’n Benadering tot finansiële kwesbaarheidsreduksie : FinansiEle geletterdheidsopvoeding binne ’n maatskaplike ontwikkelingsparadigma
Date
2009-05
Authors
Engelbrecht, L. K.
Journal Title
Journal ISSN
Volume Title
Publisher
Suid-Afrikaanse Akademie vir Wetenskap en Kuns
Abstract
A significant number of people in South Africa who are accommodated within the social welfare
system, display a lack of understanding of financial matters and are therefore financially
vulnerable. In South Africa, social welfare policy initiatives are directed by the White Paper for Social Welfare and are primarily focussed on the socio-economic needs of all South Africans,
specifically those of the previously disadvantaged and poor people of the country. This White
Paper which supplies a macro-policy framework for poverty alleviation, is based on social
development theories, combining social and economic objectives. Practitioners of social
development however, deal with financially vulnerable people on a daily basis, and within the
social development paradigm, must attempt to set into operation the development goals on the
micro-practice level. This matter informs the objective of this article, namely to construct an
approach to fi nancial vulnerability reduction within a social development paradigm. This could
make a contribution to the country’s strategy against poverty.
In this article the South African social development paradigm will be placed in its proper
context, after which fi nancial vulnerability and financial literacy education will be explored and
described and also examined as a practice reality by means of an instrumental qualitative case
study. Participants in the case study consisted of ten registered social workers employed at an
established non-government organisation (NGO). Purposive non-probability sampling was used
to select the participants, as these social development practitioners could offer expert opinions
on the subject. This particular NGO delivers social development services in several provinces
and like other NGOs should adhere to the financial policy of the Department of Social Development.
The aim of the case study was to explore how development practitioners perceive and
experience the fi nancial vulnerability of their service users (clients) within a social development
paradigm as practice reality in South Africa. This goal was attained through the explorative and
descriptive nature of the study. Semi-structured interviews were used as research instrument in
order to elicit comments most effectively from the participants. Themes arising from the comments
were processed and presented in synthesised form in the article, based on and integrated with
the literature study, to ensure validity through triangulation. The case study was thus directed
towards reaching the goal as set out in the article, as the fi ndings are to be construed as key
elements of financial literacy education as an approach to reduce financial vulnerability within
the local social development paradigm.
The findings show that financial vulnerability reduction by means of financial literacy education is an appropriate micro-practice approach by social development practitioners to attain social development goals within the context of the organisation. This approach therefore
provides social development practitioners with a definite, concrete role within the social
development paradigm, as they are structurally positioned to deliver financial education to
financially vulnerable service users. This can lay the foundation for successful income-generating
projects to be implemented. This approach means that income-generating projects are initially
of secondary importance, as the development practitioners are primarily focussed on enhancing
fi nancial literacy as a life skill in the community. Traditionally this constitutes a major part of
the intervention by social service professionals.
The fundamental premise of this approach is that people’s financial vulnerability could be
reduced, enabling them to manage looming fi nancial risks. Within the context of this study,
financially vulnerable people refer to those users of social welfare services who have little or no
continuous financial support, and do not have at their disposal the necessary resources to survive
in times of financial distress. Financial vulnerability is viewed here not only from a monetary
perspective, but also in terms of people’s limited capabilities. People are rendered vulnerable
when they are unable to manage their money, which implies a lack of financial literacy, and
usually manifests in unmanageable debt. Financially illiterate people are therefore in dire need
of a set of indispensable life skills to survive in a globalising environment. These life skills are presented as part of an integrated generic social intervention process, implemented on individual, group and community level through financial literacy education. Within a social development paradigm, fi nancial literacy education is thus a micro-practice
approach based on definite points of departure and perspectives in accordance with adult
education principles. This education embraces the recognition and continuous, life-long learning
of a set of multi-dimensional situation-relevant person-centred life skills within an indigenous
cultural context, and is focussed on people’s ability to manage their available funds. Partnerships
are established between development practitioners and fi nancial institutions, to serve as
intervention resource for the presentation of financial literacy programmes. Development
practitioners act as a bridge for dialogue between education programmes and vulnerable people
and also ensure that financial literacy education programmes assume an appropriate position
on a continuum of product marketing and general life skills. Financial education programmes aim to be preventative. The skills of financially vulnerable people are developed towards effective decision-making and having informed opinions about the use and management of money. Accordingly, and with due regard to the specific needs of financially
vulnerable people, the content of education programmes is focussed on competencies relating to
knowledge, values and skills in respect of financial concepts, financial self-discipline and how
to avoid financial exploitation and risks. Acquisition of these values, knowledge and skills, results
in a reduction in financial vulnerability, enabling people to participate with confi dence in the
mainstream economy. This outcome could pave the way for further programmes aimed at income
generation, serve as basis for people’s migration to the mainstream economy and could be
reciprocally transposed to other life spheres. In this way economic and human development are integrated within a social intervention context and placed within reach of social development practitioners to facilitate. Role players should take cognizance of this.
’n Beduidende aantal mense in Suid-Afrika, wat in die maatskaplike welsynsisteem geakkommodeer word, toon gebrekkige fi nansiële begrip en is derhalwe fi nansieel kwesbaar. ’n Relevante benadering om mense se finansiële kwesbaarheid te reduseer binne die maatskaplike ontwikkelingsparadigma kan dus ’n bydrae tot die land se teen-armoede-strategie lewer en motiveer die doel van hierdie artikel, naamlik om ’n benadering tot fi nansiële kwesbaarheidsreduksie binne ’n maatskaplike ontwikkelings paradigma te konstrueer. Die doel van die artikel word bereik deur die Suid-Afrikaanse maatskaplike ontwikkelingsparadigma te kontekstualiseer, waarna fi nansiële kwesbaarheid en fi nansiële geletterdheidsopvoeding binne hierdie konteks verken, beskryf en as praktykrealiteit ondersoek word deur middel van ’n instrumentele kwalitatiewe gevallestudie, bestaande uit tien deelnemers wat by ’n gevestigde nieregeringsorganisasie (NRO) werksaam is. As uitkoms word kernelemente van finansiële geletterdheidsopvoeding as benadering vir fi nansiële kwesbaarheidsreduksie binne die plaaslike maatskaplike ontwikkelingsparadigma gekonstrueer. Binne hierdie paradigma is fi nansiële geletterd heids opvoeding ’n mikropraktykbenadering wat volgens volwassene onderrigbeginsels op defi nitiewe uitgangspunte en perspektiewe gegrond is. Hierdie mikropraktykbenadering behels die bewusmaking en deurlopende, lewenslange aanleer van ’n stel multi- dimensionele persoonsgesentreerde lewensvaar dighede. Finansiële geletterdheidsopvoeding verwys ook na situasie-relevante kompetensies, wat bestaan uit spesifi eke kennis, waardes en vaardighede binne inheemse kulturele verband en is gefokus op mense se vermoë om hulle beskikbare geld te bestuur. Hierdie benadering kan die grondslag vir suksesvolle inkomstegenererings projekte lê, kan as onderbou vir mense se migrasie na die hoofstroom ekonomie dien en kan ook na ander lewensterreine getransponeer word. Sodoende word ekonomiese en menslike ontwikkeling binne ’n maatskaplike intervensiekonteks geïntegreer en is dit binne bereik van maatskaplike ontwikkelingspraktisyns om te fasiliteer.
’n Beduidende aantal mense in Suid-Afrika, wat in die maatskaplike welsynsisteem geakkommodeer word, toon gebrekkige fi nansiële begrip en is derhalwe fi nansieel kwesbaar. ’n Relevante benadering om mense se finansiële kwesbaarheid te reduseer binne die maatskaplike ontwikkelingsparadigma kan dus ’n bydrae tot die land se teen-armoede-strategie lewer en motiveer die doel van hierdie artikel, naamlik om ’n benadering tot fi nansiële kwesbaarheidsreduksie binne ’n maatskaplike ontwikkelings paradigma te konstrueer. Die doel van die artikel word bereik deur die Suid-Afrikaanse maatskaplike ontwikkelingsparadigma te kontekstualiseer, waarna fi nansiële kwesbaarheid en fi nansiële geletterdheidsopvoeding binne hierdie konteks verken, beskryf en as praktykrealiteit ondersoek word deur middel van ’n instrumentele kwalitatiewe gevallestudie, bestaande uit tien deelnemers wat by ’n gevestigde nieregeringsorganisasie (NRO) werksaam is. As uitkoms word kernelemente van finansiële geletterdheidsopvoeding as benadering vir fi nansiële kwesbaarheidsreduksie binne die plaaslike maatskaplike ontwikkelingsparadigma gekonstrueer. Binne hierdie paradigma is fi nansiële geletterd heids opvoeding ’n mikropraktykbenadering wat volgens volwassene onderrigbeginsels op defi nitiewe uitgangspunte en perspektiewe gegrond is. Hierdie mikropraktykbenadering behels die bewusmaking en deurlopende, lewenslange aanleer van ’n stel multi- dimensionele persoonsgesentreerde lewensvaar dighede. Finansiële geletterdheidsopvoeding verwys ook na situasie-relevante kompetensies, wat bestaan uit spesifi eke kennis, waardes en vaardighede binne inheemse kulturele verband en is gefokus op mense se vermoë om hulle beskikbare geld te bestuur. Hierdie benadering kan die grondslag vir suksesvolle inkomstegenererings projekte lê, kan as onderbou vir mense se migrasie na die hoofstroom ekonomie dien en kan ook na ander lewensterreine getransponeer word. Sodoende word ekonomiese en menslike ontwikkeling binne ’n maatskaplike intervensiekonteks geïntegreer en is dit binne bereik van maatskaplike ontwikkelingspraktisyns om te fasiliteer.
Description
Please cite as follows: Engelbrecht, L. K. 2009. 'n Benadering tot finansiële kwesbaarheidsreduksie: Finansiële geletterdheidsopvoeding binne 'n maatskaplike ontwikkelingsparadigma. Tydskrif vir Geesteswetenskappe, 49(2), 201-218.
The original publication is available at: http://www.scielo.org.za/scielo.php?script=sci_arttext&pid=S0041-47512009000200002&lng=en&nrm=iso
The original publication is available at: http://www.scielo.org.za/scielo.php?script=sci_arttext&pid=S0041-47512009000200002&lng=en&nrm=iso
Keywords
Financial crises, Poor -- Finance, Personal, Financial literacy -- Study and teaching, Finance, Personal -- Study and teaching
Citation
Engelbrecht, L. K. 2009. 'n Benadering tot finansiële kwesbaarheidsreduksie: Finansiële geletterdheidsopvoeding binne 'n maatskaplike ontwikkelingsparadigma. Tydskrif vir Geesteswetenskappe, 49(2), 201-218.