Financial EducationFinancial EducationWin-Win for ClientWin-Win for Clientss and MFIs and MFIs

What is Financial Education?

Financial education is teaching the knowledge, skills and attitudes required to adopt good money-management practices for earning, spending, saving, borrowing and investing.

Participants who receive financial education acquire the information and tools to make better

financial choices and work towards their financial goals to enhance their economic well-

being.

Why is Financial Education Important for the Poor?

• Better understand financial options

• Use financial resources more effectively

• Build self-esteem and confidence

• Shift from reactive to pro-active decisions

Financial Education Objectives

Current Current Behaviors Desired Desired BehaviorsBehaviors

Examples of Behavior Change

Savings• Wasteful expenditures• Irregular savings• Savings not linked to goals

Savings• Avoid unnecessary

expenditures• Have a savings plan• Save regularly

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PRESENT/CURRENT FUTURE/DESIRED

How was the Financial Education Curriculum

Developed?The Partners

India – SEWA BankPhilippines – CARD BankSouth Africa – Teba Bank

Morocco – Al AmanaBolivia – Pro Mujer

Poland – The Microfinance Centre

Module Design Process

Market Research Module DesignModule Pilot Test

Module Refinement

Generic Module Design

Generic Module Test

Finalize Generic Module

DisseminationTOT

Curriculum: Modules

• Budgeting- Use Money Wisely

• Debt Mgmt.- Handle with Care

• Savings- You Can Do It!

• Banking Services- Know Your Options

• Financial Negotiations- Communicate with Confidence

Curriculum: Components

• Trainers’ Guides

• Training of Trainers Manuals

• Implementation Guidance

– Adaptation Guide

Training Techniques

• Small Group Discussions

and Activities • Stories • Categorization • Simulation Exercises • Case Study or Situation Analysis

• Practice Exercises

Channels of Delivery

• Campaign

• Radio Show

• Soap Opera

• Classroom Training

• Credit and Savings Group-based

• Individual Counseling

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Financial EducationProvider

Institutional Mission

Corporation/trade association Industry wide education

MFI: Marketing and Promotion Improved performance

Training Provider (Fee for service)

Training services for low income households

Community Development Program (social program)

Better management of community members’ assets

Challenges• Literacy levels

• Adaptation to market segments

• Lifecycle position

Current Activities

DISSEMINATION• TOT Workshops

South/South East AsiaCentral AmericaMiddle EastChinaIndiaEastern Europe

• In-country Training and TA

Current ActivitiesINNOVATIONS

•Youth •Remittances•Micro-insurance•Risk management •Consumer Education•Bank Cards