Financial management as a programme generally refers to a set of behaviours in the areas of
cash management, credit management, financial planning, investments, insurance and
retirement and estate planning (Dowling, Corney & Hoiles, 2009: 5). BancVue (2010) adds
by describing a personal financial management programme as a tool that helps consumers to
track and manage their finances, create budgets, categorise and anticipate spending, and
analyse the distribution and performance of their investments. It involves the efficient use of
personal finance to meet the individual s motives and goals .
Survival in this century depends on having resources to sustain one self. The greatest
resource nowadays is having income to meet the basic needs and other personal needs as
indicated by Maslow s hierarchy of needs (Moaisi, 2013: 21). The income earned by an
individual, just like any other resource, needs good management to ensure that the best value
can be extracted and utilised efficiently and effectively (Muske & Winter, 2004). It is for
these reasons that all consumers should have basic knowledge and skills in terms of personal
financial management that would enable sufficient control of finances, resulting in meeting
their basic needs and other necessities (Moaisi, 2013: 21-22).
The researcher is of the opinion that in order to educate consumers government and the
private sector should start by strengthening financial literacy programmes for all, especially the younger generation. If people are more financially literate, they will understand credit and
debt management better.
It is a well-known fact that there is a high prevalence of indebtedness among public servants
in the public sector (Public Commission Report, 2007). A report released by the University of
Pretoria, Law Clinic (Haupt et al., 2008:14) revealed that about R235 million (23%) which
contributed to the garnishee debt of public servants was based in the national departments.
This indicated that there was a substantial number of employees in national departments who
were serving garnishees orders. This was confirmed by a report released by PERSAL in the
Department of Rural Development and Land Reform in the Pietermaritzburg region which
revealed that between March 2009 and January 2011, 15% of employees were garnisheed as
a result of defaulting contracts with different credit providers.
The goal of this study was to evaluate the effectiveness of the Personal Financial
Management Programme for the financial well-being of employees in the Department of
Rural Development and Land Reform in the Pietermaritzburg region within the KwaZulu-
A quantitative study has been conducted and the data was collected through a questionnaire
from a sample of 15 employees in the Department of Rural Development and Land Reform in
Kwa-Zulu Natal province in Pietermaritzburg region. Valuable conclusions and
recommendations originated from the findings of this research study. In terms of the
quantitative results it was clear that the Personal Financial Management Programme did not
make a statistical significant impact on the respondents knowledge level and attitudes
towards financial management. However, the qualitative comments made by respondents
described the Personal Financial Management Programme as a good intervention and that it
should be repeated and offered to a greater number of employees. The implications of the
study could be that employees would gain financial skills to help them manage their finances
better and therefore improve their work performance and reduce absenteeism as a result.
Mini Dissertation (MSW)--University of Pretoria, 2015.