Daniel K Maduku
Abstract
Governmental and other institutions interested in promoting a saving culture among consumers to meet their long-term financial needs should prioritise encouraging budget-related activities. Promoting consumer wisdom could be an effective approach to promote budgeting-related efforts, as it has been linked to positive market-related behaviours such as ethical consumer behaviour, voluntary simplicity, and socially responsible purchasing. However, existing research has not explored the relationship between consumer wisdom and budgeting-related efforts. To address this gap, this study examines how the dimensions of consumer wisdom predict efforts towards responsible budgeting. Using a quantitative methodology, data was collected through a survey administered to 567 South African consumers.
The measurement quality was validated, and hypotheses were tested using partial least squares structural equation modelling. The findings indicate that consumers who prioritise responsibility and purpose, exhibit high reasoning skills, and maintain a broader perspective are more likely to engage in effective budgeting practices. This study highlights the importance of promoting consumer wisdom to encourage responsible budgeting and provides insights for policymakers and institutions aiming to foster budgeting and saving culture among consumers.