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    Why financial literacy matters : an educational programme with practical daily applications : a thesis presented in partial fulfillment of the requirements for the degree of Master of Arts in Education at Massey University
    (Massey University, 2007) Hailwood, Kim
    Financial services and products have become increasingly accessible, complex and sophisticated in recent decades. There is now a huge variety, not only of financial service providers from whom to choose, but also of actual products and services. This transformation of financial services and the level of interaction required means that an individual now needs increased levels of understanding and knowledge of the sector to make decisions appropriate to their needs and circumstances. This thesis emphasises the importance of ensuring that the teaching of financial education is embedded in the New Zealand school system to enable all students to leave school prepared for the rights and responsibilities of adult life. Financial literacy, like reading and writing, affects the well-being of every individual. It is important to recognise that inadequate financial knowledge can be a substantial obstacle. This is not a minor issue or a side issue. Ultimately financial education is a decisive issue because it is a measure of whether an individual understands the forces that significantly affect the quality of their life.
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    Micro-finance : sustainable development or economic band-aid? : a thesis presented in partial fulfilment of the requirements for the degree of Master of Philosophy in Development Studies, Massey University
    (Massey University, 2004) Alexander, Nicholas B
    The simple question which this thesis set out to answer is whether a Micro-Finance intervention, either in isolation or as part of a wider programme, is capable of facilitating a development process which can be truly effective in alleviating the poverty of the very poor. Essentially it seeks to clarify whether there is a place for Micro-Finance in initiating and sustaining an effective process of community development. The hypothesis has been tested through a 'Rapid Impact Assessment' carried out within two urban poor communities in Manila, Philippines. The evidence gathered is simply the actual thoughts and feelings of the 'poor' community members. I have tried to accept their responses with respect and to avoid any sort of ethnocentric second guessing as to supposed underlying cause. It is only they who can truly attest to the impact of the programmes, and it is only by accepting their spoken responses as genuine and valid that I believe that I can forge a body of analysis and discussion which may in some way genuinely add value to the community (urban poor communities surveyed) and to the academic sector of 'development'. The key lens through which the analysis of the impact of these programmes has been viewed is that of the relationship between micro-finance/ economic capital and social capital. The evidence obtained from the research, suggests that what I have termed 'higher level' indicators of social capital (generosity, self-sacrifice) can - and do - manifest when the physical, material and 'lower level' social foundations (including personal confidence, collective solidarity, household and community status) are provided by micro-finance programmes. It also appears clear from the evidence of this research that a key element of these higher level social capital indicators is the 'willingness to make sacrifices and to commit to the needs of the wider family and the wider community'. The question however still remains, however, as to whether the micro-finance programmes are in some way indirectly responsible for leading them down this path towards improved social capital. It would appear reasonable to assume from the previous discussion that certain lower level aspects of social capital (such as the focus on the values of trust and discipline) may be the glue that, to a certain extent, bonds individuals to the community, and - in turn - to higher level aspects of social capital. However, this point, given the constraints of the research, cannot be fully validated. What is clear is that the micro-finance programmes surveyed in this thesis have facilitated the economic and social platform necessary that the people are able to choose, and confidently act upon, a design for their own development.
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    The relationship between financial capability, financial competence and household economic wellbeing in rural Fijian households in Naitisiri Province, Fiji : a thesis presented in partial fulfillment of the requirements for the degree of Doctor of Philosophy in Management at Massey University, Palmerston North, New Zealand
    (Massey University, 2010) Sibley, Jonathan; Sibley, Jonathan
    The study examined the use of money by households in a monetising rural Fijian community, and developed and tested a model of financial competence, bringing together previously disparate strands in the literature to better explain the relationship between the financial competence of those who make financial decisions on behalf of the household and the economic wellbeing of the household. Ex post facto field experiment methodology was used, with control and treatment groups sampled from villages in Naitisiri Province, Fiji that had participated in a financial capability development intervention comprising a financial literacy training workshop and a rural banking service. The study found evidence of a positive relationship between villagers’ levels of functional literacy and their levels of financial knowledge and skill and financial inclusion (as measured by ownership of a bank account). Evidence was also found to indicate a positive relationship between villagers’ levels of financial knowledge and skill and financial inclusion, and their level of competent financial behaviour. This relationship appears to be moderated by villagers’ attitude to money. Men generally evidenced greater financial knowledge and skill than women, but lower levels of competent financial behaviour. Evidence of a positive relationship between the economic wellbeing of the household and the level of competent financial behaviour of the household’s principal financial decision makers was also found. The findings of the study have implications for policy. Low levels of functional literacy may lead to self‐exclusion from financial capability development initiatives which may impede engagement with the formal financial system. The study found evidence to support Robinson’s (2001, 2002) argument that the extension of existing institutional retail financial services is likely to be more successful in reducing levels of financial exclusion than the promotion of poverty‐lending based microfinance schemes. The findings also suggest accurate targeting of training programmes to enhance financial knowledge and skill is required. There is a requirement for further research to validate the theoretical model and determine modalities for extending the competency approach to international development in a wider range of contexts. Within the context of Pacific Island States, there is a requirement for baseline studies of financial competence.