Assessing the Outcomes of Financial Education

Financial education programs for the poor are relatively new in developing and transition countries. While still few in number, innovative efforts are under way to help microfinance clients and other poor people improve management of their assets by building knowledge of key financial concepts and developing skills to make informed financial decisions.

 

These financial education activities, which are still at an early stage, have been developed using a learner-centered approach to education design. This approach starts with market research to identify the financial education needs and opportunities of microfinance clients. Findings from market research carried out by partners in five developing countries highlight the limitless energy and creativity that poor people use to manage day-to-day needs, take advantage of opportunities, and deal with shocks and life-cycle events that place financial pressures on their families and enterprises.

 

Research reveals the central importance of savings and debt—often provided through microfinance or informal financial systems—in the economic strategies of poor people.