TRAINER GUIDE MORE ABOUT MONEY: Financial Literacy for Informal Groups Fishing your dreams, planning your future

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1 TRAINER GUIDE MORE ABOUT MONEY: Financial Literacy for Informal Groups Fishing your dreams, planning your future Prepared by: With support from:

2 Session 1 Topic Learning Objectives In this session, participants will: Let s get saving! Build a savings habit and save regularly Outline the importance of saving Discuss the idea of saving little by little to meet a goal Explain how saving can help in case of an emergency Set personal goals STEP 1: Why Save? Start by showing everyone the image for Session 1. Then ask: What do you see in this picture? [Allow several participants to answer] What is happening in the PCR members minds? [People are thinking about different things, like fishing nets, boats, motorcycle.] Why do you think the PCR members are thinking about these things? [They are thinking about their goals for saving.] Why is it so important to save for your goals? [Allow several participants to answer] Then explain: With savings, you can realize a dream! Saving money is important because it helps us to reach our goals and dreams. First, think about your own dreams, and then set a goal to save. You will see, you can do it! STEP 2: How to Save? Give an example: I went fishing today and I sold my fish. I have got 5,000 Meticais today. I don t know how much I will be able to fish or sell tomorrow so I decide I need a plan and to set a goal for my savings for each month. I have decided to put aside 200 Meticais each week. By the end of the month I will have 800 Meticais, and 9600 in a year. With this money I will be able to buy my own material.

3 Ask the group: Listening to my example can you tell me how can you save? [Allow several participants to answer] Then explain: Saving is something done little by little, over time. Even by saving a small amount regularly I can reach a goal. First, you need to set your goals and make a plan. Then, decide how much you can save over time. This will let you earn and save more, and reach even larger goals, like having your own business. Like with fishing, we fill buckets one by one. It requires patience and stubbornness. With savings is the same, little by little until we fill the bucket! You can do it! STEP 3: Impact of Saving Give an example: In the example I gave you, my plan was to save 800 meticais per month to be able to buy fishing material. But if one day I have an accident or get sick, I will need money to go to the hospital. Saving is just like having a spare tire when you have an accident. With the money I saved I can go to the hospital, buy the medication and go back to work sooner because I dealt with my problem immediately. Ask the group: What else can you do with your savings? [Being able to deal with an accident or emergency right away.] If you find you cannot save quite enough to meet your goals, what else can you do? [Look for another way to make more money, another activity.] Then explain: Saving can help us to meet small goals, and then larger goals. We can buy things we want and need, and even start a business with our savings this will help us to save even more, and meet more goals. But in case of an accident or emergency, with savings, you can avoid having to borrow and get into debt, you can deal with the problem right away without waiting, and avoid losing work time and important earnings from someone in your family or yourself!

4 STEP 4: Take the Message Home Ask the group: Now let s all set a goal for ourselves. Think of a goal or a dream that you would like to save for. Maybe you already know! Think of steps and make your own plan. If time remains, allow several participants to offer their ideas of plans to save. Emphasize saving to meet smaller goals before larger goals, keeping money aside for emergencies, and looking for ways to save even more through a new activity. STEP 5: Review the Key Messages End by repeating the KEY MESSAGES of the session with participants: With savings, you can realize a dream. By saving even a small amount on a regular basis, you can reach a goal. If you put together some money, you can have your own business. Saving money also serves to address concerns or unexpected events. Take care of your money and yourself. You can do it!

5 Session 2 Topic Learning Objectives In this session, participants will: Where should we save? Saving in safe productive places formal institutions, mobile or a PCR Be introduced to various places to save (PCRs, M-Pesa / M-Kesh, Bank Accounts) Compare saving at home vs. saving in a PCR Identify safe and productive places to save money Consider using a bank, mobile account, or PCR for themselves STEP 1: Where to Save? Start by showing everyone the image for Session 2. Then ask: What is happening in the illustration? [Allow several participants to answer] The illustration shows saving in a bank, mobile account or PCR vs. saving at home. What is the difference? [Allow several answers] Give an example: I have decided to open a basic account at a bank which doesn t charge fees and the process to open is very simple. But I also have a mobile account (M-Pesa or M-Kesh). My bank account pays a small interest rate so when I have a large sum of money, like from my PCR s share out, I can keep it there. It will also earn some money while it stays in the bank! I also have an M-Pesa account and I m very happy. I don t have to carry cash with me when I go to do business, because I can pay for items in shops with my mobile account, I can deposit with an agent, make transfers and receive from clients. Also I can get a small bonus when I save money in my mobile account. I keep my secret PIN to myself, and tell no one! Ask the group: What are the advantages of a bank account? [It is safe, and it earns money through interest] What banks or mobile accounts are available near us? [Allow several participants to answer]

6 STEP 2: Safe Place to Save Ask the group: Have you or someone in your family ever lost money to theft at home? [Allow several participants to answer] What could you do to make sure that this does not happen again? [Allow several participants to answer] Saving in a bank, a mobile account and a PCR is safer but what are the differences between these options? [Allow several participants to answer] What can you do to keep your money safe and help it grow? [Join a PCR, and / or open an account in a bank, microfinance bank or a mobile account.] Then explain: Saving at home has risks, like thieves. We often find it easy, and think our secret spots are not known by others. But there is no way to be sure. Banks and microfinance banks have guards, locks, safes, and other security to make sure your money is safe. Mobile accounts have secret PIN numbers if you keep them to yourself, your money is available only to you. And a PCR group, while not as safe as a bank or mobile account, has a locked box and rules that members follow. When you save money, make safety first! A PCR is a great way to save, and to save together to reach your dreams. However, as you continue to grow, your money should grow too! A bank, microfinance bank, or a mobile account can keep your money safe and also help it to grow. Now, it is true that some banks have closed, and so before choosing a bank, it is also important to find out before you open your account if the bank is registered with the government, if others you know are happy with their service, and if there is a plan to recover your money if the bank does fail. In the end, keeping your money in a safe bank, a PCR, or a mobile account keeps it safe, accessible, and ready to work to meet your goals. At home, does your money grow when you bury it in a hole?

7 STEP 3: Save Together to Succeed Start by giving an example: In the example I gave you, my plan was to save 800 meticais per month to be able to buy fishing material. But if I do this by saving in a secret place in my house, each time I need to buy something small for the house some soap, matches, and salt it is easy to take from my savings. At the end of 4 months, I will find to have only 2,400 Meticais and not 3,200 as I planned. But if I put my savings in a PCR, I cannot take my savings out and after 4 months I will have in the box 3,200 Meticais. I m pursuing my goal and together with the other members of the group we will meet many goals! Then ask: In the example, what is the best way to meet my goals earlier? [Allow several participants to answer] Why is this? What is the difference between the ways in which you can save? [In a PCR you are encouraged by the group, and you have the chance to save every week on a regular basis. Saving with others helps to meet our goal faster. If you are trying alone, it is too easy to spend your money instead of continuing to save.] Explain: First, saving in a group helps you meet goals faster than saving alone. Second, it is too easy to spend money when you keep it at home. STEP 4: Take the Message Home Ask participants to think about how they can reach their goals and help their money to grow for them. Then explain: Just like with fishing, you should think safety first with your money. What is more, you should look for your money to grow, instead of sitting at home where you can easily use it without planning. Or worse, it could be stolen! Many people also get started using xitiques to save for a goal or a lump sum of money. Many of you are already part of such a group. First, you should always make sure you have trust for the people in your xitique, so that your money is safe as well. If you do use one, saving the money from your turn in a PCR, bank, or mobile account is a great way to keep that money safe, too!

8 STEP 5: Review the Key Messages End by repeating the KEY MESSAGES of the session with participants: Making dreams come true can be faster if you save in a group. Keeping money in a bank, M-Pesa or M-Kesh, or even a PCR, can help your money to grow. It is safer to keep money in a bank, M-Pesa or M-Kesh, both from yourself and from thieves. If you bury the money, it is not safe for tomorrow s future. You might lose it all.

9 Session 3 Topic Learning Objectives In this session, participants will: Managing money well Make and use a budget. Keep the household and business budgets separate. Calculate money in and money out Combine the ideas of money in, money out, and savings together to create a simple budget Define the term budget Discuss the reasons to budget STEP 1: Money In Show the image for Session 3 Ask the question, and then lead a discussion: What do you see in the picture? [Allow several participants to answer] [This man is thinking about his money in, money out, and savings. He will earn money from fishing, save in the bank, and spend on food, housing and transport.] Explain: Before you start to plan, it is helpful to get an idea of what you really earn (money in) and spend (money out). Let s start with money in. We ll do an example together as a group. Then ask: What are sources of money in for us? [Allow participants to offer their answers and then give an example] How much might someone earn from those sources? Let s say in a week or a month. [Choose 2-3 sources of money in, and get sample amounts from participants. Ask them to add those together.] Say: Congratulations! Now you have a good idea of the money in. Let s continue to the next step: money out.

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