South African policymakers are endeavouring to ensure that the poor have better access to financial services. However, a lack of understanding of the financial needs of poor households impedes a broad strategy to attend to this need.
The Financial Diaries study addresses this knowledge gap by examining financial management in rural and urban households. The study is a year-long household survey based on fortnightly interviews in Diepsloot (Gauteng), Langa (Western Cape) and Lugangeni (Eastern Cape). In total, 160 households were involved in this pioneering study which promises to offer important insights into how poor people manage their money as well as the context in which poor people make financial decisions. The study paints a rich picture of the texture of financial markets in townships, highlighting the prevalence of informal financial products, the role of survivalist business and the contribution made by social grants. The Financial Diaries dataset includes highly detailed, daily cash flow data on income, expenditure and financial flows on both a household and individual basis.