cohen and Nelson (2011 :11) financial literacy audiences are diverse depending on their needs and circumstances. Therefore target audiences being heterogeneous can be categorised by age, gender, employment status or educational background . Other factors which may assist in the selection of a target group for a financial literacy initiative is to consider how they relate to products and services or their socio economic status. This because Cohen and Nelson (2011: 11) also say that financial illiteracy is common among low income earners, the poor and the illiterate groups (Lusardi and Mitchell 2008: 1) . The following are some of the target groups that institutions, practitioners and researchers show interest in . Most of the literature points to the poor as the target audience forming the largest population targeted for financial education programmes as they are deemed more vulnerable than the wealthy. In the section on the benefits of financial , the issue of vulnerability (Sebtad , Cohen and Stack 2006:5) is discussed to say that it is one of the outcomes expected for targeting the poor or marginalised groups. The poor are usually at a disadvantage as they often lack the means to recover from loss posed by risks in the financial environment or during a financial crisis . This may be tackled by involving them in insurance to secure their investments (Miller and et al 2009: viii) . In measuring and evaluation of a programme targeted for this group it is important to note if the consumers were able to build up confidence and become secure in dealing with financial issues. This is because the poor often lack confidence in dealing with money or life in general. 106 Besides the focus on the poor there is also a great focus on the low income earning groups in developing countries. Wyatt (2009:3) supports this by mentioning many segments of low income earners including the unemployed . Since Botswana is a developing country it is of interest to find out the target groups and the subgroup that inspired the institutions in Botswana to offer the financial programmes. According to Grifoni (2013:15) there are a lot of people in developing countries who are not only poor but are also disadvantaged by being faced with lack of resources hence susceptible to risk in the financial environment. The other group which has received attention in many studies is the youth. Many people are concerned about the youth as according to Johnson and Sherraden (2006:3) this is the group which will in future be active in leading households and the economy. It is believed that the youth are demanding from their parents and providers therefore even if it is not preparation for the future they should understand their present situations and financial constraints. This is why Cohen and Nelson (2011 : 11) write that financial education offered to youth is often purposed to teach negotiating with parents, reducing spending money, the value of saving, and planning for the future rather than focusing on investing . Another group which has drawn the attention of providers and researchers are the migrant workers. The group needs to be taught how to budget, manage income and expenses as the expenses of migration before settling down could be overwhelming to them. According to Cohen and Nelson (2011 :11) they are also faced with responsibility of sending money home. Remittances are part of microeconomics as they may cost the individual migrant worker depending on the currency exchange rate and the tariffs; therefore it is not surprising that financial education may also focus on this target group. According to Gibson , Mackenzie and Zia (2012:1) the remittences could be very low but attracting costs of sending . Sometimes they do not have information on the tariffs . These are the issues that the migrant worker may be educated on so that they may not be victims of information asymmetries. 107 In the consumer population other authors stress that both children and adults alike are in need of financial education (Kotze and Smit 2008:8). Some of those who offer financial education believe that children at a young age should be the focus audience because they may translate the knowledge, skills and attitudes into their adult life when they have to manage their finances . Mandell and Klein (2009:1) conducted a study with the target audience being school going children with the idea to assess the effectiveness of financial literacy courses in high school also wondering how this may affect them in adulthood. In conclusion Wyatt (2009:3) says that in choosing the target audience the following factors may be considered as they influence financial literacy behaviour: levels of literacy/numeracy, gender, age, access to technology education , cultural beliefs , ethnic background and religious background . In their offering of financial literacy training it is to be found out if institutions in Botswana considered these factors . 3.5 Approaches to offering Financial Education IAYVll!f'1 nMN . According to Mundy and Musoke (2011 : 15) financial literacy can be improved through financial education , information , instruction , training and advice. This outlines the ways or approaches to delivering financial education which can be done in so many different ways. Hastings, Madrian and Skimmyhorn (2012 :30) also write that much of the literature on financial education focuses on traditional , classroom based courses and so they urge researchers and instructors of financial education to think more expansively about integrated approaches to financial education. There are several approaches to financial literacy but the most prominent ones are classroom instruction, web and social interactions, and credit counselling. Some researchers found out that different institutions may use strategies like seminars, paper based materials and advisory and counselling services (Miller and et al 2009: 11 ). Since the target audiences and groups are different in their demographics it shows that approaches to financial literacy should be tailored and customised to the group. This is why there may be special modules and workshops (Lusardi and Mitchell 2009:2) designed for particular groups. Atkinson (2008 :70) also comments that many 108 of the financial literacy initiatives which have been evaluated use methods such as seminars, lessons or workshops. As others use these methods Cohen and Nelson (2011 :11) advocates for: "tailored training to clients , as well as keeping the programme material flexible and dynamic" This implies that there is no prescribed way to offering financial education which means it depends on the group, the purpose of the programme and the selected content that the group needs. In support of selecting the approach according to target groups, Cohen and Sebstad (2003: 14) behaviour change may be achieved more effectively if the courses are group oriented as it allows for detailed content to be covered. This informs the researcher that in evaluation of the initiatives in Botswana there might not have been a standard method of delivery because of the diverse characteristics of the target groups that received the education . Most of the group training is done face to face to offer credit counseling and debt management advice sessions. Face-to-face interactions and credit counselling are common and Cohen and Nelson, (2011 :21) says that this approach may be used to deliver detailed content with participants contributing directly to learning the skills and knowledge, personalizing the experience and giving direct response. On issues of evaluation it is easier to monitor quality and evaluate the outcomes by using different channels . In view of the advantages communicated , these approaches sound as the most effective compared to the rest. However in designing the programme the environment and the target group may not be suited for the approach which means that even if these are good approaches other variables may counteract their advantage. Technology is also one the aspects considered in bringing an interactive environment for the target audiences. This is because technology is exciting , provoking and challenging . Youth and adults alike are drawn to technology in social media , videos and storytelling through soap operas. Xu and Zia (2012:29) indicate that at the time they carried out their study there were several new financial literacy initiatives which had adopted creative interactive methods of delivery in developing countries : 109 "For instance, Karlan and Valdivia (2014: 14) were studying households in Peru to test the effectiveness of financial literacy education delivered through video and radio. Berg and Zia (2013:8) were testing the impact of financial literacy messages delivered through mass media and soap operas in the Gauteng region in South Africa" However Xu and Zia (2012:29) highlight that that many of the new programmes in developing countries did not have plans for evaluation. The lack of evaluation is a drawback for knowing the impact, outcomes and effectiveness of the programmes. Media and internet as written by Looney (2011 :5) is trending and highly being used to deliver financial education . New technology is now fashionable as providers use websites , social media and even "edutainment" . As Yoong and et al (2013:16) present it, mass media is used to cover large populations. Cohen and Nelson (2011 : 21) also report high utilisation of print media is with messages written in bank statements. They mention prevalent use of broachers, billboards, posters and newspaper advertisements to pass messages to consumers. However these approaches pose challenges to monitor quality and evaluate outcomes because the target audience is dispersed and not easy to reach . If this is so impact evaluation for this approach may be very complex and should be well thought out. It is also expensive to reach a dispersed audience and research on evaluations needs substantial amount of funding . However complex and expensive, evaluation is still vital to check progress and effectiveness. Other than this, technology and mass media are usually exciting and attractive to audiences and as such these approaches should continue to be used. Hastings Madrian and Skimmyhorn 2012 :30) say: "There are many other ways to deliver educational content that could improve financial decision making: internet-based instruction, podcasts, websites , games, apps, printed material. " Besides the use of media , multimedia and internet other methods identified are short workshops as suggested by Grifoni (2013:31 ). The various financial education delivery methods such as in-person, telephone, simulations and these according to Schuchardt, Hanna, 110 Hira and Lyons (2009:89) have received considerable amount of research by scholars. However they indicate that more research is needed to better understand what delivery methods work, with whom, and why? This is a welcome contribution bringing out the element of finding out the impact, the effectiveness, the suitability and the reason for use of these approaches on the audience. 3.6 Causes and Effects of Financial illiteracy The different types of groups have varied levels of financial literacy of which different factors could be the cause. One of these factors is the level of education . The OECD (2009:5) indicates that is people do not receive adequate financial education ; consumers are at a risk of making wrong choices , responding to situations in an illogical form . Lack of education can also lead to financial exclusion breaking the link between people and the financial system. People may not get the right information and therefore this may lead to information asymmetry. The OECD (2015:4) came up with solutions that governments, private and public sectors should ensure the promotion of financial capacity building , based on proper financial information and instruction. Lack of information is a factor as Lusardi (2008: 1) attest to that saying when people do not get information they may not be able to save or prepare for retirement adequately. The OECD (2015:4) encourages the best practice of nations to make provisions for retirees by stating: "The awareness of future retirees about the need to assess the financial adequacy of their current public or private pension's schemes and to take appropriate action when needed should be encouraged ." Th is does not help in wealth creation or in understanding basic financial concepts. As pertaining to investment Rooij , Lusardi and Alessie (2007:2) say financially illiterate people do not have the tendency to participate in stock or buy high-return assets. To cement this Bernheim et al 2001 :6) and Varcoe et a/.2005:5) view formal financial education as very important to combat financial illiteracy. Sometimes it is lack of advice from experts. Rooij , Lusardi and Alessie (2007 :2) argue that people with low literacy do not ask 111 for professional help, as they tend to consult family and friends for financial advice yet those with higher levels have the tendency to read newspapers, books and find information from the internet. From the background of this study, OECD/INFE (2009:4 ), report that before the 2008 crisis were less aware of the risks involved in their decisions as for instance did not understand the terms and conditions of their mortgages. This attracted debts and it was because they did not consult the right people. Financial education may have helped them be aware of the risks they were in OECD/INFE (2009:7) says that time is also a factor in being available to be taught. It is not often easy to give financial education at work because of busy schedules and the rationale on how to do it is always difficult to arrive at. (Clancy, Grinstein- Weiss and Schreiner 2001 :6). There may be many other factors besides these ones and not captured by this study but what is most important is that whatever the cause the importance of financial education is stressed . 3.7 Solutions: Enhancing Financial Literacy Initiatives Accord ing to OECO/INFE (2009:9) , Lusardi and Mitchell (2013:44), Messy and Monticone 2012:46) Klapper, Lusardi and Panos (2011 : 1) aftermath of the 2008 global financial crisis gave an increased awareness by the public, policy makers, private sector decision makers and has prompted governments and interested stakeholders to take some remed ial policy actions in the financial education area. This has been expressed in Brazil (OECO/INFE 2015:46). The United States of America (National Strategy for Financial Literacy 2011 :1) .Canada (National Strategy for Financial Literacy - Count me in , Canada 2015:5) , South Africa Department of National Treasury Republic of South Africa 2013: 1 ), Australia (Taylor and Wag land 2013:68) all around the world hence prompting the need to enhance financial literacy initiatives such as developing national strategies to deal with the problem. Since countries and their needs are diverse, th is is why Messy and Monticone 2012:46) mention that "The state of development of fi nancial education initiatives is quite heterogeneous across countries ." They instance the strategy of Ghana by saying "The government of Ghana adopted a National Strategy for Financial Literacy and Consumer Protection in the 112 Microfinance Sector in 2009, and is planning to enhance financial education in schools ." To cement on government intervention Bell and Lerman (2005:3) write : "Education programs are becoming increasingly linked to government agencies as well." According to (OECD/INFE 2015:3) the OECD project began in 2009 on national strategies in order to address the effects of the 2008 global financial crisis. The main agenda was to give a framework to countries on how to address issues of consumer protection and financial inclusion. These national strategies are supposed to consequently translate financial education into financial stability and development. To enhance financial literacy initiatives researchers recommend for countries to concentrate on developing national strategies. (OECD/INFE 2015:3) The OCDE (2013:31) reports of successful national strategies of which Botswana may use as bench mark for its National Strategy. According to OECD (2013:31) the success of a national strategy is determinant by the main ingredient of stakeholders' involvement which is termed as a multi- stakeholder approach (OECD/INFE 2015:47) to enhancing financial literacy initiatives. This has been embraced by other authors: Gale and Levine (2010:2) also advise that on ensuring the effectiveness of financial literacy initiatives, policy-makers makers should be on the lead of the financial literacy campaign . The involvement of policy makers is further cemented by authors like Holzmann (2010: 13). Mandell and Klein (2007:2) policy makers now are convinced of the positive impact of financial education and therefore should be made obligatory to implement. Taylor & Wagland , (2013:69) give examples of Australia and New Zealand where government and the private sector have collaborated to enhance financial literacy initiatives. This has shown progress in the fight against low levels of financial literacy. Countries mainly focus on children as starting financial literacy education at an early age, to prepare them for the financial challenges experienced in adulthood . In many of the national strategies it is recommended that the curriculum begin from kindergarten. The examples of such are The Australian National Strategy which has been developed which has targeted school going chi ldren 113 to raise their level of financial literacy According to Taylor & Wagland 2013:69) main emphasis is to include financial education in the existing school curriculum , starting from early childhood to in kindergarten until year 12 students. In support of this Sundarasen (2016:68) write that young people have to prepare for money management in future. Through national strategies governments must make attempts to prevent the crisis from happening again. Mandell, (2009: 1) urges countries take lesson from the United States of America which is wary of a possible repetition of the 2008 crisis. Measurement & Evaluation is also one of the greatest ways to find ways to improve and enhance financial literacy initiatives. In delivering this education it is clear that there is need for define purpose (the intended outcome), carefully selected content, and appropriate approaches that suit the target audience for the financial literacy initiative or programme. These criteria should also include the evaluation exercise which may also enhance financial literacy initiative . To support this claim Remund (2010:292) says that the consistency and legitimacy of the achievement for financial education should be tied with solutions to be used to write about such accomplishment for various content areas, the approaches and target audiences. This shows that in evaluation , it is imperative to make the content and the target audience part of the criterion for evaluation. The idea is stressed by Monticone and Messy (2011 :36) highlighting that collecting evidence on financial literacy would be useful in the selection of target groups, and in choosing appropriate delivery channels and relevant contents , hence ensuring an efficient use of resources. According to Miller and et al (2009:6) the evaluation of financil education is innately complex to be conducted . They state that as financial education attracts the attention of policy makers and various sponsorships which fund the enhancement of the initiatives. Such attention and sponsorship demand evalustions to iform them of the retun value of their investment in the programme but a standerdised structure for guidance to do such is lacking . According to Willies (2008a: 16) the limited efforts of evaluation which have already been done have unconvincing results. In the case of Botswana there 114 is minimal empirical literature in the evaluation of financial literacy initiatives and this is supported by Monticone and Messy (2011 :27) who note that Botswana, by being among the developing countries, has features of limited financial education or any measurement and evaluation for the few initiatives. The lack of measurement and evaluation is emphasised by Xu and Zia (2012:24) write most of the measurement and eva luation exercises are mostly conducted about and in developed countries more prevalently in the United State of America . It is only in the recent time that some measurement evaluations are conducted in developing countries . This indicates that even where there are financial literacy initiatives in developing countries most of the empirical literature which exist on measurement and evaluation of financial literacy is on developed countries. The next section provides empirical research on measurability of financial literacy. 3.8 Studies around the World Around the world financial education programmes have been evaluated and in some reports it has also been written about the different target groups, the content and the purposes as to why the programmes were implemented. Some studies in places like Australia also measured confidence and financial capability. Some are on impact analysis like in Brazil while others are closer to home in South Africa with quantitative measures of financial literacy. 3.8.1 Evaluation of Financial Education after the 2008 Crisis: America Even though America has a lot of financial literacy initiatives and programmes especially after the cred it crunch of 2008, American financial education providers have concluded that evaluations are still far from satisfactory. The authors also recognise that the reasons behind less than adequate evaluations included the lack of resources , particularly at grass- roots level , and the lack of evaluation tools and training sessions at the national level (Atkinson 2008:74).Bumcrot, Lin and Lusardi (2011:1) conducted a research on fifty United States financial institutions using a survey of five questions covering : simple calculations about interest rates and inflation , the workings of risk diversification , the relationship between bond 115 prices and interest rates , and the relationship between interest payments and maturity in mortgages. The questions were based mostly on the content which might not be suitable for Botswana as most Batswana do not engage with bond prices but the question on mortgage may be relevant as most working class Batswana have mortgages. Their report focused on knowledge (Bumcrot, Lin and Lusardi 2011 :5) only and did not include the other outcomes as the conceptual framework of this study has unraveled that in evaluation financial outcomes are also important to evaluate. This however does not mean that researchers should always have a wide scope in evaluation of financial education initiatives. In their findings they concluded that financial literacy is rather low in the population and most Americans are not familiar with fundamental concepts that should form a basis for financial decision-making. They also found out that here is considerable geographic is variation in financial literacy that only a few studies are beginning to document. Their report was published in 2011 and perhaps assessing a recent study even if it is of different target group and circumstances may give a different perspective. 3.8.2 Financial Literacy and Savings Asia A study conducted by Mahdzan and Tabiani (2013: 53) in Malaysia states that "in the overall the study has shown that financial literacy is an important determinant of individual savings. Financial literacy, which is defined as individual's knowledge about basic and topics and advanced topic, such as knowledge/computation on interest rate , inflation rate, percentage calcu lation , stocks, and unit trusts, has been found to be positively related to the probability of having positive savings amongst individuals, cateris paribus". The study was conducted using Methods of data collection that were quantitative with quantitative analysis adopting Lusardi and Mitchell (2008) questions. In the event of gathering empirical evidence of th is study these questions were be considered but were altered or modified for Botswana context as the content and methods of delivery are different. 116 3.8.3 Measuring Confidence - Australia The confidence models in the Arellano Camara and Tuesta (2014 :1) research were developed to measure the effects of confidence in financial literacy. As has been discussed in the conceptual framework of this study Remund (2010:281) includes in his definition of financial literacy "confidence in planning effectively for future financial needs", while Mundy and Musoke (2011 : 15) cements this to say: "confidence" means feeling sufficiently self- assured to make decisions relating to one's personal finances. As an element of financial literacy indicators it is therefore befitting to analyse a model that has been applied in research . Arellano Camara and Tuesta (2014: 2) conducted study with the main purpose to analyse whether self-confidence affects financial abilities of young people in Spain , through financial literacy. In their methodology they focused on the role of self-confidence in four dimensions to derive the variable for their research 1) the student's self- confidence in the environment of their college; 2) self-confidence referring to the utility found at school ; 3) self-confidence in relation to the results obtained; and finally, 4) self-confidence in a broader sense. They discarded the classic assumption in regression models which accommodates the independence of the observations but carried out estimations based on a multilevel analysis , in which a hierarchy structure is considered . They derived data from Programme for International Student Assessment (PISA) Financial Literacy (2012) report, conducted by the OECD (2012). They highlight that their choice of multilevel analysis was influenced by the random sampling method from the PISA database which was initially done using stratified sampling . The nested system of random sampling and students ending up with the same characteristics at the same school prevented conventional linear regression analysis from being used. As Arellano Camara and Tuesta (2014:1) created models it assumed that they used more of Confirmatory Factor Analysis (CFA) rather than Exploratory Factor Analysis (EFA) as they were not developing theory but applying it. This is explained by Williams Onsman and Brown (2010:3) on the research article about Factor Analysis and deliberated more explicitly by Suhr (2006: 1) stating that: "Confirmatory factor analysis (CFA) is a statistical technique used to verify the factor 117 structure of a set of observed variables . CFA allows the researcher to test the hypothesis that a relationship between observed variables and their underlying latent constructs exists. The researcher uses knowledge of the theory, empirical research , or both , postulates the relationship pattern a priori and then tests the hypothesis statistically." Arellano Camara and Tuesta (2014:1) developed four models but the one which they considered to be of interest is model which had the confidence variables . They describe the model 1 as the base model where the dependent variable is built with the scores in the financial literacy test and the explanatory variables are the variables of interest: those variables relating to self-confidence: Model 1 โ€ข The selfconf variables refer to different variables which try to measure the student's level of self-confidence โ€ข The variables selfconf1 a and selfconf1 b are statistically significant and with the expected sign. โ€ข The variables se/fconf2 and se/fconf3a are non-significant in this first regression , although both have the expected sign. However, measuring the level of self-confidence in relation to the results obtained in their negative form , selfconf3b , is a relevant variable when explaining financial literacy. โ€ข The selfconf4 variable is also significant in accounting for the behaviour of our dependent variable . Their hypothesis is that non-cognitive factors are important to determine the financial behaviour of young people, as much as these influence cognitive factors. It is to be noted that the conceptual framework of this study accommodate the both the cognitive and non- cognitive variable to constitute financial well-being. Therefore in relating to their hypothesis the results show that individuals with higher levels of self-confidence score higher in financial literacy tests. According to Arellano Camara and Tuesta (2014:11) these skills , together with personal attitudes, determine the financial behaviour patterns of the economic agents involved. They however, indicate that very high levels of self-confidence run the risk of over-confidence. They further make conclusions that, although self-confidence improves wellbeing , the 118 likely existence of diminishing returns for this variable could lead to a loss of wellbeing . This idea is also reflected in the results obtained when perseverance is included in the model: other than confidence the other non- cognitive variables included in the models is that of perseverance and motivation . The uniqueness this research is that it has developed the models to measure the aspect of confidence and other non -cognitive variables in financial literacy. Most researches focus on the cognitive approach to financial literacy. Arellano Camara and Tuesta (2014:11) state that: "This study offers an initial approach to the impact of non-cognitive factors on financial literacy." They specifically showed how self-confidence, measured in different spheres of life, affects financial literacy, impacting on the way people process information and on decision-making. 3.8.4 Adult Financial Literacy in Australia In another study conducted by Worthington (2006: 16) the researcher used Logit models to predict financial literacy using the 2003 ANZ SuNey of Adult Financial Literacy in Australia. It has been shown that financial literacy in Australia varies strongly according to some demographic and socioeconomic characteristics. All other things being equal , males, older persons, people whose occupations are professional, business owners and executives, small business and farm owners and semi-skilled trades, those with a university education and those with higher levels of income, savings and mortgage debt have a greater likelihood of a high level of financial literacy. Conversely, females, the unemployed and other non-working persons, people with the occupation of farm worker, and those whose highest educational level is Year 10 or lower, Year 12 or technical college have a greater likelihood of a low level of financial literacy. This according to Worthington (2006:16) generally, the models specified satisfactorily predict financial literacy outcomes. The Logit model as discussed in the theoretical perspective is attributed to be useful for evaluation purposes and Worthington (2006: 16) 119 3.8.5 Studies on Immigrants- Australia and New Zealand A research conducted by Gibson, McKenzie and Zia (2012:20 ) on immigrants in New Zealand and Australia sending money to Pacific Islands, Ph ilippines and Indonesia showed that simple financial education training for migrants can change their knowledge about the costs of remitting and lead them to look around more at better prices. The training taught migrants the different elements which make up the cost of sending remittances and how to compare costs across methods, explained how different methods of remitting work including alerting them to the presence of new methods, and also covered content on comparing costs of different methods of short-term credit financing for immigrants. Their experiment was designed to measure the impact of providing financial literacy training to migrants. In their study they used randomized experiment designed to measure the impact of providing financial literacy training to migrants in New Zealand and Australia - countries wh ich had recently launched a remittance cost comparison website (www.sendmoneypacific.org ) for sending money to the Pacific Islands, and , in the case of New Zealand , where regulatory reform had led to the introduction of new remitting methods. From their findings Gibson, McKenzie and Zia (2012 :22) say that even though the immigrants could not change either the frequency or level of remittances, training appears to increase financial knowledge and information seeking behavior and reduces the risk of switching to costlier remittance products. Although there have not been any noted initiatives in Botswana directed at immigrants the measurement and evaluation of their estimate equation may be useful on impact evaluation for Botswana consumers or recipients of the programmes. Their content too is notable to comment on and indicate that it was suitable for the audience it intended to reach . The training taught migrants the different elements which make up the cost of sending remittances and how to compare costs across methods, explained how different methods of remitting work including alerting them to the presence of new methods, and also covered content on comparing costs of different methods of short-term credit financing for immigrants. The most important 120 point is that the financial education was targeted and it had a purpose with a fulfilled outcome. 3.8.6 Marginalised groups in Canada Research conducted in Canada on low income earners showed positive impact (Robson 2012:42).There is also some promising evidence that financial literacy can : 1. Provide useful knowledge, skills and habits for youth that can be used throughout adulthood , 2. Support improved settlement processes and outcomes for new immigrants and 3. Promote financial inclusion for marginalized communities . In another study on Canada it was found out that 42 percent of respondents were able to correctly answer three simple questions measuring knowledge of interest compounding , inflation , and risk diversification. This was the target content form which financial literacy was measured and it is believed it was in the context of the Canadian environment. This in the applicability of the argument for tailor made programmes in chapter two by authors such as Cohen and Nelson (2011 :11) Lusardi and Mitchell (2009:2) and Thomson (2014:11 ). In their measurement and evaluation Boisclair, Lusardi and Michaud (2014: 1) discovered that retirement planning is strongly associated with financial literacy; those who responded correctly to all three financial literacy questions are 10 percentage points more likely to have retirement savings. From the study Canadians performed relatively well in comparison to Americans but worse than individuals in other countries, such as Germany. Among Canadian respondents, the young and the old , women , minorities, and those with lower educational attainment do worse, a pattern that has been consistently found in other countries as well. 3.8.7 Impact Analysis - Brazil Evidence on impact evaluation in Latin America is viewed as scarce Messy and Chiara Monticone (2013: 140) but a particular case in the region is found in Brazil , which is the first country where, in the framework of the Russian Trust Fund , an experimental large scale evaluation was carried out. The evaluation has been applied to a financial education programme for young people in the context of formal education. Grifoni (2013: 140) relates that it is the first to find 121 significant positive impact on knowledge and behaviours of students. The results proved that the programme reached its objectives. According to Grifoni (2013: 140) this , and a careful design which considers the characteristics of the audience and takes into account behavioural and education theories, make it a model initiative for other countries of the region and of the world interested in developing financial education programmes in the context of formal education. This success story may also be a model for Botswana to advice financial education providers to be careful on designing the programmes. The objectives, content and outcomes must be clear. The theory on motivation and behavioural outcomes by Mandell and Klein (2007:107-114) adopted for this study has also been proved by this success. In Thailand Suwanaphan (2013: 1062) used a questionnaire divided into 3 parts Part 1: For financial literacy, the survey participants are asked to answer 24 multiple-choice questions of their knowledge on 4 aspects. Part 2: For attitudes, the survey participants are asked to answer 34 questions of their opinions. Part 3: For behavior, the survey participants are asked to answer 42 questions of their behaviors and decisions. The parts show that Suwanaphan (2013: 1062) used the three domains (part1 Knowledge, part 2 attitudes, part 3 behaviour) in the conceptual framework of financial literacy to design a tool for impact evaluation on the recipients of the education. The results of their study indicate that the aacademic support-employees need to improve their knowledge of personal finance as they revealed that they have sufficient knowledge and skills about managing their financial affairs. 3.8.8 Progress for Africa According to Grifoni (2013:20), so far there is very limited evidence of financial literacy levels in Africa. At the moment, there are no cross-country data available, but a few countries have started measuring it, or have plans to do so, either on their own initiative, or as a part of the international financial literacy measurement exercises promoted by the OECD and the World Bank, under the sponsorship of the Russian/World Bank/OECD Financial Literacy and Education Trust Fund. Even though there may be this report from Grifoni (2013:20) , there are some countries in Africa that can be 122 used for empirical evidence of evaluation conducted. The Master Card Foundation (2011 :7) conducted a research using case studies 12 diverse financial education programmes from 12 developing countries , implemented by various organisations, including banks, community-based organisations (CBOs), non-governmental organisations (NGOs), private companies , and donor organisations. These organisations used a variety of delivery methods, curricula, and programme models to deliver financial education to low- income, vulnerable , and young populations. The evaluation tool contained 6 questions collecting information using a questionnaire and then using desktop research to compile the information. 3.8.9 Quantitative Measures for South Africa In South Africa a financial literacy programme called Bubomi offered by ASSA in 2008 is reported by Messy and Monticone (2012:83). Participants who received the financial education were cautious on borrowing money. This gives an indication of a positive impact of financial literacy on the target audience. The participants were also able to manage their debt better and were sensible about saving. The aim of the programme was to improve basic financial management skills and the target audience was LSM 1-5 who learnt through interactive workshops as a method of delivery of the content. Individual and family needs and wants; spending patterns and budgeting; saving and planning for the future ; understand ing the banking system and why bank costs should be paid , as well as rights and duties of bank customers. In other parts of Southern Africa Malawi , Zambia, and Mozambique, research was conducted and it was concluded that Malawi had more successful Delivery mode: portable DVD players (Grifoni 2013: 31 ). The delivery method was able to give the impact desired. In another research in South Africa , Kotze and Smit (2008:1) investigated the perceptions of 286 Business Management students with a minimum of three years' working and management experience, regard ing both their financial literacy and their need and desire for financial education. The outcomes of the study show the necessity for financial education and financial literacy in South Africa . In their conclusion Kotze and Smit (2008:1) report that the 123 respondents included in the study indicated that limited financial knowledge is associated with feeling less in control of personal finances, and a decrease in confidence in managing money and making investment decisions. This is another research which has shown the purpose of conducting training being achieved and showing the intended outcome from the measurement and evaluation . Their use of quantitative methods and questions are valuable to learn from for the methodology section of this study. A research conducted by Lauw, Fouche and Oberholzer (2013: 1) also used quantitative methods that may be useful as South Africa is closer to Botswana. In addition to this, the research is pertinent as the contribution it made is that a new suitable questionnaire to evaluate financial literacy was developed for the South African context. This is relevant to this study as the questionnaire was also utilised guiding on how to develop a framework for the Botswana context. 3.8.10 Progress for Botswana In Botswana which is the state where this current study is carried out, research by Miller et al (2009: 10) indicate that the support for financial literacy is very slow for public and private sector. Evaluation is said to be very minimal and the programmes are mostly initiated by the private sector. This is supported by Atkinson and Messy (2012: 19) stating that in Botswana financial institutions are the sole or main stakeholder involved in the implementation of a financial education project. However just as Miller and et al (2009: 10), Atkinson and Messy (2012:81) report nothing on evaluation of the programmes. A preliminary investigation before a full research was carried out at the banks and other institutions wh ich provide these programmes as there is not much published on evaluation . Gable (2006:6) suggests that a Consultant engagement process can be done at the pilot stage of the study to establish the relationship between variable , and identify a pattern to be used for the next multiple cases. This was a welcomed contribution such as it enabled being informed before mapping a full investigation and study . . 124 3.9 Chapter Summary This chapter discussed the empirical evidence of financial education and financial literacy of studies around the world. It stresses value of financial education, the content usually selected for financial literacy initiatives, the target possible audiences and the solutions to dealing with financial illiteracy. The studies around the world revealed that most of the targeted groups for financial programmes are the poor, the marginalised groups, children , adults and youth. It is also depicted that the purpose of financial literacy initiatives is consumer empowerment for better decision making. The content which is usually prioritised is that of investment, money skills, savings, income and debt management, mostly delivered through classroom instruction and conventional methods. However there are some programme using media and interactive methods. Though there are many programmes around the world most lack measurement and evaluation which is a critical aspect to detect areas for improvement. Those which are evaluated use the multi -step methods. The next chapter is the methodology for this study on evaluating the financial literacy initiatives in Botswana 125 CHAPTER 4 THE REASERCH METHODOLOGY 4.1 Introduction The previous chapters provided an empirical review of financial literacy in the world taking cognisance of the theories and models discussed n chapter two. The analysis informs that financial education leads to behavioural change and some countries are making inroads in enhancing financial literacy among their citizens through financial education. This chapter explains the research methodology outlining the way in which the research was carried to arrive at evaluating the financial literacy initiatives in Botswana and assessing the impact on the target audience. It starts by establishing the research philosophy, adopts the research approach and then draws the research design. It discusses the research methods, the target population and data sampling techniques. It concludes with a discussion on the validity and reliability, data analysis techniques, and ethical considerations for research. 4.2 The Research Philosophy According to Uddin and Hamiduzzaman (2009 :656) a research philosophy is a belief about the way in which data about a phenomenon should be gathered, analysed and used. In research it is about presenting truth and logic (Uddin and Hamiduzzaman (2009:656) "with ontology referring to the theory of reality what reality generally looks like irrespective of the precise knowledge of it, whereas epistemology refers to the theory of knowledge". Gray (2013: 19) says that knowledge about reality is what particular properties and relations of reality can be described . In relation to these three branches of philosophy, Creswell (2013:6) identifies three world views on how knowledge should be presented , how truth should be told and how researchers conduct to gather and present the knowledge. Creswell 2013:6) state that: "the three worldviews are general philosophical orientation about the world and the nature of research which the researcher brings to a study. These world views are post positivism, constructivism, transformative , and pragmatism." Research in the past mostly relied on the positivism philosophical stance claiming that truth was absolute and this was steeped in 126 the traditional scientific approaches to research (Crossan 2015:54; Gray 2010:21 ; Hirschheim 2010:10). As research evolved the positivist approach was criticized for not providing the means to examine human beings and their behaviours in an in-depth way (Crossan (2015:49). This brought a paradigm shift in research. According to Creswell (2010:6) and Karley (2013:33) a paradigm is a cluster of beliefs. It leads to asking certain questions and using appropriate approaches to systematic inquiry (known as methodology - that is , how should we study the world?) as adduced by Christie et al (2000:6) . In assessing these world views, the limitations of post positivism are the proximity (Crossan 2015:54) of the researcher to investigation . Considering constructivism in contrast to positivism it rejects the objective view of human knowledge. It is an alternative extreme end of positivism (Hirschheim 2010: 11 ). Positivism (Karley (2013:20) was typically equated with quantitative research methods such as experiments and surveys and without any explicit ph ilosophical commitments, while anti positivism employed qualitative methods (Bhattacherjee 2012:7) such as unstructured, structured and semi- structured interviews and participant observation. In constructivism meaning is constructed not discovered (Hirschheim (2010: 11) with inductive logic and knowledge never value-free where the knower and the known are seen as inseparable Rocco et al (2003:21 ). According to Rocco et al (2003:21) argues that constructivism alone could not satisfy the needs of their study and so employed multiple views. Based on this constructivism alone could not be the basis of this study. Eventhough a qualitative approach was used in the first phase of the study; it became insufficient in measuring the impact of fi nancial literacy on the consumers - as this needed quantitative approach thereby ordering the use of multiple approaches for investigation . According to Creswell (2013:9) the world transformative world view arose during the 1980s and 1990s against post positivist castigated for imposing structural laws and theories which did not fit marginalized individuals in the society or issues of power and social justice, discrimination , and oppression . A transformative worldview holds that research inquiry needs to be 127 intertwined with politics (Mertens (2010:468) and a political change agenda (Mertens 2010:469, Creswell 2013:9) to confront social oppression at whatever levels it occurs. According to Newman (2014: 121) and Shannon- Baker (2015: 357), this change is needed for lives of the participants, communities , the institutions in which individuals work or live, and the researcher's life. The transformative paradigm was not able to satisfy the needs of this study. The research did not seek to address the social and political issues of the marginalized individuals in the society or issues of power and social justice, discrimination , and oppression. Even though the study may highlight some marginalised groups targeted for financial literary, it is not the fundamental purpose of the research for a political agenda. The most suitable philosophical stance for this study is pragmatism which Creswell (2010: 13) says is derived from the work of Peirce, James, Mead, and Dewey (Cherryholmes, 1992). Since the 1970s (Gray (2013:28) pragmatism has regained some of its popularity, largely because of the insights it has provided for research into management and providing an epistemological justification for mixing approaches and methods. Philosophically Johnson and Onwuegbuzie (2004: 17), Combs and Onwuegbuzie (2010:2), attest that it is the "third wave" or third research movement which swings past the paradigm wars by offering a logical and practical alternative, with multiple views and concepts relevant to support action (Karley (2013:23, Shannon-Baker 2015:322). According to Johnson and Onwuegbuzie (2004: 17) the logic of inquiry includes the use of induction (or discovery of patterns) , deduction (testing of theories and hypotheses), and abduction (uncovering and relying on the best of a set of explanations for understanding one's results). Pragmatism holds that the most important determinant of the epistemology, ontology and axiology is the research question (Karley, 2013:23). As such pragmatism as a paradigm su ited for mixed methods research and was therefore selected for this study. Pragmatism asserts that concepts are only relevant where they support action (Karley 2013:32,) and practical consequences of findings from answering the research question : This study seeks to find practical ways of 128 enhancing financial literacy initiatives in Botswana. According to Creswell (201 O: 13) pragmatism is not committed to any one system of philosophy and reality thereby giving the individual researcher an opportunity to possess freedom of choice. The "Freedom" (Shannon-Baker 2015:322) to choose the methods, techniques, and procedures of research which best meet their needs and purposes. It is thefore an attractive philosophical partner (Johnson and Onwuegbuzie 2004: 164) for mixed methods research which allows freedom to integrate methods for optimal results. The mixing being a desired integration (Creswell and Plano Clark 2007: 5, Bazeley 2010: 432) combining elements of qualitative and quantitative research approaches for the purposes of breadth and depth of understanding. Therefore as pragmatism is practical so is the mufti-method approach for this study. 4.3 The Research Approach The Researcher has adopted a multi-step approach to the study, the reason being to accord the study the utility of various methods to answer the research question. A quantitative approach alone would not assist in exploring the phenomena and so was the qualitative approach which would not singularly answer the questions on the impact of financial education . Considering the philosophical stance of pragmatism explained above Shannon-Baker (2016:325) says "pragmatism offers several ways to bridge dichotomies that exist in mixed methods approaches to social science" The two opposites of qualitative and quantitative approaches are brought together in this study. According to Creswell and Plano Clark (2007:5) and Bazeley (2010: 432) such an approach is meant to allow integration for purposes of depth which cannot be obtained by a single approach . According to Bazeley 2010: 432) the combination or corroboration can be obtained by 1. Merging : or 2.Connecting or 3. Embedding sets of data. These indicate the point of mixture depending on the purpose and reasons for mixing: it could be data, methods, to find breath or to validate information. According to Palinkas et al (2010:48) Mixed Method Research (MMR) is used for different purposes Greene, Caracelli and Graham (1989:255-256, Onwuegbuzie and Combs (2011 :4) identify that it could be for initiation 129 purpose which is intended to find contradictions , and perspectives, triangulation is used for the purposes of convergence and corroboration while expansion purpose is meant to extend the breadth of study. According to Onwuegbuzie and Combs (2011 :4) the development purpose is meant for one method to inform the other and Complementary Purpose for elaboration and enhancement. In this study the multiple-step is used for the purpose of instrument development. 4.4 The Research Designs According to several authors (Sekaran 2003:56, Bhattacherjee (2012:35) Talab (2008:20) a research design is a plan or blue print that creates the foundation of the entire research work. As pointed out by Rajasekar, Philominathan and Chinnathambi: (2013:22): "essentially, the research design creates the foundation of the entire research work". The following research designs (qualitative, quantitative and the mixed methods design) are discussed and justified on whether they are suitable or not for this study. This is because Rajasekar Philominathan and Chinathambi (2013:9) write that the researches can be quantitative or qualitative or even both. The table below adapted from Creswell (2014:42) illustrates the alternative designs. Table 41: The Alternative designs Tend to or :1 Typicolty .. . Quolitotive Approoches Quantitative Approoches Mixed Methods Approoches I . :I Use these . Constructivist/ tronsfoonot1ve knowledge . Postpositiv1st knowledge . Pragmatic knowledge claims philosophical . claims Claims . Sequential. concurrent. and . assumptions Phenomenology. grounded theory. . Surveys and expenments transformalive ; Employ these ethnography. case study. and narrative strategies of inquiry . Employ these . Open-ended quest,ons. emelion on savings, investment, and ... stimulates interest in 1 โ€ข-โ€ข&โ€ข-Hยท Financial Education for . Informed Decision Ch-... .... l\bking financial and stock markets Finacial Education has Financial Education has Financial Education has changed empowered consumers to empowered consumers to businesses in attending to custOflrfs avoid scams & ftaudulent save, invest and lessen and their marketing stntegies for schemes \\bich pressllfe on employers compe1iveness impovorishes them 5.5.1 Changes in Perception, Behaviour and Attitudes The results of the thematic analysis indicate that financial education provides change in perception . It is believed that financial education changes perception on investments, stock market and taxation . The change after financial education as reported by P12 is that of increased interest in stock market: "Young people usually develop interest in stock market after these competitions and after being educated on shares and the value of investment". Change is also reported by on taxation P18 when they say: P18: "Consumers now understand the value of Tax Returns and the consequences of evading tax". There is also a change in compliance towards Taxation which is validated by the following statement from P18: "Batswana have improved and the education has been designed to address lack of knowledge on Taxation and compliance." Most of the companies which conduct financial education target young people in and out of school. P20 being one of these, reports a change in behaviour and attitudes of students: they view personal finance , engaging in mock businesses and learning financial literacy as P20 states verbatim: "A cool thing to do ". According to P20: "Students tend to become aware of their needs, tend to learn how to be honest, how to be cautious and how to be 177 accountable of the resources which they use. " The purpose of their programme as highlighted by P20 is to empower young people with lifelong skills and financial literacy skills being one of such . Literature by researchers such as Johnson and Sherraden (2006:3) and Cohen and Nelson (2011 : 11) in chapter two revealed that youth are one group that are a center of focus in giving financial education by different stakeholders and the idea is to initiate and introduce the habit of financial planning from grassroots level , and to empower on life-long learning skills. This answers the sub research question : who are the targeted group for the initiatives and programmes for financial education? Most programmes have the following reasons to target youth , students and children: 1. P12 - "It creates a foundation for the habit for savings so that when they are adults Batswana may increase the level of the culture to save up income for a purpose." 2. P12 - "Financial education creates a habit for investment in shares at a young age therefore changing perceptions about investment in shares at grassroots level " 3. P11 - "to create a culture and the spirit of entrepreneurship at an early age so that with basic accounting and business income management the youth understand their role in contributing to the economy. They should also understand that being an entrepreneur does not have to start when somebody retires. " 4. P10 - "The youth must understand that funded businesses must grow, and they should learn that loans should be paid back. " 5. P3 - "Education on personal finance is important for youth to empower them to make informed decisions. " 6. P20- "Empower youth on social life skills - including financial literacy. " 7. P13 - "Target is mainly youth to empower them at an early age. " 8. P1- "Personal Finance for youth is vital from an early age." 9. P17- "Youth and young people in schools as it is the mandate to empower them on life- long skills." 10. P10 - "The youth must understand that funded businesses must grow, and they should learn that loans should be paid back. " Thomson (2012: 14) purports that "financial literacy involves not only the knowledge, understanding and skills to deal with financial issues, but also non-cognitive attributes." It deals with attitudes: prudence in money management, consistency in budgeting , sound investment and financial 178 responsibility (Tustin 2010: 1096). Therefore as much as it impacts young people and children should develop attitudes from an early age (Mundy and Musoke 2011 :54) financial education changes attitudes, and behaviours of other individuals and different groups. According to Tustin (201O:1096) and Anders et al (2011: 13) financial attitudes include views on general experiences in dealing with money and many behaviours and attitudes such as debt management and dealing with credit cards and savings. Literature analysis had reflected that most of the target groups are children in schools, the youth, employees and the marginalised groups (Lyons and Scherpf 2003:4 ). The thematic analysis reflects the same, indicating different target groups were affected positively by financial education some of these being unions and employees. The Financial education providers have this to say about the change experienced by employees and unions: P4: "Employees have shown increase in saving and investment activities loan management like decrease in default payment. " PS: There has been change in behaviour & attitudes as employees purchasing impulses have been reduced, there has been increased financial prudence by employees and less complaints concerning personal finance ." PS: "In addition to reduction in complaints about workers managing their money the bank is experiencing the benefits of having happy, confident employees. " P15: "There have fewer complaints and people are heeding to warnings about bogus schemes and scams. This because the reason for empowerment for P15 is to : "Inform consumers about scams and consumer rights." In addition to change and benefits of educating employees, those who belong to unions also give companies the benefits of experiencing less pressure on salary increases: PS: "There are fewer problems of employees taking part in Unions activities and they exert less pressure to the organisation." P15: "There are less complaints and people heeding to warning about bogus schemes and scams. " This is what authors like Hung, Parker and Yoong (2009:5) say about financial education assisting to avoid pitfalls, highlighting as one of the reasons to provide financial education making the public or target audiences aware of threatening financial environments. 179 P3: "People have changed their spending habits, and specifically there is noticeable increase in the use of technology. "P19: "There has been a change on the behaviour of employees as they are able to live within their means, budget and keep track of their money and there is also change in spending habits. 'P7: "There are fewer cancellations; defaulters especially reflected in the Union Schemes, they show confidence and the ability to view income as a basic item for wealth creation." As P7 observed , it has also been identified from the thematic analysis that Financial education has an "economic benefit giving different groups the opportunity for asset management and wealth creation" (Sebtad , Cohen and Stack 2006:5, Bell & Lerman 2005:8, Schuchardt et al (2009:88). Asset management and wealth creation are discussed further in the next theme: Stability and Sustainability. Another important group which is reported to have changed in behaviour and attitudes is the Small Business Community hence the organising theme: Financial education provides change in business behaviour and attitudes. The results are that: 1. financial education increases business competitiveness 2. Financial education provokes businesses to provide Corporate Social Responsibility 3. Financial education assists business in changing their marketing strategies 4. Financial education assists businesses to understand customers for better service delivery. If small business group are targeted for financial education they also become empowered and aware of their customers ' needs. 5.5.2 Informed Decision Making Different groups of people have been mentioned as being in need of empowerment which means all segments of the society and the consumer population needs information on personal finance in order to make informed decisions (Holzmann 2010:13; Mandell and Klein , 2007:2) having observed that poor decision making comes as a result of lack of financial knowledge, a problem which can be overcome through mandated financial education . Lusardi and Tufano (2008:1) focusing on debt literacy, identify that financial education contributes to making simple decisions on personal finance . Therefore the summary of the thematic analysis reflect this : Financial 180 education contributes to empowerment. It has been interpreted from the data that budgeting should be a skill empowerment for everybody: employees, students, young people (in and out of school), private clients (organisations represented by P3 and P1) affinity groups, societies, associations and communities . These are the findings: 1. Financial education to empower employees to make informed decisions. 2. Financial education to empower private Clients to make informed decisions. 3. Financial education to empower society & communities to make informed decisions. 4. Financial education for Youth empowerment to make informed decisions. 5. Financial education a foundation to young people - Educate from an early age. Among all the skills taught in financial education budgeting is a central skill which contributes behaviour change & empowerment in financial decision making . It is believed that budgeting is a source of empowerment and confidence in all aspects of personal finance ; it assists groups to have a positive change towards the use of income. When performed consistently budgeting keeps consumers trendy and well informed of their needs, and it empowers different groups of people to be in control of their finance . The following are the findings on budgeting : 1. Budgeting should be a skill empowerment for everybody, 2. Consistency in budgeting keeps consumers ' trendy and well informed and 3. Consistency in budgeting empowers groups to be in control of their finances. This is in line with what in the literature analysis revealed as budgeting helps consumers to "keep track" (Robson 2012: ii Kempson et al 2005 and Atkinson, et al, 2006). Lyons et al (2006:399) also say that in the Unites State of America , even though there are not many studies which reflect the impact of budget counselling , it is common for homeownership and budget counseling features prominently in several state and local laws that attempt to curb predatory lending in mortgage markets. 181 The results of the interview also reveal that budgeting skills assist groups to have positive change towards use of their income, P20: "Budgeting is an essential skill for young people to manage their finances" P3 'Budgeting is a basic skill for students in schools - it 's a life skill to prepare them for the future" P1 "budgeting is essential for everybody including employees so as to deal with their personal financial planning P2: "Financial education empowers business to budget their income" P12: "Budgeting is the most basic skill to learn and practice in order to invest or make savings from income". In their definition of financial literacy Remund (2010:281) has indicated that building up confidence through financial literacy is a factor. It is also a proposition that financial confidence is built through consistency in budgeting . Mundy and Musoke (2011: 15) write to say that it assists in decision making - being assured of what they would like to achieve. While mentioning goals Kotze and Smit (2008:44) research revealed the importance of confidence in managing money to achieve financial goals, and its vital role also in making independent investment decisions. There is a premise that customers who know their rights, have awareness which empowers them to make better decisions which is presumed to extend to financial decision making: The results of thematic analysis reflect that Financial education creates awareness for better decision making: 1.Customers who know their rights make better decision 2. Understanding the financial market is vital for decision making 3. Empowered customers help businesses know their needs. According to Hung, Parker and Yoong (2009:5) one the outcomes of financial education is being able to make financial decisions and in knowing their rights they contribute to improved financial services: (Frc1czek B and Klimontowicz 2015: 63, Miller and et al 2009:8, Worthington 2006:1 and Rutledge and et al 2010:3). The interpretation is that, the awareness prompts them to question products, the quality of service offered and the motive behind offering such products and services. They also question their behaviour towards investment, savings and the use of credit facilities or products. Such the empowerment which is highlighted by Miller and et al 182 (2009:8) in the definition financial literacy: "Financial literacy is an active process, in which communicating information is only the beginning: empowering consumers to take action to improve their financial well-being is the ultimate goal. Financial literacy is critical for promoting access to finance by creating incentives and environments that promote desired financial behaviors such as saving , budgeting, or using cred it wisely." This is as Wilson (2000:5) in short writes : "people become questioning and change behaviour to manage their finances better". The results from the interviews ascertain this: P16: "Financial Literacy empowers Batswana to understand their rights as consumers of financial products in the market" P18 "Batswana have begun to show interest in taxation and have begun to question the amount of tax they pay hence keen to make their self- calculation/ assessment to verify deductions from their income:" This is an indication of empowerment, knowing ones rights and being actively involved to improve their financial environment. P19: "Employees especially of Unions have awareness of their earning, salary increases, deductions from income and how these contribute to their retirements" The rights of consumers do not end at just knowing about them but also about understanding financial markets. For P20 the overall goal of the program is to , "Incorporate social & financial education and activities to help children and youth make sound financial decisions." The youth begin to understand the financial markets and so become confident in making financial decisions. (Miller et al 2009:2) has informed that "Financial literacy is the combination of consumers'/investors ' understanding of financial products and concepts and their ability and confidence to appreciate financial risks and opportunities, to make informed choices, to know where to go for help, and to take other effective actions to improve their financial well-being. " Worthington (2006:1) , and Braunstein and Welch (2011 :455-456) studies also encourages knowledge of financial markets to make better informed decisions. As these consumers get empowered and understand the financial market, this also becomes feedback to business: and important aspect which also relates to relating also the theme three: Financial Literacy for Business Growth- Financial education helps to improve the quality of services (Sebtad , 183 Cohen and Stack 2006:5) and Miller and et al (2009:3) as consumers question (Wilson (2000:5), it follows that business asses the demands of their clientele, the products they offer and what can be best for the customers. This empowerment reported above is offered to consumers through different methods but mainly through edutainment especially for young , whereby education is delivered through fun and entertainment: competitions , mock business, song and play. These are elaborated further in the theme which follows theme two: Inclusive Financial Education . 5.5.3 Summary of Theme1 - Consumer Empowerment In conclusion for theme one, citizens are offered financial education , and the results expected is being able to change and make informed financial decisions. This is one of the reasons why financial education providers offer the programmes. Theme 1 therefore answers the research question RQ1 .What are the reasons for providing Financial Literacy initiatives? The recipients are expected to change the perception of certain aspects of personal finance , change in behaviour and their attitudes towards use of their income. These changes have been reported by the interviewees as cited. Segments should display what has been discussed in the literature review from Hogarth (2006:3) sating: "the outcome of financial education - that is , what a "financially educated" person does - include behaviors such as paying bills on time, having manageable levels of credit, setting financial goals and having a way of achieving those goals through saving and investing, spending wisely, and so on ." 5.5.4 Implications for Quantitative Phase (Variables) The theme contributed to identifying content areas and gave an idea on which areas to focus on when asking the questions. The following are the implication for phase two obtained from the theme: 184 Table 5-3: Variables from Theme 1: Consumer Empowerment Areas of Knowledge Focus for the questions Content Learnt Investments, Banking , Basic accounting , Loans & Debt Management, Taxation , portfolio diversification, savings Attitudes & Behaviour Type of Investor, level of confidence through self - Assessments on habits and behaviour : habits on spending , borrowing , use of bank cards, behaviours on tracking spending , filling tax, living within means , Skills Performance test on: Budgeting , ability to save, ability to liabilities, assets, interest calculation, investment , re investment , financial statements, loans and debts, basic banking concepts and reading of statements: debit, credit 185 Figure 5-2: Thematic Network for Theme 1: Consumer Empowerment 1. Thematic rehvork Consumer Empowerm ent compet~ti.1.'efl.au FEpro,ยทok-Hbuinasuto pro,~c!eCSR FE u.ists lmsinesses to chm,-. thie< muketio.;1tnt~H FE Provides chani:โ€ข in perception on income m,np Consistency in budget~ Comumer empowerment by C..tomers ..-ho l:now thi,r ke,ps con=ers traidy l~ fin.anew concept, and will informed rights mal.:e bet ier throu~ compotitian dccisioru FEcJun;., FEchani;a bem,iiour *& Everyday money beh.i,,.ftour & FF clwiga beh.a"i.a.r 2ttit1ldes of 2tiihx!6ofstuden11 financw educ.lion loempc>nlributu lo ev").bility l>J"!โ€ขI eel for p,noml f1fWl.ce mdJUStenl!lC? Diffront ti,,es of amall wineuu uecoWli!d on Diff01ent typu of smill d,bt & income lni.si.ne.u ue coacbed o.n debt & incomf! Y'""'lipeopt.ut man.a.:emnt tu::!:ted 10 ~\ยทe thm,. facnd.ition ~t 2n urly RNdin: & int,rproting fuwu:ial roportscontsibuta toev~ y income & debt m..na.;eme:nt Y01ll1Jipeoplun UVUlp 1-u:eted to bi! ;ive:n uposute on the stock muke.1 Ev..-yd.ymoney A voidin; debu FE!uscontributedto mm..:ement mala contributes to &ht Employees luvt โ€ข right thedevalopmentoftho 2 :money 2 partn!r ffWU!:oment Thepd,lic:ue t;ugetedto to be infonn.bility and Bnw\616 u e Employ.., ue t~โ€ขled every d.y income & d,bt h.rplunrdspHDdzj Th,cultur,oft.ckof mstain.tbil.ity 1..-,.ied to be t,u;ht btc,us, they lundle md tIW12=tmt.nt impovfflshes citiz.ms 12vin::1 dons not prepm how todiv..-isfy thior eMnmoney for niny d.ys portfolio B~~tin; is aform of Infornutionon empo,..,,nent and Employ. .. ue tar:otd Groups ar~ ยซmfide:nc~inilll Consistency in bucl!โ€ขting Bmi.naw.s ue t:u~eted to be to hโ€ขlp thomnuk. Groups rK'iivi knowledii !nfOffllltionon the ,tock investment lnfonn.tioo on different on different ffl"\ยทicu for ev~y m.rket is ...f ul on enยซrungi!d to re- opportunitiu is halpful fomuofu,-in!:;111 aspect , ofp,noaal i.:..p, con,um.,-, t,endy t.u;ht tolltifue 1hi..-,...,,,.-,,.. lon; !@ml ~tons โ€ขvoryd.y invetmeol invest to auu more buic bJ.Olcin: on .,-..-yd.y decision empo,.oring li=c. irul n ll informed through bucl!โ€ขtin: on income dfflsions m.oney ~ 197 5.7 Theme 3 Business Growth The third identified theme is that of financial education for Business Growth from the thematic analysis and has the following subthemes: 1. Sales and Marketing, 2. Corporate Social Responsibility (SCR), 3. Customer Oriented Service and 4.Minimal Costs for Great Benefits. Monticone and Messy (2011 :44) in their research indicated that some purposes of providing financial education could be for consumer protection (associated with theme 1), marketing (associated with this theme- 3) or financial inclusion (associated with theme 4 ). Corporate Social Responsibility is the highest form of marketing and advertising I which the company gears towards being a part of the society it serves yet at the same time benefiting from such an involvement. In discussing Corporate Social Responsibility relating to financial literacy Literature advises that: (Vijayan 2006:4) "every financial institution has to realize its corporate social responsibility and act accordingly. The financial market is the cause and effect of our business and hence it is in the best interest of every Fl to nurture and educate the society and in turn market." Sharma and Mani (2013: 13) have also noted financial literacy to be one of the new ways of Corporate Social Responsibility in which banks in India give back to the society. This is same for Botswana in some of the institutions visited. The findings therefore are: 1. Sales and Marketing 1. Financial Education utilised as a vehicle for the purposes of marketing 2. Financial Education used for branding companies and FE providers 3. Financial Education for Clientele growth 4. Financial Education for increase sales and revenue 2. Corporate Social Responsibility (SCR) 1. Financial Education as a way of giving back to the society 2. Financial Education is relegated to just being a CSR initiative 3. Financial Education as a means towards becoming a citizen 3. Customer Oriented Service 198 1. Understanding the needs of customers is important for designing products 2. Providing appropriate service is important for customer satisfaction 3. Customer feedback and commending efforts made by FE providers is valuable 4. Customers help businesses know their needs (Shared from Customer Empowerment) 4. Minimal Costs for Great Benefit 1. Costs are quite insignificant and so not easy to quantify 2. Costs are covered by planning and resource sharing model 3. Costs are absorbed by agents and marketing activities 4. Minimal costs are incurred on production, transportation and reaching out to rural areas 5. The costs are lower than the benefits The fol lowing are a summary of the above findings in tabu lated form : Figure 5-5: Summary of Theme 3 Business Growth ilL ยทc . INITIAID Gro l l ust-โ€ขOrimlad n l l Low costs are IIIClned l:ndtrsrmSmg tbe nttds of through Resource Slmmg cust= tS reused !>lodel for grat ~tits tbrougb Fumoa!Educanon for CUSlOIDtf"sallSt.laion 5.7.1 Sales and Marketing Most of the providers have financial education driven by the Marketing Departments as they view financial education as a vehicle for the purposes of marketing: P1: "Meant as ways for branding awareness gain ground in the market" P3: "Assists target audiences but mainly meant for brand awareness"P6: "Brand awareness has increased and able to compete with others in the market" P7: "Brand awareness has increase" PS: Now an accepted as a brand in the country, P9: "Increase in brand awareness has been noticed and is now competitive" This thefore means financial education 199 used for branding companies through planned or latent ways. One another point discovered from the thematic analysis, companies report clientele growth and that there has been increase sales and revenue. P3: "Increase in clientele especially group clients after presentations" P4: "There has been increase clientele growth, which means increase in sales & revenue" P6: "There has been increased clientele especially from union" P7: "There is increased clientele as well as reduction in cancellations, defaults contributing to sales & revenue" PB: "Increased awareness shown by call-ins & drop in clients after the show" P9: "Clientele growth especially those with increase financial literacy". As clients grow and there is increase in sales and revenue it is believed to growth hence: Financial education through Marketing for Business Growth . 5.7.2 Corporate Social Responsibility Interviewees report financial education to have its place in the organisation : CSR and Marketing P1 :"Financial education is a marketing activity under Corporate Social Responsibility initiatives" and those that are structured under marketing are for: P3, P4, P6, P12, P13, P14, P16, P17, and P19. It may reflect that the financial literacy initiatives are mostly for marketing purpose but it still reflected from discussing the benefits during the interviews that the issue of Corporate Social Responsibility is prevalent. The rest are under Customer Care, Operations or Clients' Relation , which has made part contribution to this theme during the thematic analysis for the sub heading: "Client Oriented Service" Some are of the opinion that financial literacy programmes are merely relegated to CSR and therefore not given the attention it deserves. The comments from interviewees are: P9: "Mostly just a CSR activity and the level of financial literacy improving but still quite low compared to other countries" However this discerning opinion , the main aim of these CSR initiatives as has been deduced from the thematic analysis is to give back to the community and societies within which the companies share the environment-P1: "The organisations views itself like a citizen and a part of the whole communities where it serves" P2: ''.A Corporate Social 200 responsibility initiative which accords the organisation the opportunity to give back to the community''P3: "The cost quite low as it 's a way of giving back to the society''P4: "contribute to the society but get great benefits of clientele increase" and P9: "Worth continuing to educate the clients that the company serves- giving back to the community" Through this businesses believe to be understood by these communities and therefore become part of them hence financial education used as a means towards becoming a good citizen. This strategy ultimately assists in business growth as CSR initiatives are undeniable also marketing and branding strategies. 5. 7 .3 Customer Oriented Service The providers have the understanding that the needs of customers is important for designing products as they get feedback from the clients on the products and services. Mason and Wilson (2000:5) highlight that customers begin to ask questions and demand better service as a result of financial education. Frqczek B and Klimontowicz (2015: 63) too make a point that financial education helps businesses to understand of customers' rights and obligations. This is because such feedback assists businesses in providing appropriate service which is important for customer satisfaction. P11 "Feedback assists to understand customers better'', P1 "Evaluation helps understand clients better'' P3: "Interactions help to understand clients better'' P4: "organisation knows the clients saving habits better" P6 Clients understand services and products, P7 "some questions help to understand the services they need" Some of the recipients have even given feedback commending efforts made by financial education providers. The thematic analysis assist in interpreting that empowered customers help businesses know their needs. Consequently if businesses know the needs of the customers it becomes easy to serve them. 5.7.4 Minimal Costs for great Benefits Any programme or initiative needs funding : funding for transportation , materials, payment of trainers , payment of programme designers etc. As much as there are costs , it means there is investment into the activity so there are expectations on return not only for the recipient but for the 201 providers. Some of the benefits are those brought about by marketing which has already been discussed above. The following therefore is what has been deduced about costs versus benefits : 1. Costs quite insignificant and so not easy to quantify: P3: highlighted this by saying: "Costs not easy to quantify as they are just covered by the marketing budget" while P14 says: "Not significant - included under marketing costs" P11: "Training by regions expensive - there are high transportation costs to reach rural areas, but still costs quite less compared to benefits" P3: "Costs assumed are quite lesser than the benefits and therefore worth continuing", P17: "Minimal cots Covered under advertising and Marketing" 2. As these costs are either minimal or not so significant to quantify they are: 2. Covered by planning and resource sharing model and these are the findings from interviewees: P4 "Quite minimal covered in marketing and advertising" and PS: "Only costs that cannot be avoided are incurred but programme uses minimal cost" P6: "Costly to reach places that are far from city or branches, but programme worth continuing as it costs lesser than benefits it brings". P10: "Covered by operational cost and some can be avoided by planning and sharing of resource" P12: "The costs are incurred as part of marketing & there are competition prize costs which cannot be avoided and not expensive" In most instances costs are embedded in other activities - 3. Costs are absorbed by agents, sponsors, marketing or other activities. This is what the interviewees confirm : P1 "Usual costs like transport cost and accommodation for presenters if area is outside the city, but mostly covered by marketing budget", P1 : "Payment of space and time and so mostly covered by marketing & advertising", P20: "Has attracted attention and therefore opportunity to have funding from other institutions" , P7: "Marketing costs but most absorbed by agents who go about doing the presentations"PB: "costs on production costs absorbed by customer services unitP9: "Covered by operations costs like transport cost and advertising costs but quite less than benefits", P13: "Covered under marketing costs and quite lower than the benefits" P15: "Just operating costs that cannot be avoided as it is part of the 202 mandate, shares resources with other department" P16: "Production cost only but funded by a sponsor" All the interviewees report greater benefits than costs and in attesting to these statements of "Minimal costs greater benefits" the following is what they narrated P3: "Financial education contributes to brand awareness". There has also been a notable increase in clientele especially group clients after presentation" P2: "The Benefits are greater than costs and worth continuing for Corporate Social Responsibility- to give back to the community"P1- "Gives company opportunity to reach a mass and increase its clientele"P4: "Increase in loan management for individuals helps organisation to recover its funds; there is also increase of clientele who save" 5.7.5 Summary of Theme 3 Business Growth This theme has demonstrated that financial education providers also benefit from the initiatives or programmes: The programmes are used as an instrument for marketing and branding of the company or organisation . These initiatives may be part of Corporate Social Responsibility or are placed under marketing and sales. Most of the organisations run these initiatives at very minimal cost yet contributing great benefits. Over and above this, the initiatives provide an opportunity for customers to give their feedback which is consequently turned around to give customer oriented service. The theme also gives one more reason to enhance financial literacy initiatives: Financial Education for Business Growth from marketing , CSR and a customer oriented service. Therefore theme three also answers the question: RQ1 .What are the reasons for providing Financial Literacy initiatives? 5.7.6 Implications for Quantitative Phase (Variables) There should be some important questions included in the questionnaire derived from the following areas: Loan and debt management, Savings and change in saving habits. The theme has also reflected that there is need to make a Confirmatory Factor Analysis to confirm if there is impact of the knowledge on the consumers: Have the businesses given back to the 203 society? Are the customers aware of the services they need from the companies? Are the customers confident and do they have awareness? 204 Figure 5-6: Thematic Networks for Theme 3 Business Growth ( 3. Thematic etwork for Business Growth ] FINA. ~. CL-\.L EDUCATION FOR B USII'-i"ESS GRO\VIH uili.sed as a vehicle for the purposes of marketing the business Financial Education used for branding companies and FE pro"idea Costsareabsorbed by The costs are quite a means towards agents , sponsors and marketing activities insignificant and so Financial Education for becoming a citiizen they are not easy to clientelle growth quantify Minimal costs are incurred Customer feedback and commending efforts Financial Education on production, relagated to just being a t=sportation and Financial Edu.cation for made by FE providers is valuable CSR initiative reaching out to rural areas increase in sales & revenue 205 5.8 Theme 4 Inclusive Financial Education Inclusive financial education is one of the common themes in the studies and researches on financial literacy. In this study theme four on inclusive financial education is one of the outcomes of the thematic analysis conducted. This provokes a discussion of the concept of "Financial Inclusion" Operana (2016:2) answers the question "What is financial inclusion?" by saying "Financial inclusion is "a state wherein there is effective access to a wide range of financial products and services by all". The basic products and services include savings, credit, payments, insurance, remittances and investments, among others, for different market segments including the unserved and underserved." Since the word reach out recurred so much in the codes the questions are: 1.Who is being reached , and 2. how are these people being reached by the financial education providers. This theme answers the questions from the following sub themes: 1. reaching out to different people and 2 reaching out through different methods. Therefore the findings are: 1. Reaching out to different people 1. Financial Education initiatives target all types of Income Earners 2. Financial Education initiatives target young people in and out of school 3. Financial Education Initiatives target different age groups 4. Financial Education Initiatives target people of different educational background 5. Financial Education initiatives targets all kinds of gender 6. Financial Education is customised for Affinity groups 7. Financial Education targets employees in different settings 2. Reaching out through different methods. 1. Interactive methods are effective to reach out to different segments a) Edutainment to reach out to young people b) Delivery through mass communication for mass outreach c) Interactive methods provide a platform for instant feedback d) Interactive methods have to be suitable for the target group 206 e) Interactive methods are involving and provoking f) Mass Communication strategies are desired as future methods 2. Conventional methods are effective to reach out to segments a.) Classroom methods are still relevant to different groups b.) Psychosocial methods are suitable and effective for private clients c.) Modularisation of financial concepts for self-Learning The following is a summary and pictorial representation of the theme four: Inclusive Financial Education : Figure 5-7: Summary of Theme 4 Inclusive Financial Education tto Readun1 omur l,b..r.o.,uJp di fferan l ~ dtffermt types o groups ae reached through ~cmยท Conv methods oflkb,.ยทer:ยท 5.8.1 Reaching out to Different People The thematic analysis has identified different financial literacy initiatives wh ich target different types of groups. The findings are therefore: different types of income earners, different age groups, and different educational background, affinity groups, and some are employees of different setting and profession . It is also observed thefore that financial literacy initiatives target all types of Income Earners The different types of Income Earners who are Low Income Earners (LIE) involving for instance students, temporary workers 207 and casual labourers, Medium Income Earners (MIE) and High Income Earners (HIE). The following interviewees target people of all types of earning power. Some of the interviewees narrated this: P1: "young people in and out of school, young adults of low to high earning power''P2: "Low income earning small business group of people ''P3: "Different segments of earners: Low, medium and high P4: Different types of earners from low to high PS: "all types of earners -Low, medium, and high income earners ''PG: "Targets institutions with different employees of low to high income earning groups" P7: "Different segments of Low to high income Earners" P9: "Targets all ages, men and women, young adults and all income earners''P10: "Targets mostly small business of low income earning category" P11: "Targets Mostly unemployed and low income earners''P12: "Targets all members of the public which has segments of people of different ages and earning power'' P14: "Targets people of all ages and earning power so long they want to make investment''P16: Targets all ages, all genders, all types of income earners", and P18: "Businesses and members of the public especially that have taxable income". The interpretation is that different types of income earners in Botswana are targeted for financial literacy initiatives. This is unlike what the literature review has revealed indicating that financial literacy initiatives mostly focus on Low Income Earners (Lusardi and Mitchell 2008:1 ), or that financial illiteracy is widespread among low income earners, the poor and the illiterate groups (Lusardi and Mitchell 2008: 1) . This also contracts the subgroups or segments by Wyatt (2009:3) which only reveal : low income, but employed , unemployed but with social welfare support, Irregular income through Informal/ Subsistence. The interpretation is that in this research medium and high income earners should be an addition of the subgroups to be investigated in the quantitative phase of this study. In addition to targeting different people of different kinds of earning power financial literacy initiatives target professionals. These different employees also include those with high earning power. This is because employees with high income also need to be empowered to make informed decisions. These different types of earners, professionals and employees appear in different settings. Since financial education targets employees in different settings, 208 there should be customised financial products for employees in corporate sector, for parastatals employees, and for government employees and customised financial products (schemes) for Unions. Some of these employees or different people belong to different affinity groups and as a result financial literacy initiatives in Botswana target belonging to Non - Governmental Organisations, associations and Unions. From the narratives those who target members of Unions also include reaching out the employees: (P12 and P18). This is also so of those who target different groups or different segments: (P3, Pl, and P11 ), others also just mention "different income earners"- (P2, P3, P4.P6, P7, P14, and P16J and employees may be in the category of these (low, medium or high). However there are those who are very specific to employees because their initiative or programmes are specifically purposed for employees. They recount as thus: PS: ''All types of employees and all earners, P15: Employees of different earning power, mostly government employees called former industrial class of low income earning power P19: "All types of employees of different earning power (low and high income earners)''P20: "Youth employed and unemployed" The reasons mostly cited for reaching out to employees are that: " P5:"Target internal and external to build their confidence in managing money" hey add to say: PS: "Employees handle money and it is only right to discuss money matters". P8 focuses on the reasons of retirement PB: "Employees often misuse money till it is too late and they have reached retirement age". This is added up by P9: "Employees must plan for retirement and sustain their incomes" some mainly focus on government employees like P4 and P15. P4: "Targeting government employee to empower them, encouraging them to have financial stability and P15: "Government employees and industrial workers are the main consumers of financial products with the most complaints received about money at the work place" P19: "Employees handle money, make mistakes and make uninformed choices -they empowered to handle money and make informed decisions." The results of these programmes and initiatives have been reported above under the theme consumer empowerment. 209 They are of different ages (young and older), with different educational backgrounds belonging to different genders (identifiably males & females) identified. The interpretation therefore is that financial education providers reach out to all ages - the specific providers reach out to different ages depending on the group they have targeted . This is what has brought this conclusion from the interviewees: P2: "All peoples in business or who intend to do business, all ages and gender inclusive" P3: "Different groups with people of different ages and different earning power" P4: "Targets all people, all ages, and gender inclusive"P5: "Inclusive of everyone all ages''P7: "Targets everyone: includes all ages and gender" PB: All ages, gender inclusive P9: "All ages, men and women, young adults" P10: "Varied groups of different ages and educational level are a target" P11: 18 years and above, both males and females, P13: All ages and gender inclusive" P14: "People of all ages .. ." P15: "The programmes reaches out to different segments and covers a range of ages''P16: ''All ages, all genders, P18: "Varied according to group but all ages and gender inclusive" P19: Different age groups and gender inclusive. Another characteristic of the people who are reached for financial education are their age. Financial literacy initiatives therefore targets children and young people in and out of school: some are reported to be in tertiary institutions and secondary schools both junior and senior. These are mostly among the Low Income Earners receiving allowances from government or parents. This is narrated by PG: "Targets youth, as most are low income earners from allowances (parents & government and casual or temporary work" and P17 says: P17: ''All ages as it includes university students (6 - 35), gender inclusive, low income earners (students are usually low income earners" In addition this is attained from P13: "Targets mainly youth: products are made available for low income earners including youth" and obtained from P20: "Teens and young adults from unemployed to low income earners." Some work as casual or temporary employees receiving minimum wages. P20: "some teens do casual work while some young adults may be employed 210 as casual or on temporary basis" As stated above most of the interviewees narratives indicate that initiatives reach out to all ages and gender, it means the young people are included. However some interviewees were very specific about children and young people: P1: Children, teens, young adults who may be of low to high earning power" P6: "In institutions it targets everyone to include all ages and as for young people, those who can open accounts under these ages: 0-12 segment- children and 13-24 segment- older teens and young adults " P12: Targets Teens usually senior school students who are 15-20 and is gender inclusive" P20: "12-25 years targeting youth in and out of school" The interpretation is that, they are included to benefit from financial literacy initiatives because they need to manage these allowances as those in tertiary institutions even pay rent or are responsible for their general up keep. As young people too they are affected by financial environment as the literature analysis attests: "For young people living in poverty, greater financial inclusion and capability can strengthen their own resilience to economic stress, which in turn could help break the vicious cycle of poverty (Ramirez 2015). Among these young people there are children, teens, and young adults at different levels of education belonging to different genders (identifiably females and males). 5.8.2 Reaching out through Different Methods It has been observed from the analysis that there are two organising themes involved: 1. Interactive methods are effective to reach out to segmented groups and 2. Conventional methods are still effective to reach out to segmented groups. These methods are also matched with the target group to indicate their suitability such that the answer to the question , who is being reached is synched with the answer to the one: how are they reached? 5.8.2.1 Interactive Methods Relating to suitability of methods to target group this observation mines out the value of interactive methods which is outlined to be: 1. Interactive methods have to be suitable for the target group, 2. Interactive methods provide a platform for instant feedback, and 3. Interactive methods are involving and provoking. From the first point on suitability of methods relating 211 to target group face to face interactions are suitable for private clients. There are institutions which have segmented groups in their market reach and one of such groups is private clients. Selected bank representatives have meeting with such clients and it is reported that the methods used is that of face to face where they are allowed to ask questions and freely discuss products and services they desire. During this discussion the clients are given the opportunity to provide instant feedback on how their services may be customised to their needs.These are the narratives which contributed to the findings in this aspect: P1: Private Clients - face to face interaction is effective as they like specifics & their privacy''P2: ''Allows them (private clients) space to be free and ask questions" P3: "Face to face interaction is suitable for Premier & Private Clients as it is customised to their need for privacy freedom of expression from other peoples" and PB says: "Face to face interaction for is suitable for individuals who want privacy and counselling, make them free to asks questions'. P14: "Face to face interaction with trustees" The interpretation is that the private clients and trustee are people of high level income and therefore would not wish to waste time or that financial institutions give them the privileges of freedom and privacy for return of their huge investment portfolios. This is also so because they are not many like the mass or affinity where there is need for group public addresses. Presentations are also thought to be suitable for small groups and professionals. They are viewed as part of conventional methods but if used to ignite discussions, they can be turned into an interactive method . When presenters ask questions and have clear tasks to be done by the participants they can be thought provoking and provoke participants to play an active role during learning. The following was contributed by the interviewees on presentations: P1: "The method is effective as the group is able to interact and ask questions" P2: "Presentations suitable to groups of people in companies to allow them to ask questions and contribute to discussions"P3: "Presentations suitable for scheme (groups like unions) clients segment, as they provoke them to ask questions" P4: "Presentations effective for the 212 public as the discussions after presentation they provoke questions, they are also effective for small groups in government & corporate entities" PS: "All methods like presentation for groups provoke discussions creating a platform for sharing ideas" This also echoed by P18: "Presentations quite effective for small groups. Good for asking questions involves groups" In addition P6: "Presentations effectives for public and group and effective if coupled by discussion as they allow interaction " The interpretation is that presentations are not effective on their own but they need to be coupled by discussions, questions and debates to make them interactive and interesting. P7, P9: P10: P11: P13 P14: P1S: P16: P17: P19: P20: ''AII methods effective, presentations best for small groups"PB: "Presentations for groups is effective and provokes questions if discussions are allowed afterwards" It has been however been pointed out by P12 that presentations prove to be no suitable for kids because they do not have a long concentration span to listen : P12: "Presenting to kids is not effective because of their short concentration span ". The interpretation is that the age and the concentration span of the group may also determine the method of delivery. Therefore, as the literature review (Lusardi and Mitchell 2009:2 , Cohen and Nelson 2011 :11) advices and imply that the different demographics must be considered . In addition to presentations the media related methods are suitable for the public and mass. Delivery through mass communication is becoming suitable for mass outreach: delivery may be done through radio and television , or through print media, while public campaigns to suitable to reach the public on particular topics. The public campaigns commonly used are that of: exhibitions, road shows, fairs, open days, radio and TV call- ins. The interviews have this to say: P3: "Empower the mass and the public through radio or television"P4: "Reaching the public during public campaign open days" but it is a challenge to for selection of content as sometimes it may not be known what the public would like to know about: P4: ''A challenge for Public campaign as sometime you may not know what the public wants therefore content suitability is assumed" PS: "Radio programme call ins by 213 members effective for the public and mass outreach and give platform for interaction ''P12: "Road shows, television messages, and open days suitable for the public and mass outreach" P16 a/so says : "Television for mass outreach" P13 "Use of mass media like television and radio and newspaper spreads for the public''P14: Presentations, debates and discussions are suitable for the public - especially budget speech by Minister of Finance" P15: "Exhibition and presentations are suitable for public campaigns" P17: "Road shows, exhibitions and television effective for public campaigns and students" Besides suitability, these interactive methods are observed to provide instant feedback: Use of You -Tube (P16: "Television programme quite effective and the programme is trending on You Tube '') helps obtain instant feedback, SMS are platforms which assist in getting written feedback during the television programmes, presentations and discussions give instant feedback: P14: "Discussions and debates give instant feedback from customers on the products customised to their needs to them/sold to them. Radio and Television call-ins give prompt feedback. The interviewees made the following contributions on Feedback: P2 "There is feedback the messages got from clients about the television programme and the calls indicate that their businesses improved" P2: continue to attest that: "The SMS indicate they have enjoyed the show and need more knowledge" PG: "Feedback assists on how to answer questions during campaigns and presentations" P7: "Feedback from clients and the questions asked during presentations led to the company deciding on a comprehension financial literacy programme before end of year" P9: "Instant feedback is given during discussions after presentations that some presenters not quite good and need training" The interpretation is that, feedback is important in knowing if the target groups have been reached , and discovering their level of understanding during the impartation . This assists presenters, guests and experts to explain further or think of the next course of action for the initiative. While provid ing such feedback the attribute of interactive methods being thought involving and provoking is realised as during the process these methods ignite participants ' interest in making them debate or ask questions. This has been realised in 214 the presentations, (e.g . P1, P2, P3, P4, P5, P18, 6,) and the face to face interactions (e.g. PS, &12). Another method which is perceived as interactive is Edutainment. Although P14: uses fun fact for its trustees the method is viewed by most as an interactive method suitable for young rather than older people. Other than this suitabil ity the method is both interactive and provoking. Financial education in this instance is delivered through songs, competitions, plays and through mock business activities. The advantage of using th is method is that young people are thought to learn better through play, it involves them and kindles interest in them to participate. P15: "Edutainment for youth learning through songs and plays is quite effective", P20: "Experiential modes of learning which allow mock business, songs and plays are effective for youth: they allow interaction" This method is also highly recommended as the method for future. The literature review also encourages competitions, plays and songs as OECD/INFE (2015:83) states that: "Embedding financial education in games and competitions is also increasingly adopted when targeting young people". They emphasise this by giving the example: "In Portugal , the National Council of Financial Supervisors, in partnership with the Ministry of Education and Science, organise each year a national competition for schools , rewarding the best financial education projects for each stage of education; in Turkey, the Ministry of Education provides financial education in the context of art classes" Besides the current methods used, the interviewees narrated existing methods which may be enhanced for future use and those which are completely new and may be adopted. Some also relayed the reasons why these methods are suitable for different segments for example: P1: "Use of social media to reach young people as they are fond of the media and it is trendy, P2: also states that "Use of social media for young people as it is trendy" The reasons for P3 are that: "Use of social media for young people to provoke interest in personal finance ". Other interviewees with the same opin ions are: P4: "Social media for young people to attract them" P9: "Social media for the youth " P13: "Social media to attract the youth into personal 215 finance as they like the medium" P14: "Social Media to keep with the e-tech trends- young people like it". The rest also share the same sentiments (P15, P16, P17, P18, P19, and P20). This is because all the interviewees have mentioned young people as their audience among the segments targeted for their financial literacy initiatives. The interpretation also is that young people learn through playing , or through methods which are interactive and provoking. This communicates that young people should learn in the mode appropriate with their way of life or with what is in fashion . Children also learn by playing wh ich gives the interpretation of experiential learning for children and young people. P12 has this to say about children: "Edutainment shows for kids, as they learn by playing" It is in the literature review analysis that experiential learning by Lyons and Neelakantan (2008: 109), Shockey and Seil ing (2004:48), and Xiao et al (2004:91) is encouraged . Many more researches Ozmete and Hira (2011 :388), Berriche Salerno and Calciu (2014:594, Berriche Salerno and Calciu (2014:589), Meijer, Verlooop and Beijaard (2002: 146), Rowley, Lown and Piercy (2012:48) also support experiential learning using the Trans Theoretical Model (TTM) stages in the personal experiences. Some of the interviewees feel many methods have been explored and had no suggestions at time of interview like (PS, P10, and P11 ). Even though P15 have explored a variety they promise to keep up with the trends and reiterates on edutainment for youth : "Most methods have been explored - will keep up with the trends to reach the audience- especially youth with edutainment" More future methods other than social media have been proposed by interviewees as is shown narrated by some: P9 sharing the same idea as P18 suggests: "Road shows for pubic campaigns" P17: 'Use of schools competitions" This to follow on P12 who propose more edutainment for kids viewing competitions as "a method which needs to be enhanced for future utilisation especially in schools." These are interpreted to be interactive and provoking the spirit of research and independent learning from students. In addition some like P19 and P20 recommend " Online interactive group sessions" This is interpreted as appropriate for interaction and that people currently seem to be fond of the social media groups: P16: 216 "Live shows to increase interaction with public" P4 also view talk shows a method for future "Talk shows to evoke debates from the public" The same is thought so by: P16:"Live talk shows on television and more radio call in shows" There is therefore the desire to use new technology and more of mass communication in future. PB and 16 propose: "Interactive website" This indicates technology and mass communication to be desires for future hence also indication of emphasising the value of interaction not only in the currently used methods but for also for future methods of delivery. Other interviewees have this to say: P6: Road shows for public campaigns P6: "E- Technology for the young generation ''P6: More Radio and Television shows for the public," P7 "More Radio and Television shows for the public: the company intends to have a radio before end of year", P12: "More Radio and Television shows" and P13 also suggests: "Use of more mass media like television and radio, and newspaper spreads for the public". Some are not technology or mass communications oriented but are psychosocial yet interactive as PB: says "More of Financial counselling like in South Africa" These are discussed further in section on conventional methods. 5.8.2.2 Conventional Methods The results show conventional methods as still effective to reach out to segments. They may be conservative or have been common to use but it has been observed that they also show suitability for different types of groups. Some also carry the characteristic of being interactive. The following has been obtained from the analysis: 1. Classroom methods are still relevant to different groups; different conventional methods are still utilised, methods such as: Presentations, lecturing, discussions and group. Presentations as outlined above are effective but that is if coupled by discussions. P20 still use lecturing for their target groups because as they say: "Lecturing is still relevant to give explanations in seminars and workshops"However one of the oldest methods of instruction being lecturing has been termed as "not effective" by P1: "Lecturing however is not effective as it does not involve them more ". The classroom instructions, workshops, and seminars have been discovered by 217 Atkinson (2008:70) as commonly used and prevalent in most of the initiatives. This has also been discovered by Hastings Madrian and Skimmyhorn 2012:30) who write that of much of the literature on financial education focuses on traditional , classroom based courses. 2. Psychosocial methods such as financial counselling are suitable and effective for individual and private client. The interviewees who support these methods are (P2, P3, P9, and P14) especially for face to face interaction being effective. PB: advocates for counselling and that it has to be introduced in Botswana and to be utilised in the same manner as in South Africa . This is supported by the literature review with authors like Cohen and Nelson, (2011 : 21) indicating the suitability of the face-to-face interactions and credit counselling for participants contributing directly to learning the skills and knowledge, personalizing the experience and giving direct response. Other authors such as Miller and et al (2009: 11) have also realised that. 3. Modularisation of financial concepts is suitable for different people for self- Learning. The following is what the interviewees narrate about the method : P1: "Modules are effective as they encourage self - reading" and P20 says: "Module for workshops and seminars are suitable for employees so that they may read on their after presentation" According to Lusardi and Mitchell (2009 :2, special modules can be designed for particular groups. 5.8.3 Summary of Theme 4 - Inclusive Financial Education This theme answers the questions: Who may benefits from enhancing financial literacy initiatives? What are the reasons for reaching out to the target groups? How may beneficiaries be reached so they benefit? Financial literacy providers reach out to people of different background , gender and age. They reach out to employees, to different kinds of earners, to affinity groups and to children . The main reason to reach them is that they handle money and need to know how to use it. The Providers use a variety of methods mostly interactive methods but in so instances they still use conventional methods. Among the list of the proposed methods social media 218 is frequently uttered by the interviewees. Some though have nothing proposed during the time of the interview as they felt they have explored a variety of methods: (P5, P10, and P11 ). One method popularly advocated for ch ildren, students, young people or youth is "edutainment" which is believed to be appropriate for their age and their mode of learning. The methods therefore answer the question: How are these beneficiaries reached by the providers? Many different methods have been thought to be effective depending on the target group and content delivered. This follows on what the literature review has also highlighted indicating methods to be suitable and contextualised to the groups: (Cohen and Nelson 2011: 11 , Miller and et al 2009: 11 ). This is interpreted that Trainers should exercise flexibility in their selection for both content and method of del ivery. Theme four therefore answers the research question: Q3 How can financial literacy is enhanced initiatives in Botswana? 5.8.4 Implications for Quantitative Phase (variables) The beneficiaries of financial education are different segments in the society. The implication about the beneficiaries gives the respondents of the quantitative research. A question on how they may wish to learn is included so that the research may indicate if the providers are using the appropriate mode as per the target audience perspective. Another pertinent implication is that financial education must be administered during the different stage of life as stating from early childhood . It has to be delivered to school going children from kindergarten , junior secondary school , and senior secondary school up to tertiary level. Then it must be received by young adults, adults and then retirees . Th is is supported by OECD/INFE (2015:83) "This approach recognises that financial education can be more powerful when provided at critical points in the lives of individuals, in order to seize "teachable moments". They further explain this by saying : "The teachable moments harnessed by life-cycle approaches may vary according to specific national circumstances but are typically linked to key steps in the personal and financial lives of individuals and households such as independent living , marriage, buying a home, the birth of a child , or pre-retirement. " 219 The tab le below indicates these respondents: Table 5-5: Variables from Theme 4: Inclusive Financial Education Beneficiary Reasons Methods of delivery most (Who is reached?) ( both expl icit & implied ) appropriate Private Clients They need privacy Face to face interaction in High Income Earners also need close proximity (private) information on how to invest, save or Financial Counselling diversify their portfolios Children Give foundation in personal finance so Social Media that they may know what to do in future E- Technology Edutainment Students They also handle money and some are Social Media employed casual ly or on temporary E- Technology basis Young Adults They are employed in different ways Social Media and some are faced with the difficulty of E- Technology being independent from parents - startinq new life Different Income Earners Every kind of earner needs to be LIE empowered , needs to be informed Both Interactive methods MIE needs to save, needs to invest , needs conventional methods HIE to diversify portfolio, needs to Employees in different setting earning different income, Employees hand le money Presentations background , different age & Seminars gender Workshops Affinity Groups - especially Financial providers are concerned Both Interactive methods Union Workers , Former about marginalised groups: Unions, conventional methods Industrial Class associations and low Income Earners Mostly Presentations and such as Former Industrial Class discussions Workers. People of different ages and Financial education Providers do not gender discriminate against any gender - Both Interactive methods inclusive financial education for all conventional methods qenders People of different All people educated or not need to backgrounds know how to manage their personal Both Interactive methods finances- all need information and need conventiona l methods to be empowered . Small Business Persons They need to know how to make their Seminars (workshops) business grow and also utilise wel l Presentations business income Public campaigns Members of the Public and Financial education providers are Public campaigns Mass concerned about the public - public Road Shows interest Radio and Televis ion Shows Public debates and Presentations 220 Figure 5-8: Thematic Network of Theme 4: Inclusive Financial Education Dilivery ndio & FE iJ deli,ยทered FE is delivered teli,'fflot1 for auu through througluongs 4. Thematic Network for Inclusive Financial Education outreach e<>mpetitiom Financi.,J ยซluc.tion FE initiatives lar;et lugetullkindoof FEiJ c!,..J.ivered poop!โ€ข of different !:tnder throยปgh mock b2~ ound bminen 2diviti:'1 Financi.a-JEdn-catio-n t2rgeis Financial Edocaiion Delivery tbr~ poop!โ€ข with diffe reni init iat ive:, tJ!!et IIWH ma.s.s c.ommuoie2.tion educatiorw levels formmoutroo Financi.a.l E.duc.tion Finmci.aJEdoution llll:โ€ขtโ€ข initiatives t21g:i?t (an.ales different kinds of profmionili ......... FE initiitive1 are Finmci.a.l Edoution cu,tomised for init iatives llll:etchildren Affinity gro,:p, Use ofYou Tube help, to obt aitt instmt foec!back Financi.a.l Educ.1tion Finmciil Ec!oc.,tion iruti.itiv .. t~el child,en irutiativei tlll:etNGOs ~w, gro,:p, There are commnmucilicn FE initi..a.ti~โ€ขes t.ug2t =tomised ( satrit!.~!l for future: sh!da,ts in seconcbry school Finmci.a.l Ecloc.,tion ;;,.,hod, Fuu.nci.,J Eduaiion fuw,ci.,J Dilivery ihr~ pment2tioru init.12tives t~ et YOlltl! initiatives tlll:โ€ขI UN10. ยทs products for & discussionJ ,om.th poople employ ... in ~ led group, FE initi...tive1 t~ et CO!J>Or2lโ€ข Reaching out more ill typeofi.nrome Financi.a.l Etin: pro:ra,s, J.-"' usess, ~uat~ & t {euurKnml md to diverttty coottnt l\ \ \ M& E to unc!ontmd the M...,,.-..,,,n1& ) Clients must .us.e:u md l\-l&Etodot"1mttll! Ev.ilU2tioo tools2.ld I I I I md;uido ,....,.ch level of educ.J.t ion o f the ippropniti! inteactiw Ev21m.t i.oc. ucertin tu;et;roup I J I I I i!v-'liu.21 ett"h.i.t they ~\V: Impact an.a.lysis i.s 1-th & time of Summ.2t ive(post ) ,..,, .. ~_,,._ lumt - self . uussm.ent methods importl1lt to .I I I I e,~~u:.u ion i1 instruct ion I of rou,u suit,.l,le for I \\\ ~te:rm.ine trHd.s v important for A1umrffl'lmt& I I I I I t.:rgi!t ,group I \ \ outcome 21lllys.is Evalm.ti.on toolsue M&Etodoi.,,,,;,,. Cominniu must ,, Th, - must puy 211 1 [ M&E lo undontand l ne,ed.ed: to record II 2ppr-0pfU.te Wl~,;e fer I I ~tiv-ei-oli! in ~,Lusu:rem.enl conduet mUSU:re:meat & howtov.ry~thocb L,cl:: o f fnm...-ork I ,I intMJ)fi'tl.tion l\Iuurement & t ugi't group & EvU'C.at:ion o f inilutiv u Evalua.ti.on of thie:r FL ~ 1h21 enl=io. !urning m~no E"ยทuc.2tiot"lPve.s M&E to know thโ€ข initl2tiva II I meam:reme:ot & no Fomu.tive .m.l)UI opportunity to "'..Jm.t. trrmd.a 1okNpup โ€ข-ith ~ f-.:k (~ ) .,..J,,,at ion l\leuurement & concentnbot"l 1p.2n. II I I I I up to ----------.. { Investment compmiamwt enhance tbeirin,โ€ขclvetn!nt The recipienl:I of FE mus be in Finutcul Educ:,.tioo involved in duipi, r@vi.~ & dovelopmantofthe C'llfficulum TbH.? should I>.? .i n.itiona.11tn te.:y Jtatin,: tht role ofth ebmkini uctor \Vriten and re.searchea in providing Finmcw Eduation mUl't be involved in ~umdesi:n,, review & dovolopmont \ UNIONS must cootin~ The,tovM'OlDl!rlt The cutriculum should ,I Th.er~ should be 1 n.nion.i.1 stutet::,y thiu q_~st for FU:UOci.il should support start from e2:rly Education toempc,..er The c:um.culum coo teat outlinin,: the role oflruu:nrn! entitiu in fi.nanci.a.1 i.nitiat:i~~a childhood pt"oviding Funlci.t.1 i!6UC.l1.ion m1:,1t be in โ€ข ., ยท-' > ~ &Eviluition to i;;,,.Vlhw>lโ€ข ~,'-'I, ยป ~~ :t~, โ€ขl ' ~:':; ~- ' 'J_;e. ยฃ...n..clc \ ยฅ., . l\~ -',-โ€ข,-.i~''.,-. _. ยท,_/',f'- ., โ€ข':'; r '' โ€ข .: !;. .... .~ .::S::...; ........ "':_,. 257 5.12 Chapter Summary This chapter presented the findings and results of the qualitative analysis. The approach used for qualitative analysis is thematic and the thematic networks. There are six themes being: Theme 1 Theme 1 Consumer Empowerment Theme 2 Stability & Sustainability, Theme 3 Business Growth Theme 4 Inclusive Financial education Theme 5 Measurement & Evaluation Theme 6 Government led National Strategy. Variables for quantitative analysis were also identified in this chapter and a questionnaire for quantitative phase of the study was developed. The next chapter contains the results for quantitative data analysis. 258 CHAPTER 6 QUANTITATIVE RESULTS ANALYSIS AND INTERPRETATION 6.1 Introduction This study is characterised by a Mixed Method Research approach with an Exploratory Sequential Design of qualitative (QUAL) research and quantitative research (QANT). The preceding chapter was on the qualitative thematic analysis in which six themes were identified. This chapter therefore connects to the first results and presents the second results of this study having utilised a Factor Analysis for quantitative data. 6.2 Section 1 Background Information This section as it was explained in chapter four was important to understand the demographics of the individuals who participated in the study. The questions form the independent variables of in the questionnaire. This is because in the literature review these were identified as some of the factors which affect the level of financial literacy like: educational background , gender and age. The dependent variables obtained from the qualitative analysis were measures against these independent variables to assess if these have influence on the level of financial literacy on the individuals. There were a total number of 400 respondents obtained by cluster sampling as has informed by the QDA that these were the groups targeted for financial education . 6.2.1 Respondents The respondents who participated were categorised as Junior Secondary Schools, Senior Secondary Schools , Tertiary Schools, Employees, Small Businesses, and the Public. a) Junior Schools- Tlokweng Junior Secondary School (6.3 %,) Bobonong Junior Secondary School (6 .3 %,) b) Senior Secondary Schools - Lobatse Secondary School (6.3 %,) Lotsane secondary School (12.5 %,) 259 c) Tertiary Schools - Bobonong Brigades Centre (BBC) (6 .3 %, ), Botswana Accountancy College (SAC) (6.3 %,), Sotho University (6 .3 %,), Gaborone Technical College (GTC) (6.0 %,) d) Employees - GTC, (6.3 %, ), Employee BBC, (6.3 %,), Employee GSS, (6 .3 %,) Employee National Development Bank (6.3 %,), e) Business and the Public - obtained from businesses mentored and trained by LEA while members of the Public were provided by First Issues. Figure 6-1: Respondents R espondents - ~~d=g .11..nor Secondary -~~~ Junior School QL~~::sS enior School โ€ข i~:~': Senior School 0GTC udents โ– Bobonong Brigates Terti ry BAC Students 0Botho Universtty udents 0 sec Employees โ€ข ore Emptoyeea GSS Employees Or-oe Employees Bus.,ess 3 The Public BTEMAPA U Unoons Bo u 6.2.2 Section 1.1 Gender The number of males who responded to the questionnaire is greater than females by 3.5%. This may mean that males have much of response rate than the females . Only a 6% of the respondents are at the age of retirement. The gender distribution is illustrated in the pie hart in figure 6.2. 260 Figure 6-2: Gender 1.1 Gender โ–  Ma l e Female 6.2.3 Section 1.2 Age Respondents aged 18 to 25 are many with 36% because a lot of the initiatives targeted young people, and they are part of the larger sample. A pie chart below illustrates how the respondents were distributed accord ing to their ages. Figure 6-3: Age 1 .2 Age ; Below 18 1 8 t o 25 ye r s 26 t o 5 4 t o 65 A b ove 65 6.2.4 Section 1.3 Highest Level of Education Figure 6.4 reflects that 36% of the respondents are undergraduates and only a 2% post graduates. 29%of them are graduates and have gone through tertiary education . Th is could have an impact in their interpretation of financial concepts. 261 In doing the cross sectional analysis of this and self - assessment and also with that of performance test it however did not come up clearly as to whether this is an influence factor or not. Groups of people could belong anywhere in the cluster groups identified after cluster analysis in section 3 and Section 4. Figure 6-4: Highest level of education 1 .3 Hi hest L I f E u c t i n r y 6.2.5 Section 1.4 Stages in family cycle The stages in family often reflect the "teacher able moments" (OECD/INFE (2015: 8) and the needs when analysed further with other questions. - It is later revea led in this chapter that young people are in need to be taught budgeting, savings and investments while still at junior schools. Figure 6.5 Stages in fam ily life cycle reflect this and also reveals their needs. Only 3% of the respondents show that they do not have dependents while larger percentage of 34% are young people, single & schooling, followed by children (25%) being almost 57% (under employment structure) only 2% short to the exact number of 59% of the dependents on income earners: being the sum of respondents child - 25% plus young single and schooling for 34%. 262 Figure 6-5: Stages in family life cycle 1.4 St ge in F mily Lit Cycle โ– Child oung single & hoolin oung single but or ing oung ma ried ithout Childr n oung m ried with children โ€ข tiddle 1ge m rried with chirdren t, iddle e m rried without epend nts Older M rried Old r Unm rried 6.2.6 Section1 .5 Employment Structure The results on Figure 6.6 show that 57% of the respondents are students and this is because there were of a larger sample from 3 different kinds of educational institutions junior secondary, senior secondary, and tertiary. They reflect also the %of people who need allowance either from parents or from school (government mainly) and being 57% gives a high the level of dependency on the income earners. There are only 36% of salaried people. Figure 6-6: Employment Structure 1 .5 Emplo y 1nent Structu re โ€ข Full time salaried Part Time sala ried C a s u a l e mp loym e nt Retired Unemplo y ed a s tudent Bus iness IS e lf En1p loyed 263 6.2.7 Section 1.6 Type of Monthly Income This pie chart in figure 6. 7 illustrates type of income the respondents earn. It indicates that 33% of the respondents depend on their parents for income while the larger percentage earns a salary. The pie chart demonstrates that all respondents have an income to spend , yet 33% and 41 % may be using the same source as the 33% are dependent on the salaried constituting 41 %. Only 26% are assisted by the government with allowance from school (both public and private educational institutions have student allowances paid by the government). Figure 6-7: Type of Monthly Income 1 .6 T ype of M onthl y Income A llow nee โ€ข from parents A llow nee f rom sch ool S I y 6.2.8 Section 1.8 Monthly Expenditure to Monthly Income The Figure 6.8 contains information for section 1.8, section 1.9 and 1.10 in the questionnaire and the findings and analysis of the bar graph is presented below. For Monthly expenditure to income the figure shows that only 1% of the respondents for the question Section1 .8 monthly expenditure to monthly income spent (41% to 50%). They are followed by 4% (51to 60%) while only 9% spend between (81to 90%). The highest number of respondents 44% spend (71to 80%) of their income while the 42% of the respondents are in the category of (1 % to 10% ). This is a polarisation of the respondents and unexpected results and the difference between those who spend less and those who spend (71to 80%) is 2%. Still it does show through the 42% that there is a culture of spending by the 264 consumers. It could be reducing as it means they are able reserve 20% for either investment or savings. 6.2.9 Section 1.9 Monthly Savings to Monthly Income The highest number of respondents which is 92% are able to save within (1 % to 10%) of their income. This relates to the above question that within the range of 1% and 20% of the income is reserved. Munnell , Webb, and Hou (2014:4) recommend the14% for savings. This indicates that 90% of the respondents are 4% below the standard . Only 7% of the respondents save within the ranges of 21 % to 30%. This is a large portion of saving but done by very few people, this relates to the above question indicating that not many people are prepared to save. Only a 1% of the respondents are in the range of (31% to 40%) indicating quite a thin number of people saving more than 30%. 6.2.10 Section 10 Monthly Future Investments to Monthly Income The 87% of respondents falling in the rage of investing between 1% and 10% is quite high reflecting that the willingness to invest is low just as the willingness to save more above. The Figure 6.9 though show that a large number (68.8%) of them have a savings account, which may mean that they are willing to save but not that much as indicated by Figure 6.8. Only 12% are prepared to invest above 10% (10% to 20). The extreme shown by 1% have gone to 21% (21 to 30%). The interpretation is that not many people are willing to invest for future and may not prepare for retirement. The bar graph in Figure 6.9 below demonstrates their earning (income) as opposed to expenditure. 265 Figure 6-8: Income Vs Expenditure 1% lo 10% 100 11%10 20% 21%to30% 31%to40% 41%to50% 51%10 60% 80 71%to80% 081%1090% QI Q .~... 60 C QI .u.. QI Q. 40 44% 0 ~ 0 1 .8 Monthly Expenditure to 1 .10 Monthly Future Monthly Income rivestment to Monthly Income 6.2.11 Section 1.11 Type of Accounts possessed by Respondents The respondents were asked to indicate the type of account they have with the bank: this may reflect financial inclusion in the financial services industry. Figure 6.9 reflects the types of accounts the respondents have. Most (68.8%) of the respondents have a savings account which may reflect that the culture of savings as one of the desired outcomes of financial literacy has started . 42% of them which is almost half have a current or cheque account yet 57% reflect that they have no such an account which may mean that they are unbanked and financially excluded . Elaborating further In terms of the loan account, car loan (99 .8% no & 8.3% yes) students loan, (99% no & 1% yes) and personal loans (84.8% no & 15.3% yes), mortgages (85% no & 15% yes) , and credit account (88.8% no & 11 .3% yes) most of the respondents do not possess them. This could mean that the level of indebtedness is low. Respondents also show that they participate in the share market as almost half of them have a money market account. This may reflect a 266 positive impact of financial education on the value of shares. The intuitions offering financial education may be doing well sensitising the public to invest on shares. The literature review indicates that one of the reflectors of low levels of financial literacy is lack of participation in the stock market (Lusardi Rooij and Alessie 2007:5). Since the results show participation the level of financial literacy on that regard is improving. Their answers on most of them in section 4 concerning PIO (what it stands for) reflect some literacy on shares. The bar graph in Figure 6.9 below demonstrates the types of accounts wh ich the respondents possess. Figure 6-9: Types of Accounts 100 โ– NO โ– YES 80 41 C) ..11.:.1 C 60 41 .(...) 41 a. 40 20 0 )>~ โ–บ~ )>~ โ–บ ~ g:....,. g:....,. g:....,. g ~ โ–บ~ โ–บ~ :....a. ~ g:....a. n:...,. ~ o:--" o:--" ~ 0 :--" 0 :--" 0 :--" g~ C t..J cw C.,s.. C u, CJ) c---, C CO CD 3.CD 3.CD 3.CD 3.CD CD 3.CD :::J ~CD QJ QJ QJ QJ QJ QJ QJ QJ :::J :::J :::J :::J :::J :::J :::J ;,;- ;,;- ;,;- ;,;- ;,;- ;,;- ;,;- :::J ;,;- )> n nโ–บ โ–บ )> )> n nโ–บ nโ–บ n n )> n n n n n n n n 0 0 0 n 0 0 0 0 0 C C C C C C C C :::J :::J :::J :::J :::J :::J :::J :::J ui ui ui ui ui ui ui ui ::r ::r ::r ::r ::r ::r ::r m m m m m m ::r (0 m '?- '?- '?- '?- '?- '?- '?- '?- (f) 0 0 (f) -0 I 0 QJ ::r c m ~ s: s. (l) ~ ;;; 0 (0 Cl. C 0 :::J .0 Cl. r m 0 Cf) ;::;; :::J \0 C m m Cf) m 0 :::J -< QJ 3- 0 โ–บ 0 :::J r ~ s: QJ s: n C 0 r 0 QJ n QJ 0 ;:::i. a. 0 a:: ?<" :::J QJ \0 C :::J QJ !!!. 3- 3- \0 ( l) 6.2.12 Section 1.12 Types of Investment Alternatives Considering the types of investment which the respondents could have, none of them have bank deposits. This could mean they are not interested in them or the 267 deposits are not that common . High percentages are shown as no, which reflects that most of the respondents have their portfolios less diversified. The percentage on debentures and bonds is quite low 3% reflecting a priority area for mutual funds companies and investment companies to teach potential clients. The insurance is in the lead with 36.5 % a priority identified to have not been given attention in the literature review on Botswana research in chapter 1 (Sparkassenstiftung fur internationale Kooperation (2007:26) Fanta (2015:7) has also stressed the need for insurance because "financial literacy involves awareness of financial products such as bank accounts , savings vehicles, and credit and insurance products. " The insurance sector may have responded well to fill ing the gap identified by (Sparkassenstiftung fur Internationale Kooperation (2007:26). The number of respondents on insurance is followed by investment alternatives if shares which may reflect what has already discussed above on participation in the market. Figure 6.10 below shows the investment alternatives the respondents have: Figure 6-10: Investment Alternatives 100 โ– NO โ– YES 80 GI .C. ) 11.1 C 60 GI .u.. GI a.. 40 20 0 0 :-" -s:~ :-" 0:-" :i"'~ 0:-" Cf) :-" m :-" ~~ C: ~ m ~ (j) ~ m ~ ::r ~ (j) ~ n ~.J rr~ C: C: . ~.J ""C ~ OJ ~ (D :....,_ m - 0 r-J ~w D) -I>- (j) u, cri ~~ ,~, CJ) (D "'-I (j) Cf)- ::, OJ ::, ::, C: 3" n 3" ~ -=, ::, ::, < < C: < (D < (D < < < < :-:,ยท (D ::, (D (D m m (D m (j) ~ c..~ (j) S/OUl (0 S/0 - ~ ~ ~ (j) OJ - (j) 3 3 OJ 3 3 3 3 3 3 (D m 3 ~ --c. m~ ~ a m m m ~ ~ ~ "-"~C )> ;-g ""(J )> )> )> )> ;:::;:- ;g (D ;:::;:- ;:::;:- ;:::;:- ;:::;:- (D (..D.., 0 ::::, m...., ::, (D (D m m (j)...., ...., 3 ::, 0..::, er ::J 3 3 ::, ~ ~ (j) ~ ::, ~ ~ ~ ~ <" Cf> (j) ::::, ' (j) CD ""(J OJ ::0 0 ::, (D ;,s- OJ ~ 268 6.2.13 Section 1.13 Financial Portfolio Record Financial records reflect how an individual is committed to budgeting and arranging their personal financial life. In Figure 6.11 5% of the respondents have a record of their insurance policies or they use this to keep a record of their fi nances. 26 percent has a will Testament, wh ile 68% have a written budget. The number is significantly high and could mean that financial education has made people aware that budgeting is a fundamental skill towards better financial decision making . This conqurer with the results of the thematic analysis (theme 1- consumer empowerment) showing that budgeting is practiced and viewed as an in important record in personal financial management. This show that respondents "keep track" (Robson 2012: ii Kempson et al 2005 and Atkinson, et al , 2006). Lyons et al (2006:399). Only 1% reflected in Figure 6.11 of the respondents has a record of financial records of accounts held. One of the ways of keeping records being asset inventory had not been significantly chosen by the respondents to yield a significant percentage to assess. Figure 6-11: Financial portfolio record 1.13. Fin nc i I Port fo lio Record II (test m nt) itten Budget Record of insur nee policies ... Fin nci I โ– record of ccounts held 6.3 Section 2 Type of Investor Section two of the questionnaire intended to determine if the recipients of fi nancial education have goals and are willing to invest, take risk (their risk appetite) . The respondents had to reveal if they are of high return , moderate 269 return , liquidity, low risk or they tend to be risk averse (safe) . The results have shown that most of the respondents are not high risk -takers, they would "rather play it safe". 6.3.1 Section 2.1 Major Investment Objective Most of the respondents (62%) would like to invest safely. There are only 1% of them who prefer liquidity, while 4% have a high appetite for investment, and 21 % of them desire to be moderate, 13% have chosen to be in the low risk category. This is an indication that Batswana do not want to risk their incomes but it could also mean the warnings from the providers of financial education on bogus investments have alerted them to be careful. The pie chart Figure 6.12 below indicates the respondent's major investment objectives. Figure 6-12: Major Investment Objective e iquidity is 6.3.2 Section 2.2 Allocation of Funds As reflected by Figure 6.13 most of the respondents (74%) have allocated their funds to be 10% Shares, with 20% - 30% for mutual investments, real estate 10% - 20% with debentures up to 25% and fixed deposit for 20%. These results do not correlate well with the account held by the respondents hold as less of them have 270 debentures and mutual funds. Other allocations have the number of respondents less than 10 % Figure 6-13: Allocation of Funds 2.2 Allocat ion of funds Sh res 100%, Mutu I Funds โ– 0% , Re I Est e 0% , Debt up tc 0% , Fixed Deposit 0 Sh res 70 , Mutu I Funds 10- 20%, Re I Est e 10-20 % , Debt up to 05% , Fixed Deposit 2% es 50%, Mutu I Funds 15- ' Real Estate 10-1 0%,.D eb 1 O ed Deposit ::,% h es ual Funds 20- 5 , R e 10-20 , Deb up 20 d Deposit 1 0% Sh es u I Funds 20- 30 , R e 10-200% , Debt up to 25% , Fixed Deposit 0% 6.3.3 Section 2.3 Investment Horizon As observed from Figure 6.14 Most of the respond 51 % would like to invest fo r period of 1 year to 3 years. This means steady investments and longer periods to earn interest but it may also reflect their apprehension to investment hence playing it safe as reflected by their investment objective shown in Figure 6.12. Only 1% of the respondents do not desire to invest for a longer period of time of over 5 years while 13% of them prefer short term investments. A sizable number of them 31 % also prefer 6 months but not more than a year. 31 % of the respondents prefer six months to one year while only 5% of them. The figure below shows their investment horizon . 271 Figure 6-14: Investment Horizon 2 .3 lnv e ment Horizon - ~~~is 6 m o nths t o 1 y 1 t o 3 y e 3 s t o 5 y e 5 ye r s 6.3.4 Section 2.4 Expectations from Investments This Figure 6.15 show a large percentage of 62% of respondents who would like to have a high return of (50% to 100% ). Their expectations do not tally well with their risk appetite because in Figure 6.14 and Figure 6.15 it shows that they are afraid of risk and they would like to be safe. The figure below shows the expectations of the respondents on return on investments. Figure 6-15: Expectations from Investment 2 .4 8

0.7). 274 6.4.3 Confirmatory Factor Analysis According to Hahs-Vaughn (2016:374) in factor analysis there are a number of orthogonal rotation techniques available in statistics software. Orthogonal rotation being useful as a type of factor analysis which means the taxis is placed in a different position for easy predictability. Hahs-Vaughn (2016:374) says that once data is extracted it is most always the case that the solution be rotated in order for it to be interpretable. If the factors are not rotated, areas will lie between the clusters of variables and will not clearly differentiate to primary fact. Yong and Pearce (2013:84) also say factors are rotated for better interpretation since unrotated factors are ambiguous. The orthogonal include varimax, quarthrimax and Equamax. Among these in this study the Equamax has been applied Abdi (2000:4) because it is a rotation which is a compromise between varimax and quartimax. It bridges and minimises the shortfalls of the two as it simultaneously supply them (Hahs-Vaughn 2016:374). Principal Component Analysis was utilised for reduction and extraction of factors before Confirmatory Factor Analysis. 6.4.4 Principal Component Analysis According to Abdi and Williams (2010: 1) Principal Component Analysis (PCA) is a multivariate technique that analyses a data table in which observations are described by several inter-correlated quantitative dependent variables. Eigenvalues which is the "Guttman rule" is used to reduce these variable to avoid redundancy and dealing with variables with less influence on the results (Warne and Larsen 2014:1) According to Warne and Larsen (2014:1) Guttman (1954) proposed that in an EFA, all factors with eigenvalues greater than 1.0 should be retained. However it has now come to be described as K1 rule method to have been further developed by Kaiser (1960) Kaufman and Dunla, Ledesma & Valero-Mora (2000:389) and according to this rule, only the factors that have eigenvalues greater than one are retained for interpretation. In this study reduction is based on Kaiser's rule of eigenvalues greater than 1 (in the column labelled Total). Therefore table 6.3 suggests 9 factors rather than the initially proposed 10. This is displayed in component 10 in the initial Eigenvalues less than 1 at 0.95 hence omitted as redundant for self-assessment test. 275 Table 6-3: Eigenvalues and self -assessment Component Initial Eigenva lues Total % of Variance Cumulative% I 11 .26 26.809 26.809 2 5.167 12.304 39.11 2 3 3.486 8.3 47.412 4 2.609 6.2 11 53 .623 5 1.997 4.754 58.377 6 1.63 3.88 62 .257 7 1.262 3.004 65.26 1 8 l.l98 2.853 68 .1 14 9 1.151 2.741 70.855 10 0.954 2.27 1 73. 126 After reduction of the above from 42 variables the 9 factors extracted explained a cumulative loading of 70.8555% of variability of confidence is detected in self- assessment measuring how confident the respondent is about his knowledge skills, attitudes and behaviours. This is quite adequate since Fook, Narasuman, Rahman , Sidhu and Fong, (2015) indicate 50% to be acceptable. The initial factors were not satisfactory because as Hahs -Vaughn (2016: 375) write, there should be three variables per factor to warrant interpretation. Table 6.4 shows the initial factor matrix. It can be noticed that in the initial matrix most of the items are congested to the first three factors , some factors do not even have any items whereas others have fewer than the recommended minimum of three items. As such factor rotation was necessary to better the initial solution. The Equamax rotated solution in Table 6.5 is relatively better than the initial solution in Table 6.4 since the items are distributed fairly across the factors . Therefore, the rotated factor matrix in Table 6.5 is accepted as final. 276 Table 6-4: Initial matrix for self -assessment 1 2 3 4 5 6 7 8 9 Savings 0.527 0.283 0.118 0.045 0.204 0.335 0.033 0.264 0.414 Budgeting 0.4 15 0.078 0.155 0.04 0.438 0.297 0.25 0.285 0.2 Bank Accounts 0.284 0.01 6 0.336 0.252 0.4 13 0.077 0.23 0.183 0.35 Taxation 0.322 0.07 1 0.379 0.273 0.329 0.143 0.329 0.064 0.082 Saving Culture vs Spending 0.658 0.028 0.123 0.2 19 0.037 0.304 0.076 0.294 0.162 Reason for Use of Debit Card 0.57 1 0.347 0.205 0.201 0.2 14 0.11 3 0.189 0.133 0.339 Method of Pavi ng Credi t Card Bills 0.442 0.028 0.577 0.283 0.006 0.028 0.076 0.092 0.064 Return to the suppl ier 0.574 0.099 0.193 0.102 0.413 0.11 9 0.205 0.028 0.125 Ifl receive poor service I compla int to management 0.509 0.18 0.032 0.1 29 0.48 1 0.042 0.139 0.05 0.063 Consult Professional Broker on investments 0.50 1 0.036 0.052 0.068 0.226 0.098 0.26 0.363 0.14 1 Consult books magazines and newspapers 0.58 1 0.0 1 0.2 0.072 0.1 85 0.209 0.202 0.143 0.276 Tracking my spendi ng 0.37 0.506 0.203 0.009 0.146 0.2 15 0.059 0.248 0.163 Paving bills on time 0.325 0.478 0.374 0.14 0.039 0.15 0.252 0.294 0.307 Reading bank account statements regul arl y 0.507 0.5 11 0.176 0.142 0.093 0.057 0.152 0.17 0. 127 Preparing a will or testament 0.157 0.648 0.248 0.05 0.321 0.09 1 0.096 0.1 29 0.102 Contri buting to a ret irement fund 0.301 0.694 0.04 0.169 0.101 0.05 I 0.25 1 0.003 0.069 Comparison shopping fo r a personal loan 0.4 12 0.673 0.069 0.232 0. I 55 0.029 0.0 14 0. 153 0.153 Keeping an emergency fund 0.133 0.64 0.344 0.29 0.063 0.2 14 0.112 0.144 0.002 Shopping around fo r the best prices 0.374 0.706 0. 11 3 0.257 0.209 0.109 0.042 0.028 0.082 Following a monthly budget 0.429 0.629 0. 104 0.144 0.32 0.153 0.004 0.07 0.037 Adjusting my tax return every year 0.363 0.663 0.103 0.14 1 0.075 0.012 0.108 0.09 0.202 Mixing or di versifying my investments 0.373 0.5 0.265 0.14 0.263 0.169 0. 177 0.23 1 0.057 Discipline in use of money 0.529 0.151 0.229 0.269 0.103 0.194 0.008 0.05 1 0.049 Confidence in financial decision making 0.536 0.293 0.431 0.28 0.176 0.205 0.09 0.1 37 0.062 Consistency in saving for a purpose 0.55 1 0.436 0.4 12 0.3 17 0.08 1 0.2 16 0.14 1 0.114 0.095 Stabilitv and effective debt management 0.548 0.343 0.39 0.37 0.048 0.256 0.0 18 0.01 I 0.123 Living within my means 0.426 0.158 0.204 0.334 0.186 0.162 0.194 0.226 0.234 Consistency in plann ing and budgeting 0.584 0.403 0.31 7 0.381 0.073 0.2 16 0.029 0.077 0.034 I am able to ca lcu late interest on my savings 0.224 0.14 0.468 0.027 0.387 0.275 0.238 0.323 0.166 I am able to read mv monthly statement 0.787 0.16 1 0.029 0.4 18 0.106 0.04 0.039 0. 11 5 0.09 1 l am able to compare my receipts 0.805 0.157 0.044 0.388 0.103 0.033 0.022 0.108 0.086 I am ab le read over and understand 0.6 16 0.055 0.345 0.543 0.133 0.129 0.052 0.027 0.09 I am ab le to read over and understand 0.639 0.024 0.323 0.538 0.092 0.134 0.08 0.01 5 0.1 I am able to read about shares 0.4 13 0.114 0.555 0.209 0.023 0.098 0.038 0.077 0.05 I I work extra hours to meet bil ls and expenses 0.5 16 0.132 0.417 0.331 0.235 0.456 0.209 0.008 0.099 I miss important events to work 0.52 0.13 0.423 0.299 0.261 0.462 0.203 0.028 0.086 I contribute to a savings account regularly 0.859 0.076 0.05 0.047 0.186 0.204 0.023 0.069 0.089 I find legal ways to lower my taxes 0.613 0.168 0.345 0.182 0.02 1 0.307 0.097 0.102 0.173 I comply with tax regularly 0.832 0.105 0.05 0.036 0.196 0. 189 0.072 0.088 0.077 I read to increase my fi nancial knowledge 0.666 0.091 0.043 0.2 0.2 11 0.13 1 0.1 0.144 0.08 1 I use overdraft for mv payments everv month 0.091 0.059 0.074 0.138 0.149 0.06 I ~ 0.384 0.29 Contribute to investment fu nd 0.577 0.194 0.527 0.183 0.07 0. 176 0.13 1 0.1 26 0.14 1 277 Table 6-5: Extracted factors after rotation I 2 3 4 5 6 7 8 9 FACTOR 1 Discipline in use of money 0.617. Confidence in financial decis ion making 0776 Consistency in saving for a purpose 0.119 Stability and effective debt management 0.84$. Living within my means 0.65 Consistency in planning and budgeting 0.821. FACTOR 2 Contributing to a retirement fund Comparison shopping for a personal loan Keeping an emergency fund Shopping around for the best prices Fo llowing a monthly budget Adjusting my tax return every year Mixing or diversifying my investments FACTOR3 Saving Culture vs Spending Return to the sunnlier Consult books magazines and newspapers I am able to read mv monthly statement I am able to compare my receipts I find legal ways to lower my taxes I comply with tax regularly l contribute to a savings account regu larly FACTOR4 Taxation 1 work extra hours to meet bills and expenses I miss important events to work FACTOR 5 Bank Accounts 0.667 Method of Paying Credit Card Bills 0.70 1 I am able to read about shares 0.624 Contribute to investment fu nd 0.653 FACTOR6 Tracking my spending 0.635 Paving bills on time 0.834 Reading bank account statements regularly 0.661 FACTOR 7 Savings 0.755 Budgeting 0.784 FACTORS Consult Professional Broker on investments 0.6 16 1 am able read over and understand 0.499 I am able to read over and understand 0.508 I read to increase my financ ial knowledge 0.466 I use overdraft for my payments everv month 0.77 FACTOR 9 Reason for Use of Debit Card 0.621 If I receive poor service I complaint to management 0.418 Preparing a wi ll or testament 0.477 I am able to ca lculate interest on my savings 0.708 6.5 Factors Self -Assessment Confidence Test Naming factors is not easy Yong and Pearce (2013:81 ). This is much more difficu lt for a rotation of equamax because it is a combination of the other 278 orthogonal rotation types (Varimax and quartimax) Hahs -Vaughn (2016:373) and that naming were originally meant for varimax. The naming correlating variable belonging to a factor may even be meaningless. In this study the researcher use language skills considering word associations, contrasts and relations in naming the factors as there are no specified rules for the task. This is testified by Yong and Pearce (2013:91) writing "Naming of factors is more of an 'art' as there are no rules for naming factors , except to give names that best represent the variables within the factor." The following are the factors , then the tables showing how the factors were named and how the graphs were interpreted : Table 6-6: Nine Factors named Factor Name of Factor 1 Factor 1 Improvement on behavioural attitudes towards money 2 Factor 2 Importance of financial behaviour 3 Factor 3 Actions towards reducinq spendinq and makinq savinqs 4 Factor 4 Taxation with extra income and expenses 5 Factor 5 Bankinq and manaqinq accounts 6 Factor 6 Trackinq and reducinq spendinq 7 Factor 7 Factor 7 Savinq throuqh basic accountinq 8 Factor 8 Consultation and utilisinq information 9 Factor 9 Utilisinq Services for stability and sustainability 6.5.1 Factor 1 Improvement on behavioural attitudes towards money The variables for behavioural improvement in this factor (rating from 1-3 not improved , improved to highly improved) comprise of variables: 3.10.1, Discipline in use of money 3.10.2.Confidence in financial decision making, 3.10.4 consistency in saving for a purpose, 3.10.5 stability and effective debt management, 3.10.6 living within my means, 3.10.?consistency in plann ing and budgeting. The factor excluded 3.10.3 which is not reduced and not extracted . The main topic is rating behavioural improvement and therefore named as thus. 279 Table 6-7: Improvement on behavioural attitudes towards money FACTOR NAME VARIABLE UM BER VA RIABLE Factor I Behavioural 3. 10.1 Discipli ne in use of money Attitudes 3.10 2 Confidence in financi al decision making Improvement 3.10.4 Consistency in saving fo r a purpose 3.10.5 Stability and effecti ve debt management 3. 10.6 Liv ing within my means 3.10.7 Consistency in planning and budgeting Figure 6.17 indicates how respondents have judged their level of improvement on behavioural attitudes after receiving financial education under 3.1 0.1d iscipl ine in use of money it is revealed that the highest number of respondents at 75.31 % believe to have "improved" while only 24 .68% is shared by those who said highly and not improve. This means a large number of them are confident that they have discipline in the use of money at a total of 87% th is is a good number yet a large number some of the groups like the youth in the performance test showed a contrast. The respondents have also ind icated (3.10 2) confidence in making financial decision making with 80.35 % believing to have improved. Only 7.305% have "highly improved" in making financial decision making but together with the 80.35 % of those who have improved gives 87.655% which is a good percentage of the number of respondents who have shown a positive impact on behavioural attitudes towards making financial decision about money after financial education . The figure continues to reveal that "improved" has a larger percentage that the rest on 3.10.4 cons istency in saving for a purpose. 80.35% of them have 'improved ' while only 8.312% have "highly improved". This 80.35% is second in the number of respondents in 'improved" compared to their judgement on (3 .10.6) living with in my means. Though it has response rate lower than "highly improved" in (3.10.1) discipl ine in use of money by 4.028% it has a greater percentage of respondents for "highly improved" than in (3.10.2) confidence in making financial decision making 7.305%, (3. 10.5) stability and effective debt 280 management 6.54%, (3.10.6) living within my means 5.793% (3.10.7) consistency in planning and budgeting 5.808%. In overall it can be said that a large number 88.66% of them believe to improved their behavioural attitudes towards saving money than before. In (3.10.5) stability and effective debt management the trend is the same as the other variables with improved getting a large percentage of respondents. Most of them 70 .79% believe to have 'improved' in managing their debts effective then before receiving financial education. 21.64% believed to have not improved which is greater than those in 3.10.1, (3.10.2) confidence in financial decision making , (3.10.4) consistency in saving for a purpose and (3.10.6) living within my means. However the number is less than those who believe have not improved in (3.10.7) consistency in planning and budgeting by 1.07% for 22 .73%. Figure 6.17 also reveal the results of how many respondents have rated their not improved, improved and highly improved in (3.10.7) consistency in planning and budgeting. Like other variables the highest number is in the category of improved with 71 , 46%. Compared to other variables this is the lowest rate of those who have answered improved with a margin of 12.92% from the 84.38% of (3.10.6) living within means. This indicates that people have not have made the least improvement in planning and budgeting. The other respondents are with the highest 22 .73% among the other variables on 'not improved' recording the second lowest 'highly improved' For the behavioural attitude of (3.10.6) living with in means, the largest number of respondents 84.38% who have improved is recorded. This has contributed to the other scales of 'not improved' with 9.824%) and 'highly improved' with 5.793 % to have low response percentages even when compared to the rest of response in other variables. Generally the number of respondents on the scale improved is at least over 70% on all the variables which indicates that positive impact from their perspective. From figure 6.17 it is revealed that when comparing and contrasting the spread of respondents for the scale not improved, improved and highly improved, the highest percentage is presented is on "improved" with 84.38% of respondent. Most respondents believe to have "improved on (3.10.6) "Living within means" since financial education . The lowest at the scale level of improved is 71.46% on 281 the variable consistency in planning and budgeting giving a range of 12.92% between the two. The highest percentage for the scale "highly improved" is on discipline on use of money with 12.34% of respondents while the lowest for the scale is 5.793% for (3.10.6) "Living within means" giving a range of 6.61 %. Comparing all the variables on the scale of 'not improved" the highest percentage is on 3.10.7 consistency in planning and budgeting with 22 .7 3% of respondents while the lowest is 9.824% of respondents on variable 'living within my means". It can then be concluded that 92.173% believe to live within their means. Figure 6-17: Improvement on Behavioural Attitudes โ– NOT IMPROVED โ– HIGHLY IMPROVED โ– IMPROVED 100 80 GI tn cIll so .Gc.I. ., GI Q. 40 20 c w ":... "a 2.:.... 3 9. :0:, "0 ~~ ::, :"r' 6.5.2 Factor 2 Importance of financial behaviour Factor 2 contains variables for importance of financial behaviour (rating from 1-5 undecided, not important, important, very important, and highly important) 3.9.6 contributing to a retirement fund , 3.9.7 Comparison shopping for a personal loan, 3.9.8 keeping an emergency fund , 3.9.9 shopping around for the best prices, 3.8.10 following a monthly budget, 3.9.11 adjusting my tax return every year, 3.9.13 mixing or diversifying my investments. It has not accommodated a correlation itself with 3.9.1 tracking my expenses and 3.9.2 paying bills on time which are found in factor six correlating with tracking and reducing spending. 282 Variables 3.9.4 and 3.9.12 have been reduced bearing no consequence in analysis. The factor is named importance of financial behaviour to be retained as thus from initial naming of variables in the instrument because there are no additions which warrant change. Table 6-8: Importance of financial behavioural FACTOR AME VARIABLE NUMBER VARIABLE Factor 2 Importance of 3.9.6 Contributing to a retirement fund Behaviour 3.9.7 Comparison shopping fo r a personal loan 3.9.8 Keeping an emergency fund 3.9.9 Shopping around for the best prices 3.9.10 Following a monthly budget 3.9.11 Adjusting my tax return every year 3.9.13 Mixing or diversifying my investments Figure 6.18 Factor 2 above illustrates factor 2 of Importance of Behaviour with respondents to have shown how they rate the importance of behaviours personal financial management tabulated above in table 6.7. For 3.9.6 contributing to a retirement fund , 66.80% have respondents undecided on its importance while 16.60% feel it is very important, 14.57% think it is important and the least number 2.024% of respondents view the behaviour as not important. The figure 6.18 has a general picture of the respondents in each of the variable to be more inclined to undecided. The highest number of respondents (82 .10%) undecided about a behaviour is recorded for (3.9.8) keeping an emergency fund for at least three months living expenses. An indecision of this kind shows people are not yet willing to put aside funds for rainy days. Oakley and Gicheva (2017:13) advise to do so for the short term or for retirement income as it improves individual living standards and promotes economic growth. The second highest number (77.68%) of respondents who are undecided about behaviour is on (3 .9.13) mixing or diversifying my investments. People must make decisions to mix portfolio so that they do not put their investments at risk in one fund . According to Wilmington Trust (2016: 1) the crisis has taught new ways of diversification such as across economic sectors and geographic regions , as 283 well as perhaps non-traditional assets. The variable has lowest number of respondents attaching very important to mixing portfolio at 5.56%. In deciding the importance of (3.9.7) comparing shopping for a personal loan, the respondents 63% are undecided and 8.365% are think it is not important to shop around which means a large number of respondents 71 .365% could possibly using the loan facil ity without making comparisons to get low interest or other benefits which could accompany getting a loan e.g. - insurance. Only 17.11 % think it is very important, while 17.41 % say it is important reflecting only 28.52% have attached importance to comparison shopping for a personal loan. Making comparisons for a loan is as important as (3.9.9) shopping around for the best prices yet the trends is still similar with the highest percentage of undecided 61.72% than attaching importance to the financial behaviour- 19.53% though say it is very important which a percentage more than in many of the variables (3.9.6) - 16.60%, (3.9 .7)- 17.11%, (3.9.8)- 6.790% and (3.9.13) - 5.56%. Following a monthly budgeting (3.9.10) also indicates the same pattern like the rest with many respondents having undecided though it has the lowest percentage of 52.92% than any of them. It also has the highest percentage (23.48%) of respondents who view following a monthly budget as very important. With 23.48%) added to those who think following a monthly budget is important (17. 42%) making a sum of 40.9% a number which supersedes the sum totals of the rest: (3.96) - 31 .17%, (3 .9.7)- 28.52% , (3.9.8) - 12.346%, (3.9.9)- 32 .81 %, (3.9.11 )- 37.90% and (3.9.13)- 19.67%. The responses for 3.9.11 adjusting my tax return every year are that 20.43% of respondents viewed the behaviour as very important. It is the second highest percentage following that of 3.910 following a monthly budget. The undecided are at 61.29% and like the rest of the variables those who view it as not important and undecided has the highest number of respondents (66.7 59% ). To conclude factor 2, respondents are undecided about all the financial behaviours wh ich could mean they do not attach importance in carrying them out. 284 Figure 6-18: Importance of financial behaviour โ– UNDECIDED โ–  IMPORTANT โ– NOT IMPORTANT โ–  VERY IMPORTA NT 100 80 ~ .Cc.u.) C 60 .~ (...) ~ a. 40 20 0 oW ,__+, . w m Dl (D r~o .( D (D (D (D 0) :J '-.J ro o:, (D .:......,.. :....,. 0 0 03~ Ul -::::; ... ,, w 0 0 o ro )> sx:ยท ~ 3 .L--o 0 Q. --0 --0 ยฃ, rr --0 0 C: ::f ~ ~ :;-Cll LO 5ยท ~ !!1. LO ~ (ii" 5 ยท LO 5 ยท 5 ยท 0 ~~ LO LO C: LO :J Ill <" 0 Cl) ~rr! 0 Q) 3 ro -::::; ro ::, C: 3 -< ;;;; Ill 0 x ~ :J a. 0 6i --0 i X ~ --0 "CLO ro ro a -::::; ~- 5" ~ 5" :J :J Q IC Cl) 0 -<" ~ ,+ e 3 Q Ct>-< J u ยฃ; ro Cl) ...... ro C: 3 :J a C: u a. -< Ill :J LO ro a. CD c < 5ยท --0 !!1. ~ CD < CD -< CD :J a. ;;;; ~ ~ !!1. 0 a c'>" -< 3 :J CD CD CD Q1. ro Cl) ~ Ill a Cl) !!1. 6.5.3 Factor 3 Actions towards reducing spending and making savings The variables contained in factor 3 are incl ined to behaviours, attitudes and abilities which show actions towards either spending or saving . The factor contains 3.2 saving vs spending on a scale 1-5: 3.2.1 very spending-oriented, hardly ever saving money 3.2.2 somewhat spending oriented , saving money 3.2.3 neither careful nor spending oriented 3.2.4 somewhat careful , and seldom saving money 3.2.5 very careful , saving money whenever I can. The variable in 3.2 correlate with 3.7 .1 measuring frequency of consultation on a scale 1-3 never, sometimes, always 3.7.5 return to the financial product supplier, of which 3. 7.2 return dysfunctional product to the supplier has been reduced while 3.7.3 is factored in number 9 services for now and future. The variable 3.7.1 is inclined to saving as returning what does not suit needs assist in recovering spending rather than keeping something wh ich not utilised. The other variable is 3.8.5 285 consult books magazines and newspapers - reading about spending and savings. The other variables are from 3.11 with a likert 1-5 not so true to very true of me. These are 3.11 .2 I am able to read my monthly statement and 3.11.3. I am able to compare my receipts the two helping the consumer to get the idea where they spent or made savings. It excluded others in 3.11 with 3.11 .1 factored at 9 services for now and future , 3.11 .4, 3.11 .5 at number 8 correlating with consultation and managing information while 3.11 .6 is at number 5 banking and managing accounts. The rest of the variables are from 3.12 with a likert scale 1-5 not so true to very true of me. These are: 3.12.5 I find legal ways to lower my taxes 3.12.6 I comply with tax regularly which are a ways of avoidance (saving from spending on tax) and a way of avoiding charges from evasion of tax. They are accompanied by 3.12.4 I contribute to a savings account regularly- steady savings. The other variables in 3.12 are absorbed by other factors with 3.12.1 I have parents/friends/ core workers 'bail me out' of debts and 3.12.9 I hide from creditors reduced not made significant for the analysis in any of the factors . Hence the factor is about spending versus saving. Table 6-9: Actions towards reducing spending and making savings FACTOR NAME VARIABLE UMBER VARIABLE Factor 3 Actions towards 3.2.1 Very spending-ori ented, hardl y ever saving reducing money spending and 3.2.2 Somewhat spending ori ented, seldom sav ing making saving money 3.2.3 Neither careful nor spending oriented 3.2.4 Somewhat careful , often savi ng money 3.2.5 Very careful , saving money whenever I can 3.7.l Return to the fi nancial product to supplier 3.8.5 Consult books magazines and newspapers 3 .11.2 I am able to read my monthly statement 3. 11.3. [ am able to compare my recei pts 3.1 2.5 I fi nd legal ways to lower my taxes 3. 12.6 I compl y with tax regularly 3.1 2.4 I contribute to a savings account regularl y 286 The following figure (figure 6.19) describes 3.2 with the variables self-rating on savings and spending for factor 3 actions towards spending and saving. Figure 6-19: Self-rating on savings and spending 60 .0% 50.0% .... 40.0% i C I G I .c...I , 1 30 .0% GI Q. 20.0% 1 .504% 10.0% . 12 .03% 7.519% .0% Very Somewhat Neither Somewhat Very spending- spending careful nor careful , careful , oriented , oriented , spending often saving saving hardly ever seldom oriented money money saving saving w henever I money money can 3.2 Self rating on Saving vs Spending The figure reveals 58.88 % of respondents are (3.2.1) very spending-oriented, hardly ever saving money. This is the largest number than the response rate towards (3.2 .2), somewhat spending oriented , seldom saving money at 1.504%, (3.2.3) neither careful nor spending oriented at 25.06%, (3.2.4) somewhat careful , often saving money at 12.03%, (3.2.5) very careful , saving money whenever I can at 7.519%. The culture of spending over saving is still prevalent as opposed to what has been reported in qualitative analysis. Ways of recovering money spent include being able to exercise consumer rights and return unsuitable products Figure 6.20 below indicates 24.66% of respondents never return the unsuitable products , 40.21 % do it sometimes while 35.12% do the desirable by always returning it- the percentage is less than half which could mean many unsuitable products are paid for yet not utilised. Many of the financial products like insurance are serviced monthly or annually with premiums sometimes accruing with at least 10% annually to cover the rise of inflation rates. Consumers must always revise their products and asses the value extracted from wat they pay for. 287 Figure 6-20: Return of an unsuitable financial product to supplier or seller 50 .0% ... 40.0% C .G..I 30 .0% u GI 0.. 20 .0% 35 .12% NEVER SOMETIMES ALWAYS 3.7 .1 Return of an unsuitable financial product to supplier/seller Factor 3 is also inclusive of the value placed on consultation with 3.8.5 consult books, magazines and newspapers for reading. Thefore the Figure 6.2.1 reveals that none of the respondents have made it a frequency of always reading. 33.06% are sometimes read while large groups reflect that they never read . The lack of reading means lack of advice on and they never get necessary information for on what to spend on or on savings. They may also never know available products and services which can useful. Figure 6-21: Returns and consultations โ–  NEVER โ– SOMETIMES โ–  ALWAYS 100 80 GI .C..) ~ C 60 .GI u.. GI 0.. 40 20 - 0 3.7.1 Return of an unsuitable 3.8 .5 Consult books , magazines financial product to and newspapers for reading supplier /seller 288 Factor 2 is further explained by Figure 6.22 reveal other actions which help towards reducing spending or increasing saving. Most of the respondents have selected the lowest rate showing that their abilities, or compliance, or actions towards reducing spending to be very low. Actions: In 3.12.4 is about an action towards savings 59.29% of them feel it so not true of them to contribute to savings regularly. This indicates more than half of the respondents not engaged in an important action as savings stressing more the culture of spending . Only 31.15% of them feel it is not so true of them that they contribute to savings regularly. This is the same trend with other actions as the respondents seem to be tipping to the lowest scales. For instance 61 .64% of the respondents feel it is so not true of them to comply with tax (3.12.6 I comply with tax regularly).Only a 33.97% reveal that it is very true of them that they comply with tax regularly. The implications for not complying may mean extra interest charges sometime while paying compline never attracts charges hence it reduces unnecessary spending. Besides regular tax compliance, finding legal ways to reduce tax is valuable as it can contribute to savings. In responding to 3.12.5 I find legal ways to lower my taxes, 79.40% feel it is not so true of them that they try to reduce spending on tax. This implies lack of impact of financial education on taxation . Abilities: In 3.11.2 I am able to read my monthly statement, has the connotation that the recipient of financial education will understand how thy have spent or saved . This is also the same for 3.11 .3 I am able to compare my receipts of purchases to my month statements will ensure checking correct entries for spending. This helps in keeping track and alerting the consumer on how to budget better. 54.97% feel it is not so true about them to read monthly statement and 54.88% also feel it not so true of them to compare receipts and statements. The items also have the same pattern as others recording the other extreme end of 'very true of me' at 20.16% (3.11.2) and 21.90% (3.11 .3). The rest of the respondents are in the middle of the continuum of 'not so true of me' and 'very true of me'. This indicates that only a few people are able to read statement and even compare them to receipts of their purchases. The conclusion drawn for factor three is that consumers to not make much in their actions avoid spending. 289 - They still indicate more actions which show lack of compliance, lack of tracing their spending and savings, lack of reading books and lack eagerness to recover their spending from products unsuitable for their needs. Figure 6-22: Abilities, and actions towards savings and reducing spending 5 100 80 QI 0) I'd ~ C 60 QI .(...) QI a. 40 20 131.15% 1 21.90% 17.86% o_.__........_ ____ .____._ ____ .____.. ______ _. _____ _.._..__ ___ __. ____ ____. 3.11 .2 Ability to 3.11 .3 Ability to 3.12.4 I contribute 3.12.5 I find legal 3.12.6 I comply w ith read my monthly compare my to a savings ways to lower my tax regularly statement receipts of account regularly taxes purchases to my monthly statement 6.5.4 Factor 4 Taxation with extra income and expenses Factor four contains only three variables extracted from 3.1 and 3.12. The variable from 3.8 is on taxation rating level of knowledge with likert scale rating from 1-3 not knowledgeable, knowledgeable and quite knowledgeable. It correlates with 3.12.2 rating on truth about financial behaviour with a likert scale 1-5 not so true to very true of me I work extra hours to meet bills and expenses, trying to cover up for spending yet with implications for more income more deduction income tax. The factor also includes 3.12.3 I miss important events to work from , changing life style trying to meet those expenses in 3.12.2 . 290 Table 6-10: Taxation with extra income for expenses FACTOR NAME VARIABLE NUMBER VARIABLE Factor 4 Taxation with 3.1.8. Taxation extra income 3.12.2. I work extra hours to meet bills fo r expenses and expenses 3. 12.3 I miss important events to work Factor 4 is mainly about taxation (3.1.8.) taxation. Figure 6.23 indicates 86 .54% of respondents to have rated themselves as 'not knowledgeable', 10.29% have reveal they are 'fairly knowledgeable' and only 3.66% are quite knowledgeable. This shows that there is need for more initiatives on the topics for taxation. This contradicts the results of the qualitative analysis in which interviewees: P18 "Batswana have begun to show interest in taxation and have begun to question the amount of tax they pay hence keen to make their self- calculation/ assessment to verify deductions from their income:" Figure 6-23: Level of knowledge on taxation 100 .0% 80 .0% ... C GI 60 .0% u L. GI Q. 40.0% 20 .0% 3.166% 10 .29%, .0% Not Knowledgeable Fairly Quite Knowledgeable Knowledgeable 3.1.8 Level of Knowledge on Taxation Figure 6.24 reveals that 85.33% of the people do not work extra hours to meet bills and expenses (3.12.2. I work extra hours to meet bills and expenses) and they also do not miss important events to work as 83.69% (3.12.3) I miss important events to work). This means most of them do not get further deductions for tax. At the same time they do not earn extra income to help them pay bills. It 291 could mean their income is sufficient or that they do not view it as a way to ease their budgets. Figure 6-24: Extra incomes to pay expenses 100 80 a, .0C. ) O.$ C 60 a, C, I,.. a, a. 40 20 0 3.12.2 1w ork extra hours to 3.12.3 I miss important meet bills and expenses events to work extra hours to meet bills and expenses 6.5.5 Factor 5 Banking and managing accounts Banking and managing accounts has variables from 3.1, 3.5, 3.11 , and 3.12 .The variable 3.1.7 bank accounts rating level of knowledge with likert scale rating from 1-3 not knowledgeable, knowledgeable and quite knowledgeable. All other variables correlate with it and are associated with managing bank accounts. The factor has extracted all variables in 3.5 on managing a credit account with items measuring on 1-5 likert scale: 3.5.11 do not have a credit card 3.5.2 pay when I receive a warning 3.5.3 I pay sometimes but before I receive a warn ing 3.5.4 I pay the minimum regularly and 3.5.5 I pay between the minimum and full amount regularly. The factor has added 3.11 .6. I am able to read about shares measuring on a likert 1-5 not so true to very true of me, indicating ability to manage a money market account. There is also correlation with 3.12.10 contribute to investment fund also on a likert 1-5 not so true to very true of me, indicating ability to manage and service account. 292 Table 6-11: Banking and managing accounts FACTOR NAME VARIABLE NUMBER VARIABLE Factor 5 Banking and 3.1.7 Banking and bank Accounts Managing 3.5.1 I do not have a credit card accounts 3.5 .2 I pay when I receive a warning 3.5.3 I pay sometimes but before I . . receive a wammg 3.5.4 I pay the minimum regularly 3.5.5 I pay between the minimum and fu ll amount regularly 3.11.6. I am able to read about shares 3. 12.10 Contribute to investment fund In Figure 6.25 it is shown that 77.55% feel they are 'fairly knowledgeable' about banking and bank accounts (3.1. 7 Banking and bank accounts). Adding to the percentage of those who think they are 'quite knowledgeable', it can be concluded that 87.99% of respondents which is a large group, have reasonable knowledge about banking and bank accounts. This is contrary to how they have performed in the test on section 4. It indicated that some groups like students could not get correct answers on savings and investment accounts. The employees who were a better group on performance test were not able to get the correct answer for an account with most interest. 293 Figure 6-25: Level of Knowledge on banking and bank accounts 80 .0% 60.0% .... C .Gu..I 40 .0% GI 77.55% a. 20 .0% .0% Not Fairly Quite Knowledgeable Knowledgeable Knowledgeable 3.1.7 Level of Knowledge on Banking and Bank Accounts Credit accounts fall under loan account. Figure 6.26 reveals that most of the consumers 88.47% do not have a credit account while only 11 .53% (46 respondents among the 400) have credits accounts. Among the total respondents who have credit accounts 3.008% (12 respondents out of 400) 'pay between the minimum and full amount regularly', thereby making 26 , 1 %. Those who 'pay the minimum regularly' which is a good response too , are at 6.516% making 56.51 % of people with credit accounts. Adding the number of those who 'pay minimum regularly' and those who 'pay between minimum and full amount 'bringing 82.61 % (among 46 respondents), it can be concluded that most of people who have credit accounts manage it well. Only 17.39% of those who have credit account pay when they receive a warning opening a chance for increase in loan interest. 294 Figure 6-26: Payment of monthly credits card bills 100.0% 80 .0% +,I ; 60 .0% (J Ii.. (V a. 40 .0% 11 .003%1 20 .0% 1.003% .0% I do not I pay w hen I pay I pay the I pay have a I receive a sometimes minimum between credit card warning but before I regularly the minimum receive a and full w arning arnount regularly P aym e ntofM on th lyC red itC ard Bi 11s Figure 6.27 reflects that 83.98% it is not so true of them that they have the ability to read about shares and follow market performance. Only a tiny number (0.5%) are at an extreme end to have confessed it is very true of them that they are able to read about shares and market performance. The lack of confidence on knowledge of shares contradicts the results of the qualitative analysis that: P12: "confidence to invest in shares and stock has grown" and that: P14 "Trustee are taught money market and market performance". It also continues to reflect contradiction on participation in shares in performance test - as they understand PIO and have stock market account almost half of them (45% ) have a money market account. According to Holzmann (2010:4) one of the actions which promote financial literacy is to stay informed and so reading and following market performance is important more especially for those who have accounts. 295 Figure 6-27: Ability to read about shares and follow market performance 100.0% ' 80.0% .... C 60.0% Cl.I u I., Cl.I a. 40.0% 83 .98% 3.359% 20.0% - 11.63% .0% 2 3 4 5 3.11.6 Abilitty to read about shares and follow stock market performance Factor 5 also includes servicing and maintaining an investment account (3 .12.10) contributes to investment fund). 80.95 % of respondents feel it is not so true of them to contribute to investment fund . Having answered like that in large numbers it reflects their financial behaviour to contradict what they have been taught. In qualitative analysis the following was narrated as offered to consumers: P12: "Basic accounting and budgeting to keep track of investments". P9: "people are now living within means and have begun prioritizing investment", Lack of contribution to investment is an barrier towards wealth creation making investments to be one of the priority areas for Botswana identified by the study. 296 Figure 6-28: Contributing to investment fund 100.0% .... ; 60 .0% .u.. GI a. 40 .0% 1.401 % 15.69% 20 .0% .0% 2 3 4 5 3.12.10 Contribute to investmenmt fund 6.5.6 Factor 6 Tracking and reducing spending The factor on tracking and reducing spending has extracted three variables from 3.9 measuring the level of importance the respondent has attached to the actions answering the question: How important is my financial behaviour? The item is on a likert scale 1-5 undecided, not important, important, very important, and highly important. These are: 3.9.1.Tracking my spending 3.9.2 paying bills on time and 3.9.3 reading bank account statements regularly. These together are about either tracking spending (3.9.1. and 3.9.3) or reducing spending (3.9.2) - paying bills on time avoids interest charges hence a way of reducing spending. Table 6-12: Tracking and reducing spending FACTOR NAME VARIABLE NUMBER VARIABLE Factor 6 Tracking and 3.9.1. Tracking my spending reduci ng 3.9.2 Paying bills on time spending 3.9.3 Reading bank account statements regularly 297 One of the financial capabilities is being able to keep track of money and this factor accommodates such claim. In (3.9.1 tracking my spending) it indicates that 51.48% are undecided on the importance of tracking their spending . Holzmann (2010:4) says one of the actions to vital for financial capability is to keep track of spending , investments and saving - movement of money. Reading bank account statements regularly is also a solution to managing personal finances . The results of this variable (3.9.3 reading bank account statements regularly) in Figure 6.29 show that 55.56 % of respondents have not decided on weather this is important or not. Such indecision is reluctance in making use of the statements to track spending or savings. Atkinson et al (2006: 11) highlight that managing money is important - it is inclusive of manging bills and paying at the right time too (3.9.2 paying bills on time). The respondents have a similar pattern in (3.9.1) and (3.9.3) with 52.42% not decided if paying bills on time is important or not. Only 17.01 % feel the exercise to be very important. Figure 6-29: Tracking and reducing spending โ– UNDECIDED โ–  IMPORTANT โ– NOT IMPORTANT โ–  VERY IMPORT ANT 100 80 ยท GI C) ~ ~ C 60 GI u I,,. GI a. 40 20 o_._- 3.9.1 Tracking my 3.9.2 Paying bills on time 3.9 .3 Reading bank spending account statements regularly 298 6.5.7 Factor 7 Saving through basic accounting Factor seven is about savings and basic accounting with all the variables extracted are from 3.1 measuring the level of knowledge on likert scale 1-3 not knowledgeable fairly knowledgeable and quite knowledgeable. They are named so as they associate as thus - basic accounting can assist on knowledge about savings. The other variables have been absorbed in factor 4 (3.1 .8) taxation with extra income and expenses and factor 5 (3.17) under banking and managing bank accounts. The rest of the variables in in 3.1 which are 3.1 .3, budgeting 3.1.4 portfolio building , 3.1.5 investment, and 3.1.6 income and debt management have been reduced and therefor excluded from analysis. Table 6-13: Saving through basic accounting FACTOR AME VARIABLE NUMBER VARIABLE Factor 7 Saving through 3.1. 1 Savings bas ic accounting 3.1.2 Basic Accounting Factor 7 is about saving through basic accounting inclusive of 3.1 .1s avings 3.1.2 basic accounting . As observed from Figure 30 , most of the respondents feel that they are 'fairly knowledgeable' on savings 66.24% and basic accounting 73.10% wh ich means that the respondents are fairly confident about their knowledge about the two concepts . For 3.1.1 savings has 17.51 % of respondents who feel quite knowledgeable while 3.1.2 basic accounting has 8.376%. In overall respondents are confident about knowledge on savings and basic accounting. The qualitative results indicated that the respondents were taught basic accounting for saving and investments: P4: "Basic accounting for income and debt management, calculating their earnings and controlling their debts" P12: "Basic accounting and budgeting to keep track of savings and investments ". 299 Figure 6-30: Saving through basic accounting โ–  Not Knowledgeable โ–  Qurte Knowledgeable โ–  Fai r ly Knowledgeable 100 80 GI C) ."...' C 60 .GI (..J. GI c.. 40 20 0 3.1 .1 Level of Knowledge on 3.1.2 Level of Knowledge on Savings Basic Accounting 6.5.8 Factor 8 Consultation and utilising information Factor 8 extracted variables from 3.8, 3.11 and 3.12 but was difficult to name because one variable (3.12.8) does not have direct meaning with the others. It has been named consultation and managing information anyway as all other actions relate as thus. Variable 3.8.4, is about consulting a professional broker on investments, measuring frequency of consultation on a likert scale of 1-3 never sometimes and always while those on 3.11 and 3.12. 7 are about consulting books and ability to read and understand before taking action hence utilising consultation and information. Variables 3.11 measures on a likert scale 1-5 from not so true to very true of me and they are 3.11 .4.1 am able read over and understand leases before I sign and 3.11 .5 I am able to read over and understand loan agreements before I sign . Variable 3.12.7 I read to increase my financial knowledge compliments those in 3.11 acknowledging the value of information from reading. The variable 3.12.8 I use overdraft for my payments every month may associate showing ability to read statements and utilise and overdraft facil ity. At the same time it may mean lack of financial income management leading to incurring interest payments from a form of loan which is an overdraft. 300 Table 6-14: Consultation and utilising information FACTOR NAME VARIABLE NUMBER VARIABLE Factor 8 Consultation and 3.8.4. Consult Profess ional Broker on investments managing 3.11.3 I am able read over and information understand house leases before I sign 3.1 1.5 I am able to read over and understand loan agreements before I sign 3.12.7. I read to increase my financial knowledge 3.1 2.8 I use overdraft fo r my payments every month Consultation with a professional broker for investments and insurances is important so that consumers make informed choices. In 3.8.3 consult Professional Broker on investments, it shows that 92 .37% of respondents do not consult professional broker for advice. T is quite a high percentage and in the cluster analysis it was revealed that the respondents prefer to consult families and friends for information. This may be a barrier to making informed decisions on investment. Figure 6-31: Consultation with a professional broker 100.0% 80 .0% .... C GI 60.0% C, L. GI 0. 40.0% 20.0% .0% NEVER SOMETIMES ALWAYS 3.8.3Consult a professional Broker It is not often that people read leases and loan agreements. Many authors Sparkassenstiftung fur Internationale Kooperation (2007:27), OECD (2005) and Rutledge et al (2010:3) write financial literacy helps consumers understand 301 products and services because these are services: 3.11.4 I am able read over and understand house leases before I sign 3.11.5 I am able to read over and understand loan agreements before I sign . A large percentage of respondents in Figure 6.32 for 3.11.5(81.68%) and 3.11.4 (81/84%) feel that it is not so true about them that they read and understand before signing . This means a lot of consumers do not utilise services well. Figure 6-32: Ability to read before signing โ–  1 4 Dis 80 โ€ขm ..f.U... C 60 G,I .(...). G,I a. 40 3.11 .4 Ability to read over 3.1 1 .5 Ability to read over and understand house and understand loan leases before I sign them agreements before I sign them Working towards increasing knowledge personal financial management is also encouraged and therefore the variable 3.12.7 I read to increase my financial knowledge is important. Figure 6.33 shows that 59.50 % it is not so true that they read to increase financial knowledge. In 3.12.8 I use overdraft for my payments every month , using this service every month indicates financial indebtedness and lack stability. Some people utilise this more often but it accrues interest for the bank. It is a service which consumers should not use as often as on monthly basis and so like all other form of loans it should be used when necessary. 95.13 % deny its use for their payments every month , and so we may conclude that the 302 consumers use their own income to meet their current liabilities as in when they are due. Figure 6-33: Make use of financial knowledge โ–  2 100 80 Cl) Cl .!.I.S. C 60 Cl) u I,.. Cl) Q. 40 20 0 3.12.7 1r ead to increase my 3 .12.8 1u se overdraft for rny financial know ledge payments every month 6.5.9 Factor 9 Utilising Services for stability and sustainability Similar to factor 8 it was not easy to name factor 9 with variables 3.7.3, 3.9.5 and 3.11.1 seemingly not related to 3.4. Factor nine comprises of all variables from 3.4 one from 3.7, 3.9 and 3.11 . Those from 3.4 are responses for the question: What are my reasons for using a debit card? They were placed on a measurement likert scale 1-5. The variables are 3.4.1 no reason because I don't have debit card 3.4.2 drawing cash from an ATM or swiping every time I feel like buying something 3.4.3 drawing cash from an ATM or swiping every time something crops up 3.4.4 drawing cash from an ATM and for buying things that are necessary but some not and 3.4.5 drawing or swiping to buy things which are only on my budget. These are all about utilising a debit facility. The variable 3.7.3 If I receive poor service I complain to management subjected to measuring frequency on consultation with likert scale 1-3 never, sometimes and always is also about utilising services and complaining where expected value is not satisfied. Preparing a will or testament on 3.9.5 is about preparing for future and making records. The items on 3.9 are measured on likert scale 1-5 and had required the responded to show the level of importance they attach to the 303 financial behaviours: 1.undecided, 2.not important, 3. very important, and 4.highly important. The last variable for factor 9 is 3.11 .11 am able to calculate interest on my savings extracted from items with the question what is the truth about my financial abili ties, with responses placed on a likert scale measurement of 1-5 not so true to very true of me. Relating it to the other variables for factor 9, it is also about utilising saving services which may be for short term or long term- saving for future use. Table 6-15: Services for now and future FACTOR AME VARIABLE VARIABLE NUMBER Factor 9 Utili sing 3.4.1 o reason because I don' t have a Debit Services fo r Card stability and sustainabili ty 3.4.2 Drawing cash from an A TM or swiping every time I fee l like buying omething 3.4.3 Drawing cash from an A TM or swiping every time something crops up 3.4.4 Drawing cash from an A TM and for buying things that are necessary but some not 3.4.5 Drawing or swiping to buy things which are only on my budget 3.7.3. If I receive poor service l complain to management 3.9.5 Preparing a will or testament 3. 11.l I am able to calculate intere ton my savings According to Carpena et al. (2011 :2) consumers must understand how to interact with financial service providers like how to open a bank account or how to use an ATM card . This relates to factor 9 on 3.4. Most people in (3.4.4 ), 54.16% use a debit card to draw cash from an ATM and for buying things that are necessary but some not. There is a level of discipline in the behaviour but an amount of danger is detected that sometimes this number of people does not follow a budget, but misuse the ATM or debit facilities only to incur expenses. There is only 11 .59% for (3.4 .5) as they confess to draw or swipe to buy things which are 304 only on their budget. There is indication of discipline managing the facility very well. For 3.4.1 there are 32 .75% of those who do not have a reason to use a debit card because they do not have it. Such is a big number because it raises eyebrows for financial inclusion as people start with current account which have debit card before moving into savings and investment accounts. The other variables have quite low percentages: 3.4.2 drawing cash from an ATM or swiping every time I feel like buying something (0.504%) and 3.4.3 drawing cash from an ATM or swiping every time something crops up (1 .008%). The following display their reasons for use of a debit card. Figure 6-34: Reasons for use of a debit card 60 .0% 50 .0% ... C 40 .0% Gi CJ lo.. 30 .0% Gi a. 20 .0% 1 .008% 10 .0% .0% No reason Drawing Drawing Drawing Drawing or because I cash from an cash from ancash from an swiping to don't have a A TM or A TM or A TM and for buy things Debit Card swiping swiping buying things w hich are every time I every time that are only on my feel like something necessary budget buying crops up to but some not something be bought ReasonsforuseofDebitCard In 3.7.3 if I receive poor service I complain to management 36.08% of the respondents confess that they always complain to manager for poor service. Those who never complain are 28.09% as indicated by figure 6.35, but adding those who always do and those who sometimes complain 64.17 %, it shows consumers know their rights . Financial literacy encourages consumers to understand their rights so that they get the best service (Rutledge and et al 2010:3). Their behaviour towards poor service is depicted in figure 6.45. 305 Figure 6-35: Complaining about poor service to manager 400% ... 30 .0% C a, u 11,,. a, 20.0% โ€ข a. 35 .82% 128 .09% 1 10 .0% .0% NEVER SOMETIMES ALWAYS 3.7.3 Complain about poor service to management In figure 6.36 the respondents had to indicate how they keep records and prepare for transference of wealth . Records are important in personal financial literacy and as such for factor 9 one of the actions to perform is to keep a will or testament of who is in succession for the wealth created. 78 .9% of the respondents have not decided while 3.896% think it is not important to have a will/testament. This means a lot of respondents do not value a will but it assists in knowing what is in someone's wealth and how it shall be distributed to beneficiaries. It is about making preparation now and sustain ing wealth for those who you may leave behind. Only 6.494% realise that value by responding that prepari ng a will is important. 306 Figure 6-36: Preparing a will/testament 80.0% . .... 60.0% C G) c., I,.. 40.0% G) a. 3.896% i is.494% 1 20.0% , .0% UNDECIDED NOT IMPORT ANT VERY IMPORTA NT IMPORTA NT 3.9.5 Preparing a will/testament In Figure 6.37 for 3.11 .1 I am able to calculate interest on my savings depicts that 48 .96% say it is not so true calculate interest in their savings. Those who follow in the scale are 36.46% tipping to the extreme of not so true. This indicates a large number of respondents 85.42 are not confident to calculate interest. The respondents should be utilising services which give savings accounts to get information on how they accrue interest because in their background information in section 1 of the results, it shows that above half of the respondents has savings account - (68.8%). This insufficiency should be provided with a solution in the framework as part of the content for future financial literacy initiatives - calculating interest should be part of the priority areas . According to Kempson , Petrotti and Scott (2013: xii) financial literacy includes concepts such as compound interest and that simple interest are important in financial literacy (Mahdzan and Tabiani 2013: 53) Knowing how to do it consumers will know how much value keeping away some money for saving or investment. They will realise that saving and investing helps to bring financial stability (now) and sustainabil ity (future) . 307 Figure 6-37: Ability to calculate interest on savings 50 .0% 40 .0% .... C a, 30 .0% ยท .u... a, D.. 20 .0% 36.46% 3.646% 10.0% .0% 1 2 3 4 5 3.11.1 Ability to calculate interest on my savings 6.6 Cluster segmentation and Analysis Accord ing to Yong and Pearce (2013:84) the broad purpose of factor analysis is to summarize data so that relationships and patterns can be easily interpreted and understood. As is discussed above it is normally used to regroup variables into a limited set of clusters based on shared variance. Hence, it helps to isolate constructs and concepts. In cluster analysis the segmentation of groups both cohesion (similarity) and separation (the differences for not belonging ) are important. Figure 6-38: Measures of cohesion and separation C luster Quality Poor Fair I I I -1 .0 -0.5 0.0 0 .5 1 .0 Silho uette m easu re o f coh esi o n and sep ar ation 308 The two-stage cluster solution is of good quality, hence it can be interpreted. The following figure 6.39 indicates the size of the clusters. Figure 6-39: Cluster sizes for segmentation of section 3 Self-assessment Clu st er S ize s C luste, โ–ก, โ–  2 S ize of S m a ll est Cluโ€ข l โ€ข r 41 (29 I %) Size of Largest C lust e r 100 {70 9%) R a ti o of S i ze11: L a rg est Cluster 10 2 44 S m a ll est Cluste r There are two clusters for section 3: Content (self-assessment), Cluster 2 has the most respondents (70.9%) and Cluster 1 represents 29.1% of the observations. For further explanation of the two clusters the target groups belong to the following cluster: Cluster 1 Business and the Public, GTC students, Bosetu , 0.7% of Bobonong Secondary school , GTC employees, BBC Employees. Cluster 2: Tlokweng Junior School , Bobonong Junior School, Lotsane Secondary School, GTC Students. 309 Figure 6-40: The respondents in Clusters Respondents โ–  Tlokweng Jun ior n Lotsane Senior โ–  Bobonong Brigates โ–กBBC Employees D Business & The Secondary Student~ Schoo l Students Tertiary โ– GTC Employees Publi c โ–  Bobonong Junior โ–  Gaborone Senior BAC Stud ents โ–กNOB Employees โ–  BTEMAPAU Unions School Students Schoo l Students D Sotho Unive rsity DBosetu 0 GTC Students Students 100 80 GI .0f.,s.) 60 C GI .u.. 0.7% GI lo.7 %1 0.. 40 j1 ยท13%1 20 1177%1 7.8% 11 4%1 0 CLUSTER 1 CLUSTER 2 Cluster 310 Figure 6-41: Predictor importance of behaviour Predictor Importance 3.9.9 Shopping around for th e best prices 3.9.1 o Followi ng a monthly budget 3.8.2 Cons ult a professional from my ba nK 3.9. 11 Adjusting my tax return every year t==:::::::::::'.:::::::!====='.:ยฑ=::::::::==::!::=====:t::::==:-....1 3.9.7 Comparison shopping for a personal loan t=================:::::========:::;--' 3.9.2 Paying bill s on 3.12.4 I co ntributet itmo ae ~==========:::===========::::===========::::==========::::=====-.~ savings account 3.6 Circumrsetgaunlcaerlsy ~==========:::===========::::===========================-,--' benefiting to borrow money ~==========:::;===========:+:===========;::===========+===::::" 3.2 Se lf ra ting on Saving vs Sp en d i n g t="::::::::::::::::::::::::::::::.:;:::::::::::::::::::::::::::::::::~::::::::::::::::::::::::::::::::::;:::::::::::::::::::::::::::::::.:;:-::::::_::;-' 3.9.1 Tracking my spending ~=======l:=======i======:::;:::::=====::;:::::===~--~ 0.0 0.2 0.4 0.6 0.8 1 .0 Least Important Most lmpo11ant The two clusters are mainly described by the ten items in Figure 41, hence the clusters are interpreted based on these important items (see Figure 42 and Figure 43). 311 Figure 6-42: Cluster 1 comparison - behaviour importance Clust er Compari son โ–  1 l, โ€ขโ€ข ~ping โ€ขound , .,.. the bโ€ขIOt prlcโ€ขโ€ข lkldecided - lmpol1ont l'Tlportant V ery impof18nl l J ,1 1 Adluatlng myuu, return every yeโ€ข Ulcleclded - n-.,onani l'Tll)or1ant V ery lmpof1n l,1 .7 C-1 - 1lhopplng fo, โ€ข ~โ€ข - loen Ulde d -lmponant l'Tlportant 3,12. I COnlf1-โ€ข l o โ€ข lfflf>09 countregulat'ty I 00 200 300 โ—„ 00 500 J,l,1t Followfng โ€ข_,,.,,budget Uldeclded Nol kTil)()ftonl l'Tlpor1ant V ery impof1llr'II Neyer Sometimeโ€ข Uldecided l'Tlportw,I - lmpol1ont V ery 1mpo11erc J.1.1 Trac.lung my ependlng Uldec:lded -lmpof1anl l'Tlportant V ery impof1art 3.โ€ข Clrutmflenc:eโ€ข benentlng lo bonow money \Mien the en some When I re...., Wien I need VVhen I need we, e.st on the clOtheโ€ข I Nke oo need two.. to study fOf โ–  to imp ove on 0 Somewhat Nerthef caretlA Somewh V ery careful , โ– pencing no, sp.nc.ltng e ful , o ften โ€ข VtJ19 money Figure 6.43 shows that Cluster 1 of Section 3: content (self-assessment) comprise of individuals who perceive items in 3.9 Behavioural Importance as very important, except for following a budget which they perceive as important. 312 These respondents contribute regularly to a savings account, they sometimes consult a professional for their bank and they are neither careful nor spending oriented . These individuals comprise only 29.1% of all respondents under study. Compared to the number of people in Figure 21 (70.9%) there are fewer people who consult professionals so that they obtain relevant information. In chapter one under the section for causes and effects of f individuals are disproportionately more likely to rely on family and friends for financial advice. The thematic analysis in Theme 1 (consumer Empowerment) in chapter four has also indicated behavioural change moving from spending culture to saving but the results show that the impact is low financial illiteracy Van Rooij , Lusardi and Alessie (2007: 8) show that low literacy Figure 6-43: Cluster grouping for behaviour importance Respondents โ–  Tlokweng Junior n Lotsane Senior โ–  Bolionong Bri gates D BBC Employees D Business & The Secondary Stu dent~ School Stud ents Tertiary โ– ore Employees Public Bobonong Junior โ–  Gaborone Sen ior BAC Stu dents O NOB Employees โ–  BTEMAPAU Unions School Students School Students โ–ก Both a Univers ity O Bosetu 0 GTC Students Stu dents 100 80 41 .C.. ) 60 1G C .41(..J. 41 a. 40 j11.3%1 20 1ยท17 7%1 7.8% 1, 4 %I 0 CLUSTER 1 CLUSTER 2 Cluster 313 Figure 6-44: Cluster 2 comparison - behaviour importance Cluster Comparison 2 3.9.9 Shopping around for the best prices 0 Undecided Not Important Important Very Important 3.9.11 Adjusting my taโ€ข return every year 0 Undecided Not Important Important Very Important l.9.1 Comparison s hopping for a personal loan 0 Undecided Not Important Important V ery Important 3.12.4 I contribute to a savings accoun1 regularly 0 1 .00 2 .00 3.00 4 .00 5 .00 3.9.10 FoHowing a mon1hly budget 0 Undecided Not Important Important Very Important 3.8.2 Consult a professional from my bank 0 Mever Sometimes Always 3.9.2 Paying bills on time 0 Undecided Not Important Important Very Important 3.9.1 Tracking my spending 0 Undecided Not Important Important Very Important 3.6 Circumstances benef"lting to borrow money 0 'When the When some Wh en I really V\lhen I need When I need interest on the c lothes I like go need a two- to study for a to improve an 3.2 Setf rating on Saving vs Spending 0 Very Somewhat Melther carefUI Somewhat Very careful , spending- spending nor spending careful , often saving money Figure 6.44 shows that Cluster 2 of Section 3: Content (self-assessment) comprise individuals who are undecided about items in 3.9 Behavioural 314 Importance. These respondents do not contribute regularly to a savings account at all , they never consult a professional for their bank and they are very spending-oriented and hardly ever save money. These individuals comprise 70.9% of all respondents under study. The interpretation is that a large number of a group of people are spending orientated and since they do not appreciate the importance of consulting professional, they may not even know ways of preserving their income or wealth . They are undecided about budgeting which is viewed as the most central skill towards income and debt management. The thematic analysis has showed that the groups have been taught budgeting skills but the indication is that they do not utilise the skill. They are undecided about, tracking spending , following a monthly budget, consulting professional , shopping for prices and adjusting tax returns. These behaviours are critical in preserving income and minimising debt. 6.6.1 Cross - correlation and Predictors Section 3 When attempting to use the independent variables of personal information and type of investor as predictors of cluster membership for section 3: Content (Self- Assessment), so that it may be clear if any of the variables influence the behaviours, there was no predictability. This is illustrated in figure 45: Figure 6-45: Decision Tree CLU STER_SECTI ON_3 Node 0 Category % n โ–  CLU STER 1 65 .0 52 โ–  CLU STER 2 35 .0 28 T otal 100 .0 80 r------ -, I โ–  CLU STE R 1 I II _โ–  _C_LU_S_TE_R_ 2_ II None of the independent variables (Personal Information and Type of Investor) are appearing in the decision tree above. That is, one cannot tell whether a respondent is likely to fall into either cluster 1 or cluster 2 based on Personal Information and Type of Investor. 315 6.6.2 Segmentation for Section 4 Performance Test The performance test is meant to test if what they were confident of in section three is a true reflection . The following is a cluster quality measurement for segmentation of participants based on section 4: content financia l literacy test (performance test) Figure 6-46: Cluster quality for segmentation -section 4 Performance Test Cluster Quality Poor fa;, ! Good l I I -1 .0 -0.5 0.0 0.5 1 .0 Silhouette measure of cohesion and separation The cluster quality is good, hence it is interpretable. Figure 6-47: Group size for section 4 performance test Cluster Sizes Cluster โ–ก, โ–  2 โ–  3 Size of Smallest Cluster 100 (25.4%) Size of Largest Cluster 167 (42.5%) Ralio of Sizes: largest Clus1e r to 1.67 Smallest Cluster Most of the respondents belong to Cluster 2 (42 .5%), followed by those who belong to Cluster 1 (32 .1% ) and about a quarter of the respondents belong to 316 cluster 3 (25.4%). To explain the group size further the groups have been linked to the target group (respondents for this study) Figure 6.48 is used. Target Groups belonging to Clusters: Cluster 1 Lotsane Senior School , Tlokweng Junior School , Bobonong Junior.Gaborone Senior Cluster 2 BTEMAPAU , BOSETU , Bobonong Brigades Tertiary, GTC Students, BAC students, Cluster 3 BBC Employees GTC employees, GSS Employees, NOB Employees Figure 6-48: Initial groupings belonging to new clusters R es pondent s โ– Tlokwe n g Junior โ–  Gaboro ne Se n ior o Both o Unive rs ity D NDB Emp loyees Seco ndary Stud ents Sc hoo l Stu dents Stude nts โ–  Bu s iness & The Bobonong J un ior 0 GT C Stud ents โ–กBBC Employees Pu bli c Sc hoo l Stud ents โ–  Bobo nong Bri gates โ–  GTC Employees 0 BTEMAPAU Unions โ–ก Lots an e Senior T ertia ry GSS Emp loyee s โ–  Bosetu Sc hoo l Stud ents โ–ก BAC Students 200 150 GI .m C"...' .~_ 100 GI a. j1 2 .s% ! 50 CLUSTER 1 CLUSTER 2 CLUSTER 3 Cluster 317 Figure 6-49: Predictor Importance Predictor Importance 4.1 O Account with MOST interest 4.21.2 Co - signing : Confirms my friend 's reliabilityto be able to .. 4.11 LEAST beneficial to keep money fo r emegencies 4.21 .3 Co - signing : I am responsib le for repaying the loan if my fri end .. 4.15 MOST Risky combination of investments 4.20.6 Budget to learn to get good grades (T/F) 4.22.5 Used only by rich people (T/F) :===::::::::::::::=::::::::==:::::::::~.;....-..;;...._ __, 4.17 IPO stands for: 4.7 Financia l statement for revenu e and expenses for a period i------~------ 4.21.4 Co - signing: I am in a better pos ition to get a personal loan (T/F) F======i======~-----+-------+-------1 0 .0 0 .2 0.4 0 .6 0.8 1.0 Least Important M ost Important The two-stage clusters are mainly described by the ten items in Figure 49 hence the clusters are interpreted based on these important items (see Figure 48 and Figure 49). 318 Figure 6-50: Section 4 performance test cluster 1 comparison Cluster Comparison 4.11 Account with MOST inter est 0 Certificate of Savings Account Cheque Account Money Market Deposit (al) ACCOurl 4.21.2 Co - โ€ข ignalg:Conf'wm โ€ข my friendยทโ€ข r elilbilityto be able lo pwy the loan (T if) 0 True False 4.11 LEAST benefic ial to keep money for e megenciea 0 Savings Account Invested in a Shares Cheque Account down payment on 4.21.3 Co. s igning: I am re,pon aible for r epaying the loan if my friend does not pay (Tif) 0 True False 4. 15 MOST Risky combination of im estments 0 A m...tual fund A mliual fund An ndew fund(like Stock n a single coriainir19 80% containinQ 80% the 58P 500) company 4.20.i Budget t o learn to get good gradeโ€ข (TI F) 0 True False 4.22.5 Used only by rich peop le (T6} 0 True False 4.17 IPO st.ands for: 0 lritial Public Office lritial Public lnvesbnent Public n vestment Public Offering Offering Office 4.7 Financial statem e nt for re ve nue and expe naea fOf" a pe riod 0 Income Statement Ba!ance Sheet Cash Flow Statement 4.21.4 Co . sign ing: I am in a better position to get a per-sonal loan (TJF) 0 True False Cluster 1 of Section 4: content financial literacy test (performance test) comprises respondents who believe that the account with most interest is a savings account, they also believe that a savings account is least beneficial to keep money for emergencies and that the most risky combination of investments is a mutual fund containing 80% bonds and 20% stocks. These individuals understand an IPO to mean Initial Public Offering and they perceive the following as true: Co-signing a loan confirms their friend's reliability to be able to pay the loan . Respondents in Cluster 1 perceive the following as false : Co-signing a loan 319 means that they are responsible for repaying the loan if their friend does not pay, the use of a budget is to learn to get good grades and that Co-signing a loan means that they are in a better position to get a personal loan. These individuals comprise 32.1 % of all respondents. The interpretation is that the respondent need information on what a budget is used as it is not used for good grades. The impact of financial literacy for this cluster is quite low on the understanding of budget. Their understating of the purpose of co-signing is precise and they understand the responsibility they place on themselves when they sign the loan. Most of the respondents in cluster 1 are students in secondary schools. 320 Figure 6-51: Section 4 performance test cluster 2 comparison Cluster Comparison 4.1G Account with MOST interest 0 Certificate of Savings Account Cheque AccOU"t Money Market Deposl [UJ) Accourt 4.21.2 Co - aigning:Confirmโ€ข my f riend"s n:liabilityto be able to pay the lo.-. (Tif') 0 True False 4.11 LEAST bc ncficialta keep money for cm cgcncicโ€ข 0 Savings Accounl Invested in e Shi,res Cheque Account down payrncrl: on 4.21.3 Co - signing: I am r e91>onsible for repaying the loan if my friend does not PilY (Tlf) 0 True False 4.15 MOST Risky combinllion of im e.tments 0 A rrutual fund A mLtual flXld An Index fund(ilce Stock ;, a single containยทr19 60% containinQ 80% the sap 500) company 4.20.i Budget t o learn to get good gr-ades (TI f) 0 True 4.22.5 Used only by rich people (T.lf) 0 True False 4. 11 IPO stan ds ro.-: 0 lrilial Public Office lritial Public lnvestmeri Public h vestmert PtJbtic OHering Offering Office 4.7 Fin11ncial atatcm e nt for revenue and e xpcn โ€ข cโ€ข for โ€ข period 0 Income statement BD!oncc Sheet Cesh Flow Statement 4.21.4 Co โ€ข s igning: I am in a bMter position to get a per sonal loan (T if) 0 True False Cluster 2 of section 4: Content Financial Literacy test (performance test) comprise respondents who believe that the account with most interest is a money market account, they also believe that shares are least beneficial to keep money for emergencies and that the most risky combination of investments is holding shares in one company. This being true , it show that the cluster 2 groups have a significant understanding of shares and the risk of investment- It shows they understand the value of portfolio diversification which is one of the content taught 321 in financial education. Theme 1 list portfolio diversification as one of the content items learnt. These individuals understand an IPO to mean Initial Public Offering and they perceive the following as true: Co-signing a loan confirms their friend's reliability to be able to pay the loan and Co-signing a loan means that they are in a better position to get a personal loan. This last part is not true and indicates the person in cluster 2 as getting a loan is not dependent on that. Respondents in Cluster 2 perceive the following as false: Co-signing a loan means that they are responsible for repaying the loan if their friend does not pay, the use of a budget is to learn to get good grades and that and that a credit card is used by rich people. These individuals comprise 42 .5% of all respondents . The interpretation of the results is that a large number of people, almost half of the population , have a myth about credit card as people who are not rich may use it. This group must visit the content on the purpose of budgeting as indicated by theme 1.Consumer Empowerment. 322 Figure 6-52: Section 4 performance test cluster 3 comparison Cluster Comparison 4..10 Account w ith MOST intcre91: 0 Certrf1eate of Savings Account Cheque Account Money MJrke1 Deposl {CD) Accouit 4.21.2 Co โ€ข si~ing:Conf"wms my friendโ€ขโ€ข r eliabilityto be able t o pay the loan (Tif) 0 True False 4.11 LEAST beneracial t o k eep monev for emegencies 0 Savhgs Account Invested fl a Shares Cheque Account down payrneri on 4.21.J Co . sis,,ing: I am responsible for repe)'tng the 10111 if my friend does not pay(llf) 0 rrue False 4.15 MOST Risky combination of investments 0 A IJU:ual fund A mutual fund An Index fund(like Stock in a singk, containing BO% containing 00~ the S8P 500) ccmpony 4.20., Budget to learn to get good gradeโ€ข (TJF) 0 True False 4.22.S Used on~bv rich people (Tlf) 0 True False 4.17 IPO at.ands for: 0 hitial Pubic ornce lnit!al Pubic lnvestmem Publlc Investment Public Offering Oflering Office 4.7 fin ..c ial statement ror revenue and expenses for a period 0 Income Statement Balance Sheet C~ h Flow sttrtemeri 4..21.4 Co - aigr,ing: I am in a better position to get a personal loan (TJf) 0 True False Cluster 3 of Section 4: Content Financial Literacy Test (Performance Test) comprises respondents who believe that the account with most interest is a certificate of deposit, they also believe that shares are least beneficial to keep money for emergencies and that the most risky combination of investments is hold ing shares in one company. These being true except for certificates , th is cluster understand that funds meant for emergencies should be easily released . In the case of shares there is a process rather than if money is kept in a current 323 or cheque account. They understand risk and that keeping money is one company is lack of diversification. Like all the groups they know what IPO stands for as the results show that these individuals understand an IPO to mean Initial Public Offering and they perceive the following as true: Co-signing a loan means that they are responsible for repaying the loan if their friend does not pay and the use of a budget is to learn to get good grades. On the other hand, respondents in Cluster 2 perceive the following as false: a credit card is used by rich people, Co- signing a loan confirms their friend's reliability to be able to pay the loan and that Co-signing a loan means that they are in a better position to get a personal loan. They need to revisit content on co- signing as it is not false to show reliability of the friend to get a loan. These individuals comprise 25.4% of all respondents . 6.6.3 Cross - correlation and Predictors Section 4 The cross -correlation with the independent variables of Personal Information and type of Investor as predictors of cluster membership for section 4: content financial literacy test (performance test) show that there is no predictability. It is to be noted that percentages of respondents per cluster differ from the ones in Figure 53 because missing values have been replaced with the median. 324 Figure 6-53: Section 4 performance test cluster 1 & 2 Respondents โ–  Tlokweng Junior Secondary โ–  Bobonong Brigates Terti ary GSS Employees Students BAG Students โ–กNDB Employees โ–  BolJO nong Junior Schoo l Stud ents 0 Both a Unive rsity Stu dents โ–  Business&. Th e Public D Lotsane Sen ior School Stud ents D BBC Employees โ–ก BTEMAPAU Unions โ–  Gaborone Senior School Stu dents โ–  GTC Employees โ–  Bosetu 0 GTC Stud-en-ts ------------------------------, 250 . 200 GI .C.. l 150 f/:S C: GI .u.. GI a. 100 50 CLUSTER 1 CLUSTER 2 Cluster 325 Figure 6-54: Cross- correlation and predictor section 4 CLUSTERS_SECTION4 Node 0 Cate gory % n โ–  Cluster 1 1.8 3 : โ–  Cluster 1 : โ–  Cluster 2 38 .0 63 1 โ–  Cluster 2 1 Cluster 3 60 .2 100 I Cluste r 3 I 1 ______ 1 Total 100.0 166 1 .12 .6 Investment Al ternat ives- Sh a res Adj . P-value=0 .012 , Chi-square=8 . 780 , df=2 <= None > None I I Node 1 Node 2 Categ ory % Categ ory % n โ–  Cluster 1 :5 .1 3 โ–  Cluste r 1 0 .0 0 โ–  Cluster 2 4:5 .8 27 โ–  Cluster 2 33.6 36 Cluster 3 49 .2 29 Cluster 3 66.4 71 Total 3:5 .:5 59 Total 64.5 107 I L:: 2 .4 Expectations from Investments Adj . P-value=0.001, Chi-square=14. 076, df= 1 <= 50 t o 100% > 50 to 100% I Node 3 Node 4 Category % n Categ ory % n โ–  Cluster 1 0 .0 0 โ–  Cluste r 1 0.0 0 โ–  Cluster 2 16.7 9 โ–  Cluste r 2 :50.9 27 Cluster 3 83.3 4:5 Cluster 3 49 .1 26 Total 32.5 54 Total 31.9 53 None of the variables measuring Personal Information are appearing In the decision tree above. That is , one cannot tell whether a respondent is likely to fall into either cluster 1 cluster 2 or cluster 3 based on Personal Information. Of all the variables measuring , the Type of Investor, Investor alternatives: Shares and Expectations from Investments may be used for determining whether a respondent is likely to belong to either of the clusters. More specifically, respondents with no share investments are more likely to belong to cluster 1 (5 .1 %) and cluster 2 (45 .8%) than the ones with at least 1 share investment account. Respondents with at least 1 share investment account stand a higher chance of belonging to cluster 3 (64.5%) than the ones with no share investment account. Respondents with who expect 50%-100% return on investments are more likely to belong to cluster 3 (83.3%) than the ones who expect more than 50%-100% return on share investment accounts. Respondents who expect more 326 than 50%-100% return on investment stand a higher chance of belonging to cluster 2 (50.9%) than the ones who expect less than that. 6.6.4 Segmentation for Section 4 Performance Test - Effectiveness Figure 6-55: Cluster quality Section 4 performance test - effectiveness Cluster Quality Poor Fair I I I -1 .0 -0.5 0.0 0.5 1 .0 Silhouette measure of cohesion and separation The cluster solution of fair quality, hence it is interpretable. Figure 6-56: Group size section 4 performance test -effectiveness Cluster Sizes Cluster โ–ก 1 โ–  2 Size of Smallest Cluster 162 (46.6%) Size of Largest Cluster 186 (53. 4%) Ratio of Sizes: Largest Cluster to '11 5 Smallest Cluster Slightly more than half of the respondents belong to Cluster 1 (53.4%) whereas the rest belong to Cluster 2 (46.6%). 327 Figure 6-57: Groups in clusters Section 4 performance test - effectiveness Res p ond ent s โ– Tlokwe ng Junior Seco n dary โ–  B obono n g Bri g ates Te rtia ry GSS Em p loyees Students BAC Students D NOB E mployees โ–  Bobono n g Junio r Sc h oo l Stu d e nts D B oth e Unive rs ity Stu de nts โ– Bu s i n ess & Th e Pu b l ic D L ot sa n e S en io r Sc h oo l Stud e nts D BB C Employees โ–ก BTEMAPAU U ni o n s โ–  Gabo ron e Sen io r Sc h oo l Stude nts โ–  GTC Emp loyee s โ–  Bosetu 0 GT C Stu,d e-nt-s ----------------------------------, 250 200 GI -e> 150 C" ' G. Ic..., GI a.. 100 50 CLUS TER 1 CLUS TER 2 Cluster Cluster 1 Mainly - 4.0% Tlokweng Junior School , Gaborone Senior School , Bobonong Junior School , Bobonong Brigades Centre , BAC, Lotsane Senior School , GTC Student (3.0%,) Botha University, NOB Employees (53.4%) Cluster 2 GTC Employees, Business & Public, BTEMAPAU Unions, BBC employees, GTC Student (3.0%), GSS employees, BBC Employees, Bosetu (46.6%). 328 Figure 6-58: Predictor Importance Predictor Importance 5.4.5 Effectivene ss Workshops and Semina rs 5 4.1.6 Effectiveness Classroom Lessons 5.5.1.5 suitability for future -Workshops and seminars 5.4.4 Effectiveness Presentati ons 5.5.1.4 Suitability for future- Presentations 5 5.1.6 Suitability for fu tu re - Classroom Lesso ns 0.0 0.2 0.4 0 .6 0.8 1.0 Least Import ant Most Important The cluster solution for section 5: Future Plans for financial education is mainly defined by the six items in Figure 30. As such , the interpretation of the clusters will be based on these six items (see Figure 57 and 58) people prefer workshops and seminars as they are effective and suitable. Classroom lessons are viewed as less effective and are not highly considered for future . 329 Figure 6-59: Cluster 1 Comparisons future plans for financial literacy Cluster Comparison 5.4.5 Effectiveness Workshops and Semim1rs 0 Not effective Less Effective Averagely Very effect ive Qurte Effective Effective 5 4-1.li Effectiveness Classroom l essons 0 Not effective Less Effective Averagely Very effective Qurte Effective Effective 5.5.1.5 suitability for future -Workshops and seminars 0 Not effective Less Effective ;m~~i~ Very effective Qurte Effective 5.4.4 Effectiveness Presen!Jltions 0 Not effective Less Effective Averagely Very effective Qurte Effective Effective 5.5.1.4 Suitability for future- Presentations 0 Not effective Less Effective Averagely Very effective Qurte Effective Effective 5 5.1.6 Suitability for future - Classroom l essons 0 Not effective Less Effective 1;:r~~i~ Very effective Qurte Effective Cluster 1 of Section 5: future plans for financial education comprise respondents who perceive all the items in Figure 59 as averagely effective . These respondents comprise 53.24% of the subjects under study. 330 Figure 6-60: Cluster 2 Comparisons effectiveness Cluster Comparison 5A5 Effectiveness Work shops and Seminars 0 Not effective l ess Effective Averagely Very effective Quite Effective Effective 5 4-1.& Effectiveness Classroom l essons 0 Not effective Less Effective Averagely Very effective Quite Effective Effective 5.5.1.5 suitability for future -Workshops and seminars 0 Not effective Less Effective iw~~~~ Very effective Quite Effective 5A4 Effectiveness Presentations 0 Not effective Less Effective Averagely Very effective Quite Effective Effective 5.5.1.4 Suitability for future- Presentations 0 Not effective Less Effective Averagely Very effective Quite Effective Effective 5 5.1.6 Suitability for future - Classroom l essons 0 Not effective l ess Effective iw~~~~ Very effective Quite Effective Cluster 2 of Section 5: Future Plans for Financial Education comprise respondents who perceive classroom lessons and suitability of classroom lessons for future as not effective and the other four items in Figure 6.60 as less effective. Presentations, Classroom lessons, Workshops and Seminars are less effective. 6.6.5 Cross-correlation Section 5 When using the independent variables Personal Information and Type of investor as predictors of cluster membership for section 5: future plans for financial education the decision tree showed no predictability. 331 Figure 6-61: Decision Tree on investment alternatives CLUS TER s _s EC TIO N5 Node 0 Categ ory % n r------ โ–  Cluste r 1 77 .7 115 1 โ–  Cluster 1 : โ–  Cl uster 2 22 .3 33 1 โ–  Cluster 2 1 Total 100 .0 148 I_ - - - - - ~ I '-= 1.12 .6 Investment Alternatives- Shares A dj. P-value=0 .008, Chi-square=7 . 0 10, df=1 I I <= None > None I Node ยท1 Node 2 Categ ory % n Cate9 ory % n โ–  Cluster 1 90 .2 46 โ–  Cluster 1 71 .1 69 โ–  Cluster 2 9 .8 5 โ–  Cluste r 2 28.9 28 Total 34 .5 51 Total 65.5 97 None of the variables measuring Personal Information are appearing in the decision tree above. That is, one cannot tell whether a respondent is likely to fall into either cluster 1 or cluster 2 based on Personal Information . Of all the variables measuring , the Type of Investor, investor alternatives: Shares may be used for determining whether a respondent is likely to belong to either of the clusters. More specifically, respondents with no share investments are more likely to belong to cluster 1 (90.2%) than the ones with at least 1 share investment account. Respondents with at least 1 share investment account stand a higher chance of belonging to cluster 2 (28.9%) than the ones with no share investment account. 6.6.6 Association between Section 3, Section 4 and Section 5 332 Table 6-16: Association between section 3 section 4 and Section 5 VARIABLES TESTED FOR Cramer's ASSOCIATION Ch-SQ V Conclusion CONTENT (Self-Assessment) & 32.361 * 0.603** There is a modest significant CONTENT FINANCIAL LITERACY TEST *1 association between these (Performance Test) variables CONTENT (Self-Assessment) & 19.304* 0.504** There is a modest significant FUTURE PLANS FOR FINANCIAL * association between these EDUCATION variables CONTENT FINANCIAL LITERACY TEST 20.569* 0.243** There is a low significant (Performance Test) & FUTURE PLANS * association between these FOR FINANCIAL EDUCATION variables 1 ** significant at 1 % 333 6. 7 Reasons for Having Interest to do a Financial Course In Future The respondents gave several reasons as to why they may be interested in doing a financial literacy course in future . Figure 6.62 shows that most of the respondents indicated that they want to understand money better; they want to learn more about making money and to know more about saving money. Figure 6-62: Reasons for interest to learn 6.71 Topics of Interest The respondents were able to state their most preferred topics. For Topic 1, most respondents indicated that they would like to learn more about investments, followed by money management, portfolio management, budgeting skills and making money. For Topic 2 most respondents want to know more about investments, followed by budgeting skills , saving skills , portfolio management, money management and shares. 334 Figure 6-63: Topic one Investments Figure 6-64: Topic two budgeting skills 335 6.72 Role of government to enhance financial literacy initiatives Most respondents are of the view that the ro le of government to enhance financially initiatives is to provide financial counselling services followed by those who think that it is to make financial literacy a subject at schools either as a core or optional subject, to teach them how to make money, to use social media to teach fi nancial terms and to conduct more workshops for small business owners. Figure 6-65: Role of government to enhance financial literacy initiatives 6.8 Summary of findings and the research question The part of the study on quantitative analysis was done to measure the impact of financial literacy on the recipients . The variables obtained from the thematic analysis in chapter four mainly to assess: the content (effectiveness, importance and su itability for future ): the behaviours and skills to counter check if they depict what was taught, the delivery modes (importance, effectiveness and suitability for future), the topics. The self- assessment showed they were not confident about what they have learnt while the performance test indicated a lot of grey areas to be addressed by financial education providers. The results of the quantitative data collection indicate there is still a lot to do to raise the levels of financial literacy in Botswana. Most of the methods used for deliver are thought not to be effective . The majority of the respondents do not budget and are spending oriented . Their understanding of credit usage, co- sign ing and (42.5% of all 336 respondents have myth about credit card that it is for rich people.) 70.9% of the respondents are undecided about budgeting , making records, savings and devising ways to reduce debt. The conclusion is that the level of financial Literacy is not rising yet despite of financial literacy initiatives. 6.9 Chapter Summary This chapter presented the results of quantitative data analysis using factor analysis: both exploratory and confirmatory analysis, the principal component analysis and the cluster analysis. The following are that the impact of financial education in Botswana remains low despite the interventions made. The priority areas where there is still inadequacy investment and budgeting , money management portfolio diversification and saving skills. The groups which are adversely affected are the students while some like the employees have shown improvement. The culture of and not knowing the area of behavioural importance is still prevalent and that the government of Botswana has been asked to provide financial counselling . Providers have been asked use of workshops and seminars interactive social media because they are viewed as at least suitable and effective by most. The reasons for the respondents to want to continue learning is because they would like to learn financial literacy so may understand money better. These points have contributed to the framework of enhancing financial literacy in Botswana which is explained in the next chapter. 337 CHAPTER 7 FINDINGS, CONCLUSIONS & RECOMMENDATIONS 7.1 Introduction The purpose of this chapter is to discuss the results of the qualitative and quantitative analysis and make conclusions. In the process of the discussions and interpretations problems were identified about financial literacy initiatives in Botswana. The research problem is also visited to discuss if the answers were provided by the results. It is also in this chapter that the framework of enhancing financial literacy initiatives in Botswana is drawn. The framework is an answer to the problems identified in both qualitative and quantitative reports. It is a consolidation of these to offer solutions for Botswana. The chapter describes the applicability of the framework: explains its purpose, clarifies the role of the users, and highlights its contribution to research i.e. body of knowledge. The chapter also points out how the framework answers the research questions. Lastly it indicates how the framework may be limited , offering possibilities of further research . 7.2 Revisiting the Research Problem Like all countries in the world Botswana is reported to have been affected by the 2008 economic crisis Botswana (Busari and Bamatunde 2009:2) , a market loss for diamonds a beef which led to retrenchments and job losses. Employees were ill prepared due to lack of financial education and counselling on personal financial planning. Typical of a developing country as written by Busari and Bamatunde 2009:2 Sparkassenstiftung fur Internationale Kooperation (2007:7) , there are low levels of financial literacy especially among adults (Fanta (2015:7) , among Low Income Earners (LIE) and among young people (Sparkassenstiftung fur internationale Kooperation 2007:26) contributing to indebtedness. There were also reports of citizens vulnerable to illegal schemes which promised high returns (Newel 2012:2) on their investment but this brought losses to many yet no hope of recovering their money. According to Messy and Monticone (2012 :88) the main problems revealed about Botswana are: low levels of financial literacy, lack of national coordination of the initiatives and lack of measurement and evaluation. Th is lack of measurement and evaluation of the initiatives has been 338 identified to be posing problems of lack of evidence for policy makers, researchers , and financial education providers to make informed decisions on financial literacy. Another important problem identified is lack of funding for financial literacy programmes and for research in the field . According to Sparkassenstiftung fur Internationale Kooperation (2007:47) this further aggravates the situation. In most organisations financial literacy is merely a "by-product" which compromises the importance of financial literacy to fund the initiatives or to sponsor research activities. Sparkassenstiftung fur Internationale Kooperation (2007:4 7) identify this to bring lack of "real " measures to assist in understanding the levels of financial literacy. According to Monticone and Messy (2011 :345) having also placed financial literacy to be championed by the private sector reflects no strategic intent or coordination by government. With no national coordination like in other countries Brazil , Mexico, Latin America and South Africa , the progress towards standardisation of measures, regulation and control is slow. According to Monticone and Messy (2011 :345) this lack of government intervention could lead to self - serving interest like "marketing strategies" for the businesses rather than serving the interest of informing and educating the consumer. Besides measurement and evaluation problems Sparkassenstiftung fur Internationale Kooperation (2007:26) indicates that most of the financial literacy initiatives in Botswana have not prioritised important aspects: budgeting , insurance and dangers of credit. In terms of financial inclusion , target groups may have penetration in the banking or financial system but not understand the advantages of such (Fanta Mutsonziwa and Naidoo (2016:7). In addition to content and issues of financial inclusion , Sparkassenstiftung fur Internationale Kooperation (2007: 11) reveal that approaches are not appropriately sited to the target audiences and that in Botswana lack of incorporating financial literacy in the school curriculum low levels of financial literacy among youth will continue to be evident. The solutions to these problems have been identified and provided by the framework illustrated in this chapter. 339 7.3 Revisiting the research Questions and objectives The research questions for this study were drawn from the statement of the problem summarised above. RQ1. What are the reasons for providing Financial Literacy initiatives? RQ2. What is the impact of financial literacy initiatives on consumers In Botswana? RQ3. How can financial literacy is enhanced initiatives in Botswana? RQ4. How may the different stakeholders enhance financial literacy initiatives? RQ5. What is the framework proposed to enhance financial literacy in Botswana? This study aimed at evaluating and measuring the impact of financial literacy initiatives in Botswana and mapping up a framework of how to enhance them. The initiatives are not nationally coordinated or evaluated and the impact on the recipients is not measured. While research has been conducted around the world in Botswana there is lack of specific studies on the financial literacy initiatives, which has made it difficult to know how delivering financial education could be improved. Therefore it was necessary to evaluate the programmes and contribute to the body of knowledge by providing a framework for enhancing the initiatives. It was also of interest to measure and confirm the impact of financially literacy initiatives. This assisted to generate the following objectives: Obj1 .To establish the reasons for conducting financial literacy initiatives Obj2.To evaluate the impact of financial literacy initiatives on consumers Obj3. To find out the ways of enhancing financial literacy initiatives Obj4. To assess the role of stakeholders in enhancing the initiatives Obj5. To develop a framework of enhancing financial literacy initiatives Figure 7.1 shows how the research questions match the research objectives while table 7.1 indicates how these questions have been answered. 340 Figure 7-2: Research objectives matched with research questions โ€ข : โ€ข ' I'! I, OBJECTIVE 341 Table 7-2: Answers to the research questions Phase Theme/Task Objective Research Question Answers QUALITATIVE Theme 1 Consumer Obj.1 To establish the RQ1 What are the reasons for Financia l literacy is offered to give citizens empowerment to Empowerment reasons for conducting financial literacy initiatives? change their perception , behaviour and attitudes. It helps financial literacy them in make informed decisions. Respondents still show lack initiatives of understanding of some the concepts in financial literacy. Theme 2 Stability & Ob1 .To establish the RQ1 What are the reasons for Financial education is meant to assist consumers to create Sustainability reasons for conducting financial literacy initiatives? financial stability and sustainability for personal financial financial literacy management. This also contributes to stability and initiatives sustainabi lity of the financial system at large in the financial markets . Financial inclusion is the first step, opening of accounts and participating in the stock market. Theme 3 Business Ob1 .To establish the RQ1 What are the benefits of Many of the private sector indicated they benefit from the Growth reasons for conducting financial literacy initiatives on the initiatives for sales and marketing . They offer financial literacy financial literacy providers? (reason) for Corporate Social Responsibility (CSR) using what they initiatives deem as minimal costs for great benefits model. They offer financial literacy as part of customer oriented service - so that customers understand the product and services Theme 4 Inclusive Obj3. To find out the RQ3 How may Financial To enhance financial literacy initiatives the providers must Financial education ways of enhancing Literacy initiatives be enhanced reach out to different people through different methods. Some financial literacy methods are not effective to particular groups; presentation initiatives not meant for young children , yet social media is recommended because it is trendy for and suitable for them . 342 Theme 5 Ob3. To find out the RQ3 How may Financial Lack of measurement and evaluation is a problem in Measurement & ways of enhancing Literacy initiatives be enhanced Botswana; it should be conducted to give feedback . If Evaluation financial literacy encouraged it may enhance the initiatives because it initiatives determines suitability of methods and content. It also adds to the body of knowledge. It should also be part and parcel for research to add to the body of knowledge and assist policy makers to make informed decisions. Theme 6 Government Obj4. To assess the RQ4 How may the different Further to enhance financial literacy all stakeholders must be led National Strategy role of stakeholders in stakeholders enhance financial Involvement. There should be a defined Curriculum (the enhancing the literacy initiatives? priority areas are identified by the quantitative analysis). The initiatives government should be in the lead for regulation and control. There should be a multi - sectoral approach to find strategies of implementation. QUANTITATIVE Impact Analysis Obj2.To evaluate the RQ2 What is the impact of financial The impact of financial education is still low especially among impact of financial literacy initiatives on consumers in young people. Employees have however shown improvement literacy initiatives on Botswana? in dealing with income and debt. The Priority areas identified consumers are: 1. Investments 2. Portfolio management 3. Loan management 4. Budgeting Skills 343 7.4 Review of the Literature Research Findings Literature surrounding the field of financial literacy was reviewed and analysed in both chapter two and three of this study. Journals, books, newspapers, reports and numerous publications on the subject were read and analysed . This enabled the definition of the concepts of financial literacy and the review advised the incorporation of the outcome driven approach into the cognitive driven approach. It also gave insight to the associated concepts such as financial education , financial inclusion and financial capability. It is through this literature review that the study was informed of the low levels of financial literacy in Botswana and that the initiatives are carried out for different reasons by different institutions (Xiao et al 2014:4). The findings also indicated that the delivery of financial education has an outcome of particular knowledge learnt, skills acquired and behaviours and attitudes adjusted. Financial capability as an important concept in the field of financial literacy was also defined, giving insight on what can be done to make financial education effective. The definitions also assisted in setting out the indicators of financial capability: These were obtained mainly from Kempson and Atkinson (2008:8) Holzmann (2010:4) and thus utilised for the self-assessment items in the questionnaire for the respondents in this study. There are no specific theories of financial literacy but the analysis of literature directed towards behavioral outcome aspect of financial education hence a conclusion to choose the behavioural theories (Xiao et al 2014:4) and motivational theories Braunstein and Welch (2002) Fox, Bartholomae and Lee (2005:105) Hilgert, Hogarth and Beverly (2003 :311 ), Mandell and Klein (2007 : 107-114) to map the theoretical framework of this study. In this study employees indicated behavioural change after receiving financial education to compliment such researches and studies which agree that financial education yields positive financial behavioural outcomes. However some authors like Willies (2008b:2) question the causal effect of financial education and its behavioural outcomes. Other authors like Hilgert, Hogarth and Beverly (2003:312), also indicate that the causality is not yet clear. This study also reposed its theoretical framework on the Trans Theoretical Model (TTM) of Change. The theory is 344 applicable because it is commonly used in explaining of behavioural change analysis from three different disciplines: psychology, sociology and economics. Its applicability in this study mainly associated to behavioural economics. It is pertinent as it reverberates much with Mandell and Klein (2007:107-114) motivation theory, and because of its utility in financial management behaviour. According to Xiao (2014:8) the theory is a tool which holds the promise to evaluating financial management behaviour having been applied successfully to evaluating other behaviours displayed by people. Despite some discerning views that financial education may not be the solution to financial illiteracy, the value and benefits of the education are accrued by different target audiences from many financial literacy programmes around the world. The empirical analysis indicated various methods being employed to teach particular contents to diverse target audiences. Methods such as classroom instruction , credit counseling , web and social interactive approaches are found to be predominantly utilised to deliver the content while the priority areas are often on savings, income and debt management, budgeting skills , banking and insurance. Hastings, Madrian and Skimmyhorn (2012:30) indicate that there is need to move away from traditional methods and embrace more of integrated approaches for suitability and effectiveness. According to Huston (2010:310), Lusardi and Mitchell (2009:2), Cohen and Nelson (2011 : 11) the ideal solution is to have customised and tailor-made programmes for the target group influenced by the factors such as level education , gender, and socio economic backgrounds. Th is is deduced from the literature analysis to be the best starting point in ensuring efficacy of the programmes. The importance of financial education and the purposes of carrying out these programmes and initiatives being : consumer empowerment and consumer protection (Parker and Yoong 2009:5) , wealth creation (Sebtad , Cohen and Stack 2006:5, Bell & Lerman 2005:8, Schuchardt et al (2009:88) and for the improvement of financial services and delivery (Frqczek and Klimontowicz 2015: 63, Miller and et al 2009:8, Worthington 2006: 1 and Rutledge and et al 2010:3). Most importantly it was noted that financial education should be conducted for consumers 'best interest' (Mandell and Klein 2007: 107- 114) rather than for business interest. The interpretation is that wh ile the businesses may engage in 345 their marketing strategies for clientele growth using financial education selling their products and services, they should also exercise customer care. In the measurement and evaluation of financial literacy, studies around the world indicated the utilisation of various methodologies, the most prevalent being multi- step approach analysis of the programme. Sharpe (2011 :73) argues that multi- method approaches are commonly used for programme evaluation examples of studies being Lown and Nelson (2013:22), Berriche Salerno and Calciu 2014:589, Shockey and Seiling (2004: 91 ). These studies also happen to have used the Trans Theoretical Model. The literature analysis revealed Programme Theory Evaluation (PTE) to be suitable to map the measurement and evaluation of financial literacy initiatives. According to Sharpe, (2011 :72) the PTE has the ability to allow the evaluation of inputs, process, and outputs , and this has been noticed from the literature analysis that it resonates with the conceptual framework that financial education is a process entailing these aspects. According to Lown and Nelson (2013:22), Barkman (2003:3) Setari (2014:5) the OECD (2010:4) Sharpe 2011 :72), the logic model as an effective tool linked to PTE, suitable to aid in measurement and evaluation of the programmes and initiatives especially those which require a multi- step approach The literature review also aided in developing the framework of enhancing financial literacy because there were insight on how the national strategies are implemented in different countries (Munro and Manje 2013: 1 ), South Africa (OECD 2013:23) and Department of National Treasury Republic of South Africa 2013: 1) Canada (National Strategy for Financial Literacy - Count me in , Canada 2015:5) Japan (Furusawa: 2014:1, and OECD 2013:23) and the United States of America (National Strategy for Financial Literacy 2011 : 1) . The analysis of the empirical studies also contributed insights to methodologies, measures and financial literacy question, some of which were adapted and contextualised to this study. These solutions obtained from these studies being: government led strategies, stakeholder participation, measurement and evaluation , interactive methods, contextualised content, and an industry based defined curriculum. These have been enshrined in the framework of enhancing financial literacy initiatives in Botswana. 346 7.5 Review of the Research Methodology The research methodology of this study is explicated in chapter four. It discusses the history of the philosophical stance of the study which is the pragmatism. According to Gray (2013:28) pragmatism is said to have regained some of its popularity, largely because of the insights it has provided for research into management and organizations and also because it is viewed to provide an epistemological justification for mixing approaches and methods. The pragmatism therefore tallies with the methodological approach of Mixed Method as indicated by Johnson and Onwuegbuzie (2004: 17), Combs and Onwuegbuzie (2010:2) to be a suitable alternative to covering shortfalls in single approaches. The MMR type being exploratory sequential design moving from an exploratory study using qualitative research for instrument development then to the quantitative design for impact analysis . Both of these supporting the study to be driven by the research question (Karley, 2013:23). The following are also stated in this chapter: the aim of the research, research objectives, the research questions and sub questions. It also includes the research population which sampling methods and techniques. The chapter further explains the process of acquiring data and the instruments used which are semi- structured interviews questions for qualitative but a questionnaire for the quantitative approach. Lastly it explains data analysis approaches which are Thematic Analysis for qualitative data but confirmatory data analysis for quantitative data. Th is design has enabled the study to have results synthetised into a whole to develop the framework. 7.6 Review of Results of Qualitative Data Analysis The qualitative data analysis of the structured interviews revealed six themes and contributed in the design a framework of enhancing financial literacy initiatives and the development of a questionnaire for quantitative data collection. The results provided variables of interest for the questionnaire. The six these are: Theme 1 Consumer Empowerment Theme 2 Stability & Sustainability, Theme 3 Business Growth Theme 4 Inclusive Financial education Theme 5 Measurement & Evaluation Theme 6 Government led National Strategy. 347 The first three themes articulate the reasons for offering financial literacy initiatives: the initiatives are offered for consumer empowerment, for stability and sustainability through debt and income management, budgeting and being a part of the financial sector, for business development through clientele growth , sales increase and for customer satisfaction . Theme four is about who the target audiences are: the consumers who receive financial education and how best they may be offered the initiatives. This has contributed to how the groups may be selected and the methods which are suitable for them. It is not only the suitability of the methods discussed but also their effectiveness. Knowing th is assists in making improvements in the initiatives. Theme five focuses on Measurement & Evaluation which is another way of enhancing financial literacy initiatives. This should be conducted because it informs on areas for improvement and highlights the insufficiencies that could be found in an initiative. The last theme is about government intervention to lead the initiatives. From these themes there are problems identified with the solutions provided by the framework in Figure 7.7 7.6.1 Major Findings and Problems from Qualitative Analysis The qualitative results revealed the following problems: low levels and less consumer protection , lack of financial Counselling , use of inappropriate methods, lack of funding for financial education , lack of measurement and evaluation , lack of Government intervention and lack of a defined curriculum . 7.6.1.1 Low levels and less consumer protection The results of the qualitative analysis confirmed some of the problems as above: other than the literature review the institutions also reflected that there are low levels of financial literacy in Botswana despite some financial literacy initiatives carried out. Low levels of financial literacy have been identified among all segments but found to be acute among: Low Income Earners, the marginalised groups and the small business community. Most of the interviewees (P1, P6, PB, and P19) attested to that and it said the lack of knowledges and skills to deal with personal finance brings repercussions of more debt and less protection from high interest loans. P1: "Batswana with low levels of financial literacy are prey to high Motshelo and cash loans interest rates", P6: "Low level of financial literacy does 348 not expose them to access to banking, and they borrow from cash loans which have high interest rates improvements: PB: "Low level of financial literacy lead to not knowing about banking or about better areas to finance ". The lack of regulation and policy framework leaves consumers less protected. Consumers ' protection is an integral part of financial literacy (International Network of Financial Education (2009:3) . 7.6.1.2 Lack of financial Counselling Most of the interviewees felt that there is lack of financial counsel ling and so some said it should be done in Botswana. PB: advocates for counselling and that it has to be introduced in Botswana and to be utilised in the same manner as in South Africa. Financial counselling is preferred as a face to face interactive method - (P2, P3, P9, and P14 because it is effective. The interpretation is that counselling gives a consumer an opportunity to deal with his personal finances directly away from a crowd . It can also be useful for customisation of products and services especially for private customers . Lack of counselling has also been identified by the individuals under quantitative research. 7.6.1.3 Use of inappropriate methods It is realised that more interactive methods other than classroom instructions and lecturing are preferred. The classroom methods and lecturing are viewed as outdated and ineffective. P1: "Lecturing however is not effective as it does not involve them more". Presentations are not effective on their own but they need to be coupled by discussions, questions and debates to make them interactive and interesting . P7, P9, P10, P11, P13, P14, P15, P16, P17) methods must be mixed to make them effective. Presentations are also not suitable for young children : "Presenting to kids is not effective because of their short concentration span". The interpretation is that the age and the concentration span of the group have to be taken in consideration in selecting the methods. 7.6.1.4 Lack of funding for financial education Costs for financial literacy initiatives are quite insignificant and so not easy to quantify: P3: "Costs not easy to quantify as they are just covered by the marketing 349 budget" while P14 says: "Not significant - included under marketing costs" P11: "Training by regions expensive - there are high transportation costs to reach rural areas, but still costs quite less compared to benefits" P17: "Minimal cots Covered under advertising and Marketing". This is why the initiatives may not be effectives as they are a by the way product. Initiatives under Social Corporate Responsibility may or may not be done. Besides this, financial literacy has no place of its own but it is housed mostly by marketing. 7.6.1.5 Lack of Measurement and Evaluation There is lack of evaluation of the programmes. Some do conduct informal assessment but there is no summative, or impact analysis. The narratives are: P7: "There is no measurement framework to measure impact & outcome; the government should lead in creating a M&E framework" P9: There is no framework to measure impact but it is important, researchers must play a role in designing the Measurement and Evaluation framework" P6: "There is no measurement framework to measure impact analysis; it should be created by researchers ''P11: "They should be an evaluation framework to measure levels of financial literacy in Botswana, researchers must take part & government should encourage them" P3:"No tools to measure, researchers, bankers and media practitioners to develop them" and P4: No formal impact analysis to identify gaps in programme". This means that such a lack has created no bank for measures of financial education. 7.6.1.6 Lack of Government intervention The answers by the interviews revealed that there is no policy, no government coordination or intervention. P4: "There is need for policy and national strategy on financial literacy", PS: "Government should embark on national strategy which cultivates the culture of saving than borrowing", PB: "Government must have a national strategy that enforces everyone to take part in educating the public on finance . Government has also been identified lacking control over Motshelo P12: "Government policy to control Motshelo & cash loans" Unregulated activities lead to unfair and high interest rate charges on borrowing . 350 7.6.1.7 Lack of a defined curriculum The quantitative analysis also reveals financial literacy does not yet have a place in the school curriculum, not as a core or optional subject. The problems with the curriculum are that: Curriculum is not contextualised to the target group and curriculum is not industry based. This problem indicates that Botswana has not yet made it clear nationwide what should be learnt, how it should be learnt and who has to receive it. 7.7 Review of the results of the Quantitative Data Analysis The quantitative data analysis confirmed that there are still low levels of financial literacy especially among young people. However many Batswana have financial inclusion - most of them (68.8%) use the banking system. The priority areas identified are: investment, budgeting , saving skills, loan management, portfolio management. The scores and the answers on performance test indicated that there is need for continuous Measurement & Evaluation . The respondents indicated that the role of government should be that of offering financial counselling service. This contributed to the point raised by the theme 6 in qualitative analysis to have national coordination of initiatives. Similarly to the qualitative analysis, the results of the quantitative research revealed that there still low levels of financial literacy in Botswana. This is derived from the performance test which versus confidence questions by the respondents. 7.7.1 Major Findings and Problems Quantitative Analysis The quantitative analysis revealed the following problems: financial Inclusion without understanding, lack of understanding investment and savings, poor application of skills and behaviours learnt - budgeting and lack of obtaining the correct information. 7.7.1.1 Financial Inclusion without understanding Most (68.8%) have a savings account and 42% of respondents have a current account and this statistics indicating financial inclusion. Considering their confidence that is measuring of their own financial literacy, debt levels are low 351 with debts Loans at 8.3%, car loans at 15.3% personal loans 11 %- most with no credit loans, yet the performance tests with low scores indicated that their level of understanding is not in correlation with their level of financial inclusion or financial capability. The problem being identified is that indictors of financial inclusion my not mean an indication of being financially literate (Fanta 2015:7). 7.7.1.2 Lack of understanding investment and savings This is one of the shortcomings identified among consumers. Investment in Insurance (36.5% (highest number of respondents), 33% (Second) invest in shares - participation in stock market though only 0.3% on Debentures and bonds is evident, However their answers to the questions on Type of investor reflect lack of understanding . The correlation between these as is indicated students in junior schools and one senior school 32 .1% of them did not know "Most risky combination" of investments, did know the account with most savings interest, did not know the implications of core signing or even who uses a credit card - they think it is used by rich people. Similarly their performance in understanding the risk returns and investment is low - (62% prefer safety) which means a large number of the respondents with students included would like to invest safely yet they want high returns . The performance scores below illustrate this . Figure 7-2: Students' Scores on performance test Cluster 1 Performance Test tu D econdacy schools and one Senior School - low scores - low financial literacy โ€ข The account with most interest is a savings account, I correct) โ€ข Savings account is least beneficial lo keep money for emergencies (incorrect) โ€ข Most risky combination of investments is a mutual fund containing 80% bonds and 20% stock s. (incorrect) โ€ข IPO to mean Initial Public Offering (Correct) โ€ข True: Co-signing a loan confirms their friend's reliability to be able to pay the loan. (correct) โ€ข False: Co-signing a loan means that they are responsible for repaying the loan if their friend does not pay(incorrect) โ€ข Co-signing a loan means that they are in a better position to get a personal loan. (incorrect) โ€ข Credit card is used by rich people. (Incorrect) 352 Those who showed moderate level were the unions and tertiary students, most of their answers were correct - scores showing moderate level of financial literacy. The level among the employees was better than the rest as illustrated by figure 7.3 l'Al:IWOl11 I . nMN --- . Figure 7-3: Employees' Scores on performance test cluster 3 Perfo1ยทmance Test !cluste r 3 E mployees have be tte r level of understanding than the rest of the groups Account with most interest is a certificate of deposit (incorrect) โ– Shares are least beneficial to keep money for emergencies (Correct) โ– Most risky combination of investments is holding shares in one company (correct) ยทโ€ขยท IPO to mean Initial Public Offering (correct) โ– False: Co-signing a loan means that they are responsible for repaying the loan (correct) โ– True: Co-signing a loan confirms their friend's reliability to be able to pay the loan (correct) ยทโ€ขโ€ข False: Co-signing a loan means that they are in a better position to get a personal loan. (correct) โ€ขโ€ขโ€ข False: Use ofa budget is to learn to get good grades. (correct) โ– False: a credit card is used by rich people (correct) 7.7.1.3 Poor application of skills and behaviours learnt- Budgeting The results of the confidence questions reveal 68% of respondents to be able to Keep a budget - may reflect a culture towards budgeting. The students are among these groups with their confidence level (Confidence test) very low as indicated in the figure below: Figure 7-4: Confidence levels (students in Junior Schools) Self Assessment u----------r}nster 2 dents - Mostly students = Confidence and Empowern1ent very low (70.9%) Undecided about items 3 .9 b eha vioura l Im.portance - Budgeting Do not contribute regularly to a savings account at a ll, Never consult a profession al for their bank Very spending-orientedaudhardly ever save money. The interpretation is that a large number of a group of people are spending orientated and since tl1ey do not appreciate the importance of consulting professional, they may not even know ways of preserving their income or wealth. They are undecided about budgeting which is viewed as the m ost central skill towards income and debt management. F inancial Lite racy low 353 It is however is better fo r the employees. In the self - assessment employees indicate budgeting as very important, they contribute regularly to a savings account, and sometimes they consult a professional for their bank accounts yet they are neither careful nor spending oriented . Figure 7.5 illustrates this scenario. Figure 7-5: Confidence level (employees, tertiary students & union) lus ter 1 ยท mp lo_ ee.., pubh n us11H!s an I m t I uu tud nt urn 11 r u1 nficlencc iii fimu1cial Literacy - conlidcn c high (1110\ยทing fro111 pcndii1g culttu-c t a,ยทing cnlt me (29 . l O o) 11 other it m (beha iour-) vex impo11ant Budget - impo11ant. onuยทibut regu lar! to a a mg accotmt. ometime con ult a profe ional for th ir bank account hey are 11 ither careful nor p ndin orient d. In the performance test they know what is true or false about budgeting . The testimonies from the qualitative analysis also support improvement for the employees: P19: "There has been a change on the behaviour of employees as they are able to live within means, budget and keep track of their money and there is also change in spending habits" It is thefore concluded that among all the groups employees are better at exercising the skills and behaviours learnt. 7.7.1.4 Lack of obtaining the correct information Most of the respondents do not seek information from the right people or from professionals. They prefer to consult families , friends and core workers . Cluster 2 in cluster analysis comprised of a large number of respondents (70.9%), mostly students who indicated to never consult professionals. Their lack of th is coupled with their "very spending-oriented and hardly ever saving money" attitudes and their lack of reg ular contribution to a savings account, is interpreted to mean that a large group of people do not get the right information about savings, wealth 354 creation income and debt management. Getting the right information is a basic step to personal financial management. 7.8 The Framework: A synthesis of Qualitative and Quantitative Results In the light of the above problems the framework in Figure 7.6 provides the solutions. It is a synthesis of the qualitative and quantitative interpretation of the findings and results . The framework has a purpose (goal), structure, identified users and the tasks to be performed by these users. 7.8.1 The structure and Purpose of the Framework The purpose of the framework is to provide solutions to enhance financial literacy initiatives in Botswana It is a multi- sectoral approach guiding different users on how to carry out tasks or perform roles relevant to their nature of existence. The framework has a goal to address a need which has prevailed throughout in the text and from the results analysis: To combat low levels of financial literacy in Botswana. It guides on the following: How to develop a national strategy, how to establish a measurement and evaluation framework, how to develop a defined industry driven curriculum for financial literacy programme, how to engage businesses to enhance their initiatives for their good and the good of their customers. It outlines who to involve, who to target and why. It also communicates the effective methods and the content suitable for the target groups. Above all it gives the reason why these are important: 1. consumer empowerment, 2. Stability and Sustainability and 3.Business Growth . The framework is presented below in figure 7.6 containing the solutions offered : 355 Figure 7-6: The Framework for enhancing financial literacy initiatives in Botswana Pro,wF"UW1cw~to Tuch cooctpb uh bwc XCOC11tin&, .iwip, m\'tslmtel, lwic bw:io&, T:arc11 c1ifi.,.tn1 l'Oll9' & tfflPO"'tr Pro,id. f"uuncw E=icitionu tfflPO"YCOIIIIIMn Oll bo,r to & u:uuoo ulaio,rt.dct to ... forl\'try 1htmonho,nou1tlut"ยทโ€ขl 1hw m y of p,incb ack to the society: "'oidtcams l'mi&il111t IChtmtt dayiocomt anddtbt ~tam! UIC'llltllll Wllo ! Control for . ยทon Financial p'lllblnefiu 0) ind c.u>Nlbtions Bots141ana l'nlridt laduhe Fluldal lnstlnuiom Eacadea l Reach out throu&b / 1 A Defined Industry ..e eds different methods Reach out to different ~ - Drinn Curriculum 1 croups of people~ l " Stakeholder In,-olnmmt Stnt,cยท Ruch 0.1 1odifr1un1 l}'Pff of/ Measurement & Measurement & cro".F' 1hr .,ii 1-oth 1n1MXD,ยท1 .ir Measurement & . . โ€ข The role of stakmolden ii Con\'tnmrwmtlhodao:dtli,ยทtry I . l ti , '~-'b k E,aluauon todetellDllle Inluation for research & \ l Ul OD ,or 11:m IC suitability Stnte,ies & Tactics for kno led&e addition lleasurement & fa' ation Iffecmยทe ~lemencation 1 _.....;!__----,-, l ...... Employdifftrfflll)--puof . i lffltlll E\'lh:i lionto p,ยทt ,~wlโ€ข fttdbicl: 7.8.2 Consumer Empowerment If financial literacy initiatives are implemented for consumer empowerment it will mean that consumers are able to make informed decision and make better choices. Tustin (2010:1096) says it will mean desired behaviour outcome helping them to avoid difficulties in personal financial management. Accord ing to Hung, Parker and Yoong (2009:5) financial education assist to avoid pitfall. 7.8.2.1 Problems and Effects relating to Consumer Empowerment The confidence levels show lack of empowerment from the quantitative analysis. This may mean that the groups are not taught appropriate content which could assist them in decision making or that the methods used were not effective. According to Hung, Parker and Yoong (2009:5) say that such matters to assist consumers or empowering them on financial decision making should not be left fo r a long period of time without being attended to . It may results in a crisis. Many of the respondents did not understand concept of core signing , loan management and credit usage, and investment. The effect is that they may choose wrong products which lead to more debts- Some were not able to calculate simple interest. 7.8.2.2 Solutions for Consumer Empowerment from the Framework Financial education is bel ieved to change the perception, behaviour and attitudes of target individuals and groups. Therefore the providers should continue to offer fi nancial literacy initiates. The focus should be on savings investments, budgeting skills , portfolio diversification. The quantitative analysis contributed much on this as the respondent suggested the topics . This answers also the problems of lack of prioritizing content for the consumers. The framework offers the solution: 2. Empower different groups with budgeting skills , portfolio diversification & give information for informed financial decision making. These add to the priority areas identified by the respondents. The following figure illustrate the priority areas: the bigger the letters the more demanded is the topic. 357 Figure 7-7: Solutions to content - Priority areas In changing the behaviuors it reduce default payments and cancellations. It also empowers consumers on how to avoid scams & fraudulent schemes. This is one of the problems identified (Newel : 2012:2) The Framework also advices on the coaching of small businesses showing them how to attend to customers and on how to use marketing strategies for competiveness. 7.8.3 Financial Stability and Sustainability Financial stability is meant for the individual , households and the financial system in the country as a whole. It is important to start with individuals as ignoring this may bring back the repercussions of the 2008 crisis and also issues of systemic risk. In addition financial literacy helps people know and understand ways towards wealth creation- a financial stability which is desired by all if not most. Wealth creation is all part of trying to have financial sustainability as cited by Sebtad , Cohen and Stack (2006:5) and Bell & Lerman (2005:8) 358 7.8.3.1 Problems and Effects relating to Stability and Sustainability The respondents showed lack of understanding of concepts and did not use the right people for consultation . This leads to getting wrong information. The effect is the same as above of being indebted and being involved in wrong investment deals. 7.8.3.2 Solutions for Stability and Sustainability from the Framework According to Hung, Parker and Yoong (2009:5) being able to make decisions on investments has been identified as one of the good indicators outcome of financial capability. Lack of information seems to be prevalent among young people: P9 "These are the groups (including young people) which often lack information on money usage, on investment, and don 't know how rich people created wealth. " And thefore it is recommended to: P1 : "Teach young people personal financial planning at an early age to learn to how budget and have financial stability. The framework offers the solutions: 1. Teach concepts like basic accounting , savings, investment, basic banking , and taxation as knowledge to use for every day income and debt management 2. Target different groups & empower them on how to utilise well their income now and for future . 7.8.4 Business Growth Most of the business offer financial literacy for marketing and sales growth under marketing functions of their business or under their Corporate Social Responsibility initiatives. These are often done with less spending using the model : Minimal Cost for great benefits . 7.8.4.1 Problems & Effects relating to Business Growth There may be issues of conflicting interest (Sparkassenstiftung fur Internationale Kooperation 2007:23) which may disadvantage clients. The other problems identified are that of lack of funding and sponsorship for financial literacy 359 initiatives: the effect being financial literacy is not ranked as first priority in funding , so the exercise could stop or not be given attention. 7.8.4.2 Solutions for Business Growth from the Framework All relevant stakeholders are encouraged to continue to offer financial education as way of giving back to the society and being part of the community: a means to becoming a citizen. The government should regulate the initiatives for consumer protection so that the Corporate Social Responsibility initiatives truly benefit both the consumer and the businesses. There is need for customer oriented initiatives which will also assist in the growth of the business as this is also desired . The framework advises to provide financial education as a means to marketing , clientele growth , branding, sales and increase in revenue and most importantly customer satisfaction: The framework offers the business to make a balanced trade off: the use financial education to understand the needs of customers for customer satisfaction . This will consequently improve service delivery as customers who know their rights point out gaps where delivery should be improved. (Frqczek B and Klimontowicz 2015: 63, Miller and et al 2009:8, Worthington 2006: 1 and Rutledge and et al 2010:3). As for funding and sponsorship, the framework offers advice to: utilise a Resource Sharing Model for low cost to obtain great benefits. 7.8.5 Inclusive Financial Education Financial literacy should reach out to all . This has been suggested from the qualitative analysis. Though there are no particular groups excluded , it is still advised to ensure suitable selection of groups for particular content and methods of delivery. In the quantitative analysis the youth show low levels of financial literacy, which means they should be a priority group. 7.8.5.1 Problems and Effects relating to Inclusive Financial Education There is financial inclusion but many still do not understand the concepts. There is need for consumers to understand basic concepts to deal with their personal financial planning . A lack with this will make them vulnerable to consuming poor products and services. 360 7.8.5.2 Solutions for Inclusive Financial Education from the Framework Youth must be given priority so as to start the habit of financial planning from grassroots level. Johnson and Sherraden 2006:3), Cohen and Nelson (2011 :11) highlight that this is important for empowering them with life -long learning skills. The use of appropriate methods should be emphasised. Reaching out to all by professionals and trainers will ensure that people get information from the right sources. Providers should reach out to different types of groups through both interactive & conventional methods of delivery. The respondents have offered to be reached mostly by social media as it is suitable and effective. This is seconded by the use of workshops and seminars. Implementing these will ensure desired impact and help improve financial literacy initiatives. 7.8.6 Measurement and Evaluation Measurement and evaluation is important to financial literacy initiatives. The most important reason being to get feedback. It can also help the providers and policy makers identify groups at risk (Atkinson and Messy 2011 :2) - in this study it has been identified that youth is the group at risk. In this framework different types of measurement and evaluation are important for their various reasons and purpose: 1. Impact analysis is important to determine trends (Atkinson and Messy (2011 :2) 2. Summative (post) evaluation is important for outcome analysis 3. Formative (during) evaluation provides instant feedback 4. Formative (throughout) evaluation is necessary for monitoring progress According to Lusardi and Mitchell (2013:44), Xu and Zia (2012:24) Gale and Levine (2010:2) it is imperative to conduct measurement in developing countries as it has become a first order concern for policy makers to increase the levels of financial literacy in the area. 361 7.8.6.1 Problems and Effects relating to Measurement and Evaluation One of the problems identified in this study is that there is lack of all types Measurement and Evaluation- absence of measurement and evaluation provide gaps in giving feedback and lack of impact analysis is an impediment to determining trends. There is also no evidence to check progress or to validate the achievement of the initiatives. 7.8.6.2 Solutions for Measurement and Evaluation from the Framework The framework offers the following solutions for Measurement and Evaluation: that it should be utilised to get feedback, to determine suitability and effectiveness of methods and content, and to develop and tools for measurement of impact of financial education . The framework also advises different stakholders on what to do to contribute to measurement and evaluation . 7.8.6.2.1 Measurement and Evaluation for Feedback All the relevant players are asked to employ all types of measurement and evaluation to give valuable feedback. Feedback can be on whether the programme objectives have been achieved or not. According to Organisation for Economic Cooperation and Development (OECD 2006:5) it is needed to validate achievement of the objectives of any financial education programme. It will also provide information on issues like saving rate, spending rate and the trends on investment opportunities. 7.8.6.2.2 Measurement and Evaluation to Determine Suitability and Effectiveness Measurement and evaluation must be conducted to determine suitability of methods and content to the target audiences. This study has revealed that some methods like presentation and classroom instruction are not suitable for young people. It is also important determine the methods which are effective for the different groups. In this study it has been determined that interactive methods are trend ing and quite effective. 362 7.8.6.2.3 Measurement & Evaluation to develop tools Measurement & Evaluation researches must be conducted to design and develop financial literacy measures (Huston 2010:296-297). This will over time assist with drawing towards standardisation of measures of financial literacy. The more researches are carried the more the tools are refined for validity and quality results to inform policy makes. It is therefore encouraged and recommended in this study for every financial literacy education programme to be accompanied with how it is measured and evaluated . 7.8.6.2.4 Role of Bankers in Measurement and Evaluation Different stakeholders led by government are encouraged to engage in measurement and evaluation of initiatives to make improvements. Banks being the main providers of financial education must conduct measurement and evaluation of the initiatives. This is because the banking sector has been identified as the major player offering more initiatives than others. They also play a critical role in making customers understand financial products and services. 7.8.6.2.5 Role of Researchers in Measurement and Evaluation There is limited research on financial literacy in Botswana yet there are programmes which could be evaluated. Researchers are urged to participate so that policy makers may use quality information to make decisions. The government in particular should keep track of the levels of debts or saving rate among households as these contribute to the whole economy and the financial system. 7.8.6.2.6 Role of Government in Measurement and Evaluation To enhance measurement and evaluation in the country - the government already has protocol for researchers but financial literacy needs funding and research is expensive. The government may provide opportunities and sponsorships for studies to be conducted under the field . 363 7.8.6.2.7 Role of Media practitioners in Measurement and Evaluation The role of media is not underestimated because most of the interactive methods involve media. Campaigns, advertisements, shows and programmes need the media practitioners who have grasped the importance of good publicity and advertisement for financial education . 7.8.6.2.8 Role of Trainers in Measurement and Evaluation Trainers must be trained on assessment, evaluation and measurement of the initiatives. They should be able to make changes in the content and the approaches and the target audience informed by research . Their role is to conduct impact analysis to determine the effectiveness of their delivery. 7.8.6.2.9 Role of Clients in Measurement and Evaluation The recipients of the content of financial literacy initiatives are crucial in measurement. Their role is not just to be measured but they may also point out challenges to the programmes from the perspective of the learner; as they can comment on the content, suggest their own mode of learning, and decide on when best to learn. This study has results indicating the major topics which the clients desire and also their preferred mode of learning. 7.8.7 National Coordination The framework appeals for a national coordination of the initiatives. This is to place financial literacy at the strategic apex, to advice on policy, to ensure issues of regulation and control. There are several initiatives from around the world Zambia (Munro and Manje 2013:1 ), South Africa (OECD 2013:23) and Department of National Treasury Republic of South Africa 2013: 1) Canada (National Strategy for Financial Literacy - Count me in , Canada 2015:5) Japan (Furusawa: 2014: 1, and OECD 2013:23) and the United States of America (National Strategy for Financial Literacy 2011: 1which may highlight the critical factors for a national strategy. The framework simply recommends: A Government Led National Strategy. 364 7.8.7.1 Problems and Effects relating to National Coordination The question is: Who is the Champion? In most countries the Ministry of Education or Finance or both are the champions of the financial literacy national strategy. The respondents and the interviewees have recommended the Ministry of Education P3: "The Ministry of Education must the champion of curriculum development" P18: "The Ministry must be the champion in the design and development of the curriculum" A lack of coordination has resulted in dispersed initiatives without attending to the needs of the industry, the country and the consumers. The initiatives are also not binding to conduct or to sponsor because there is no policy or legislation enforcing such. 7.8.7.2 Solutions for National Coordination in the Framework The government is requested to regulate & control non-bank financial sectors like Pawn shops & "Motshelo" to avoid high interest rates. This will deal with the vulnerability of consumers from being charged high interest rates. A defined industry needs driven curriculum is advised by both the qualitative data and the quantitative research results. The Ministry of Education is proposed to champion an industry needs driven curriculum i.e. being in collaboration with all stakeholders. Government should lead financial institutions, consumers, consultants , NGOs, Affinity groups, businesses on a national strategy for financial literacy initiatives. The framework has also provided the strategies and tactics for implementation which are: to do mass outreach, ensure proper scheduling , funding , provide a code of conduct for financial education providers in order to increase the level of financial literacy in Botswana. 7.9 Users of the Framework and their Roles The framework inherently makes an allowance for different stakeholders to be involved in providing financial education in Botswana. The following users and their tasks have been identified: researchers , students, financial education providers, mass media practitioners, customers: the public and clients, government and policy makers, Trainers, accrediting bodies, financial Industry experts and practitioners 365 7.9.1 Researchers Conduct measurement and evaluation based research and develop a frameworks and models for better implementation. They should develop measurement tools to assist in standardisation of measures of financial literacy. 7.9.2 Students They should know the type of curriculum they learn how and who has to provide it. In measurement and evaluation they should be given an opportunity to comment on the content and delivery methods. 7.9.3 Financial Education Providers They will know how to implement their marketing strategies and Corporate Social Responsibility initiatives. They will know the most effective methods to use now or in future. Their role is to provide effective and quality financial literacy programme. They should try to understand their target groups to make best selections for suitable and effective contents and methods. 7.9.4 Mass Media Practitioners They have been advised on what to publish and why they have to play a role. Some of the financial literacy campaigns and programmes intrinsically need the media , like public open shows, public campaigns, radio and television shows. 7.9.5 Customers: members of the public and clients They will know the reasons for the implementation of financial literacy programmes and possibly know the type of curriculum they have to learn , or the methods suitable for their learning. They should know what should be the core content of the programmes brought to them. Their role is to advice on how best they may be taught, or how best they may be serves by the financial institutions. 7.9.6 Government & Policy Makers They will know areas of where to enforce regulation , develop a policy or strategy for implementation. They will also know who to involve if they may engage on a 366 national strategy. Their role is to lead a national strategy and ensure participation of all stakeholders as well as ensure national coordination of financial literacy initiatives. 7.9.7 Financial Industry Experts and Practitioners The industry has a role to feed the curriculum developers on what should be learnt as demanded by the market. Experts are valuable to give the latest trends and to provide relevant information about the subject of financial literacy. 7.9.8 Trainers Their main role is to train and they will know the effective methods to use. They may also advise on the methods to use in future. Their role has also been outlined in measurement and evaluation : to assess, to evaluate and also play a critical part in research. 7.9.9 Accrediting Bodies Their role is to set the standards for the programmes on financial literacy and ensure that financial educational providers implement quality assured programmes. They can also be engaged at the curriculum design and development stage of the programme before it is implemented: the idea will be to ensure that it is satisfies both the needs of the industry and that of the country. 7.10 Contribution to research and further opportunities The framework has been developed from the results analysis and has become part of theory to consult. It has contributed to body of knowledge. It can be used by the different plays identified above but it particularly contributes to the research bank on a subject area of financial literacy where studies are deemed to be minimal in Botswana. In the area of measurement and evaluation the questionnaire and the interview guide are avai lable for scrutiny by researchers for further development. The study has therefore contributed to measures and tools in evaluation of financial literacy initiatives. Theoretically the literature in the study with the analysis of the concepts, models and the synthesis on the theories of goal setting and motivation provide a source of knowledge . The study has a 367 stance that financial education contributes to behavioural change: knowledge, skills and attitudes. This provokes more studies especially for impact analysis. Meanings and interpretations made from the results are a contribution and insight which may be embraced , critique or further developed. The quantitative results have assisted to generalise that financial literacy in Botswana is low even though there is substantial percentage of financial inclusion. This provokes further research in the different areas of the subject of financial literacy. The questionnaire also utilised is a contribution to measures and tools of impact analysis. It can also be further developed and utilised by other researchers. In qualitative results, is to be noted that one of the disadvantages of thematic analysis and structured interviews is the inability to use the information for generalisation of the result. Hancock Ockleford Windridge (2009:7) state that: "one common criticism levelled at qualitative research has been that the results of a study may not be generalisable to a larger population because the sample group was small and the participants were not chosen randomly." Besides this its other criticisms is its limited inductive process: Chapman, Hadfield and Chapman (2015:204) write "A key criticism is that truly inductive analysis is not possible and is always limited by the unconscious application of prior knowledge to the thematic analysis process" However, thematic analysis termed a robust because of the process of reduction involved (Ibrahim 2012:42); still have its results valuable to create relationships- networks (Braun and Clarke, 2006:19) which produce such conceptualised frameworks as this one. There is the interrelation of the different themes which converge into how financial literacy initiatives may be enhanced in Botswana. The framework itself has the role of researchers guided on how to conduct research : their role is clarified in theme four on measurement and evaluation they have been charged with the responsibility to develop tools for measuring and evaluating financial literacy initiatives. Over and above these governments often engage researchers as consultants in developing national strategies: the framework guides on how the national strategy could be developed. 368 7.11 Implications for Further research The following implications have been deducted as points for further research: Conduct measurement and evaluation , benchmarking and comparative analysis studies: research on methods of delivery, questionnaire and interview guide. 7.11.1 Conduct Measurement & Evaluation Researchers are encouraged to conduct research on specific groups for their specific impact analysis. This is because programmes also have specific objectives tailored for particular purposes. It will be of interest to narrow the research for instance to analysing the impact of financial education on groups like youth and children . 7.11.2 Benchmarking and comparative analysis Botswana should use ideas from mature strategies and get ideas on drawing a national strategy on financial literacy. This can come through research so that the results of a comparative analysis are an outcome of a systematic approach . 7.11.3 Research on methods of delivery Researches may also be on methods, testing their efficiency and suitability to the target audience. This is also part of measurement and evaluation 7.11.4 Questionnaire and Interview Guide: These can be further developed for measurement of impact of financial literacy initiatives. The instruments were used for this study but they are open for scrutiny and further development. 7.12 Recommendations to Enhance Financial Literacy Initiatives The following recommendations have been made under the headings: inclusive financial education , priority areas, financial counselling , measurement and evaluation , national coordinated strategy, funding and sponsorship for financial literacy and industry driven curriculum. 369 7 .12.1 Inclusive Financial Education The financial literacy initiatives must reach out to all to have inclusive financial education . This will not only empower individuals but will also contribute to financial inclusion. The financial services need the inclusion of a large number of people for stability. Particular focus and priority must be given to young people as they indicated low levels of performance on financial literacy questions. 7.12.2 Priority areas The priority areas identified are: Investment, Budgeting, Loan Management, and Portfolio Management. Budgeting has been identified as the most central theme to deal with other priority areas like income and debt management. These priority areas identified are the content to be taught target audience of financial education . This content is recommended to be part of the school curriculum as core or optional subject in schools. The methods recommended are that of interactive methods like social media, workshops and seminars. 7 .12.3 Financial Counselling At a strategic management level the government is requested to provide financial counselling services. This needs policy decision making on how to conduct it, who should conduct it, where to conduct it and how to fund it. Financial counselling is done in countries like South Africa and Batswana may also benefit from this as it gives face to face interaction to directly deal with one's personal finance. 7.12.4 Measurement & Evaluation Another issue that needs strategic intent is the issue of measurement and evaluation as the government is recommended to encourage research and development of measurement tools. The research will advise on the suitability and effective methods to utilise during delivery. It will also assist in identifying groups at risks or those who need financial education most. Furthermore research will advise on trends in the discipline and provide improvements to make for effective financial education. 370 I j 7 .12.5 National Coordinated Strategy National coordination will ensure regulation and control of the financial literacy initiatives. Botswana may bench mark with other countries as a start to know get ideas on implantation. The coordination will ensure standards, code of conduct and guard the interest of the consumers. In addition for policy and strategic consideration are to have a multi - sectoral approach in order to involve everyone and have a pool of ideas. 7.12.6 Funding for Financial Literacy The government must ensure funding of the national strategy and funds must be availed to carry out robust activities of a national financial Literacy Programme. The responsibility of sponsorship should not weigh only on the private sector but should be shared by all stakeholders. 7.12.7 An Industry Driven Curriculum It is recommended programme make financial education a core part of the curriculum. Have all stakeholder involvement The Botswana Qualification Authority (BQA) enforces through their BQA Quality Assurance Standard (2017:7) that all programmes offered in the country should be driven by the needs assessment from the industry or be informed by the Human Resource Development Sector Plans. This is outlined in their standards in criterion 6 for conventional educational providers, for workplace intervention or initiatives provided by consultancies. Therefore whatever nature of financial education provider it is advised to not only accredit the programme but to also ensure it is industry driven or demanded. As part and parcel of the curriculum the results indicate the most approved methods of delivery to be interactive methods as social media and workshops. 7.13 Limitations to the Study The objectives of the study as reflected in chapter four and five have been achieved , with the research questions answered . However there are some limitations identified which could be posed challenges during the course of the 371 study. Identifying representatives to be interviewed from the institutions was not easy and the interview could be postponed several times because the organisation had not sanctioned anyone to be interviewed. Some organisations declined to be interviewed citing apprehension to divulge information about the company. Some cited reasons that they were disappointed by unethical conduct of previous researchers and therefore not willing to accept the interviews. There was constant re -scheduling of meetings. During data analysis it was experienced that Thematic Analysis is time consuming and needed a lot of scrutiny of the codes. The coding process demanded a back and forth of inductive and deductive reasoning before the theme could be clear. On another point, although the interview guide was structured and the guide was piloted for reliability and validity, the themes resulted from interview data was largely based on the subjective perception of the participants and therefore have less generalisability. This also being a characteristic expected in the use of qualitative methods. One other major limitation to this study was going to institutions to get respondents for the questionnaire, there were a lot of rejections from some of the institutions where the respondents were who could have contributed to the study. Despite all the necessary protocol followed , the rejection was mainly on past experiences with researchers who did not honour their promised ethical conduct. Some rejection was based on that the institutions would not like their employees answer so personal questions on how they use their income. Lastly it was also a limitation to do the study and discover limited research studies on Botswana financial literacy literature. This may mean that scholars have not yet developed interest in this field or it could mean that the government, other relevant institutions have also not shown enough interest in it to encourage research . 7.14 Chapter Summary The purpose of this chapter was to discuss results from the preceding chapters to make conclusions and interpretations. From these results problems and challenges in offering financial literacy were identified. The solutions to these problems are presented in this chapter in a form of a framework: the purpose 372 being to assist different users to combat low levels of financial literacy in Botswana. The Government is encouraged to find a champion (Ministry of Education and or the Ministry of Finance and Economic Development) and lead a national coordinated strategy. The roles of the different users were clarified and they are guided on how they may contribute to promoting financial literacy in the country. 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Exploring Marketing Research Fort Worth Dryden Press. 387 APPENDIX 1 INTERVIEW GUIDE A FRAMEWORK FOR ENHANCING FINANCIAL LITERACY INITIATIVES IN BOTSWNA Masego Mercy Morima J 22577874 Cell phone: ( +267)76142994/72351237 Email : mercymorima@gmail.com mmmorima@hotmail .com INTERVIEW QUESTIONS FOR ACADEMIC RESEARCH Submitted in partial fulfilment of the requirements for the degree of Doctor of Philosophy in Business Management at the Mafikeng Campus of the North West University Supervisor: Professor Wedzerai Musvoto Office Number: 0027 18 389 2088 Cell Number: + 276 3130 1047 388 SECTION 1: INFORMATION ON THE INSTITUTION Name of Institution: Type of Business: Representative: Designation : Contact Details : SECTION 2: INFORMATION ON PROGRAMME 1. What is the name of the Programme? 2. Under which departmenUor function is the programme placed? 3. What is the purpose of the programme? 4. What is the duration of the programme? SECTION 3: THE TARGET GROUP 1. Who are the target group of the programme? 2. What are the particular characteristics of this group? (age, gender, type of employment, earning power) 3. Why did the institution choose the target the said group? SECTION 4: THE CONTENT OF THE PROGRAMME 1. What is the content of the programme? 389 a) Knowledge: What were the expected aspects to learn from the programme? b) Skills: What were the expected skills to master from the programme? c) Attitudes: What change did you expect from the group? 2. Why did you choose the particular content? 3. Which content do you think should not have been included and why? 4. Which content do you think should have been included and why? 5. What change has the group shown in behaviour after receiving the content? SECTION 5: THE METHODS OF DELIVERY 1. What were the delivery methods utilised for the programmes? 2. Which of the methods were effective? 3. Which of the methods were not effective? 4. Are there any other delivery methods that could have been used? 390 SECTION 6: EVALUATION FRAMEWORK 1. Is there any framework used by the institution to evaluate the programme and what is the name of the framework? 2. What type of evaluations has the institution carried out on the programme, formative or summative? 3. What are the findings and the recommendations from the evaluation? 4. How have these findings and recommendations been used to improve the programme? SECTION 7: THE BENEFITS VS COSTS TO THE INSTITUTION 1. What are the benefits accrued from implementing the programme? 2. Are there any losses that could have been avoided and how? 3. In terms of cost vs benefits is the programme worth continuing? SECTIONS 8: THE CHALLENGES AND SOLUTIONS 1. What are the challenges and that have been experienced in terms of the following a) Choice of group b) Choice of Content: c) Choice of delivery 391 d) Implementation e) Evaluation 2. What could be future solutions to the above challenges? SECTION 9: OVERALL OPINION 1. What is your overall opinion of financial education efforts made by your institution? 2. What is your suggestion on evaluation framework for financial literacy in Botswana? 3. What is your overall opinion of financial literacy in Botswana? 4. What do you think should be done to make improvements? a) Legislation/Policy b) Curriculum (content) c) Stakeholder Involvement (who do you think should be involved) Thank you for your cooperation and your time. 392 APPENDIX 2 QUESTIONNARE A FRAMEWORK FOR ENHANCING FINANCIAL LITERACY INITIATIVES IN BOTSWNA Masego Mercy Morima 22577874 Cell phone: (+267)76142994/72351237 Email: mercymorima@gmail.com mmmorima@hotmail .com QUESTIONNAIRE FOR ACADEMIC RESEARCH Submitted in partial fulfilment of the requirements for the degree of Doctor of Philosophy in Business Management at the Mafikeng Campus of the North West University Supervisor: Professor Wedzerai Musvoto Office Number: 0027 18 389 2088 Cell Number: + 276 3130 104 393 SECTION 1: PERSONAL FINANCE INFORMATION (Tick as appropriate in the box) 1. Gender 1. Male 2. Female 2. Age 1. Below 18 2. 18 to 25 3. 26 to 35 4. 36 to 45 5. 46 to 65 6. Above 65 3. Highest Level of Education 1. Primary 2. Junior School 3. Senior School 4. Under Graduate 5. Graduate 6. Post Graduate 4. Stage in family life cycle I.Child 2. Young 3. Young 4. Young 5. Young 6. Middle age 7. Middle 8. Older 9. Older 10. Any single & single married married with married with age Married Unmarried other Schooling but without children chi ldren married (Specify) working children without dependents 5. Emplo , ment Structure I. Full 2. Part 3. Casual/ 4. 5. 6. Unemployed 7. 8. 9. Business/ 10. Any Time Time Temporary House Retired Student Intern Self other Salaried salaried wife Employed (specif'v) 6.Type of Monthly Income 1. Allowance from 2. 3. 4. 5. 16. parents Allowance from school Tips Wages Salary Others specify 7. Monthly Income Before Tax 1. 2. 3. 4. 5. Below PS 000 PS 001 to PIO 000 PIO 001 to P 15 000 Pl5 001 to P20 000 P20 001 and above 8. Monthly Expenditure to Monthly Income (in %) 1. 2. 3. 4. 5. 6. 7. 8. 9. IO.Above ]- 10 1 -20 21-30 31- 40 41 - 50 51 - 60 61 - 70 71 - 80 81-90 90% 9. Monthly Savings to Monthly Income (in % ) 394 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Above 1-10 11 - 20 21 -30 31- 40 41- 50 51 - 60 61 - 70 71 - 80 81-90 90% 10. Monthly Future Investment to Monthly Income (in%) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Above 1-10 11 - 20 21-30 31 - 40 41- 50 51 - 60 61 - 70 71 - 80 81 -90 90% 11.Type of Accounts I have 1. Savings 2.Cheque/ 3. Car 4. Student 5. Personal 6. House 7. Credit 8. Money Account Current Loan Loan Loan Mortgage Card Market Account Account Account account Account 12.Investment Alternatives 1. Post Office 2. Mutual 3. Debentures & 4. Insurance 5. Bank 6. 7. Real Savings Funds Bonds & Pension Deposits Shares Estates Plans 13 .Financial portfolio record 1. Will 2. Written Budget 3. Record of 4. Financial record of 5. Asset Inventory (Testament) insurance policies accounts held 395 SECTION 2: Type of Investor (Tick as appropriate in the box) 1. What is your major investment objective? 1. High Return 2. Moderate Return 3. Liquidity 4. Low Risk Return 5. Safety 2. How have you allocated your Funds? (In %) l. Shares 100 2. Shares 70 3. Shares 50 4. Shares 30 5. Shares 10 Mutual Fund Mutual Funds l0-20 Mutual Funds15-25 Mutual Funds20-25 Mutual Funds20-30 0Real Estate0 Real Estate5 -10 Real Estatel0-15 Real Estatel0-20 Real Estatel0-20 Debt up to 0 Debt up to 5 Debt up to 10 Debt up to 20 Debt up to 25 FixedDeposit0 Fixed Deposit2 Fixed Deposit5 Fixed Deposit 10 Fixed Deposit20 3. What is your investment horizon? 1. 2. 3. Over 1 year to 3 4. Over 3 years to 5 5. Over 5 Years 3 to 6 months Over 6 months to 1 year years years 4. What are your expectations of return on investment?(in %) 1. 5% to 10% 2. Over 10% - 20% 3. Over 20% - 40% 4. Over 40 % - 50 5. Over 50% - 100% 5. What type of Investor are you? 1. High risk 2. Opportunistic risk 3. Moderate risk 4. Low risk 5. I don 't like taking taker taker taker taker risk 396 SECTION 3: Financial Literacy (Self-Assessment) (Tick as appropriate rating yourself) 1. How much do I know about the following? (Rate from 1-3) (Rate from: I.Not Knowled2eable, 2. Fairlv Knowled2eable 3. Quite Knowledf(eable) 1 2 3. 1. Savings 2. Basic Accounting 3. Budgeting 4. Portfolio Management 5. Investments 6. Income & Debt Management 7. Banking &Bank Accounts 8. Taxation 2. How may I describe my saving behaviour compared to my spending habits? 1. Very spending-oriented, hardly ever saving money 1 2. Somewhat spending oriented, seldom saving money 2 3. Neither careful nor spending oriented 3 4. Somewhat careful, often saving money 4 5. Very careful, saving money whenever I can 5 3. How well do I maintain my financial records? 1. Maintain no records at all 1 2. Maintain minimal records 2 3. Maintain adequate records 3 4. Maintain very detailed records 4 5. Maintain excellent records 5 4. What are my reasons for the use of a debit card? 1. No reason because I don 't have a Debit Card 1 2. Drawing cash from an ATM or swiping every time I feel like buying something 2 3. Drawing cash from an ATM or swiping every time something crops up 3 397 4. Drawing cash from an ATM and for buying things that are necessary but some not 4 5. Drawing or swiping to buy things which are only on m y budget 5 5. How do I usually pay my credit card bills? 1. I do not have a credit card 1 2. I pay when I receive a warning 2 3. I pay sometimes but before I receive a warning 3 4. I pay the minimum regularly 4 5. I pay between the minimum and full amount regularly 5 6. Which circumstance is financially beneficial to borrow money? 1. When the interest on the loan is greater than the interest I get on m y sav ings l 2. When some clothes I like go on sale 2 3. When I really need a two-weeks holiday 3 4. When I need to study for a course to get a much better paying job later 4 5. When I need to improve an asset that will bring me immediate oassive income 5 7. How often do I do the following? 1. Never 2. Sometimes 3. Always 1. Return a financial product not suitable for my needs 2. Return a dysfunctional product to the supplier/seller 3. Ifl receive poor service I complaint to management 8. How often do I consult them on financial issues? 1. Never 2. Sometimes 3. Always 1. Consult family and friends on budgeting 2. Consult the bank on issues such as savings and borrowing 3. Consult Professional Broker on investments 4. Consult Profess ional on taxes, tax return and tax planning 5. Consult books, magazines and newspapers for reading 9. How important to me is the financial behaviour? (Rate the importance from: 1 Undecided, 2. Not Important 3. Important, . Very Important, 5. Highly important ) I 2 3 4 5 l. Tracking my spending 2. Paying bills on time 3. Reading bank account statements regularly 398 4. Paying more than the minimum in my credit card 5. Preparing a wil l/ testament 6. Contributing to a retirement fund 7. Comparison shopping fo r a personal loan 8. Keeping an emergency fund to cover for 3 months living expense 9. Shopping around fo r the best prices 10. Following a monthly budget 11 . Adjusting my tax return every year 12. Checking the suitability of assets in my portfoli o 13. Miximd diversifying) my investments 10. How much have I improved on my attitudes towards money? (Rate improvement from ]Not Improved, Improved 3 HiJ!hlv Improved) 1 2 3 1. Discipline in use of money 2. Confidence in financial decision making 3. Careful in making financial choices 4. Consistency in saving for a purpose 5. Stabili ty and effective debt management 6. Living within my means 7. Consistency in planning and budgeting 11 . What is the truth of my financial abilities? Rate from 1 (not so true) to 5 Very true of me 1 2 3 4 5 1. I am able to calculate interest on my savings 2. I am able to read my monthly statement 3. I am able to compare receipts of purchases to my monthly statement 4. I am able read over and understand house leases before I sign them 5. I am able to read over and understand loan agreements before I si!!Il 6. I am able to read about shares and fo llow stock market performance 12. What is the truth about my fi nancial behaviour? (Rate from 1 - not so true) to 5 Very true of me) 1 2 3 4 5 399 1. I have my parents/friends/ core workers 'bail me out' of debts 2. I work extra hours to meet bills and expenses 3. I miss important events to work extra hours to meet bills and expenses 4. I contribute to a savings account regularly 5. I find legal ways to lower my taxes 6. I comply with tax regularly 7. I read to increase my financial knowledge 8. I use overdraft for my payments every month 9.1 hide from creditors every month l 0. Contribute to investment fund 13. What is my overall ability to manage personal finances?(Tick to rate overall ability ) 1. Not sure at all-I wish I knew a lot more about money management 1 2. Not too sure-I wish I knew more about money management 2 3. Somewhat sure-I understand most of what I will need to know 3 4.Yery sure -I understand money management very well 4 400 SECTION 4 Financial Literacy Performance Test (Tick the appropriate answer) 1 2 3 4 1. What is the importance of the Process of Financial Accounting? 1. Take a Holiday 2. Assist in Decision 3. Invest in Start-up of a 4 . Track Money Spent Making business 2. Assets =Liabilities +---------------- 1. Revenue 2. Shares I 3. Owners' Equity (capital) 4 . Utilities 3. Which of the following are Assets? 1 . Cash Owings and 2. Land and fixtures 3. Loans and creditors 4 . Mortgage loans and cash at bank debtors 4. Which of the following are Liabilities? I .Cash at bank 12. Land and fixtures 3.Loans and creditors 4. Mortgage loans and debtors 5. What happens to my account when money is deposited? 1. Credited 2. Debited 6. What happens to my account when money is withdrawn? I. Credi ted 2. Debited 7. What is the financial statement for revenues and expenses for a period? 1. Income Statement 2. Balance Sheet 3. Cash Flow Statement 4. Statement of Shareholders Equity 8. What is the MOST important factor considered in approval of a loan? 1. Marital status and 2. Education and 3 .Age and Gender 4. Bill payment record number of children occupation and income 9. Which is the SAFEST place to keep but easy to ACESS money after a year? 1. A bank savings 2. Government 3. Shares 4. Locked in closet at account Bonds home 401 I 0. Which of these accounts will usually pay the MOST interest? 1. Certificate of Deposit 2. Savings Account 3. Cheque Account 4 . Money Market (CD) Account 11. Which of these wi 11 be of LEAST benefi t to keep money for emergencies? I . Savings Account 2. Invested in a down 3. Shares 4. Cheque Account payment on a house 12. Which one of these will NOT typ icall y be associated with spending? Credit Card Cash 32 day Call Debit Card 13. What is the Income paid by a company to an individual who has retired? I . Dividends 2. Pension 4. Socia l Security 4 . Premium 14. What is income paid by a public company to an Investor? I. Dividends 2. Pension 3. Social Security 4. Premium 15. Which one of these, show a risky combination of investments? Mutua l fund: A mutual fund : 80% An Index fund(like the Stock in a sing le 80% stocks and 20% bonds and 20% S&P 500) company bonds stocks 16. VAT stands for: 17. IPO stands for: 1. Initial Public Office 2. Initi a l Public 3. Investment Public 4. Investment Public Offering Offering Office 18. What is total amount after adding simple interest? Amount in savings account = PI00 Interest rate = P2% Period ofs aving = 5 years I. More than P 102 2. Less than P 102 3. Exactly P 102 4. None of the above 19 What is total amount under compounding and re-investment: Amount in savings account = PI00 Interest rate = P20% per year Period ofs aving = 20 years 402 11. More than P 200 2. Exactly P 200 3. Less than P 200 4. None of the above True/False questions (Tick weather the statement given is True or False) 20 What is the use of a budget? True False 1. Figure out how much money I have available to spend 2. Find out if I like school/my job 3. Decide what I want to do with my money 4. Save money for college 5. Save money for a house 6. Learn to get good grades 7. Help me stay out of financial problems 8. Earn compliments at work 21 What does Co-signing a loan with a friend mean? True False 1. Have right to receive part of the loan 2. Confirms my friend's reliability to be able to pay the loan 3. I am responsible for repaying the loan if my friend does not pay 4. I am in a better position to get a personal loan 22 What is true or false about the use of a credit card? True False 1. It functions the same way as a debit card 2. I Pay back only the money spent if I use it 3. I Pay back both the money spent and interest ifl use it 4. It is used by rich people only 5. Service providers earn interest ifl use it 6. It earns me interest every time I use it 403 SECTION 5 Opinion on Financial Literacy (Tick the appropriate answer) 1. What is the level of your interest to want to increase your financial knowledge? (Tick to rate interest ) 1. Very Uninterested 1 2. Somewhat uninterested 2 3. Not Sure 3 4. Somewhat interested 4 5. Very Interested 5 2a. Would you do a personal financial course in future? 1. Yes I 2. No 2b. What is your reason for answer in question 2a? 3. Which topics are of interest to you? At least two topics Topic 1 I I Topic 2 I 4. What was the most effective method for you? (Rate from I.Not effective 2.Less Effective 3. Avera~ely Effective 4. Very ef:"ective 5. Quite Effective) 1 2 3 4 5 1. Social interactive media 2. Television Show/programme 3. Radio Show/programme 4. Presentations 5. Workshops and seminars 6. Classroom Lessons 7. Print Media/Selfreading 8. Road shows & public campaigns 9. Financial Counselling 10. Edutainment (Competitions, songs, drama and plays ) 404 5. What is the most suitable method for future? (Rate from 1. Not suitable 2 Somewhat suitable 3 Avera~ely Suitable 4. Very suitable 5. Most Suitable 1 2 3 4 5 1. Social interactive media 2. Television Show/programme 3. Radio Show/programme 4. Presentations 5. Workshops and seminars 6. Classroom Lessons 7. Print Media/Self reading 8. Road shows 9. Financial Counselling 10. Edutainment (Competitions, songs, drama and plays ) 5b What is the reason for the highly rated method? Tick to suit your answer in question 4 1. Trendy and fashionable 1 2. Effective 2 3. Helps give feedback 3 4. Suitable for everyone 4 5. Suitable for young people 5 6. Can reach a lot of people 6 6. What is your opinion of the level of Financial Literacy in Botswana? Tick the most suitable level 1. Low 1 2. Moderate 2 3. High 3 7. What wou ld you like the government do to enhance financial literacy in Botswana? 405 Thank You 406