Credit and Financial Literacy Training

2018 ◽  
pp. 73-83
Author(s):  
Dean Karlan ◽  
Jacob Appel
Keyword(s):  
Education Program ◽  
Financial Literacy ◽  
Financial Education ◽  
Proper Role ◽  
Partner Organization ◽  
Development Tool ◽  
Use Of Technology ◽  
Microfinance Institution ◽  
Loan Officers ◽  
Competing Priorities

This chapter examines a study conducted with the Peruvian microfinance institution Arariwa, which explores a number of questions regarding technology's potential and proper role as a development tool by implementing and testing a multimedia financial education program for clients. In this case, there are two major areas of failures: research setting and partner organization challenges. There were a few distinct instances of the former. First, the field sites presented challenges to the use of technology. Second, the intervention itself was deceptively complex. Finally, there was an element of bad timing in the flooding that caused repayment problems for some clients, thus adding stress to loan officers' already full plates. Indeed, competing priorities were a key partner organization challenge in this case. Loan officers were expected to deliver trainings without any lapses in, or relief from, their basic duties.

Child Health and Business Training with Credit

2018 ◽  
pp. 114-124
Author(s):  
Dean Karlan ◽  
Jacob Appel
Keyword(s):  
Child Health ◽  
Integrated Model ◽  
Front Line ◽  
Business Training ◽  
Staff Members ◽  
Poor Women ◽  
Microfinance Institution ◽  
Loan Officers ◽  
Competing Priorities ◽  
To Receive

This chapter examines a study conducted by a microfinance institution (MFI) where they began developing educational supplements for their client base of poor women on the topics of infant/child health and business training. With tailored materials ready, the MFI launched the program in about half of its branches, using an “integrated model” in which loan officers delivered the trainings during their weekly repayment meetings. As it turned out, only a portion of the groups assigned to receive training were actually receiving it, and often at lower intensity than was intended. The underlying failure is that both problems—missed trainings and trainings given to the wrong groups—went unchecked for so long. Moreover, front-line staff members involved in the study faced competing priorities. If loan officers had been more aware of and invested in the research or managers more vigilant, they might have caught these challenges and addressed them before it was too late.

scholarly journals Exploring the Motivation Toward and Perceived Usefulness of a Financial Education: Program Offered to Low-income Women in Indonesia

2017 ◽  
Vol 1 (1) ◽  
pp. 17
Author(s):  
Sri Rahayu Hijrah Hati
Keyword(s):  
Community Engagement ◽  
Low Income ◽  
Education Program ◽  
Financial Literacy ◽  
Financial Education ◽  
Perceived Usefulness ◽  
Perceptions And Attitudes ◽  
Low Income Women ◽  
The University

A previous study demonstrated that low-income women tend to have lower financial literacy. This low level of financial literacy affects the manner in which they manage their daily finances, as well as their ability to save for long-term needs. Currently, the statistics show that financial literacy in Indonesia is relatively low. To support Indonesian government in improving financial literacy, especially among the most marginalized group – women of low income – Universitas Indonesia launched a community engagement initiative conducted in the form of financial literacy training targeted at low-income women working as street sweepers around the university. This study investigates the motivation toward and perceived usefulness of the financial education program to improve the financial literacy of low-income women working as street sweepers around Universitas Indonesia. A mixed research method is applied in the study. The data were collected from in-depth interviews and a mini survey conducted to 23 low-income female street sweepers who joined the 10 weeks financial education program. Both quantitative and qualitative data were analyzed to produce a comprehensive description of the participants’ perceptions and attitudes toward the financial literacy program. The study demonstrates that the majority of low-income women have low motivation toward financial literacy education, and they also have a negative perception of the usefulness of such program. Thus, it is very important that all educators and trainers examine the characteristics of the trainees and assess the relevancy of the education program before they design certain community engagement program.

Transnational financial education for Filipino migrant workers

2019 ◽  
Vol 28 (4) ◽  
pp. 457-468
Author(s):  
Juyoung Jang ◽  
Seori Choi ◽  
Chang Won Lee ◽  
Stella Go
Keyword(s):  
Education Program ◽  
Migrant Workers ◽  
Financial Literacy ◽  
Financial Services ◽  
Financial Management ◽  
Financial Education ◽  
The Philippines ◽  
Primary Data ◽  
Education Programs ◽  
Contract Of Employment

This exploratory study sought to identify relevant topics for financial education programs for Filipino Employment Permit System (EPS) workers in Korea. EPS workers are temporary migrant workers who return to their home countries after their contract of employment ends. The study reviewed existing financial education programs for migrants in Korea and the Philippines and collected primary data through surveys and focus group interviews to develop a suitable financial education program for Filipino EPS workers. The results revealed that Filipino EPS workers were passive users of Korean financial services and often lacked financial literacy. Also, they did not have much communication with their families in the Philippines about financial management. A forum about transnational financial education was organized to discuss the implications of the study findings and a pilot financial education program was developed.

The Effectiveness of a Formal Financial Education Program at Primary Schools and the Role of Informal Financial Education

2021 ◽  
pp. 0193841X2110425
Author(s):  
Flavia Coda Moscarola ◽  
Adriaan Kalwij
Keyword(s):  
Treatment Group ◽  
Primary School ◽  
School Children ◽  
Education Program ◽  
Financial Literacy ◽  
Primary Schools ◽  
Comparison Group ◽  
Financial Education ◽  
Program Completion ◽  
Primary School Children

Objectives: This study examines the effectiveness of a formal financial education program for improving the financial literacy of primary school children and how this effectiveness is influenced by informal financial education provided by parents, such as giving pocket money and discussing money matters. Method: A quasi field experiment was carried out at the Museum of Saving in Turin where children participated in a financial education program (the treatment). The first two out of three classes that arrived at the museum were assigned to the treatment group and the third one to the comparison group. Difference-in-differences models are estimated using financial literacy data from a pretest taken about 1 week before the visit to the museum and a posttest taken on the day of the visit; just before starting with the program at the museum for the comparison group and just after program completion for the treatment group. Results: In line with previous studies, we find that our formal financial education program had a positive effect on the financial literacy of primary school children. The empirical findings provide weak evidence that this effect of formal financial education is stronger for children who received informal financial education from their parents. Conclusions: Our study contributes to the previous literature by presenting further evidence that a short extra-curricular course can be effective in increasing economic and financial literacy among students. Furthermore, we present suggestive evidence—worth of further research—that informal financial education can reinforce the effect of formal financial education. J.E.L. Codes: A29, C93, G40

scholarly journals Exploring the Motivation Toward and Perceived Usefulness of a Financial Education: Program Offered to Low-income Women in Indonesia

2017 ◽  
Vol 1 (1) ◽  
pp. 17
Author(s):  
Sri Rahayu Hijrah Hati
Keyword(s):  
Community Engagement ◽  
Low Income ◽  
Education Program ◽  
Financial Literacy ◽  
Financial Education ◽  
Perceived Usefulness ◽  
Perceptions And Attitudes ◽  
Low Income Women ◽  
The University

A previous study demonstrated that low-income women tend to have lower financial literacy. This low level of financial literacy affects the manner in which they manage their daily finances, as well as their ability to save for long-term needs. Currently, the statistics show that financial literacy in Indonesia is relatively low. To support Indonesian government in improving financial literacy, especially among the most marginalized group – women of low income – Universitas Indonesia launched a community engagement initiative conducted in the form of financial literacy training targeted at low-income women working as street sweepers around the university. This study investigates the motivation toward and perceived usefulness of the financial education program to improve the financial literacy of low-income women working as street sweepers around Universitas Indonesia. A mixed research method is applied in the study. The data were collected from in-depth interviews and a mini survey conducted to 23 low-income female street sweepers who joined the 10 weeks financial education program. Both quantitative and qualitative data were analyzed to produce a comprehensive description of the participants’ perceptions and attitudes toward the financial literacy program. The study demonstrates that the majority of low-income women have low motivation toward financial literacy education, and they also have a negative perception of the usefulness of such program. Thus, it is very important that all educators and trainers examine the characteristics of the trainees and assess the relevancy of the education program before they design certain community engagement program.

Student Teachers’ Capacity and Willingness to Teach Financial Literacy in Flanders

2017 ◽  
Vol 28 (2) ◽  
pp. 313-321 ◽  
Author(s):  
Lieven De Moor ◽  
Lindsey Verschetze
Keyword(s):  
Teacher Education ◽  
Student Teachers ◽  
Education Program ◽  
Financial Literacy ◽  
Teacher Education Program ◽  
Financial Education ◽  
Teacher Education Programs ◽  
Education Students ◽  
Education Programs ◽  
Teacher Education Students

The purpose of this article is to assess the student teachers’ capacity and willingness to teach financial literacy in Flanders via on-site paper surveys of 368 final-year teacher education students. We argue that the Flemish teacher education program needs to be revised to introduce financial education in secondary schools. We find that revisions to the program can improve student teachers’ capacity and increase their willingness to teach for financial literacy. Moreover, student teachers support such reforms. Thus, policymakers and researchers can use this article as a guideline for revising teacher education programs with respect to financial education.

Loan officer rotation and credit access: evidence from Madagascar

2019 ◽  
Vol 80 (1) ◽  
pp. 51-67
Author(s):  
Yaw Sarfo ◽  
Oliver Musshoff ◽  
Ron Weber
Keyword(s):  
Rural Areas ◽  
Urban Areas ◽  
Frequency Effect ◽  
Content Type ◽  
Credit Access ◽  
Loan Officer ◽  
Microfinance Institution ◽  
Lending Decisions ◽  
Loan Officers ◽  
Loan Approval

Purpose With exclusive data from a commercial microfinance institution (MFI) in Madagascar, the purpose of this paper is to investigate if loan officer rotation (change of loan officer) has an effect on credit access (loan approval) in rural and in urban areas. The authors further analyze how the frequency of loan officer rotation affects credit access in rural and in urban areas. Design/methodology/approach The authors apply propensity score matching to compare credit access between loan applicants who experienced loan officer rotation and loan applicants who experienced no loan officer rotation in rural and in urban areas. Findings Results show that loan officer rotation has a positive and statistically significant effect on credit access. The authors observe further that loan officer rotation has a different effect on credit access in rural and in urban areas. Whilst rural loan applicants who experienced loan officer rotation are more likely to have credit access, urban loan applicants show no statistically significant effect of loan officer rotation on credit access. For the frequency effect on credit access, the authors observe that one loan officer rotation has a positive and statistically significant effect on credit access whereas results are mixed for two loan officer rotations. Research limitations/implications Even though the authors can show that loan officer rotation can improve credit access to loan applicants, especially in rural areas, the conditions in Madagascar are unique. Therefore, results need to be verified in other countries and institutional contexts. Practical implications From the perspective of MFI, the authors recommend that the management of MFI needs to provide better tools to loan officers to improve on the evaluation of agricultural loan products or standardize the assessment of agricultural loan products to improve on lending decisions. Further, if applicable, the authors recommend that MFI should consider using credit worthiness assessment procedures which rely less on loan officer’s judgment for loan evaluation, such as automated systems. From the perspective of loan applicants, the authors recommend that loan applicants should request for a change of loan officer if they experience successive loan applications rejection. Originality/value To the authors’ knowledge, this paper is the first to provide empirical evidence on the effect and frequency of loan officer rotation on credit access in Sub-Sahara Africa, and Madagascar, in particular.

Analysis of Technology Acceptance Model (TAM) for Financial Literacy on Kids Application Technology

2021 ◽  
Vol 12 (3) ◽  
pp. 1004-1010
Author(s):  
Nurhanani Romli Et.al
Keyword(s):  
Technology Acceptance ◽  
Technology Acceptance Model ◽  
Financial Literacy ◽  
Formal Education ◽  
Preschool Age ◽  
Application Technology ◽  
Use Of Technology ◽  
Two Factors ◽  
Technology Applications ◽  
Acceptance Model

Financial literacy was very important to be introduced since the early children. In Malaysia, the children began to start for formal education of the stage in preschool. This paper will discuss about the acceptance of technology as a method to teach that kids for financial literacy. With the development in technology at present, using of teaching based on technology was very important for all levels including children at preschool age. The Technology Acceptance Model (TAM) was widely used in studies related to the use of technology applications in society. There are two factors variables that will test on this paper. The first one was perceived useful and the second one was easy to use. Quantitative method will be used to collect all of data. The questionnaire survey was distributed to a total of 136 respondents which it’s have been use the financial literacy application incorporated as a tools to teach the kids. Findings of the study indicate the importance of technology as a medium to teach kids regarding the financial literacy.

Financial literacy and its determinants: the case of rural farm households in Ghana

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Martinson Ankrah Twumasi ◽  
Yuansheng Jiang ◽  
Salina Adhikari ◽  
Caven Adu Gyamfi ◽  
Isaac Asare
Keyword(s):  
Developing Countries ◽  
Financial Literacy ◽  
Financial Education ◽  
Policy Implications ◽  
Farm Households ◽  
Community Group ◽  
Data Set ◽  
Content Type ◽  
Wide Range ◽  
Rural Dwellers

PurposeThis paper aims to examine the determinants of rural dwellers financial literacy in Ghana.Design/methodology/approachA cross-sectional primary data set was used to estimate the factors influencing rural farm households' financial literacy using the IV-Tobit model.FindingsThe findings reveal that most rural residents are financially illiterate. The econometrics model results depicted that respondents' socioeconomic and demographic characteristics such as gender, income, age and education significantly affect financial literacy. Again, respondents who are risk seekers and listen or watch education programs are more likely to be financially literate.Research limitations/implicationsThe paper examined the determinants of rural dwellers financial literacy in four regions in Ghana. Future research should consider all or many regions for an informed generalization of findings.Practical implicationsThis paper provides evidence that rural dwellers are financially illiterate and it would require the policymakers or non-governmental organizations (NGOs) to establish a village or community group that comprises a wide range of bankers and government officials to help rural dwellers acquire some financial skills. Also, the positive relationship between media (whether respondent watches or listens to educational programs) and financial literacy implies that policymakers should focus on improving individuals' financial knowledge through training programs and utilize the media as a channel to propagate financial education to the public.Originality/valueAlthough previous studies have examined the determinants of financial literacy, little is known in developing countries and, in particular, rural communities. The authors fill this gap by contributing to the scanty existing literature in developing countries in several ways. First, this is the first study to examine the financial literacy level of rural dwellers in Ghana. Second, to not undermine the credibility of the estimation results, this study addresses the potential endogeneity issue, which other researchers have not adequately recognized. Finally, the study expands the scant literature on the subject and provides critical policy implications that will help policymakers formulate financial market policies that will contribute to rural dwellers financial literacy enhancement.

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