Thesis (M. Ed.) - Central University of Technology, Free State, 2011 / Financial management is fundamental to the improvement of the efficient and effective use of finances in schools. If principals and SGB chairpersons are well trained on their roles and responsibilities regarding financial management, they will be able to effectively deal with financial matters of schools. Financial management is an integral part of efficient and effective financial management in schools. This study provides a literature discussion on funding provided to schools by the government, as well as the essences of financial management in the school setting. The study also sought to scrutinize the impact of related Acts and policies on financial management in schools. The fieldwork sought to determine the extent of possible problems that schools experience regarding financial management and aimed at providing possible solutions for efficient and effective financial management in schools. Principals and SGBs chairpersons made up the sample of this study. Questionnaires were used to determine the views and opinions of these participants regarding the efficiency and effectiveness of financial management in their schools. The data gathered through the open-ended questionnaires were analysed and reported on qualitatively. The key findings were that principals and the SGBs chairpersons wish to play an important role in financial management in schools, but lack financial management skills to do so. The lack of financial management skills was more evident on the side of the SGB chairpersons. The result of this lack of financial management skills has the effect that other types of financial problems arise at schools.