Assignment Task

Objective

Primary objective:

To determine your ability to apply your research knowledge practically in the form of a research proposal.

Secondary objective(s):

To assess your ability to write clearly the and concisely

To assess your ability to synthesise the relevant theory

To assess your ability to present a written document and execute it with the appropriate technical care

Research Theme

A South African perspective on financial behavior.

It should not be surprising that the human population is influenced by many different factors in decision making. These factors may include past experiences, cognitive biases, age and individual preferences (Dietrich, 2010). The factors that influence our decision-making process can also affect the way we view a problem or opportunity. Prejudice, cognitive constraints, attitudes about risk and uncertainty, personal habits, and social or cultural influences can cause someone to make seemingly irrational decisions (Kukreja, 2019). As individuals grow, they learn from people as well as experiences and begin to form their own preferences.

Research theme: Personal finances and behaviour

The myriad of factors that influence decision-making, of course, influence the way individuals work and handle their personal finances. One can conclude this by looking at the way an individual handles their personal finances or their intention and attitude towards them. Personal finance involves, among other things, decisions that include saving or investing, how to budget, where to bank, as well as insurance, mortgage, retirement planning and tax decisions (Atchley, 1998).

It is argued that financial literacy has the ability to manage this personal finance business (Kenton, 2020). It is claimed that financial literacy alone is also not effective, but that aspects such as financial knowledge, financial behavior, financial identity, financial socialisation and financial attitudes (and many more) must be considered.

The body knowledge of this theme, in the South African context, is really sparce. It also usually does not include personal and attitudinal elements such as financial behavior, intention, socialisation, identity, etc. It is your job as a researcher to come up with a proposal that can help the providers and consumers of personal finance in South Africa in terms of future decision-making.