The impact of the personal finance management of Stanlib Lesotho on investment behaviour of Maseru teachers
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Date
2015-11-16
Authors
Mohoanyane, Monddy Maretsepile
Journal Title
Journal ISSN
Volume Title
Publisher
University of the Free State
Abstract
Financial markets today are infused with a vast array of investment opportunities and
products adding benefits in terms of liquidity, flexibility, affordability, diversification and
professional management. However, individuals are not always using the investment
opportunities. As a means to promote financial education in Lesotho, STANLIB Lesotho
partook in SUFIL (Support to Financial Inclusion in Lesotho), an initiative collaborated by
the Central Bank of Lesotho and UNDP (United Nations Development Programme) that
launched a campaign aimed at increasing individual financial awareness in the country
as well as motivate the Basotho people to improve their money management skills.
STANLIB has taken diligent measures of ensuring increased financial awareness as well
as product awareness among Maseru teachers in the country, and yet very few teachers
invest in the company’s products. This makes it difficult to measure and determine
whether programmes put in place are effective. It is unclear whether investors’
understanding of financial products and concepts is clear and whether they can make
more informed choices and effective decisions to improve their financial wellbeing. The
aim of this study was therefore to explore the impact of the personal finance management
education of STANLIB Lesotho on the investment behavior of Maseru teachers.
The teachers in six high schools around the Maseru district have been chosen for this
research comprising the sample of 192 people. Questionnaires on financial planning were
personally administered and then analysed. The results show that more teachers
responded positively to financial planning than teachers who responded negatively. They
understand the importance of financial planning and are diligently maintaining their
planning and records of their spending and saving. However, a significant 78.4 % of the
respondents indicated dissatisfaction with their current savings and investments, while
only 21.6 % were satisfied. Furthermore, the study uncovers a substantial ignorance
when it comes to retirement planning and pension fund planning. Only 58.55 % of the respondents have indicated they are members of the government pension fund, while
there is a concerning 41.45 % who are not members of a pension fund upon retirement.
Description
Keywords
Teachers -- Lesotho, Finance, Personal, Finance -- Planning, Retirement -- Planning, Investments, Dissertation (MBA (Business Administration))--University of the Free State, 2015