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Financial instruments of the poor: initial findings from the South African Financial Diaries study

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  • Daryl Collins

Abstract

A new data set called the South African Financial Diaries has been produced, based on a sample of 166 households, drawn from three different areas in South Africa - Langa, Lugangeni and Diepsloot. The selected households represent a range of dwelling types and wealth categories. A unique methodology was used to create a year-long daily data set of every income, expense and financial transaction used by every one of these households. Within this sample, households used, on average, 17 different financial instruments over the course of the study year. A composite household portfolio, based on all 166 households, would have an average of four savings instruments, two insurance instruments and 11 credit instruments. The same composite household portfolio would have about 30 per cent formal instruments and 70 per cent informal instruments. Interestingly, it was found that rural households use as many financial instruments as urban ones.

Suggested Citation

  • Daryl Collins, 2005. "Financial instruments of the poor: initial findings from the South African Financial Diaries study," Development Southern Africa, Taylor & Francis Journals, vol. 22(5), pages 717-728.
    • Handle: RePEc:taf:deveza:v:22:y:2005:i:5:p:717-728
    DOI: 10.1080/03768350500364125
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    References listed on IDEAS

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    1. Milton Friedman, 1957. "Introduction to "A Theory of the Consumption Function"," NBER Chapters, in: A Theory of the Consumption Function, pages 1-6, National Bureau of Economic Research, Inc.
    2. Milton Friedman, 1957. "A Theory of the Consumption Function," NBER Books, National Bureau of Economic Research, Inc, number frie57-1.
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    Cited by:

    1. Roth, J. & Rusconi, R. & Shand, N., 2007. "The poor and voluntary long term contractual savings : lessons from South Africa," ILO Working Papers 994106323402676, International Labour Organization.
    2. Ströh de Martínez, Christiane, 2011. "Finance for the poor in demand: Who uses microfinance and why?," IPE Working Papers 10/2011, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    3. Dorothee Crayen & Christa Hainz & Christiane St�h de Mart�nez, 2013. "Remittances, Banking Status and the Usage of Insurance Schemes," Journal of Development Studies, Taylor & Francis Journals, vol. 49(6), pages 861-875, June.
    4. Saxena, Raman & Mokashi Punekar, Ravi, 2020. "Designing pro-poor mobile financial services: Learning from the financial diaries of urban poor in India," World Development Perspectives, Elsevier, vol. 20(C).
    5. Alison Stenning & Adrian Smith & Alena Rochovská & Dariusz Świątek, 2010. "Credit, Debt, and Everyday Financial Practices: Low‐Income Households in Two Postsocialist Cities," Economic Geography, Clark University, vol. 86(2), pages 119-145, April.
    6. Larissa Jennings Mayo-Wilson & Summer K. Peterson & Joshua Kiyingi & Proscovia Nabunya & Ozge Sensoy Bahar & Lyla S. Yang & Susan S. Witte & Fred M. Ssewamala, 2023. "Examining Cash Expenditures and Associated HIV-Related Behaviors Using Financial Diaries in Women Employed by Sex Work in Rural Uganda: Findings from the Kyaterekera Study," IJERPH, MDPI, vol. 20(9), pages 1-14, April.
    7. Adam Ndou, 2023. "The Impact of Parental Financial Socialisation on Financial Decision-Making of Young Black African Adults in Rural and Low-Income Area in South Africa," International Journal of Economics and Financial Issues, Econjournals, vol. 13(4), pages 84-91, July.

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