Financial Literacy and Educator Behaviour: Insights from a Local Municipality in KwaZulu-Natal, South Africa

Abstract

There is a substantial lack of financial literacy among educators, especially in emerging economies, which can influence personal and professional financial behavior. This study assessed whether financial literacy challenges influence high school educators’ financial decision-making and behavior. An empirical study employing quantitative methodology assessed the lifestyle spending among high school educators and identified specific areas of financial literacy challenges and limitations. Data was collected randomly from a sample size of 246 out of 793 high school educators in Mzunduzi (local) Municipality, KwaZulu-Natal, South Africa, which was used to illustrate how socio-economic conditions and financial resources have a significant effect on financial behavior. The findings revealed that there is low financial literacy among educators in terms of poor financial management practices, increased financial stress, and suboptimal retirement planning. These findings also highlighted the need for further financial literacy interventions to bridge the knowledge gaps and improve educators' financial health and sustainability. The results provide valuable insights for policymakers, educators, and financial education providers in emerging economies.