Jean Damascene MVUNABANDI1, Lawrence GADZIKWA2

1 Durban University of Technology, Faculty of Accounting and Informatics, Department of Financial Accounting, Ritson Road-Riston Campus, 4000 Durban South Africa.

2 University of KwaZulu Natal, School of Accounting Economics and Finance, Westville Campus, 4000 Durban South Africa


Abstract: By using quantitative and descriptive research approach via a cognitive analysis, this article investigated the influence of consumer literacy training as a tool to improve financial capability among South Africans. Data was gathered from 10300 consumer literacy trainees from Gauteng and Mpumalanga provinces of South Africa and purposively and conveniently sampled. The use of pre- and post-test questionnaire surveys, employing a Likert scale, was identified as crucial for gathering data on cognitive improvement. The collected data underwent analysis through descriptive statistics and regression analysis. To ensure the reliability of the results, robustness analysis was conducted using SPSS version 28 and STATA. Empirical findings from this research study have statistically demonstrated that consumers enhanced their knowledge and skills related to financial capability after receiving consumer financial capability training. This study contributes significantly to the existing literature by addressing a critical gap and substantially enhancing the knowledge of financial capability among the study’s participants. These results carry potential implications for various stakeholders, including donors, consumers, policymakers, financial literacy educators, and finance practitioners, all of whom can play a pivotal role in promoting consumer financial education, particularly in the South African context. The study suggests that the theoretical models developed thus far have primarily focused on the driving forces behind consumer financial capability success. However, these findings also hold substantial promise for academia, policymakers, banks, and other key players in the field of consumer financial capability training, including short courses within South Africa. Furthermore, this study provides a solid foundation for future research aimed at enhancing consumer protection and shedding light on the various factors that may hinder low-income individuals from achieving their financial goals through financial institutions.


Keywords: Consumer financial capability, consumer literacy and using credit card wisely.

JEL Classification: G50, G51, G52 and G53.


Cite as:

Mvunabandi, J.D., and Gadzikwa, L., 2024. A cognitive Analysis of Consumer Literacy Training and Financial Capability improvement among South Africans: A cross-sectional study. Oradea Journal of Business and Economics, 9(1), pp. 44-62.