AIM Youth Advancing Integrated Microfinance for Youth Understanding How Youth Spend Their Time and Money: Lessons from Useful Research Tools Megan Gash of Freedom from Hunger

Agenda 1.Financial Diaries 2.Data analysis activity 3.Sample data from savings groups in Mali

Introduction Freedom from Hunger Initiative Advancing Integrated Microfinance for Youth (AIM Youth) Provide 37,000 young people (22,000 in Mali and 15,000 in Ecuador) with financial services integrated with youth learner- centered financial education Youth are ages years Mali – NGOs: savings group program; MFIs: group savings accounts. Ecuador - cooperatives and credit unions: individual savings accounts.

What are financial diaries? Frequent surveys on financial topics How differ from other research methods? More accurate because learn the “real story” More detail about lives of youth Strengths: can identify seasons of low and high income, cash flow, when would need more loans, how use different financial services, fluctuations in migration

Financial Diaries in the Youth Context Human subjects protection protocol: university, national statistics office; parental and youth consent Budget; frequency Youth like speaking to youth (enumerators); building trust Incentives to participate: small gifts relevant to youth (300 FCFA value: soap, tea, sugar, trinkets), Availability: nights and weekends; call day before to confirm Replacements for migration Hawthorne effect: learn about money management Attitude questions work well

Study Design Study design 72 respondents: 36 treatment, 36 control (matching demographics) 2 areas; 3 villages per area; 6 respondents per village (18 per area) Purposeful yet random selection; represent geography, age, gender Survey design: Surveys filled with data from last survey; use same enumerators Every 3 weeks for 3 months; then once a month Data analysis: Systematization, periodic receipt Analyst

Lessons Learned Labor intensive Cut costs: less frequent surveys, smaller sample Flexibility, gifts are important to parents Follow migrating youth? Control villages could learn about intervention Same enumerators, ICT data collection if possible Check data early and often Consider qualitative follow-up: extra insight, case studies

Data Analysis Activity

Instructions: 1.Form groups of 2-3 people 2.Review data tables on handout and discuss the following questions (10 minutes total): 1.How do the outcomes change over time? 2.What is helpful about knowing how the data changes over time? 3.Plenary discussion of conclusions (5 mins)

Key Results Results for July 2011 – January 2012 Mixture of descriptive and impact analysis Preliminary analysis; some questions unanswered

Key Results: Demographics Savings Group Participant Outcomes (treatment) 84% are years old; 16% are % unmarried; 55% in school Food Security and Poverty Level Outcomes: JulyOctoberJanuary Percentage of respondents who are food insecure 44%67%20% Percentage of respondents who fall below the National Poverty Line 63%67%71%

Savings: Location Where savings group members are saving money: 1.Savings group 2.Livestock 3. With guardian at home “If you had the choice, where would you prefer to save your money?” July: 1) bank, 2) with a guardian, 3) savings group January: 1) savings group, 2) bank, 3) with a guardian

Savings: Amount Savings group participants are saving more & building more assets than control group

Financial Knowledge Improvements in knowledge: 1)identifying safe places to save money 2)identifying strategies to protect long-term strategies 3)differentiating between good and bad borrowing decisions

Financial Attitudes Improvements across all of these 6 indicators… …no improvements: paying unexpected expenses, speaking up at home Indicator (% disagree with statement) July October January Saving for longer than one month is too hard 39%67%71% My money is not safe enough 70%75%94% I often regret purchase I make 47%58%72% It is difficult to save money because friends and family ask for it 28%72%77% I worry about using money from long-term savings for unexpected expenses -47%57% I have difficulty paying my own daily expenses 17%25%48%

Summary of Findings: Mali Youth earn significant amounts of their own money Youth are using several tools for saving Youth need access to loans: risk management; support for family Youth savings groups have been able to increase savings for youth in rural and remote areas Several positive knowledge & attitude changes!

Questions?

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