An application of the theory of planned behaviour to predict financial behaviour of minibus-taxi drivers and owners in Cape Town

Mohamed, Imaan

An application of the theory of planned behaviour to predict financial behaviour of minibus-taxi drivers and owners in Cape Town

Thesis / Dissertation

2025

Publisher

University of Cape Town

Department

Organisational Psychology

Faculty

Faculty of Commerce

Abstract

The minibus-taxi industry is one of the largest informal employment sectors in South Africa. While informal employment often equates to low income work anecdotal reports from minibus- taxi drivers suggest that this does not necessarily apply in the minibus-taxi industry. This implies that working in this industry could thus provide a stepping stone out of poverty. At the same time, anecdotal evidence, too, indicates that many minibus-taxi drivers have little to no savings. The objective of this research was to explore if the theory of planned behaviour could provide a useful theoretical framework to explain the saving and spending habits of individuals in the minibus-taxi industry. This is as the theory could assist in identifying at which level to intervene in order to shift more individuals in the minibus-taxi industry to use their jobs as an opportunity to improve their financial situation. Minibus-taxi owners and drivers participated in a self-report survey (N=119). It included scales derived from existing measures when possible, and self-developed items where not possible. Principal component analysis revealed that the financial behaviour scale was only adequate to assess saving behaviour, but not spending behaviour. Perceived behavioural control comprised three components which linked differently to saving behaviour: perceived knowledge and ability to manage money were positively related to intentions to save and to actual saving behaviour, while perceived challenges in managing money were related to saving behaviour but not to saving intention. Greater subjective norms and more positive attitudes towards saving were related to greater saving intentions. Intention to save was the strongest predictor of actual saving behaviour. When considering all five predictor variables (subjective norms, attitudes, perceived knowledge of money management, perceived challenges to manage money and perceived ability to handle money) together, only perceived ability to manage money explained a significant amount of unique variance in saving intentions. Perceived ability to manage money and challenges in managing money explained unique proportions of variance in saving behaviour. Greater challenges in managing money were associated with lower saving behaviour. Saving intention mediated the relationships between attitudes, perceived knowledge and perceived ability to manage money - and saving behaviour, but not the relationship between challenges with money and subjective norms - and saving behaviour. Most of the results were in line with the theory of planned behaviour and specifically indicates that strengthening the perceived behavioural control of those working in the minibus-taxi industry could be a beneficial intervention point to encourage saving behaviour.