Author(s): Xolile Antoni, Michelle Saayman
This study investigates the influence of financial socialisation mechanisms on the levels of financial literacy of young financial professionals in the Eastern Cape. Currently, there no studies that have investigate the influence of financial socialisation mechanism on financial literacy levels of young financial professionals the Eastern Cape which is surprising since young professionals in the Eastern Cape have the lowest financial literacy levels in South Africa. A quantitative research design was adopted and closed-ended questionnaires were used in this study to collect primary data from 263 young professionals working in the financial industry in the Eastern Cape. It was found that almost half of them reported above average (61% to 80%) financial literacy levels. In terms of financial socialisation mechanisms, parental teaching and modelling and employers' financial instruction positively influenced the financial literacy of these young financial professionals, while earned allowance (pocket money) had a negative influence on their financial literacy. It was recommended that financial educators should improve parents' levels of financial knowledge and promote positive parental financial behaviour to influence young professionals. Additionally, employers should find ways to promote financial education in the workplace. This study demonstrates that parents and employers have an important role to play in assisting with the financial literacy of young professionals in the Eastern Cape. Accordingly, this study contributes to literature by providing empirical data on this topic.