An exploratory investigation into the moneymax profile as predictor of optimal financial attitudes and behaviour

Prinsloo, Cindy Renee (2014-04)

Thesis (MComm)--Stellenbosch University, 2014.

Thesis

ENGLISH ABSTRACT: Financial independence is what most people strive for; however, world trends indicate that it eludes the majority of the population. In South Africa, financial independence figures, especially at retirement, range disconcertingly between 6% and 10%. Numerous factors contribute to and influence financial independence, such as the current economic climate, personality characteristics and attitudes and behaviour. In an attempt to understand the complexity of the interplay between finance and psychology, this research explores a commercial product, the Moneymax Profile (MMP), and endeavours to relate it to scientific literature that will contribute to the understanding of how personality characteristics and attitudes and behaviours toward money will influence financial independence. An ex post facto correlational research design was employed in this exploratory quantitative study (n = 67). The Financial Independence Scale (FIScale) was constructed for the purposes of the study. The concept of optimal financial attitudes and behaviour (OFAB) was developed and defined as measurable attitudes and behaviour that maximise the likelihood that individuals will experience financial security or independence. OFAB was measured by subscales of personality (locus of control, Type A/B personality, time orientation) and financial attitudes and behaviour (for example budgeting, social referents, financial discipline, control of investments). Results indicated that locus of control, time orientation, budgeting, social referents and control of investment were reliable measures of OFAB. The Moneymax traits with a moderate correlation that contributed significantly to OFAB were pride, emotionality, confidence, contentment, spending and trust. The traits of involvement, power and risk taking were significant, but the relationship with OFAB was weak. The remaining traits of altruism, work ethic, self-determination and reflectivity held little statistical value. The principle contributors to an individual’s financial habits and current status were noted to be education level, unexpected circumstances and trusting others. The lack of available psychometric properties for the MMP and the small sample were major limitations of this study. The disciplines of economics and psychology would do well to continue working together in an effort to comprehend money and money personality.

AFRIKAANSE OPSOMMING: Finansiële onafhanklikheid is ‘n stand van sake waarna meeste individue streef. Wêreldwyd word hierdie nie vir die oorgrote mederheid behaal nie. In Suid-Afrika blyk die getal vir finansiële onafhanklikheid slegs 6% tot 10% te wees. Faktore soos die huidige ekonomiese klimaat, persoonlike eienskappe, gesindheid en gedrag word as bydraende faktore beskou. ‘n Poging word aangewend om die komplekse interaksie tussen finansies en sielkunde te ondersoek en dit deur middel van ‘n kommersiele produk, Moneymax Profile (MMP), en onderneem om wetenskaplike literatuur te gebruik om vas te stel wat se komponente van persoonlikheid, gesindheid en gedrag nodig is vir ‘n individu om finansiëel onafhanklik te kan wees. ‘n Ex post facto korrelasie navorsingsontwerp word in die kwantitatiewe navorsingstudie (n = 67) gebruik. Die Financial Independence Scale (FIScale) was vir die navorsing ontwikkel. Die konsep van optimale gesindheid en gedrag (OFAB) word voorgelê en word as volg gedefinieer: meetbare gesindheid en gedrag wat ‘n individu se waarskynlikheid vergroot om finansiele sekuriteit en onafhanklikheid te beleef. OFAB was gemeet deur subskale van persoonlikheidseienskappe (lokus van kontrole, Tipe A/B persoonlikheid, tydorienteering) en finansiële gedrag en gesindheid (byvoorbeeld begrotings, sosialegroepsdruk, finansiële disipline, beleggingsbestuur). Resultate wys dat lokus van kontrole, tydorienteering, begrotings optrek, sosialegroepsdruk, en beleggingsbestuur geldige metings van OFAB was. Die Moneymax trekke wat beduidend en matige verwantskappe het met OFAB was trots, emosienaliteit, sekerheid, tevredenheid, besteeding en vertroue. Die trekke van betrokkenheid, mag en risiko was beduidend maar die korrelasie was swak. Die oorblywende trekke van altruïsme, werksetiek, selfbeskikking en oordenking hou weinig statistiese waarde. Faktore wat bydra tot ‘n individu se finansiëlegedrag en huidige finansiëlestatus is opvoedkundevlak, onbeplande omstandighede en om andere te vertrou. Die gebrek aan psigometriese eienskappe van die MMP het die studie gekniehalter. Die dissiplines van die ekonomie en sielkunde word aangemoedig om geld en geldpersoonlikheid verder te verken.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/86219
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