Application of Logistic Modeling in Exploring Household Financial Education Levels amongst Middle Class in South Africa

Lekunze Joseph Nembo, Mateb

Abstract

In South Africa, financial literacy is crucial for households to make inform decisions. A total of 600 middle class households’ heads were interviewed. Pearson correlation model was used to establish association and logistic regression to identify the most significant factors. The most significant factors at micro-level were employment type (0.003), position at work (0.001), wages and salaries (0.032) while savings (0.09), repo rates (0.09), unemployment (0.31) as well as wages and salaries (0.10) were the most significant variables at the macro-level. Financial literacy among middle class households was inadequate and formal education is not equal to financial education.