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SAIA Consumer Education Projects Report: 2012/13 February 2014 # 112957


Table of Content 1

Executive Summary........................................................................................... 3

2

Introduction ........................................................................................................ 5 2.1 SAIA Consumer Education Strategy ............................................................. 5 2.2 SAIA Consumer Financial Education Programme Guidelines ....................... 6 2.3 Financial Sector Code ................................................................................... 9

3

2012/13 SAIA Consumer Education Initiative ................................................ 11 3.1 Teacher Development (iCount) Project ....................................................... 11 3.2 Community Radio Project............................................................................ 12 3.3 Funding ....................................................................................................... 13

4

Teacher Development (iCount) Project .......................................................... 14 4.1 The Project .................................................................................................. 14 4.2 The Research.............................................................................................. 18 4.3 The Research Findings ............................................................................... 21 4.4 Recommendations ...................................................................................... 51

5

Community Radio Project ............................................................................... 54 5.1 The Project .................................................................................................. 54 5.2 Project Background ..................................................................................... 54 5.3 The Project Context .................................................................................... 57 5.4 The Research.............................................................................................. 59

6

Project Impact (Ukhozi FM) ............................................................................. 61 6.1 Profile of Participants .................................................................................. 61 6.2 Main Findings .............................................................................................. 61 6.3 Conclusions................................................................................................. 63 6.4 Recommendations (Ukhozi FM) .................................................................. 63

7

Radio Sonder Grense (RSG) ........................................................................... 64 7.1 Findings ...................................................................................................... 64 7.2 Measurement of Radio Audience for RSG .................................................. 68 7.3 Recommendations (RSG FM) ..................................................................... 69

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1 Executive Summary Since the inception of the SAIA Consumer Education initiative in 2004, over R60 million has been spent on various consumer education projects aimed at creating awareness on the importance of financial management as well as to increase the consumers’ understanding of financial services and products. The SAIA Consumer Education Initiative is considered to be one of the best industry-led initiatives that are making a difference in the lives of South African consumers, particularly in the lowincome market. The initiative’s success is attributed to the commitment of SAIA members, who even before the Financial Sector Code (FSC) was gazetted, voluntarily contributed funds in recognition of the initiative’s its importance as a social and business imperative. For the 2012/13 SAIA Consumer Education Initiative, three projects were implemented namely; The Teacher Development Project (iCount), Managing Your Money (MYM) and the Radio Financial Literacy Project. As stipulated in the FSC guidelines, all consumer financial education projects must be monitored and evaluated for impact analysis. This was done through a baseline and endline survey for both the Teacher Development and the Radio Financial Literacy Projects during the campaign. With regard to the MYM project, there was no impact study conducted during or after the project, as this was a revision exercise for previous MYM material produced in 2008 for Grades 10, 11 and 12 for Maths Literacy teachers. The SAIA had partnered with the Financial Services Board (FSB) on the MYM project in 2008 and due to its success; the FSB requested that the material be revised to align it with the new curriculum referred to as the Curriculum Assessment Policy Statement (CAPS), introduced in schools in 2013. The material was revised by service provider, Bright Media in consultation with officials from the Department of Basic Education. A total of 600 MYM resource files were printed and distributed to the provincial Heads of Mathematical Literacy in all nine provinces to be used in schools. In terms of the Teacher Development Project, this was a continuation of the 2011/12 iCount project, which focused on training Accounting subject school teachers in Grade 10. This project was initially implemented at the request of the national Department of Education (DBE) who had previously endorsed the MYM project, as part of the Economic and Management Sciences (EMS) subjects for Grades 10 to 12. Due to the success of the iCount project in 2012, and for continuation purposes, a decision was made to continue with the iCount project in 2013/14, focusing on Grades 11 and 12. In this campaign, a total of 1,768 were trained through workshops

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to teach learners the Accounting subject using material that was specifically produced for them. For the Radio Financial Literacy project, this was rolled out on two SABC Public Broadcast Service (PBS) radio stations, namely; Radio Sonder Grense (RSG), which broadcasts in Afrikaans and Ukhozi FM, which broadcasts in isiZulu. This project entailed a 26 episode radio drama series in both languages, aimed at creating awareness of financial products and services, the management of finances through budgeting and saving, as well as to change behaviours and attitudes of consumers with regard to financial management. Live call-in sessions were held after the broadcast of each episode on both radio stations. With this interactive segment of the project, voluntary experts drawn from SAIA member companies who were proficient in Afrikaans and/or iSizulu participated in the call-in sessions to engage with listeners and to answer questions. In total, the Radio project reached over two million listeners (1, 86 million on Ukhozi FM and 155,000 on RSG). The evaluations of both projects reveal that they were not only well received by the intended audiences, but that there was also significant improvement in the knowledge, understanding and change in attitude of the respondents. With regard to the iCount project, teachers who attended the training workshops as well as their learners said that the content was useful, particularly the inclusion of financial literacy into the Accounting subject. Similarly with the Radio Financial Literacy project, there was keen interest from Ukhozi FM listeners, with respondents of the impact study recalling the content of the episodes and making an effort to change how they manage their finances and risk. It was revealed though that some respondents to the survey, particularly males, were not happy with the programme’s timeslot as this was during the day when they did not have access to the radio. A recommendation has been made to take cognisance of that should we implement a similar project in the future. With regard to RSG, the baseline survey initially revealed a negative response to the programme, which necessitated a mid-term study to find out what the issue was. It was noted that a significant number of RSG’s listeners were in the upper LSMs and therefore did not find the information engaging. To rectify this, the service provider worked closely with the SABC to develop programmes around the central drama to reflect the needs of the listener base. This worked very well and the endline survey reflected positive responses. However, these need to be considered in light of the adjusted proportion of the upper LSM respondents.

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2 Introduction Consumer financial education continues to play a pivotal role in creating awareness about sound financial management as well as in increasing consumer knowledge and understanding of financial products and services. In the last few years, there has been an increased focus on consumer financial education in light of the global economic crisis, which left many people financially distressed. This, together with the ever increasing financial choices that consumers have to make, the need for knowledge to make informed decisions about their finances and lifestyles has become even more relevant for consumers. A recent national financial literacy survey conducted by the Human Sciences Research Council (HSRC) indicates that many South Africans, particularly in the lowincome market make poor financial decisions due to a lack of financial management skills, and continuously find themselves in the proverbial debt trap and the perpetual cycle of poverty. Further exacerbating this problem is the lack of understanding of the importance of risk management as an important pillar of financial management. It is against this background that the South African Insurance Association (SAIA) has since 2005 embarked on consumer education projects on behalf of the short-term insurance industry. Although members initially participated in the SAIA Consumer Education Initiative on a voluntary basis, in 2009 the SAIA drafted a Consumer Education Strategy and Guidelines, making it mandatory for members to contribute to the industry consumer education project. This ensured that the collaborative initiative would continue regardless of the Financial Sector Charter (now referred to as the Financial Sector Code) being gazetted or not. For an update on the Financial Sector Code (FSC) please see page 7 of this report.

2.1 SAIA Consumer Education Strategy In terms of the strategy, participation in consumer education is a SAIA membership requirement. 

All SAIA members are required to spend 0.2% of after tax profits on consumer education in the low-income market. (This percentage has since been revised following the gazetting of the FSC) to 0.4%.



A minimum of 0.1% (i.e. half of the 0.2% requirement) must be contributed to the SAIA industry initiative. The funds in this pool will be used by SAIA for generic consumer education, with an emphasis on short-term insurance.

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SAIA members that wish to spend their remaining 0.1% on their own projects may do so.

SAIA members that do not wish to implement their own consumer education projects may contribute the full 0.2% to the SAIA industry initiative.

The SAIA will spend these funds in such a way that members will receive their points for consumer education on the FSC scorecard..

SAIA members that form part of conglomerate groups may choose to spend their 0.2% together with the other companies in their group. All spend should adhere to the SAIA Consumer Education standards and guidelines.

Such spend should be reported to the SAIA.

SAIA members that are granted exemption for the Access pillar in the Financial Sector Code may apply the SAIA membership requirement to spend the 0.2% of the after tax profits on consumer education.

Consumer education policies and guidelines should either be included in the general SAIA Code of Good Business Practice, or a Code for Consumer Education should be drafted.

2.2 SAIA Consumer Financial Education Programme Guidelines The SAIA Consumer Education guidelines are premised on the definition of financial education as defined by the Organisation for Economic Co-operation and Development (OECD) as well as the FSC Consumer Education Standards. This definition is also used by the industry’s regulator, the Financial Services Board (FSB). According to the OECD, financial education is “the process by which financial consumers/investors improve their understanding of financial products, concepts and risks and, through information, instruction and/or objective advice, develop the skills and confidence to become more aware of financial risks and opportunities, to make informed choices, to know where to go for help, and to take other effective actions to improve their financial wellbeing”. Financial education therefore includes improving the levels of knowledge, skills and attitudes that will lead to behaviour change.

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Principles Providing financial education to consumers should form part of a financial institution’s good governance and business practice in respect of their relationship with their clients. This would include providing information, appropriate disclosure and appropriate advice at point of sale according to any relevant legislation, regulation and/or good practice, but also creating financially aware and literate clients in the long term. The other principles are as follows:

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Financial education should be provided in a fair and unbiased manner and be non-discriminatory.

Programmes should be co-ordinated and fit into a sector and/or national programme. Therefore, programmes should take cognisance of the national consumer financial education framework / strategy as approved by the FSB, and should seek to fit into this overall strategy. In addition, programmes should seek to fit into the sector initiative and follow the SAIA guidelines and FSC Standards.

Financial education programmes should provide context. For example, should the target audience fall under the low income category and have low levels of education, basic financial principles such as budgeting, saving etc should provide a starting point. General principles regarding insurance and specifically short-term insurance should provide the backdrop for product information.

Financial education should be seen as a long-term commitment, although short-term outcomes may be the starting point of a programme. It should be seen as a continuous, on-going commitment towards clients and potential clients.

Financial education programmes should be designed to meet the needs of the target market and should take into account the general literacy and financial literacy levels of the target market.

Financial education programmes and the outcomes of these programmes should be shared at a general level in terms of the SAIA requirements as well as a national framework or strategy to prevent duplication and encourage learning.


Good Practices 

Financial education programmes should be holistic, comprehensive and complementary.

Financial education could include generic financial literacy concepts, generic short-term insurance financial literacy concepts as well as general product information.

Objective information on risks and products and how these relate to the needs of different target audiences should be encouraged.

A clear distinction should be made between financial education and commercial information. Commercial financial information should be disclosed as such and must fall outside of the consumer education spend required by the SAIA of its members.

Financial education should be appropriate. The target audience should be identified clearly. The message, content and delivery mechanisms used should be aligned to the target audience. Information or education provided should be simple and understandable. In South Africa, such education should preferably be provided in the language/s best understood by the target audience.

Financial education should have specific objectives.

Financial education should be monitored and assessed to ensure appropriateness and impact.

Financial education should, if at all possible, attempt to create a link between the consumer financial education and increased access to financial services products.

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2.3 Financial Sector Code After a decade of protracted negotiations, the Financial Sector Code (previously referred to as the Charter) was finally gazetted in November 2012 and was officially launched to the financial sector in July 2013. However, the SAIA had since inception of the consumer education initiative adhered to the FSC consumer education requirements even when the Code was not in place. This ensured that SAIA members would qualify for the points for consumer education spend regardless of the Code being gazetted. New FSC standards for consumer education have been agreed. Changes worth noting in the consumer education standards include the following: Target market: 

The target market will include individuals earning less than R180,000 per annum and 25% of funding should be used to reach rural areas.

New definitions: 

‘Face-to-face’ initiatives have been replaced with ‘interactive’ initiatives and can now also include other types of projects such as media projects provided that interaction is possible between the target audience and the facilitator.

‘Awareness’ projects will provide only basic information and will now be strictly related to awareness creation only.

Funding percentage splits between different types of initiatives: 

Up to 100% of funds can be spent on interactive projects and awareness projects are capped at 40%.

The requirement for the financial sector to spend 0.2% of after tax profits on consumer education has been increased to 0.25% for 2012. This percentage will increase to 0.3% for 2013 and 0.4% for 2014. Strict requirements regarding monitoring and evaluation, impact measurement as well as branding now form part of the new FSC Consumer Education standards.

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When considering projects for the 2012/13 consumer education initiative, the Code was not yet in effect, however the following FSC Consumer Education standards were taken into account. 

Physical accessibility: Consumer education initiatives and programmes must be offered and made available to all consumers of FSC products and services at points of service or transaction.

Appropriateness: Consumer education initiatives and programmes must meet the identified needs of consumers in the FSC target groups with the aim of achieving the Code’s access goals. The outcomes of FSC consumer education programmes must be measurable and be able to contribute to the achievement of scoring points. Consumer education must enable consumers to make more informed decisions about their finances and lifestyles.

Affordability: Consumer education must be offered free of charge to the consumer.

Simplicity: Consumer education initiatives and programmes must meet the identified needs of consumers in the target groups with the aim of achieving the Code’s Access goals. All consumer education materials must meet the Code’s criteria for simplicity, being able to understand and disclosure.

Non-discrimination: Consumer education materials must be freely available in all languages. Suppliers must meet the FSC’s service provider accreditation and BEE procurement criteria.

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3 2012/13 SAIA Consumer Education Initiative The mix of projects for the 2012/13 SAIA Consumer Education Initiative is a continuation of the previous year’s projects. Due to the success of these projects and to maintain consistency, a decision was made to continue with the Teacher Development (iCount) project and the Radio Financial Literacy project. A request was also made by the FSB to revise the Managing Your Money (MYM) material in line with the Curriculum Assessment Policy Statement (CAPS). As this was just a revision of material exercise, no impact study was conducted. In the previous initiatives, the three projects addressed the financial skills gap in the Living Standard Measurement (LSM) 1-8 as per the FSC requirement and also enabled SAIA members to obtain points in accordance with the Code.

3.1

Teacher Development (iCount) Project

In 2011, the national Department of Basic Education (DBE) requested that the schools’ project change focus from the Economic Management Sciences (EMS) subjects previously done in 2010/11 and target the Accounting subject in Grades 10 to 12. This intervention was initiated due to the lack of support for Accounting at schools and based on the successful track record of Managing your Money project for Mathematical Literacy. The first phase of the iCount project was successfully implemented in the 2011/12 consumer education initiative in Grade 10. 2012/13 saw the implementation of the second phase in Grades 10, 11 and 12 reaching over 69% of all teachers of the Accounting subject in the nine provinces. Lower LSM consumers were targeted, and the profile of the recipients was aligned to the Code’s requirements of over 70% Black. The SAIA Consumer Education intervention in schools has an extensive track record of success and impact and is one of the few government-industry collaborations that make a demonstrable difference in content knowledge, financial literacy indicators, classroom method and the use of the resources provided. The resources content is aligned to the national curriculum financial capability content. The service provider, Bright Media developed simple, clear, educational materials through a collaborative process, with DBE officials being involved at all levels.

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3.2 Community Radio Project The Radio Financial Literacy project which has proven successful over the last three years was again implemented in the 2012/13 SAIA consumer education initiative. The project is aimed at improving consumer knowledge, skills, and attitudes and to develop behaviours which show critical and selective engagement with financial products and to build the required knowledge to be good life and risk managers. The financial education was delivered through a radio “soap” drama programme on two public broadcast stations (RSG and Ukhozi FM) through a series of 26 episodes on each station. Each episode was followed immediately by a live call-in session with a topical short-term insurance expert. The radio drama, as well as the follow up programme was broadcast in Afrikaans and isiZulu, the languages of the respective radio stations. The anticipation was that the above mix of project would derive the following results:  

 

Measurable impact across a broad constituency. Ability to reinforce education concepts applied in existing projects and to expand consumer education to provide more focus on short-term insurance product education. Easy extension of the target market from Living Standards Measures (LSM) 1-5 to include LSM 1- 8. Building of relationships with existing suppliers with proven track records for good delivery.

Managing Your Money (MYM) Project The Managing Your Money project was a revision of previous MYM material in line with the Curriculum Assessment Policy Statement (CAPS), which was introduced in schools in 2013. The request to revise the material was made by the FSB who had partnered with the SAIA in a previous campaign. There was no impact study conducted for the MYM as the project was a revision of material exercise.

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3.3 Funding The final budget for the 2012/13 consumer education initiative was R11 938 442,78. The total budget was made up of the pledged amount of R9 895,879 from members, R900, 000 contributed by the FSB and R1 142, 563 from additional funds available from the previous year’s campaign interest. The following funding proposal was approved.

Projects Teacher Development (iCount) Project SAIA funds

R

6 805 087,07

Radio Financial Literacy Project SAIA Funds

R

2 566 595,00

FSB funds

R

500 000,00

Managing Your Money SAIA funds

R

433 955,14

FSB funds

R

400 000,00

Total expenditure

R 10 705 637,21

The balance of R1 232 805,59 was added to the 2013/14 SAIA Consumer Education campaign, including the accumulated interest.

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4 Teacher Development (iCount) Project 4.1 The Project The iCount project was first implemented in 2012 for Grade 10 learners following a request by the Department of Basic Education (DBE) who had identified Accounting as an area needing intervention. Due to its success and for continuity reasons, the project was rolled out to Grades 11 and 12 in 2013. A total of 1,768 teachers were trained in 2013 in all provinces through workshops, bringing the total number of teachers who had undergone the training (including those who trained in 2012) to 3,645. Training Material Each teacher received specialised training as well as a ready-to-use resource pack for Accounting in Grades 10, 11 and 12. The Curriculum Assessment Policy Statement (CAPS) aligned Grade 10 material was included in the pack to ensure continuity in lessons. Two DVDs with 13 episodes each of Accounting material was also given to the teachers. The full training resource pack contained three high quality books of 56 colour pages each and two posters. Accounting resources for teachers and learners A total of 8,000 iCount resource files were printed and 8,000 DVD double packs containing 26 episodes of Accounting material were delivered to the provinces. These files contained 27,000 books based on the curriculum for Accounting and teaching Financial Literacy. The files were distributed in classrooms of schools most in need, as identified by the DBE. Each resource file was professionally developed, published and printed to contain the following elements: 

One Grade 10 full colour resource book of 56 pages, aligned to the CAPS document for Accounting.

One Grade 11 full colour resource book of 56 pages, aligned to the CAPS document for Accounting.

One Grade 12 full colour resource book of 56 pages, aligned to the CAPS document for Accounting.

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One A2 sized poster, printed in full colour on the front reflecting the Generally Accepted Accounting Principles (GAAP) with additional Accounting terminology on the reverse side, as well as summaries of all 26 iCount episodes.

One A2 sized poster, printed in full colour on the front reflecting the Steps to Financial Literacy principles, which are the core financial capability indicators, expressed clearly in useable steps for learners and teachers.

Two DVD disks in a pouch, which slots into the resource file, containing all 26 of the iCount television episodes which include animation, live action sequences with actors of 23 minutes in duration each – for use on a computer or in a DVD machine. In addition, the DVD contains the booklets in printable PDF format, the resources mentioned by the curriculum such as the King Report and other resources for use in the classroom.

The Adult Financial Capability Framework was used to develop the content, reflecting the process model, including three broad elements of financial capability, i.e. financial knowledge and understanding, financial skills and competence, and financial responsibility. Quantitative and qualitative research was conducted to assess the relevance, reach and impact of the project on both financial capability and usefulness for the Accounting classroom. Face to Face Workshops - Training in the nine (9) provinces: 

Forty-four (44) teacher training workshops were successfully hosted (two more than the contracted 42 workshops) reaching 1,768 educators in all nine provinces.

The teachers were provided with resources to implement the iCount project with their learners in classrooms.

This number was achieved despite the SADTU go-slow and strike action at this time. Contingency plans were implemented and 10 workshops were postponed and completed.

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The workshop schedule was designed for each province ensuring that reach and target audience of the project covered areas and schools where the most need was, i.e. taking accounting learner performance into consideration as well as alignment with any existing development projects or programs such as the 'Underperforming Schools Project', which were currently running in the provinces.

Nine meetings were held with provincial officials to discuss each province's unique CAPS implementation plan and the alignment of the SAIA Schools Project with this.

The date, time and venue for the workshops were discussed and finalised once it was established which districts and/or schools would participate. The Educational District Officials also attended the workshops together with accounting teachers. All iCount workshops were both opened and closed by the relevant District Officials for the areas.

An iCount, audio visual DVD, episode was screened using a data projector at 95% of the training workshops. The remaining 5% were negatively affected by the lack of electricity or unforeseeable problems, which could not be resolved.

Achievements Developing financial literacy content for schools, publishing and printing 26,000 books in 8,000 files, organising a total of 44 workshops, which were successfully conducted in all nine provinces during the first two school terms of 2013 summarises the project’s achievement. 

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A total of 1,768 attendees took part in the Accounting workshops. This figure was attained despite two disruptive elements, namely the national SADTU go-slow and strikes in the Eastern Cape, which took place simultaneously. Due to constant monitoring of the media as well as direct contact with the provincial Accounting co-ordinators, the situation was monitored and the necessary contingency plans were implemented. All workshop attendees filled out an evaluation form on completion of each workshop. An independent research company conducted pre- and post-intervention interviews with attendees. This qualitative and


quantitative information was data captured and analysed for insertion in this final report. 

All aspects of the training received a high majority rating of either ‘Excellent’ or ‘Good’, averaging out to an overall rating of ‘92% by all attendees, for all aspects of the training. When including the ‘Average’ rating, 99% of all training delegates rated all aspects of the training as between ‘Average’ – ‘Excellent’. This is a very positive aspect of the training analysis as adult training is a much specialised field of expertise due to the complex nature and varied expectations of trainees, especially in the intricate field of education.

An overwhelmingly positive response has been received at provincial, district and teacher level. Positive emails, telephone calls and SMS messages poured in from the teachers on completion of the project.

A very important, achievement of this project is the potential reach that each trained and resourced teacher has to improve the quality of their learners’ educational experience. This reach covers both the in-class experience through Accounting as well as the learners’ general financial literacy to equip them to be better-informed consumers. Statistically, if each trained teacher reaches an average of 50 – 60 Accounting learners then 88,400 – 106,080 learners would have been reached through this phase of the iCount project.

With CAPS training rolling out during the mid-year school holidays (June/July) within most provinces, the teachers were excited to be in possession of their first CAPS aligned resource. They also indicated that they were less intimidated by the CAPS roll-out after experiencing the lesson demonstration activities during the workshop as it made them feel more at ease with CAPS and its implementation. The fact that the iCount resource is CAPS aligned increases the likelihood of it being used in the classroom as the teachers currently do not have any CAPS aligned materials and they expressed their enthusiasm to use the iCount materials as they now feel comfortable with the contents thereof.

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Multimedia 

The written and printed content was supplemented by audio-visual content (episodes) in a multimedia pack, which was very well received.

Innovation Two Knowledge Boxes were launched - one in in Gauteng, which was installed at the Sci-bono Discovery Centre in Newtown, Johannesburg. A second one was installed in Mthunzini in KwaZulu Natal. The Knowledge Box is an interactive tool which teachers can use to receive updated resources by using a USB memory stick, a memory card or a cell phone with Bluetooth to link to the Knowledge Box. Using the high-tech touch screen, teachers browse through valuable resources such as past exam papers, policy documents, lesson plans, worksheets and the complete range of iCount resource books as well as the 26 multi-media episodes for Accounting teachers. These resources are updated on a regular basis.

4.2 The Research Objectives The overall objective of the project was to evaluate the attitude of educators and learners who had not been exposed to the iCount training workshop with a view to conducting a future measurement of the impact, amongst educators and learners who had recently been exposed to the iCount training. Further objectives were to establish: 

Initial evaluation of the learners’ own levels of financial literacy in terms of their current level of knowledge, awareness, skills and impact of what they have acquired in terms of financial literacy to date;

Evaluation of learner reaction to the training of their educators, both prior and post the training received, positive and negative aspects;

Ascertain improved level of awareness and knowledge amongst learners after their educators had been trained;

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Determine response of learners to the educators who have been through the training on the difference the learners now experience in their understanding of financial literacy;

Identification of gaps in the training and recommendations for the future of such programmes, focusing also on areas which learners feel that the programme missed or areas where they feel they are lacking in terms of financial literacy.

Develop a benchmark figure of a pre-workshop level of understanding of accountancy principles against a first stage monitoring and evaluation after one term’s work amongst learners whose educators had attended the iCount workshops.

Overall Approach

The approach encompassed both a qualitative discussion with educators and learners prior to the implementation of the training and educators attending the training workshops. Learners in selected schools also completed quantitative questionnaires to provide a baseline against which a second post training impact study could be measured. In addition a control group of learners who had not been taught by the trained educators was included in the study. The study was conducted in Gauteng, amongst schools where educators had not previously been trained on the iCount project, as well as in a control school where educators were not trained at all. Two training workshops were held in June 2013, one in Randfontein and one in Dale Park, where about thirty educators completed the questionnaire in each area. From amongst these educators, two schools were selected in each area for participation in the study and fifty questionnaires were delivered to each school. Ultimately three schools completed the questionnaires. Also included in the study was a control school from the same area in Randfontein, so as to provide a comparison of like with like in terms of learner background, etc. The training was conducted just prior to the school holidays so the questionnaires and the focus groups were conducted with students who were present doing exams, mainly the Grade 12 pupils. The questionnaire was a self-completion questionnaire, which was easy and quick to complete in order not to interfere with the school day unduly. Page | 19


Qualitative Stage Two focus group discussions were held in June 2013 with educators, one in Randfontein and one in Dale Park in Gauteng. Focus groups were held with learners at three schools where educators had been trained and with learners in a control school where the educators had received no iCount training. Educators and learners at the workshops and at the selected participating schools also completed a pre-training questionnaire. All educators attending the training workshops were asked to complete a short quantitative questionnaire. In each workshop, two educators were asked if they would facilitate a quantitative study amongst their learners and an additional control school, where no educator had received the iCount training. The questionnaire was distributed amongst learners for a self-completion exercise.

This study forms the baseline, capturing information from educators and learners prior to the educators receiving the training and prior to them providing any input to the learners. The comparison is between user and non-user schools and another endline study could be conducted amongst the same educators and learners after the end of the third term. This is a further impact study, and even beyond this, the matric results could be a further measure of impact and change in knowledge skill and attitude. Each of the 1,768 attendees of the workshops provided written assessment of the project, which was data captured and analysed as part of the monitoring and evaluation. Timing The study was conducted in June 2013 with the non-trained school interviews being conducted in July 2013.

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The Research Findings Research Limitations Due to strike action, the timing for this study was very close to the exams and school holidays so although it was possible to distribute the questionnaires to the educators at the workshop for the learners to complete; only the Grade 12 learners were at school to complete this questionnaire. However this does provide a unique opportunity to compare the matric results for these schools when the results are available, to provide an additional layer of analysis of the impact of the training. Of the four schools selected, only three managed to get the learners to complete the questionnaires in time. It has been envisaged that 150 interviews would be completed with learners from the trained schools but because of school closures, only 130 interviews were achieved. Although it was possible to identify the non-participating school where the educators were not trained in the Randfontein areas for direct comparison purposes, it was only possible to conduct the study when the school reopened in July. The overall objective of the project was to evaluate the attitude of educators and learners who had not been exposed to the iCount training workshop with a view to conducting a future measurement of the impact, amongst educators and learners who had recently been exposed to the iCount training. Profile of the Educators and Learners One hundred and sixty-four (164) learners took part in the study of which 36 participants amongst these learners were those with educators who did not attend the iCount workshop; and 128 learners in schools where educators had received training. Amongst the educators in the qualitative stage, 51 trained educators were interviewed, 22 in Randfontein and 29 in Dale Park. Due to the time period when the study was conducted, all the trained learners were in Grade 12. Amongst the non-trained learners, 44% were in grade 11 and 56% in Grade 12.The average number of learners taught per class/grade was as follows: 39 in Grade 10, 34 in Grade 11 and 31 in Grade 12. The Research Results This is the baseline for this study, where the learners were tested before their educators had a chance to put into practice any of the training or resources Page | 21


they had received. The differences between the learners from schools where educators attended the iCount training and those who had not are not significant at the baseline stage. Full impact can only be measured when implementation has an extended time for learning to be transferred as part of the curriculum. By January 2014, impact will be able to be fully measured. The following findings have relevance:

Training in accountancy and financial literacy received by Educators Graph 1: Training in accountancy and financial literacy received by Educators 60

52.94

50

43.14

40

33.33

% 30

25.49

20 10 0 Own teaching / accounting qualifications

DBE training

Other training

need more training

A little over half of the educators who attended the iCount training workshops rely mainly on their own teaching and accounting qualifications, whilst about a third had received training in this area from the Department of Basic Education (DBE) and 43% indicated they had received training from other sources. A quarter of all educators who attended the training said that they felt they needed more training in accounting and financial literacy. This is in comparison to the iCount training, which has now reached over 69% of all Accounting teachers. This means this project has been 200% more successful than the DBE’s own training.

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Resources currently utilised by Educators in facilitating Accounting and financial literacy Graph 2: Resources currently utilised by Educators 100

100 90 80 70 60 % 50 40 30 20 10 0

82.35 62.75

33.33

27.45 13.73

Textbook

Workbooks

Resources made myself

Past papers

DVD / episodes

Other

The main resource educators rely on is the textbook for Accounting for their Grades, closely followed by past examination papers. All the educators used textbooks and about 83% used past papers. Workbooks were used by 63% of educators and 27% use DVDs of programmes on accounting and financial literacy. About a third mentioned material and resources that they had made and 14% use other materials as an aid in their lessons. Educators have indicated that work books are needed for learners, that provide exercises aligned with the text book material. This is to aid the learners in putting into practice what they have learnt. A further problem that hinders learning in Accounting is the lack of text books for learners. Educators also felt that to enhance the subject and motivate their learners, the work books should also include real life examples of businesses for the learners to work on. Another area of perceived lack, particularly in teaching Accounting is that many schools do not have computers for learners to use and work from. Educators also find it extremely useful working with computers with projectors so that they can pre-load accountancy information and present it to their learners. Comments from some of the learners indicate that the resources do exist in their schools but are used selectively and not always to the benefit of accountancy learners.

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Educators need more training on following areas Graph 3: Educators need more training on following areas 60 50

54.9 47.06

41.18

39.22

40

41.18

39.22

30 20 10

3.92 Other

Risk management

Budgeting

Savings

Financial Literacy

CAPS

Accounting content

0

Educators were asked to indicate areas in which they needed more training and significantly over half indicated that Risk Management was an area of greatest need. This was followed by CAPS (47%), Accounting content in general (41%), savings (41%) then Financial Literacy and Budgeting at 39%. Results from the indicated levels of awareness of accountancy content indicate that educators do need additional training in Risk Management, as they indicate here. In addition, observed behaviour of educators in the training indicated that there is sometimes a level of confusion and they actually need additional training in some basic concepts such as how to work out compound and simple interest. Another area of lack was in terms of understanding how business plans can be used as a budget forecast for a business for the coming year and how businesses need to use these plans to incorporate future development.

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Learner’s behaviour in income management Graph 4: Learner’s behaviour in income management 70% 60%

58% 56%

61% 55%

58%

50%

44%

40% 28%

30% 20%

27% 22%

10%

10%

3%3%

8% 2%

17% 9%

13% 11% 11% 11% 7% 5%

0%

Small insurance Build OB policy

Moneybo x

Student A/c

Bank save a/c

PO save a/c

Investme nt a/c

Stokvel

Non trained schools

56%

28%

22%

3%

8%

11%

11%

Trained schools

58%

10%

27%

3%

2%

7%

5%

Use for things I need

Use for pleasure

lend to family

11%

58%

17%

61%

13%

44%

9%

55%

A large percentage, 56%-58% of learners in schools with trained and nontrained educators save their funds at home in a safe place, many referring to a money box. This is a more convenient system for most learners who are often at a distance from the local bank or post office, and require money to catch a bus before they can access or deposit their funds. Therefore many prefer to keep their money accessible, and without having to pay bank charges. About 59% of learners in “non-trained” and 42% of learners in “trained” schools say they save their money in some form of bank account, be it a student account, a savings account, an investment account or post office account. Stokvel saving is practiced by 11%/7% of learners while 11%/13% of learners said they use their income to develop their own small businesses. Some learners save in both formal and informal systems. Significantly 11% of learners in “non-trained schools” and 7% in trained schools also save their money in a small insurance policy to cover things like cell phone insurance or other type of insurance. A large proportion (58% “non-trained” and 44% “trained) of learners say they use their funds for things they need such as airtime, clothes, books, etc., and similarly a large group also lend to their families.

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Learners budgeting behaviour Graph 5: Learners budgeting behaviour 80% % 70%

72% 69%

63%

62%

60%

50%

28%

Calculat e balance 42%

Calculat e what I can save 50%

Plan to pay & save 47%

Write down plan 58%

37%

48%

63%

44%

37%

47%

50%

37%

40%

58%

48% 42%

58% 49%

47% 44% 37%

28%

30% 20% 10% 0%

Non trained schools Trained schools

Know money available 72%

Know expense s 47%

69%

62%

Know income

Work with plan 58% 49%

In all, a reasonably high percentage of learners (72% “non-trained” and 69% “trained” schools) indicated they know what money is available in their purse or savings, and 42%-48% said they could use the information on what they had to pay versus what they have coming in, to create a budget and plan what they could save. Learners in the focus groups discussed budgeting and from their comments they seem to grasp the whole concept of budgeting and the reason for it in their own lives as well as in a business.

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Learner’s attitude towards saving Graph 6: Learners attitude towards saving 80%

71%

69%

67%

70%

58%

60%

47%

50% 40% 30%

59%

42%

41%

37%

38%

33%

28% 17%

20%

13%

10% 0% Save for future

Save for what I need

Save for future education

Non trained schools

28%

67%

33%

Save in small insurance policy 17%

Trained schools

37%

71%

41%

13%

Save when I can

Intend to save in future

Discussed terms & benefits

58%

69%

42%

47%

59%

38%

Most learners (67% learners in non-trained schools and 75% in trained schools), said they saved for what they needed now, followed closely by 69% 59% who intend to save in the future. About 28% - 37% (“non-trained” and “trained”) learners indicate that they save for the future, and 33%-41% save for future education. Further, about 17% - 13% (“non-trained” and “trained”) learners say they also save in a small insurance policy. This saving behaviour is slightly higher amongst learners from schools where their educators have attended an iCount training workshop. What is of note is the reasonably high percentage of learners (42% “non-trained” and 38% trained) who indicate they have not chosen their savings account indiscriminately but have discussed terms and benefits to see what they are liable for and how they will benefit. It must be said that the educator in the non-trained school, whilst not having attended the iCount training had certainly attended other Financial Literacy training courses and mathematics courses conducted by Bright Media in the past and was very disappointed to have missed the iCount training.

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Learners and Educators awareness & knowledge of financial and accountancy Practices Learners in the focus group who were taking Accounting spoke about the value of the subject to them and why they enjoy it. Financial Literacy The graphs below show the level of awareness and knowledge of Accounting practices amongst Learners and Educators, at the school where the educators have not received training in the iCount workshop (non-trained School) and at schools where the educators have received this training (trained Schools). Again it must be stressed that this is the baseline for this study, where the learners have been tested before their educators have had a chance to put into practise any of the training or resources they have received. Graph 7: I know how to write a budget / savings plan - Learners 60% 50%

52% 44% 38%

40%

39%

30% 17%

20%

11%

10% 0% Non trained schools Trained schools

Applies a lot 44%

Applies a little 39%

Doesn't Apply 17%

38%

52%

11%

The majority of the learners in the “trained” schools, 52%, know very little whilst 11% didn’t answer this section at all. Nevertheless, about 38% said that they knew quite a lot about this aspect. In contrast 44% of learners in the “nontrained” school say they know a lot and 39% know something, whilst 17% said it did not apply (i.e. didn’t know). Educators who received training in iCount are comfortable with their level of knowledge about financial management, with 86% saying they know a lot while 14% know a little.

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Graph 8a: I understand why I should save - Learners 90%

82%

81%

80% 70% 60% 50% 40% 30% 17%

20%

13%

10%

5%

3%

0% Non trained schools Trained schools

Applies a lot 81%

Applies a little 17%

Doesn't Apply 3%

82%

13%

5%

The majority of the learners in both “trained” and “non-trained schools”, about 81%-82% say they do understand why they should save. Similarly in both types of schools, 17% -13% say the statement applies a little, with very few (3% - 5%) saying the statement does not apply. Graph 8b: I understand why I should save - Educators 100%

94%

90% 80% 70% 60% 50% 40%

30% 20% 6%

10% 0%

Educators

0%

Applies a lot 94%

Applies a little 6%

Does not Apply 0%

Trained educators were very confident in their knowledge of this aspect, with 94% saying they know a lot.

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Graph 9a: I control my spending so I can save what is left over - Learners 70%

63% 58%

60% 50% 40%

33%

29%

30% 20%

8%

8%

10% 0% Non trained schools Trained schools

Applies a lot 58%

Applies a little 33%

Doesn't Apply 8%

63%

29%

8%

Almost two thirds of learners in “trained” schools where the educator had attended the iCount training indicated that they control their spending to allow them to save the balance, and close behind at 58%, were the learners from a “non-trained” school where the educator had not attended the iCount training. Graph 9b: I control my spending so I can save what is left over – Educators 90% 80%

73%

70%

60% 50% 40% 27%

30% 20% 10% 0%

Educators

0%

Applies a lot 73%

Applies a little 27%

Does not Apply 0%

On the whole the majority of educators do try to control their spending in order to save, with 73% saying this applies to them, with 27% saying it applies a little.

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Graph 10a: I ask about how much interest and costs are for any savings plan - Learners 50%

45%

44% 39%

40%

34%

30%

22% 17%

20% 10% 0% Non trained schools Trained schools

Applies a lot 39%

Applies a little 44%

Doesn't Apply 17%

34%

45%

22%

Again there is a similar profile for learners in both schools where their educators had been trained at the iCount workshop as well as the school where the educator had not been trained. The majority of the learners in the nontrained schools, 39%, indicated that the statement, “I ask about how much interest and costs are for any savings plan” applies to them a lot whilst 44% said it applies to them a little, and 17% said it didn’t apply. Amongst learners whose educators had attended the iCount training 34% said the statement applied a lot and 45% a little over a fifth said it didn’t apply at all. Graph 10b: I ask about how much interest and costs are for any savings plan – Educators 70%

69%

60% 50% 40% 30%

25%

20%

6%

10% 0%

Educators

Applies a lot 69%

Applies a little 25%

Does not Apply 6%

Almost 70% of educators indicated that this statement applied to them a lot, while a quarter said a little. 6% indicated this didn’t apply to them at all.

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Knowledge of Accountancy content Graph 11a: I know and can explain the accounting cycle - Learners 58%

60% 50% 50% 36%

40%

27%

30% 20%

16%

14%

10% 0% Non trained schools

Applies a lot 36%

Applies a little 50%

Doesn't Apply 14%

27%

58%

16%

Trained schools

When it comes to Accounting content knowledge levels drop somewhat. The majority of the learners in both the “non-trained” and “trained” schools (50% 58%) said that know very little about the Accounting cycle whilst 14%-16% didn’t know at all. Nevertheless, about 36% of “non-trained” and 27% of “trained” school learners said that they knew a lot about the Accounting cycle and were able to explain it. Graph 11b: I know and can explain the Accounting cycle – Educators

100%

94%

90%

80% 70% 60% 50% 40% 30% 20% 6%

10% 0%

Educators

0%

Applies a lot 94%

Applies a little 6%

Does not Apply 0%

The majority of educators, 94%, were confident in their knowledge of this aspect, with a mere 6% saying they only knew a little.

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Graph 14a: I know about compound interest and simple interest & know how to calculate them – Learners 70%

69%

63%

60% 50% 40% 30%

22%

24%

20%

13% 8%

10% 0%

Non trained schools

Applies a lot 69%

Applies a little 22%

Doesn't Apply 8%

63%

24%

13%

Trained schools

Knowledge of compound and simple interest is relatively high amongst both groups, with 69% of “non-trained” school learners and 63% of “trained” school learners indicating they know a lot about this aspect. A similar profile in both groups (22% “non-trained” and 24% “trained”) indicated they know a little about compound /simple interest, whilst 8% of “non-trained” and 13% of “trained school learners say they know nothing, i.e. the statement doesn’t apply to them at all. Graph 14b: I know about compound interest and simple interest & know how to calculate them – Educators 70%

61%

60%

50% 40%

35%

30% 20% 10% 0%

Educators

4% Applies a lot 61%

Applies a little 35%

Does not Apply 4%

A little over 60% of educators indicated that they know a lot about compound interest and 35% said they knew a little, while 4% said this does not apply to them. This is important because it was noted in the training that in some aspects of the Accounting content some educators seemed a little confused about the difference between the two. Page | 33


Graph 15a: I know about income tax and why it is important to pay for government services – Learners 69%

70%

58%

60% 50% 40%

28%

30%

22%

20%

14% 8%

10% 0% Non trained schools

Applies a lot 69%

Applies a little 22%

Doesn't Apply 8%

58%

28%

14%

Trained schools

Awareness of income tax was high amongst both groups but higher in the “nontrained” school learners, at 69%, than amongst “trained” school learners, at 58%. Those who indicated they know a little were 22% amongst “non-trained” school learners and 28% amongst “trained” school learners. Finally 8% “nontrained” school learners and 14% “trained” school learners indicated they knew nothing. Graph 15b: I know about income tax and why it is important to pay for government services – Educators

90%

84%

80% 70% 60% 50% 40% 30% 16%

20% 10% 0%

Educators

0%

Applies a lot 84%

Applies a little 16%

Does not Apply 0%

The majority of educators, 84%, were confident in their knowledge of income tax, with only 16% saying they only knew a little about this.

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Graph 16a: I know how to calculate gross profit and net profit on sales – Learners 60%

53%

50%

45% 38%

40% 30%

25%

22% 17%

20% 10% 0% Non trained schools

Applies a lot 53%

Applies a little 25%

Doesn't Apply 22%

45%

38%

17%

Trained schools

Awareness of how to calculate gross profit and net profit on sales was reasonably good amongst both groups but higher in the “non- trained” school learners, at 53%, than amongst “trained” school learners, at 46%. Those who indicated they know a little were about a quarter of “non-trained” school learners and 38% amongst “trained” school learners. However almost a quarter of the “non- trained” school learners indicated they didn’t know how to calculate gross & net profit at all, while 17% of “trained” school learners indicated they knew nothing of this aspect. Graph 16b: I know how to calculate gross profit and net profit on sales – Educators 100%

96%

90% 80% 70% 60% 50% 40% 30% 20% 4%

10% 0%

Educators

Applies a lot 96%

Applies a little 4%

0%

Does not Apply 0%

The majority of educators, 96%, were confident in their ability to calculate gross and net profit on sales, with only 4% saying they knew little about this. Page | 35


Graph 17a: I understand what a perpetual inventory system is – Learners 50% 50%

45%

40% 33% 30%

29%

26% 17%

20% 10% 0%

Non trained schools

Applies a lot 33%

Applies a little 50%

Doesn't Apply 17%

26%

45%

29%

Trained schools

The majority of the learners in both the “non-trained” and “trained” schools (50% - 45%) said that know very little about the perpetual inventory system whilst 17%-29% didn’t anything know at all. However about a third of “nontrained” and a quarter of “trained” school learners said that they knew a lot about the perpetual inventory system.

Graph 17b: I understand what a perpetual inventory system is – Educators 80%

76%

70% 60% 50% 40% 30% 16%

20%

8%

10% 0% Educators

Applies a lot 76%

Applies a little 16%

Does not Apply 8%

About three quarters of educators indicated that they knew a lot about the perpetual inventory system, with 16% saying they know a little, while 8% said they did not know.

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Graph 18a: I know about creating a business plan as a budget and how to work with a budget for a business – Learners 60%

53%

52%

50% 40%

33%

32%

30% 20%

16%

14%

10% 0%

Non trained schools

Applies a lot 33%

Applies a little 53%

Doesn't Apply 14%

32%

52%

16%

Trained schools

The majority of the learners in both the “non-trained” and “trained” schools (53% - 52%) said that know very little about creating a business plan as a budget and how to work with a budget for a business whilst 14%-16% didn’t anything know at all. However about a third of both “non-trained” and “trained” school learners said that they knew a lot about creating a business plan as a budget and how to work with a budget for a business. Graph 18b: I know about creating a business plan as a budget and how to work with a budget for a business – Educators 50%

47%

45%

40% 30% 20% 8%

10%

0% Educators

Applies a lot 47%

Applies a little 45%

Does not Apply 8%

Creating a business plan as a budget and knowing how to work with a budget for a business was an aspect that educators do not, on the whole feel very confident about, with only 47% saying they know a lot and 45% saying they know a little and 8% saying they know nothing about this aspect of Accounting. Page | 37


Graph 19a: I know and can explain account reconciliation - Learners

56%

60% 50% 50%

44%

40% 30%

24%

20% 20% 6%

10% 0% Non trained schools

Trained schools

Applies a lot 44%

Applies a little 50%

Doesn't Apply 6%

20%

56%

24%

Most of the learners in both the “non-trained” and “trained” schools (50% - 56%) said that know very little about account reconciliation whilst 6% of “non- trained” school learners and about a quarter of “trained” school learners didn’t anything know at all. However about 44% of “non-trained” and a fifth of “trained” school learners said that they knew a lot about account reconciliation. Graph 19b: I know and can explain account reconciliation – Educators

80%

73%

70% 60% 50% 40% 30%

22%

20% 6%

10% 0% Educators

Applies a lot 73%

Applies a little 22%

Does not Apply 6%

About three quarters of the educators indicated they knew and could explain account reconciliation, with almost a quarter saying they knew a little about this and only 6% did not know.

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Graph 20a: I know about financial Accounts and financial statements that you analyse to determine how well the company is financially – Learners 60%

56% 51%

50% 40%

35%

33%

30% 20%

14%

11% 10% 0% Non trained schools

Trained schools

Applies a lot 56%

Applies a little 33%

Doesn't Apply 11%

35%

51%

14%

The majority of learners in “non-trained” schools, 56%, knew a lot about financial Accounts and financial statements, with about a third saying they knew a little and only 11% saying they know nothing. Conversely amongst the “trained” school learners, the majority, 51%, said they only knew a little and a little over a third said they knew a lot about financial accounts and financial statements, with 14% saying they do not know. Graph 20b: I know about financial accounts and financial statements that you analyse to determine how well the company is financially – Educators

90%

84%

80% 70% 60% 50% 40% 30% 20%

12% 4%

10% 0%

Educators

Applies a lot 84%

Applies a little 12%

Does not Apply 4%

The majority of educators, 84%, indicated they know about financial accounts and financial statements with only 12% saying they know a little and 4% saying they know nothing.

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Graph 21a: I know how VAT is calculated and how to complete VAT returns – Learners 58%

60% 50%

50% 39%

40%

31%

30% 20%

11%

11%

10% 0% Non trained schools

Applies a lot 50%

Applies a little 39%

Doesn't Apply 11%

58%

31%

11%

Trained schools

Most of the learners in both the “non-trained” (50%) and “trained” (58%) schools indicated they knew a lot about how VAT is calculated and how to complete VAT returns. About 39% - 31% said they knew a little, whilst 11% in both groups said they knew nothing. Graph 21b: I know how VAT is calculated and how to complete VAT returns – Educators 80%

76%

70% 60% 50% 40% 30% 18%

20%

6%

10% 0% Educators

Applies a lot 76%

Applies a little 18%

Does not Apply 6%

About three quarters of educators indicated they know a lot regarding VAT and VAT returns with 18% saying they know a little and only 6% indicate they know nothing.

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Graph 22a: I know that other threats to businesses are external risks such as fire, floods or theft – Learners 60%

56%

59%

50% 39%

40%

28%

30% 20%

13%

10%

6%

0% Non trained schools

Applies a lot 56%

Applies a little 39%

Doesn't Apply 6%

59%

28%

13%

Trained schools

Most of the learners in both the “non-trained” (56%) and “trained” (59%) schools indicated they knew a lot about external risks to businesses such as fire, floods or theft. About 39% - 28% said they knew a little, whilst 6%-13% said they knew nothing. Graph 22b: I know that other threats to businesses are external risks such as fire, floods or theft – Educators 70%

67%

60% 50% 40% 30%

22%

20%

12%

10% 0%

Educators

Applies a lot 67%

Applies a little 12%

Does not Apply 22%

Amongst educators 67% were confident in their knowledge about external risks to businesses such as fire, floods or theft, with 67% saying they know a lot as opposed to 12% who said they knew a little. However, significantly, about a quarter of educators said they knew nothing about this, indicating an area of importance for future training.

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Graph 23a: I know how to calculate operating expenses, operating profit on sales – Learners 50%

47%

45%

41% 40%

39%

30% 20%

14%

14%

10% 0%

Non trained schools

Applies a lot 47%

Applies a little 39%

Doesn't Apply 14%

41%

45%

14%

Trained schools

The majority of learners in “non-trained” schools, 47%, knew a lot about how to calculate operating expenses, operating profit on sales with about 39% saying they knew a little and 14% saying they know nothing. Conversely amongst the “trained” school learners, the majority, 45%, said they only knew a little and a little and 41% said they knew a lot about how to calculate operating expenses, operating profit on sales, with 14% saying they do not know. Graph 23b: I know how to calculate operating expenses, operating profit on sales. – Educators 80%

75%

70% 60% 50% 40% 30%

18%

20%

8%

10% 0%

Educators

Applies a lot 75%

Applies a little 18%

Does not Apply 8%

About three quarters of educators indicated they know a lot about how to calculate operating expenses, operating profit on sales with 18% saying they know a little and only 8% indicate they know nothing.

Page | 42


Graph 24a: I know how to calculate current ratio, acid test ratio, solvency ratio on business to see if it can survive - Learners

50%

48%

47%

50%

40%

34%

30%

18%

20% 10% 3% 0%

Non trained schools

Applies a lot 47%

Applies a little 50%

Doesn't Apply 3%

48%

34%

18%

Trained schools

Among both group, “non-trained” and “trained” school learners, about 47%-48% indicated they know a lot about how to calculate current ratio, acid test ratio, and solvency ratio on business to see if it can survive. However, about half of “non-trained” school learners indicated that they knew little and 3% said they knew nothing. Conversely 34% of “trained” learners knew little whilst 18% said they knew nothing; an area in need of strengthening. Graph 24b: I know how to calculate current ratio, acid test ratio and solvency ratio on business to see if it can survive – Educators 80%

75%

70% 60% 50% 40% 30% 18%

20%

8%

10% 0%

Educators

Applies a lot 75%

Applies a little 18%

Does not Apply 8%

About three quarters of educators knew a lot about how to calculate current ratio, acid test ratio and solvency ratio on business to see if it can survive, with 18% saying they know a little and 8% who know nothing.

Page | 43


Graph 25a: I know about values such as integrity and honesty, respect, fairness that builds trust and how this affects a business amongst its customers – Learners 50% 50%

44%

44%

38%

40% 30%

18%

20%

10% 0%

Non trained schools

6%

Applies a lot 44%

Applies a little 50%

Doesn't Apply 6%

44%

38%

18%

Trained schools

Learners in both “non-trained” and “trained” schools are equally aware of the importance of values such as integrity and honesty, respect, fairness that build trust and how this affects a business amongst its customers, with 44% of both groups saying they know a lot. However at least half of the “non- trained” school learners say they know little about this and 6% know nothing. This compares with 38% of “trained” school learners who know little and 18% who know nothing. This is an area in need of strengthening. Graph 25b: I know about values such as integrity and honesty, respect, fairness that builds trust and how this affects a business amongst its customers – Educators

80%

73%

70% 60% 50% 40% 30% 18%

20%

10% 10% 0%

Educators

Page | 44

Applies a lot 73%

Applies a little 18%

Does not Apply 10%


Knowledge and awareness of insurance products I understand what insurance does Graph 26: Know and understand what Insurance does 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Non trained school Trained schools

86%

84%

Learners 86% 84%

78%

Educators 78%

Overall there is an increase in awareness of what insurance does, with 86%84% of learners in both iCount “non-trained” and “trained” schools knowing what insurance does. The level of financial literacy awareness is higher, in comparison to the previous study, because all the educators in all schools have previously attended training, which incorporates financial literacy in all its modules. Thus awareness of insurance, particularly amongst these Grade 12 learners is high. In 2012, the results for this question were 63% amongst “non-trained” schools and 74% amongst “trained” schools. These Grade 12 learners have now probably been through two to three years of influence from educators trained in financial literacy from attending previous courses in mathematics or Managing your Money, and the long term effect can clearly be seen.The following table shows the statements chosen by those who said yes, they knew what insurance does.

Page | 45


Table 1: Choice of statements by those who said yes, they know and understand what Insurance does Learners Educators Non trained Trained Trained School Schools Schools A plan to help people when they have problems A structured savings plan to helps you save for specific goals, like retirement etc

35%

35%

50%

65%

65%

50%

The majority of learners in trained and non- trained schools chose statement two, which focuses on a structured savings plan. However it seems that learners are a little more au fait than their educators, who have a greater proportion choosing the incorrect statement.

I understand what Educational Insurance does Graph 27: Know and understand what Educational Insurance does 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Non trained school Trained schools

96% 73% 61%

Learners 61% 73%

Educators 96%

In total 61% of learners in non-trained schools and 73% of learners in trained, said that they understood what Educational Insurance does.The statements chosen by those who had said yes above, are listed in the table below.

Page | 46


Table 2: Choice of statements by those who said yes, they know and understand what Educational Insurance does Learners Non trained Trained School Schools Educational insurance is money you save into an insurance policy so that when you need it for tertiary education you have something to help Education insurance is only worthwhile if you can save for more than 10 years

Educators Trained Schools

77%

88%

98%

23%

12%

2%

The majority of learners in both “trained” and “non-trained” schools, who said they knew about Educational Insurance, chose statement 1, which is a simple statement outlining what is Educational Insurance. I understand what Short-term Insurance is Graph 28: Know and understand what short term insurance does 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Non trained school Trained schools

92%

53%

60%

Learners 53% 60%

Educators 92%

Overall only 53% of learners in non-trained schools and 60% in trained schools said they knew about Short-term insurance. They were looking at the multichoice questions so they didn’t have to guess. Amongst educators most also said they knew what it was.

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Table 3: Choice of statements by those who said yes, they know and understand what Short-term Insurance is Learners Educators Non trained Trained Trained School Schools Schools Short-term insurance is something you only pay for a short while 37% Short-term insurance is money you pay to an insurance company so that if you have a problem the company will pay money to help 37% Short-term insurance is like household insurance, or car insurance, where the insurance company pays if there is an accident, or your car / goods are stolen or in a fire 26%

21%

45%

32%

21%

47%

34%

However, when looking at the statements chosen, Statement 1 is not really a relevant statement, and it is statement 3 that is the best answer. The majority of learners in “trained” schools chose statement 3, whereas amongst the “nontrained” school learners, an equal amount chose statements 1 and 2. Amongst the educators despite many saying they knew what Short-term insurance was, a little short of half chose the incorrect first statement.

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I understand what Household Insurance is Graph 29: Know and understand what household insurance does 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Non trained school Trained schools

81%

79%

71%

Learners 81% 79%

Educators 71%

The majority of learners from both “trained” and “non-trained” schools (79%81%) said they knew what household insurance was.The majority of learners from both “trained” and “non-trained” schools (79%-81%) said they knew what short term insurance was. Table 4: Choice of statements by those who said yes, they know and understand what Household Insurance is Learners Educators Non trained Trained Trained Schools Schools Schools Household insurance is an insurance policy so that if your house burns down the company will pay to rebuild it Household insurance is an insurance policy that will pay to replace things inside your house if burnt, or damaged in a flood, or stolen

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48%

40%

36%

52%

60%

64%


This was a bit of a trick question, as the wrong answer was place first. However, it is significant that, as opposed to the results in 2012, when this was chosen by the majority of learners, the Grade 12’s in the 2013 study mainly chose the correct answer, with a little over half of the learners in the “nontrained” school and about 60% of learners from the “trained schools”. There is a similar profile amongst the educators.

I understand what All Risks Insurance is Graph 30: Know and understand what All Risks insurance does 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Non trained school Trained schools

66% 53%

50%

Learners 50% 66%

Educators 53%

Only 50% of learners in the “non-trained” school, compared with 66% of learners from the “trained: schools claimed to know what All Risks Insurance was. The level of claim amongst educators also indicates some hesitancy in claiming knowledge despite a multiple choice question.

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Table 5: Choice of statements by those who said yes, they know and understand what All Risks Insurance is

Learners Educators Non trained Trained Trained School Schools Schools An all risks policy is insurance for your personal stuff, e.g. cell phone, iPod, shoes, text books, etc. An All Risks Policy will insure you personally for all risks, like if you have an accident

22%

36%

44%

78%

64%

56%

Here statement one was correct and statement two was incorrect. Amongst learners in the trained schools 64%% chose the correct statement and 78% of learners in the non- trained schools chose the incorrect statement. Amongst educators a little over half chose the incorrect statement.

4.3 Recommendations 

The impact of the iCount training was significant, both in improvement of the level of confidence in the knowledge of the educators and also in the impact on the learners, as seen in the full research results.

The natural extension of this is to recommend that iCount workshops be conducted in all grades of FET, replicating the roll out that has been made with Managing Your Money workshops.

The research found that there are surprisingly few educators present in the high schools teaching accountancy. The related recommendation is to include all possible educators in the workshops. It is also clear that alternate ways of reaching learners, who do not have teachers, must be explored, and innovations like the "knowledge box" should be used to reach learners directly, where there is an absence of teachers, and on-going distribution of the iCount content should be considered for new teachers joining schools without training or content.

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The content of iCount was seen as useful by both teachers and learners, and the content writing team should continue to develop content that brings financial literacy into the subject of Accounting. In addition to this existing content, continuing to bring detailed aspects of financial literacy into content is also important.

The impact on knowledge gain is clear from the responses, the change in attitudes towards finance and risk is noted. What is seen as most significant is the change in behaviour, which was not anticipated at this stage as behaviour change is expected after time.

In these findings, the unexpected aspect was the actions taken by teachers, who have been on the course, to seek and actually acquire appropriate additional insurance to cover their risks.

In order to get an on-going measure of financial literacy impact, the project strongly recommends continued work and cooperation with principals and teachers in the schools visited and ask them to provide the results of the accountancy tests for their learners at Grade 10, which is the level of student that has been interviewed. It would also be good to later assess their matric results for accountancy against the national or provincial average. It is only the final results for the year that will give us a proper measurement of impact.

To expand the iCount project to focus on the senior phase (Grade 7 – 9) Economic and Management Sciences (EMS) teachers who are tasked with preparing the learners for the Further Education and Training (FET) band of Grade 10 – 12. The problem being that most EMS teachers are not trained in the Accounting component of their subject. This negative attitude towards Accounting is seriously influencing the number of learners choosing Accounting as a subject for Grade 10; to such a serious degree that many districts have reported that they are closing the Accounting subject down as there are insufficient learner numbers to qualify for teacher allocations. This means that in three years from now, a serious shortage of matriculants who have Accounting will impact on intake at university level into the commercial degrees and diplomas. The ripple effect will be felt in the economy as a whole within a few years when a shortage of qualified commerce personnel is felt.

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To make the iCount resource available in Afrikaans as this is the only other language that Accounting is offered in at Grade 12 level for matric exams. The Grade 10 version has already been translated, courtesy of the Western Cape Department of Education. They have offered to translate the Grade 11 and 12 versions as well. The Afrikaans version in PDF format should be distributed via the Knowledge Boxes as well as email versions to all the provincial heads of Accounting for further distribution to the District Offices. Also requested by several teachers where dual medium teaching is found.

To maintain the current model and quality of workshop format that includes a main focus on lesson demonstrations. The participants found the practical nature of the format to be very useful and empowering to the teachers. The most mentioned item on the evaluation forms related to the facilitation skills and the mode of presentation.

To include the development of a learner workbook which is easy to photocopy and provide to learners. These could include worksheets, assignments, tests and exam-type questions. Some teachers also mentioned this on their evaluation forms.

To build in a competition where some technological equipment, i.e. laptop or data projector is won by teachers. There is a great need for resourcing of the schools and the teachers are very intrigued and hungry for technology which could be used to enhance teaching in the Accounting classroom.

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5 Community Radio Project 5.1 The Project This project was funded by the SAIA and FSB to promote financial literacy amongst all South African adults. The project attempts to make a difference in the lives of South Africans by improving their knowledge, skills, and attitudes and developing behaviours, which showed critical and selective engagement with financial products, to build the required knowledge to be good life and risk managers. The financial education was delivered through a radio “soap� drama programme on two public broadcast stations, RSG and Ukhozi FM, through a series of 26 episodes on each station. Each episode was followed immediately by a live call in session with a topical expert. The radio drama, as well as the follow-up programme, was broadcast in the different languages of the respective radio stations. The impact of the project was measured through a mixed methods quasi-experimental approach, using both quantitative and qualitative.

5.2 Project Background The concept of the Financial Freedom project was aimed at promoting financial inclusion across various low-income populations in South Africa. The majority of people on the African continent do not use formal financial services. The lack of access is both a symptom and a major cause of poverty since the low-income population are not able to benefit from the savings vehicles, transaction functionality, risk management tools and various wealth-building options offered by supervised financial institutions, perpetuating financial problems. When this project was conceptualised in 2008, the South African financial services industry, as well as the media industry only considered radio suitable for entertainment and the provision of basic information, but limited the potential educational role of radio.

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No credible research project had been completed to prove the impact of educational radio projects other than some anecdotal evidence. A radio drama/soap format has shown to be very successful in health education, and has now been applied to financial education successfully. In the 2012/13 consumer education campaign, the project was extended to the languages of reach: Ukhozi FM in isiZulu, which has the most listeners in Africa and RSG in Afrikaans which has the widest signal reach on land in South Africa. Radio was chosen as the delivery mechanism for this project as radio in South Africa reaches listeners in their own languages and in their communities. The latest radio audience measurement share (RAMS) indicates a listenership of 94.4% of the South African population, the widest reach of any media in South Africa. The objective was to investigate the use of radio as a delivery mechanism for financial education to reach many people in a cost effective and interesting way resulting in increased financial literacy and capability. Education-Entertainment and Edutainment and Media for Social Change models were used to develop the content. Both the radio research approach and sampling approach were based on past South African Broadcast Corporation (SABC) radio practice and research, as well as the Soul City and ABC Ulwazi models. Financial Freedom was a programme that appealed to rural, peri-urban and urban audiences, due to the mix of characters. The intention was to appeal more to the rural and peri-urban audiences than the urban one, based on the assumption that opportunities for financial education are more readily available to urban audiences; however, because of the nature of a radio audience, all three geographic groups were included in the research. The various interactions and evaluation methodologies indicate that the programme had a greater impact on rural audiences. Specifically, a greater number of callers were from rural areas. Callers who had never heard of insurance products and the increasing questions on details of risk management showed progress around knowledge and confidence on financial issues and risk management. The location of the callers was identified through both a direct response question (where are you calling from) but also from their language. It was possible to correlate the claimed calls with the received calls.

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Financial Freedom Storyline and Delivery Financial Freedom was developed as a radio “edu-drama” format in which the characters were developed to play a specific educational and dramatic role. The content matrix was a core element of storyline development and educational messaging aligned to story arcs and the development of characters and life events that were relevant to the listeners. This process ensured that the storylines and characters were both compelling and educational. One of the characters, Dumi, provided the correct and knowledgeable information about financial management. His role in the drama was to assist with knowledge and information development, and good role modelling for financial behaviour. He saved money; he insured his goods and acted ethically and knowledgeably in all situations. Other characters followed a story arc of development of new knowledge and behaviours, but also following dramatic story arcs of poor choices and their consequences. This use of dramatic narrative ensured that audiences remained compelled by the events, yet also learnt along with the failures and successes of the characters they may identify with. This included the challenges and solutions regarding life events, risk and the core financial behaviours like savings, debt reduction and financial services related to these life events. Production Process Twenty-six (26) episodes of Financial Freedom were produced and broadcast on the SABC radio stations with the widest reach: Ukhozi FM (1.86 million listeners to this programme and RSG with 155 000 listeners to this programme). The service provider, Bright Media worked with each of the stations to ensure the localisation of each of the language versions. There is a specific way of ensuring localised versioning that includes cultural and linguistic sensitivity, to ensure that the characters are adapted according to local norms and customs for each audience. By using local production teams, this “versioning” as opposed to “translation” of master scripts ensured relevance and compelling content for each audience. Other development processes built into the production process were workshops with the radio stations that had not produced radio drama recently to ensure the process was completed as planned.

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Call in sessions with industry “experts” The intention of the call-in sessions after each episode was to stimulate full interaction with the audience and to ensure that ordinary people had the opportunity to take some of the topics further in a question and answer session. In order to prepare for this interactive segment, the SAIA and FSB gathered a voluntary panel of experts drawn from their member companies who are proficient in the languages of the stations. A workshop was held to ensure the radio “expert” element ran neutrally with no mention of specific companies, and that experts were prepared for the Question and Answer sessions to ensure that they provided sufficient answers for the callers, and had sufficient information to refer specific product enquiries to the neutral call centre. The audiences responded very well to the localised, first language edutainment programme, “the first time someone spoke my language – I understand about saving and risk and that insurance is also something for me.”

5.3 The Project Context The most important reason to use radio has been the success in impact: we have shown that we can educate the population about insurance products so that they can understand them and use them more effectively through good financial management decisions. Those who already have such products could use their products more effectively while those who have yet to acquire such products would be in a position to make informed decisions about which products (if any) suit their needs. In addition, we were aware of the fact that people in the lower income groups are moving upwards and becoming increasingly engaged with financial products in South Africa. People may start to acquire more complex products available while not being informed about them. Consumer education has been highlighted by the South African National Treasury as the most important element that the financial sector can focus on, in order to make a better South Africa.

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Analysis of the impact of the project according to the ‘Theory of Change’ The three developmental phases are: Inform Phase: This phase forms the foundation for later development of support for the change. It prepares people for changing their behaviour. This phase consists mainly of making people aware of change and why the change is occurring. The wide radio listener group for the drama does this by creating wider awareness of the need for financial planning, and then more specifically for risk products. 

Educate Phase: This phase marks a passage into an understanding of what the change means for them. This enables people to begin making decisions about whether to accept or reject the change. During this phase, the stakeholders begin to understand how the change will directly impact them and their routines; and, it will be necessary to present information about the change that promotes a positive perception. This is done by the actual learning through the radio drama and the radio presenter-led programme to change knowledge and develop new skills through the radio drama.

Commit Phase: The change is implemented during this phase. Everything up to this point has been preparation for the change. During this phase the change is acted upon and becomes part of everyday life for the stakeholders. For our project, this is the callers phoning in, asking for more information and calling the phone line.

The seven commitment stages are: 

Contact: The earliest encounter an individual or group has with the fact change is taking place (e.g., an announcement or memo).

Awareness: The individual or group has a working knowledge of the change.

Understanding: The individual or group demonstrates comprehension of the nature and intent of the change (i.e., what will be expected of them).

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Positive Perception: The individual or group develops a positive view and disposition toward the change.

Adoption: The change has been used long enough to demonstrate its worth and impact on the organisation or community.

Institutionalisation: The change has durability, and continuity, and has been formally incorporated into the routine operating procedures of the organisation or community.

Internalisation: Organisational members are highly committed to the change because it is congruent with their personal interest, goals or value system.

5.4 The Research Baseline The baseline survey was conducted in November 2012 amongst the Ukhozi Listeners who took part in the initial monitoring and evaluation study. The respondents were asked if it would be possible to contact them again later in 2013 at the end of the broadcast period to conduct a further interview. The sample size at the baseline study was 60 respondents per site, 20 in urban, 20 in peri-urban and 20 in rural areas, with the anticipation that a minimum of 50 per site would be available for participation at the endline stage. The original sample was selected using a random scientific sample of radio listeners in each of the broadcast footprints. As independent verification of listeners, the profile of listeners to Ukhozi was drawn from the South African Advertising Foundation (SAARF) radio audience measurement survey (RAMS) to provide an overall profile of listeners. Target Audiences The target audience at the baseline study was all those people over the age of 18 who listen to the SABC station (commonly known as Public Broadcast Service ‘PBS’) on Ukhozi FM.

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Data collection methods At the mid-term stage the respondents were telephoned using the contact details garnered at the baseline stage, and a short five minute interview was conducted telephonically. 

Ukhozi FM – Zulu broadcast, based in KwaZulu Natal, with the interviews taking place around Durban and environs.

RSG FM – Afrikaans broadcast, based in both Cape Town and Johannesburg, reaching the widest land area through its signal in South Africa.

Sample design The universe of the survey was composed of people living in households that are based within the specified sampling areas within the broadcast footprint of the five chosen public radio stations and who are in the LSM groups, 1 to 8. These households were spread across the sample areas, with Durban the key area for the Ukhozi listeners. From the urban areas the sample spread out to the peri-urban and surrounding rural areas to ensure that all LSM groups were available for this survey. The spread included townships, informal settlements, peri-urban areas and rural villages. The survey included all people/communities over 18 years of age living in households / structures / hostels, with the exclusion of those living in special institutions, hospitals, prisons and such. Permanent members of the households also formed part of the universe available for the study.

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6 Project Impact (Ukhozi FM) 6.1 Profile of Participants Based on the RAMS data, it is estimated that approximately 1,095,000 listeners of Financial Freedom are from LSM 1-4 followed by LSM 5-7 with a listener base of 842,000. This means that the total listener base of 1,9 million listeners on average tuned in to Financial Freedom in the initial period and 1.7 million in the later period.

6.2 Main Findings In total, out of 56 respondents who we attempted to contact, 31% had listened to the programme, 44% had not listened, and 25% were not contactable. Reasons for not listening to the programme: In total about 15% were either too busy or exhibited insufficient interest, while 10% would be interested in future and a couple had no access to radio during the broadcast times. Amongst those who listened to the Financial Freedom programme on Ukhozi FM from 09h30 to 10h00 on Tuesday and/or Thursday mornings, i.e. 55% of the sample, almost all, 97% (30 out of 31) of those who listened, liked the programme and had no criticism of the programme. Only one person did not like the programme. The one respondent who did not like the programme was more because he felt he already had this information from listening to earlier radio programmes or on television. Reasons for liking the Financial Freedom programme: about 67% mentioned some aspect of insurance. It is a quite significant number of people who mentioned some aspect of household contents and homeowners policies and the need for both types of insurance. Some also mentioned that as a consequence of listening to the programme they went and took out cover, particularly on the aspect of household contents insurance. It was also significant that a number of respondents also mentioned the aspects of budgeting and saving as being something that the programme covered that was of interest to them.

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Measurement of Radio Audience for of listeners to the 13 episodes Ukhozi FM Source: Radio Diary (SA) 2013/2 Jan/May 13 Adult 15+ Weight: All Adults Table - All Adults 15+ Units : 1000's

Total RAMS Sample

Radio Diary (SA) 2013/2 Jan/May 13 Adult 15+ Total

Radio Diary (SA) 2013/2 Jan/May 13 Adult 15+ Men

Radio Diary (SA) 2013/2 Jan/May 13 Adult 15+ Women

Radio Diary (SA) 2013/2 Jan/May 13 Adult 15+ Blacks

34 935

16 880

18 056

26 785

0930-1000 Tue - Ukhozi FM

1 029

413

617

1 029

0930-1000 Thu - Ukhozi FM

1 043

390

653

1 042

Radio Diary (SA) 2013/2 Jan/May 13 Adult 15+ 15-24

Radio Diary (SA) 2013/2 Jan/May 13 Adult 15+ 25-34

Radio Diary (SA) 2013/2 Jan/May 13 Adult 15+ 35-49

Radio Diary (SA) 2013/2 Jan/May 13 Adult 15+ 50+

Total RAMS Sample

9 820

7 906

8 814

8 395

0930-1000 Tue - Ukhozi FM

236

249

257

288

0930-1000 Thu - Ukhozi FM

251

224

257

312

Radio Diary (SA) 2013/2 Jan/May 13 Adult 15+ LSM 1-4

Radio Diary (SA) 2013/2 Jan/May 13 Adult 15+ LSM 5-7

Radio Diary (SA) 2013/2 Jan/May 13 Adult 15+ LSM 8-10

Total RAMS Sample

8 234

17 448

9 253

0930-1000 Tue - Ukhozi FM

579

391

59

0930-1000 Thu - Ukhozi FM

516

451

77

The results from the above survey conducted by the South African Advertising and Research Foundation (SAARF) on radio listenership of programmes indicates that the main listener base for Financial Freedom is LSM 1-4 with 1,095,000 listeners, followed by LSM 5-7 with a listener base of 842,000. The overall age of the listeners is fairly even across the age groups, with a higher listenership amongst the over 50+s at 600,000 (28.9%), followed by the 35-49 year olds at 514,000 (24.8%).

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The gender is interesting because the RAMS total sample reflects the SA total population according to the census 2011. However the listenership is essentially 61% females to 39% males. The fact that this programme is aired in the mornings on a weekday would probably reflect this sample. Finally, in terms of population groups, the only group really listening to this were Blacks, with no Whites or Coloureds and a very small number of Indians.

6.3 Conclusions The results indicate that the listenership of Ukhozi FM Financial Freedom programmes is a highest amongst the lowest LSM groups. Comments emanating from this short, mid-term study indicate that not only are the respondents recalling the content, but their use of the language to describe what they have learnt indicates that the Financial Indicators as outlined in the proposal are being met in terms of the changes in understanding and the impact on behaviour from listening to these programmes. The timing, i.e. early mornings, sees more females listening to the programme. Males who are working either do not have access or are too busy to listen. The change in the profile from the RAMS sample to the listeners of Ukhozi FM indicates the effect of the programme times on the listeners. The overall number of listeners is high with a total of 2,072,000 listeners tuning into the programmes on Tuesdays and Thursdays during the week.

6.4 Recommendations (Ukhozi FM) This programme definitely seems to answer the needs of the Ukhozi FM listeners, and this is remarkable because all of those who were contacted had already taken part in the initial monitoring and evaluation study during 2010 – 2011. The interest in financial literacy is high and people wanted more interventions. The study also revealed that the broadcast times of the programme is important as this would ensure that males listeners are also able to listen to it. It is therefore recommended to schedule the programme when men are also able to listen, particularly in the evenings.

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7 Radio Sonder Grense (RSG) 7.1 Findings This report reflects on the endline results for the broadcast on Radio Sonder Grense. Originally 59 respondents were recruited with the intention that approximately 50 would be available for interview by the time of the endline survey. Contact was made with 44 respondents, and 30 had listened to the Financial Freedom programme. The profile of these 30 was aligned to the profile of the radio station, i.e. predominantly upper LSM, higher income. Therefore although in some respects the results of the endline survey over the baseline are very positive, this needs to be considered in the light of the adjusted proportion of upper LSM respondents. In some respect, quite possibly because of the skew towards the upper LSM, the results of the responses are remarkably high, with 100% levels of awareness in some instances. In addition, because of high levels of response and awareness at the initial baseline, some of the increases appear low, but this may well be the difference between 97% at baseline to 100% at endline. Foundation of Financial Literacy Part 1 The key question at this stage was to determine the percentage increase in the number of people who are able to develop a budget for money management. At this endline stage 80% of the participants said they could actually work out from their income and expenses how much they will have to live on. Slightly less, 77% said they actually write down their budget plans. This is a reasonably high figure, an 11% increase on the baseline who now write down their budgets. This skill is an actual behaviour change to planning your money actions. Foundation of Financial Literacy part 2 The area of focus at this section was on planned financial behaviour and it was important to determine the percentage increase in the number of people who take actions aligned to the budget and plan. From the current assessment, about three quarters of participants endeavour to pay their bills regularly and try to save money from what they have left of their income after they have paid their bills and accounts. This is a key indicator, showing the percentage of

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people who take actions aligned with their plan, including the payment of their bills. Savings as a basis for Financial Security There is every indication that high levels (60%) of participants understand the value of savings, with about half understanding the value of savings as the basis for financial security. About 73% already have a plan in place to save, with the balance of participants (about 30%), saying they will do so “once their financial situation improves�. Savings mechanisms vary, with about 80% of participants having a bank savings account and 20% have a post office savings account. A further 10% have an investment account and many also save through insurance policies. When it comes to saving for an unexpected future event or to provide money for their families in an emergency, about 73% say they save for such a situation. There has been a significant drop of 34% amongst those who said they save for something they know about. This may not necessarily reflect a change in savings pattern, but, as the profile at the endline is largely upper LSM in nature, this may indicate that they have a different spending pattern. Cumulative savings indicator as a basis for financial security Ownership and awareness of bank accounts is high with 80% of participants having a savings account at a bank and 10% having a current account, while a further 10% have an investment account, and 2% opening one since listening to Financial Freedom. A further 20% have a savings account with the Post Office. Awareness of different savings options was high at 80% overall, but what is significant here is that the percentage of listeners 50-53%, who said that insurance was another savings option for them, showed a significant increase of 53% from the baseline. Finally, there is also a high level of awareness of respondents saying they are able to compare and select a financial product that suits them best. This is also one of the key indicators of the beginnings of an appreciation of risk management, which is the basis for appreciation of insurance products.

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Knowledge of various Financial Products Awareness of financial products and instruments is high amongst the group of higher LSM listeners on RSG, with 100% saying they know what a loan is, what interest on a loan is and what Hire Purchase is. There is, in some cases a slight increase on the baseline because the baseline figure was high in the first instance, i.e. 80% at baseline and endline who said they knew another savings option. The majority appear to have a clear grasp of interest rates and their impact on savings interest and interest charged on credit. Furthermore, there is also an indication of a reasonable understanding of the consequences of debt. It is also important to note that 65% of participants stated that unstable financial circumstances would necessitate a visit to their insurance company to renegotiate their insurance policy arrangements. Increasing awareness, understanding & choice of Insurance products The project aimed to enable listeners to be able to make choices and show behaviour change towards greater financial capability with regard to their knowledge of the various insurance options, indicate consideration of different types of insurance products that are suitable for them, and to understand the differences between various insurance products. Ownership of insurance products is proportionately higher amongst the changed LSM profile from the baseline study. Car insurance is now the highest at 60%, followed by medical insurance at 53% and life and household insurance at 47%. Awareness of all insurance products covered in this study was high with over 90% awareness of the products. In addition there is an increased proportion of ownership of insurance products. Also of significance is the high level of awareness of aspects surrounding insurance, such as awareness of implications regarding making an insurance claim, what to do if the insurance company will not pay, what is insurance fraud, etc. Cumulative Behaviour Change As previously mentioned, there is every indication that high levels (60%) of participants understand the value of savings, with about half understanding the value of savings as the basis for financial security. About 73% already have a plan in place to save, with the balance of participants saying they will do so “once their financial situation improves�. Savings mechanisms vary, with about Page | 66


80% having a savings account at a bank and 20% having a post office savings account. Further 10% have an investment account and many also save through insurance policies. The level of understanding of financial products, and respondents’ ability to compare products is high and these indicators show that in terms of financial products, respondents have grasped quite clearly the concept of interest understand it and its implication in various financial products. Over 90% overall appear to have a clear grasp of interest rates and their impact on savings interest and interest charged on credit. There is also indication of a reasonable understanding of the consequences of debt. It is also important to note that 65% said that unstable financial circumstances would necessitate a visit to their insurance company to renegotiate their insurance policy arrangements. In terms of regular contributions to savings accounts and other savings mechanisms, overall 63% of participants say they save for a future unexpected event. In addition, those who claim to save regularly in any format, were 60% overall. In both instances there was a 7% increase on the baseline study. Budgets and Budgeting There is a relatively high level of awareness of what money participants have coming in (income) as well as their expenses and costs for the month (expenses), with approximately 77% of respondents saying they write down a budget or financial plan, an improvement of 11% on the baseline study. This is important because of the need to ensure that financial products are contributed to regularly. Savings There is a high level of awareness of the need to save, with almost all participants having a savings account of some sort, many with more than one type of account. Overall 80% have a bank savings account, 20% save in a post office account, 10% have a current bank account and 10% have an investment account.

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Awareness, knowledge and ownership of insurance products and other financial products The level of understanding of financial and insurance products is reasonably high, with high levels of ownership of insurance products; 47% having life insurance, 30% having a retirement annuity and 27% with endowment policies. The awareness of short-term products was significantly higher with 60% having vehicle insurance, 47% have household contents insurance, 40% have funeral insurance and 30% have all risk insurance. Although ownership of insurance products is high, it must be remembered that the profile of the endline respondents is more amongst the upper LSM group; therefore the increase should be seen in proportion to the size of the sample. Nevertheless, this segment of the population, in the higher income categories, once made aware of the risks, seems to have taken steps to cover themselves. Sources of financial advice Participants were simply asked what sources people used for financial advice and information. The question about radio programmes came midway in the questionnaire, so there was no possibility of the interviewers selecting it in order of priority. Nevertheless, this source was rated second highest at 93%, an increase of 57% on the baseline study.

7.2 Measurement of Radio Audience for RSG The results of the RAMS (Radio Audience Measurement Survey) produced by the South African Advertising and Research Foundation (SAARF) shows that RSG attracted a total audience of 155,000 Afrikaans speaking listeners who listened to the programme, from January to May 2013. The LSM profile for RSG is essentially 7-10 and the RAMS support this with over half of listeners at 55%, who are LSM 8 -10 and 35% at LSM 5 - 7. The lowest LSM, which this programme was originally designed to address, only has a reach of about 10% amongst the LSM group 1 - 4. The overall age of the listeners is skewed to an older age group, in line with the profile of the radio station with the 50+ age group at about 59% and the 35 - 49 age group at 21%. Listenership amongst the younger age groups was 15.5% amongst the 25 - 34 year olds and 13.5% amongst the 15 -24 year olds. Finally, in terms of population groups, the Afrikaans speaking listener group for RSG was predominantly white, at 58%, with 31% Coloureds and 11% Black. Page | 68


7.3 Recommendations (RSG FM) Bright Media was aware of the different profile of the RSG listeners and worked closely with the SABC to develop programmes around the central drama to reflect the needs of the listener base¸ which was predominantly the upper LSM group. Amongst those listeners who enjoyed listening to Financial Freedom, almost all those who listened to the programme, there was an increase in levels of awareness and behaviour change amongst these listeners. Therefore if this programme is planned to continue on RSG, the changed approach needs to be continued. However, from the RAMS and from the results of the endline study, the lower LSM listeners who were initially targeted are not really being addressed by the programme on this radio station, with only 10% of the LSM 14 listeners being recorded by the RAMS results. There is an opportunity to reach non-white Afrikaans speakers – yet from the research, it is clear that the station loses these listeners. The lower LSM Afrikaans speaking population needs an accessible and relevant station with access to these consumer education programmes, which have been so accepted by other PBS radio stations. # 112957

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Saia consumer education projects report for 2012 13  
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