The savings behaviour of informal settlement households with social grant recipients: A case study of Freedom Park, Soweto

Abstract

The majority of South African social grant recipients reside in rural areas, townships and informal settlements. The aim of this study is to investigate whether households in an informal settlement, who receive one or more social grants, save a portion of their income, and what their savings behaviour is. Out of the 215, 150 households save some of their income but mostly in burial societies and stokvels. Households that engaged in other economic activities saved more than households that rely solely on social grants. Therefore, households should also be advised to engage in other economic activities.