Financial Education for Youth

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• Financial Education for Youth
• Reducing risk and vulnerability by providing
  economic options
• Rossana M. Ramírez
• Citigroup-INSEAD Financial Education Summit 2006
• Seoul, South Korea
• November 9-10, 2006

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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.

3
FEP Curriculum Development

• Bottom-up approach through global partnerships
• India SEWA Bank
• Philippines CARD Bank
• South Africa Teba Bank
• Morocco Al Amana
• Bolivia Pro Mujer
• Poland The Microfinance Centre

End product Generic modules that can be used in
any context
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FEP Curriculum Modules

• Budgeting
• Debt Management
• Savings
• Banking Services
• Financial Negotiations

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Characteristics of youth in high-risk settings

• Poverty
• Limited access to schooling
• Limited economic opportunities
• Lack of economic agency
• Financial pressures at an early age
• Increased exposure to risky sexual behaviors due
  to economic demands

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Development of pilot curriculum

• Market research focus groups, interviews,
  secondary research
• Adaptation of FEP curriculum Budgeting, Savings,
  Bank Services
• Pilot Test
• Training-of-Trainers
• Cross test and generic module development

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Case Study Kibera

• One million people living in a 4 square kilometer
  area on the edge of downtown Nairobi.
• Access to health care is severely limited.
• An estimated 20-30 of the population is HIV
  positive.

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Case Study Kibera
Partnership with the Binti Pamoja Center (BP) BP
uses photography, drama, writing, and group
discussion to explore issues that young women
face violence against women, rape,
prostitution, HIV/AIDS and other STDs, poverty,
sexual abuse, unequal access to education, lack
of reproductive health care and information, and
stifling domestic responsibilities .
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Importance of FE for youth
FINANCIAL EDUCATION

• Role of financial education in reducing risks
• Expand options and improve access to
  opportunities
• Prepare youth to face future financial
  responsibilities
• Prepare youth to use resources and seize
  opportunities
• Guide youth to negotiate for less risky behaviors

• Youth in high-risk settings
• Limited options and opportunities
• Financial pressures
• Pressure to engage in risky behaviors

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FE for Youth Highlights

• Debunking bank myths
• Discussing how savings helps to deal with
  unexpected emergencies
• Addressing challenges to savings
• Identifying places where to save
• Budgeting
• Visiting a bank

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FE for Youth Design and Delivery

• Design and delivery need to fit youth needs
  segment by age, gender, educational level,
  marital status, living situation, etc.
• Different levels of risks, vulnerabilities and
  opportunity structures require appropriate and
  relevant content and pedagogical approaches

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Difference between FE and Entrepreneurial
Education

• Financial Education focus on
• Developing knowledge and skills for managing
  money and resources.
• Preparing youth for increased personal efficacy
  and household responsibilities
• Knowledge, skills and attitudes that can mitigate
  risks and reduce vulnerabilities

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Conclusions
Financial Education can reduce risks by expanding
opportunities for vulnerable youth. Financial
Education must be adapted to meet the needs of
the target group.
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For more information
Jennefer Sebstad Microfinance Opportunities
(consultant) jsebstad_at_comcast.net Rossana M.
Ramírez Freedom from Hunger rramirez_at_freefromhunge
r.org Danielle Hopkins Microfinance
Opportunities danielleh_at_mfopps.org