| dc.description.abstract | South Africa is ranked, by any measure, among the most unequal countries in the world. Despite
having a relatively well-developed financial system, historic patterns of economic
concentration continue to feed into the pattern of unequal and combined development
(Kabakova & Plaksenkov, 2018). With record low saving rates and poor long-term financial
planning, Financial Health (FH) has become an important issue for individuals and households.
Individuals throughout the world endeavour to better their financial lives. They allocate funds
to nondiscretionary expenses, save, take out loans and plan, etc., working towards growing their
assets and growing their resources, in their quest for good FH.
This study examined the relationship between FI and FH in South Africa, as well as whether
and how individuals benefit from their relationship to the financial system. The study used a
nationally representative demand-side survey, FinScope South Africa, for the periods 2011 and
2016. Principal Component Analysis (PCA) was applied to derive a Financial Inclusion Index
(FII) and a Financial Health Index (FHI) to measure the range of FI and FH in South Africa.
Probit regressions were run to measure the likelihood of being financially included and having
good FH. Ordinary Least Squares (OLS) were run to identify the sort of the relationship
between the dependant and independent variables. Lastly, bivariate regressions were run to test
the relationship between FI and FH. | en_US |
