The Financial Concerns of South African Households Caused by the COVID-19 Pandemic: Towards Improved Resilience

Derek Alexander; Nico van der Merwe; Jaco Fouché

doi:10.25159/1998-8125/18374

Authors

Derek Alexander North-West University
Nico van der Merwe North-West University https://orcid.org/0000-0003-4237-5495
Jaco Fouché North-West University https://orcid.org/0000-0002-7791-5669

DOI:

https://doi.org/10.25159/1998-8125/18374

Keywords:

behavioural finance, COVID-19, financial concerns, household finance, lockdown, pandemic, personal finance, South Africa

Abstract

Purpose/Objectives: Through the lens of financial resilience theory, the primary objective of this study is to identify and understand the main financial concerns that South African households experienced during the COVID-19 lockdowns. Lessons can be learnt to soften the impact of future economic devastations, whether caused by a pandemic or not.

Design/Methodology/Approach: The study comprises a literature review and an empirical study following a quantitative methodology, in which a survey instrument was administered to Facebook users over the age of 18. A total of 406 valid responses were obtained and statistically analysed using non-parametric techniques.

Findings: The main financial concern was the investment value, especially for older individuals. The lower-income households were significantly more concerned about short-term financial challenges compared to higher-income households, who were also worried about their investment value.

Practical implications: Future efforts should focus on improving financial literacy, particularly for vulnerable households. Collaborative efforts between the government, the private sector, and non-profit entities are necessary to build such resilience.

Originality/Value: The study offers practical recommendations for a variety of stakeholders and contributes to the literature on financial resilience theory.

Author Biographies

Derek Alexander, North-West University

School of Accounting Sciences

Nico van der Merwe, North-West University

School of Accounting Sciences, WorkWell Research Unit

Jaco Fouché, North-West University

School of Accounting Sciences, WorkWell Research Unit

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