A comparative analysis of the financial literacy of final year diploma students in different fields of study at the University of Johannesburg

M.Com. (Financial Management)Economically active individuals are frequently faced with the responsibility of making financial decisions which may dramatically impact their financial wellbeing. In today’s world of complex financial products and individuals increasingly being responsible for their own financial wellbeing, higher levels of financial literacy are of the utmost importance. The main aim of this study will be to determine whether students who study towards a diploma in a finance-related field have higher financial literacy levels than those studying towards a diploma in field of study that is not finance-related. A quantitative research methodology will be employed to the study in the form of a survey. The population includes all the diplomas presented on the University of Johannesburg (UJ), Bunting Road campus, and the sample consists of one finance-related diploma and two non-finance-related diplomas. Although the results of the study, in line with previous research, indicated that the finance group performed better than the non-finance group, the margin was smaller than expected and the average financial literacy score of both groups was low. Students performed the worst in the savings and borrowings and the best in the basic concepts content area. Many of the demographic and background characteristics identified by previous research to influence financial literacy could not be analysed as there was not enough variation or adequate representation within the total sample. In contrast to previous research many of the remaining demographic and background characteristics that could be analysed did not influence financial literacy. Only language (Sotho) and funding (NSFAS and my parents and/or family paid) were found to influence financial literacy levels. As this study indicates that the financial literacy levels of final year diploma students in South Africa are low, higher education might have to consider introducing a financial curriculum to increase financial literacy