Professional Documents
Culture Documents
Youth Savings in
Developing Countries
Trends in Practice, Gaps in Knowledge
Photo Caption: After a tour of a XacBank branch and a chance to open their
own savings accounts, 14 and 15 year old Mongolian girls proudly display
their new passbooks and vouchers. Courtesy of Womens World Banking.
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Abstract
Research and experience to date suggest that savings and private investment in this area. This paper explores
accounts for low-income youth may be a high-leverage tool the potential of youth savings accounts (YSAs) as an inter-
to achieve both youth development and financial inclusion vention at the nexus of youth development and financial
objectives. This potential has led a variety of stakeholders inclusion by reviewing: 1) current evidence on the potential
to invest in youth savings products, programs, and policies effects of YSAs on these two development goals; 2) current
around the world. However, there is limited evidence on trends in the state of practice on YSAs in developing coun-
whether these initiatives are fulfilling either type of devel- tries, drawing out any implications for achieving these
opment potential, or what types of youth savings initiatives goals; and 3) what information is still needed before we
might potentially achieve both. More experimentation and can fully understand whether and how YSAs could actually
research on these questions are needed to optimize public achieve this dual potential.
EDITORS About YouthSave
RANI DESHPANDE Supported by The MasterCard Foundation, YouthSave is a consortium project led by
JAMIE M. ZIMMERMAN Save the Children in partnership with the Center for Social Development at Washington
University in St. Louis (CSD), the New America Foundation (NAF), and CGAP
CONTRIBUTORS (Consultative Group to Assist the Poor). YouthSave has three goals: 1) Work with local
DAVID ANSONG financial institutions in four countries (Colombia, Ghana, Kenya and Nepal) to develop
SHWETA S. BANERJEE and roll out savings products accessible to low-income youth; 2) Study the uptake,
RAY BOSHARA usage, and impact of these youth savings products through both a youth development
GINA CHOWA and a financial inclusion lens; and 3) Use project learnings to inform global dialogue
RANI DESHPANDE and practice on youth savings.
LISSA JOHNSON
RAINIER MASA
KATE MCKEE Acknowledgements
MARGARET MILLER This report was made possible by the generous support of The MasterCard Foundation
MARGARET SHERRADEN for the YouthSave Initiative planning grant from 2009 to 2010. We would also like to
MICHAEL SHERRADEN express our gratitude to the numerous policymakers, financial services professionals,
FRED SSEWAMALA and youth development practitioners who gave us their time and attention during field
THIERRY VAN BASTELAER visit interviews in Africa, Asia, and Latin America and in responding to follow-up inter-
JAMIE M. ZIMMERMAN views and requests for information. We also wish to thank Courtney James, Shweta S.
LI ZOU Banerjee, and Leila Seradj for their thorough research support, as well as the YouthSave
Expert Advisory Board for their constructive comments.
Contents
Part I. Why Youth Savings Accounts?................................... 1
Bibliography......................................................................... 32
Notes...................................................................................36
Part I. Why Youth Savings Accounts? youth savings accounts (YSAs).3 Under this view, YSAs
Eager to find tools that provide social and economic oppor- may be a tool to introduce a greater number of low-income
tunities to one of the worlds largest and most vulnerable clients into the formal financial system at an earlier time.
populations1 low-income youth an increasing num- To the extent that YSAs were commercially viable, financial
ber of scholars and practitioners is exploring whether institutions would have an incentive to take them to scale,
savings services can influence youth development. Over increasing their potential as a sustainable tool for finan-
the last 20 years, a growing body of evidence has shown cial inclusion. YSAs could also be particularly effective in
that building assets, and specifically savings, can have a enhancing the financial capability dimension of financial
range of positive social and economic impacts on individ- inclusion, by reaching clients at an age when new habits
uals and households, including those with low incomes.2 are still relatively easy to form and enabling a learning by
Although much of this research has been conducted in doing approach to money management skills.
industrialized countries, recent experiments in develop-
ing countries have begun to show links between youth- What has not yet been explored is to what extent YSAs could
owned savings accounts and positive changes in attitudes achieve goals in both these areas youth development
and behaviors among low-income and/or socially disad- and financial inclusion at the same time. If so, then
vantaged youth. YSAs may have the potential to be a high-leverage inter-
vention, with effects on multiple development priorities.
More recently, the microfinance field, searching for mech- However, very little is known about what types or combina-
anisms to accelerate financial inclusion of the poor, has tions of youth savings products and services would best
begun to consider whether there is a business case for contribute to achieving both youth development and finan-
Financial Capability: The combination of knowledge, skills, attitudes, and especially behaviors that people need to
make sound personal finance decisions, suited to their social and financial circumstances; often used interchange-
ably with financial literacy and financial education, but places more emphasis on translating knowledge into
behaviors and practices.
Financial Inclusion: The availability of a complete suite of financial services including savings, credit, insurance,
and payments to all who can use them.
Sustainability: Refers to the financial viability, over the short or long term, of a financial product, service, or institution.
Total Client Profitability: The net value of a client over his/her lifetime with the financial institution, including
profit from all products/services utilized.
Youth: Per the United Nations, youth includes teens (13 to 19) and young adults (20 to 24). This paper focuses on
YSAs targeted or accessible to low-income youth.
Youth Savings Account (YSA): A savings account targeted to or designed to be easily accessible to youth. This paper
focuses on YSAs targeted or accessible to low-income youth.
Youth Savings Initiative: Any product, program, or policy that includes a YSA as a core component.
Social: Greater social empowerment, such as improved social status and feelings of social inclusion, enhanced
civic and political engagement.
Youth savings programs: YSAs offered as a result of initiatives by a nonprofit institution to promote specific
social outcomes; often involve a financial institution partner; sometimes designed as a small-scale pilot of a future
policy, and almost always involve additional support services.
Youth savings policies: YSAs offered as a result of an act of government, covering either all youth or all youth
in a certain category; designed to encourage asset building or other positive behaviors; typically feature both direct
financial incentives/subsidies and restrictions on the withdrawal and/or use of funds.
Indeed, it is not uncommon for youth savings programs to Other youth savings programs report that youth appreci-
involve a constellation of three or more partners. Working ate groups because of the social interaction they afford
with a variety of stakeholders may allow for a more holis- i.e. groups make the YSA more attractive. For this reason,
tic approach to savings-based interventions for a particular even some programs that do partner with formal financial
youth population, but may not be appropriate for a wider institutions use groups to further their social/development
cross-section of youth. goals. Market research by the Population Council and
MicroSave, for example, confirmed this finding among
Group Models low-income girls in Kenya. The methodology they devel-
The use of group models is common among youth sav- oped for the project Safe and Smart Savings Products for
ings programs, and generally occurs in two forms. First, Vulnerable Adolescent Girls in Kenya and Uganda (a fol-
some NGOs generally not regulated to provide financial low-up to TRY) therefore includes substantial group inter-
services themselves organize savings-and-credit groups action, although each girl has her own individual account
such as Village Savings and Loan Associations (VSLAs). at a formal financial institution.
In this arrangement, the NGO organizes groups to pro-
vide them with a savings product, essentially informally Among youth savings programs, such savings-only groups
assuming the role of the financial institution. are far rarer than savings-and-credit groups. The former
appear to exist only where youth are provided accounts at a
The NGO PLAN International in West Africa has con- formal financial institution, which generally necessitates a
ducted one of the largest VSLA pilots for youth. By the end partnership between the NGO and a financial institution.
of the project pilot phase in September 2009, PLAN had Where NGOs or NGO MFIs organize groups on their own,
mobilized nearly 4,000 youth aged 15-24 into YSLAs (youth they tend to include credit.
savings and loan associations) in Senegal, Sierra Leone, and
Niger; in March 2010, PLAN announced plans to expand Group savings-and-credit methodologies have a long
this project to reach 70,000 youth within four years.46 history with adults, but youth-only groups on a large
scale are a recent phenomenon. It is therefore too early
CARE International and Freedom from Hunger have also to tell whether using them to offer credit, as well as
initiated informal savings-and-credit groups for youth. savings services, to youth will be beneficial in the long
CAREs Ishaka project in Burundi aims to empower run. More experience is also needed to confirm whether
10,000 girls, ages 14-22, through a combination of VSLAs youth-only savings-and-credit groups perform as well as
and support services. In December 2009, Freedom from adult groups.
Hunger launched Advancing Integrated Microfinance
(AIM) for Youth in Mali and Ecuador, combining group Support Services
financial services and financial education for 37,000 youth The group model may also be popular for NGOs because
aged 13-24. it is a convenient vehicle to deliver additional training and
counseling to young clients, which is considered a core
In the second scenario, the sponsoring NGO is structured component of most youth savings programs. In fact, all but
to provide individual financial services itself, yet it still pre- one of the programs reviewed in this section include such a
fers to use groups with youth clients. In this case, the NGO component. Though topics vary, all cover financial literacy
plays multiple roles: it provides a formal financial product in some way. Other common subjects include life skills,
as well as other targeted support services. In Bangladesh, entrepreneurship, and sexual and reproductive health.
TRY (Kenya) Training on sexual and reproductive health, business management, entrepreneurial
skills, life skills, and gender roles.
BRAC (Bangladesh) Vocational and income-generating skills training; discussions on issues such as
health, child marriage, and dowry.
Padakhep (Bangladesh) Training on vocational skills, nutrition, personal hygiene, HIV/STD prevention, basic
literacy, and financial literacy; group entertainment and social activities.
Organizing groups and offering training appear to be goals broader than basic asset building, such as alleviating
unique roles played by NGOs across the three types of youth poverty, accelerating financial inclusion and/or increasing
savings initiatives. Extremely few stand-alone youth sav- equity within society. To achieve these goals, youth savings
ings products included either groups or training; as detailed policies promote asset accumulation through incentivized
below, the same is true of youth savings policies. An inter- accounts held at formal financial institutions. To ensure
mediary is needed to organize and monitor these intensive savings are built and put toward the intended goal, YSAs
complements to YSA provision, and to ensure that they provided through youth savings policies typically feature
meet the needs of young clients. However, the cost of these significant withdrawal limitations, but also significant
supports means that youth savings programs have required financial incentives or subsidies provided by the govern-
significant donor funding and, at least as of yet, have ben- ment. Directly subsidizing youth savings is not an insub-
efited relatively small numbers of youth. The one exception stantial financial commitment, however, and it is telling
among programs studied was BRAC, which as an MFI may that no developing countries have made YSAs universal.
have the structural capacity and incentives to achieve scale Currently, the few youth savings policies and policy pilots
(e.g. broader targeting and a revenue stream from credit). in the developing world cover only particularly low-income
Still, even BRAC acknowledges that while it expects its ELA or vulnerable youth.
program to reach sustainability, it will require a significant
amount of subsidy in the early years.48 Universal vs. Conditional Provision
The best-known form of youth savings policy is the
The next section will discuss how some governments mandated universal provision of incentivized accounts,
have attempted to deliver the potential benefits of youth restricted until adulthood, typically the age of 18. In these
savings to wider swaths of the youth population, and how cases, the account typically is provided at birth. These
that has impacted the design of youth savings policies policies are therefore not targeted at youth per se but are
and policy pilots. intended to help provide youth with the stock of resources
needed to make productive investments once they enter the
Policies formal economy. The three existing examples of mandated
Like the programs described above, youth savings policies universal provision of savings accounts The United
are centered on achieving social or economic development Kingdoms Child Trust Fund, Singapores Baby Bonus, and
Savings incentives may come in the form of a seed Oportunidades Rurales in Colombia also imposes restric-
deposit, a periodic savings match, or bonus transfers into tions on withdrawals and usage. Over the course of the
the account. The most common savings incentive the three-year program, the government provides a 50 percent
match is intended to encourage saving accumulation match to all savings deposited into basic, no-fee accounts
by making periodic deposits into the account, in fixed at Banco Agrario. Beneficiaries can only withdraw up to 50
amounts or in proportion to the amount saved. Initial percent of the match incentive. Savings can be used only
Initiative Accounts
Products
Bancolombia 600,000 a
Hatton National Bank 500,000
GSB Thailand 513,000
National Savings Bank 390,000
MICOOPE 217,000
Bank Simpanan Nasional 60,000
PMPC 8,400
Cantilan Bank 4,500
ProCredit Ghana 3,000
Kenya Post Office Savings Bank 2,600 b
Bangko Kabayan 500
Programs
BRAC 430,000
World Vision Ethiopia 15,000
Butterflies, Childrens Development Bank 8,000
CRS Rwanda 6,200 c
PLAN International 4,000
Padakhep 4,800
WWB/XacBank 2,500
Safe and Smart Savings Products (Population Council and MicroSave) 1,050
MEDA YouthInvest 1,000
SUUBI, Uganda 983 d
TRY, Kenya 535
Policies
Jovenes con Oportunidades 300,000
Bogota SAES 100,000 e
Fundisa 10,000
Oportunidades Rurales c 4,000
Bayelsa State Government, Nigeria 1,000 f
a All youth products.
b Bidii Junior product only.
c Orphaned and Vulnerable Children (OVCs) only.
d Total of first- and second-phase participants.
e All beneficiaries. Includes a portion whose subsidy is not linked to savings account.
f Target minimum number for pilot.
In wealthier countries, policies that mandate univer- or less (although some programs are projected to grow
sal provision can reach millions of youth and by their substantially in the coming years).
nature ensure that all low-income youth will have access
to accounts. However, the more targeted youth savings Accumulation of Balances over Time
policies and pilots that exist in the developing world reach The asset effects stemming from the accumulation of
similar numbers of youth as NGO-led programs. Most savings is the main vector through which youth develop-
examples of both these types currently reach 15,000 youth ment outcomes may occur. The accumulation of balances
What has been the commercial performance The savings performance of different types of
of youth savings products that have already been youth clients in the same product (because finan-
on the market for a number of years in terms of cial institutions are unlikely to have collected all
customer acquisition and retention, savings mobi- the relevant socio-demographic variables on cli-
lization, and cross-selling over time? What are the ents and their families, or store them in a form
costs and benefits of pursuing a differentiated that can be correlated with savings patterns).
approach to acquiring youth clients?
The longer-term social, psychological, and
Does an analysis of existing products, pro- economic impact of youth savings accounts
grams, and policies reveal any lessons about the on young clients and their households (which
value of complementary services in producing requires rigorous baseline data collection and
positive outcomes for low-income youth? sampling strategies that are ideally formulated in
conjunction with product rollout).
The policy environment for YSAs also bears further inves-
tigation. Although out of the scope of this paper, specific Some of the business-case-related questions
aspects of financial sector policy and regulations can have mentioned above (since few financial institutions
an important effect on the feasibility of offering different in the developing world regularly collect all the
types of YSAs. Key among these are: 1) legal restrictions on data needed to answer them).
What are the impacts of YSAs on develop- No one research institution, project, or donor can imple-
mental outcomes for youth and on household ment a learning agenda that fills all of these knowledge
finances, and well-being more generally? gaps. The good news is that, given the increasing interest
in youth savings from a wide variety of stakeholders, the
How do the implementation and functioning level of intellectual and financial resources being devoted
of youth savings inform its potential as a social and to these questions from diverse fields including social
economic development strategy in each country? work, microfinance, and public policy is also increasing.
The YouthSave Consortium welcomes this accelerating
Part VI. Conclusion activity and hopes that it will inform the increasing invest-
As outlined in this report, evidence suggests that promoting ment resources in youth savings, thereby optimizing the
youth savings may have the potential to be a high-leverage use of public, donor, and private resources for the benefit
intervention, with positive effects on youth development of disadvantaged youth..
Institution Account Name Number of Volume of Target Age Account Opening Deposit
Accounts Deposits Group Manager (OD) and Minimum
Mobilized Balance (MB)
Banco Caja Social, Tuticuenta 109,000 USD 7.6 7-17 Parent/ USD 5 (OD)
Colombia (BCSC) million guardian -
Bangko Kabayan, Savers Club 500 USD 7-16 Youth USD 2 (OD)
Philippines 270,000 USD 2 (MB)
Bank Simpanan Youth Savers 60,000 USD 13.9 6-20 n/a USD 1.50 (OD)
Nasional (BSN), Club million -
Malaysia
Cantilan Bank, Student Savers 4,500 USD 0-13 <8: Parent/ USD 2 (OD)
Philippines Clubs 225,000 guardian; USD 2 (interest bear-
>8: Youth ing USD 11) (MB)
Higher interest rates than regular accounts. Gifts (e.g. coloring books) for No deposit, debit card, or maintenance
quarterly balance increases of > USD 37. fees. 1 free withdrawal per month from a
Bancolombia ATM.
10% bonus on interest earned if no withdrawals are made within the year. No deposit or maintenance fees, two free with-
drawals per year.
Discount shopping card and a specially designed debit card (kids under 7 -
receive a JSC ID).
-
Interest higher than other bank products. Withdrawals permitted only once a month.
Double interest if no withdrawals are made in a quarter. Withdrawals permitted only once a quarter.
Tiered incentives: pencils (USD 11), T-shirt (USD 110), and insurance 20% withholding tax on interest, USD 1
(USD 168). quarterly dormancy charge.
Free ele-bank (piggy bank). Discounted bank checks for school fees. Discounts at -
bookstores, uniform distributors, childrens hospitals, and entertainment venues.
Free bankers check for school fees. Access to school fees loan. No deposit, maintenance, or withdrawal
fees. Withdrawals permitted only four
times a year.
Key: (-) means data is unavailable; (n/a) means it is not applicable.
Institution Account Name Number of Volume of Target Age Account Opening Deposit
Accounts Deposits Group Manager (OD) and Minimum
Mobilized Balance (MB)
Government School-based 513,000 USD 6.25 Students in Youth USD 0.03 (MB)
Savings Bank, banking scheme million elementary,
Thailand secondary,
high and
vocational
schools
Hatton National Singithi Kiriketiyo 600,000 USD 60 0-5 Parent/ USD 1 (OD)
Bank, Sri Lanka million guardian No min. balance
required
Singithi 500,000 6-20 Youth
HFC Bank, Ghana Students Plus 1,075 USD 18-24 Youth No opening balance
Account 21,000 required
USD 14 (MB)
Kenya Post Office Bidii Junior 2,600 USD 0-18 Parent/ USD 7 (OD)
Savings Bank 440,000 guardian USD 7 (MB)
Free bankers check for school fees. No deposit or maintenance fees. 3 free withdrawals a year.
Free bankers check for school fee and personal accident Free cash deposits, no monthly maintenance fees.
benefit.
Interest 3% above the normal rate and matches at 50 No deposit, maintenance, or withdrawal fees. Central
percent initial deposit when starting school. Bank regulations prohibit withdrawals prior to age 18
except for specific, approved purposes.
Tiered incentives and interest 1% above the normal rate.
Institution Account Name Number of Volume of Target Age Account Opening Deposit
Accounts Deposits Group Manager (OD) and Minimum
Mobilized Balance (MB)
MICOOPE, n/a 217,000 USD 9.4 Childrens Parent/ USD 0.62 - 5 (OD)
Guatemala million accounts: 0-12 guardian
USD 0.60 (MB)
Youth
accounts: 13-17
National Savings Kiri Keti Hapan 390,000 USD 30 Newborn to 3 Parent/ USD 0.04 (OD)
Bank, Sri Lanka million months guardian
Opportunity Tsoglo Langa (My Product still Product still 7-18 Parent/ USD 3 (OD & MB)
International Bank Future) in planning in planning guardian
of Malawi stages. stages.
Paglaum Youth Savers Club 3,100 USD 8,700 0-13 Parent/ USD 2 (OD)
Multi-Purpose guardian Interest-bearing
Cooperative min. balance USD 5
(PMPC),
Philippines Power Teens Club 5,300 USD 13-18 Youth USD 3 (OD)
35,000 Interest-bearing
min. balance USD5
Some cooperatives offer scholarships or hold raffles, which No deposit, maintenance, or withdrawal fees.
account holders enter by saving certain amounts, e.g. for every
USD1 saved, the account holder receives a ticket to enter a
drawing.
Bank makes initial deposit of USD 2. Central Bank regulations prohibit withdrawals prior to
age 18 except for specific, approved purposes.
7% interest (highest interest paid nationwide). Assistance is Funds can only be used for school fees or for other
offered to the school that opens the most accounts and scholar- school-related expenses, and funds are directly
ships for students that save consistently. Planned special transferred to the schools to ensure this.
promotions include lotteries.
School supplies for saving a minimum of USD 10. Free accident Parent/guardian consent for application and
insurance reimbursement. withdrawals required for those under 16.
Interest higher than other bank products. No deposit or maintenance fees. Withdrawal fee of
USD 1 for more than one withdrawal per month. Mobile
banking for clients that are not near bank branches.
Tiered incentives include mugs, games, and watches. Grants Central Bank regulations prohibit withdrawals prior to
available for sick account holders and participants in age 18 except for specific, approved purposes.
international sport and cultural competitions.
BRAC, Bangladesh Employment and Livelihood for 430,000 14-25, low-income Group
Adolescents (ELA) adolescent girls in rural
Bangladesh
Butterflies, India Childrens Development Bank 8,000 8-18; Rural and urban Individual
poor children; Street and
working children
Catholic Relief Savings and Internal Lending 27,000 SILC 12-18; Orphans and vul- Group
Services (CRS) Communities (SILC) members, of nerable children (OVC),
Rwanda with Caritas which 6,200 are including child-headed
Rwanda OVC participants households (CHH).
Freedom from Hunger, AIM Youth (Advancing Integrated n/a 13-24; Low-income youth. -
Ecuador and Mali Microfinance for Youth)
The Aflatoun program teaches social and financial Account terms vary among financial institution partners
education through curricula contextualized for the
appropriate regions.
Skills training is provided to some members to encour- Members are arranged into groups called Village
age income-generating activities (IGA) including tailor- Organizations (VOs), which meet weekly where the weekly
ing, horticulture, and agriculture. Livelihoods issues are installments and savings are collected by staff. Each
discussed at meetings and include reproductive health, member saves USD 0.07 or above weekly and receives a
early marriage and dowry. yearly return of 5% on it.
Financial literacy is provided in life skills education No limitations on withdrawals. No restriction on use of
program. savings but monthly data is collected on use of savings.
Interest rate of 3.5% per annum. Youth volunteer
managers (selected from members), adult facilitators, and
other members increase outreach by talking to other
children, their friends etc.
Basic financial education is provided and usually VSL group cycles range from 8-12 months, at the end of the
integrated with vocational training. Learning tours are cycle a share-out takes place of savings and dividend.
organized between SILC groups. Most groups are
composed of youth and adults to allow for mentoring
and transfer of life skills.
NGO partners deliver 108 hours of training covering No withdrawal limitations or savings restrictions.
life skills, entrepreneurship, and financial literacy.
PLAN International, Niger, Sierra Making Financial 4,000 15-24; Out-of-school, Individual
Leone and Senegal Services and Business working youth.
Skills Development
Available to African
Children and Youth
Population Council and Safe and Smart Savings 1,050 10-19; Low-income, Individual
MicroSave, Kenya Products for Vulnerable vulnerable, and at-risk
Adolescent Girls in adolescent girls.
Kenya and Uganda
Save the Children, Bangladesh, Various Over 5,000 10-22; Rural, adolescent Group
Bolivia, Malawi, and Uganda girls, in poverty-affected
areas.
Tap and Reposition Youth (TRY), TRY Young Savers 535 16-22; Out-of-school, Group
Population Council with K-Rep Club vulnerable adolescent
Development Agency (KDA), Kenya girls
World Vision Ethiopia n/a 15,000 4-14; Youth from the Individual
poorest of the poor
households and orphans
and vulnerable children
Womens World Banking with Aspire 2,500 14-17; Designed for low- Individual
XacBank, Mongolia income girls, in- and
out-of-school
Financial literacy, business and life skills Group members decide on min. amount to be saved per member per
development services are provided. Community group meeting. Members save the value of at least one share every
volunteers extend the provision of services to meeting (weekly or bi-monthly). Groups decide whether to allow or
broader communities. prohibit withdrawals. Most groups do not allow withdrawals during a
cycle, ranging from 6-18 months. At the end of the cycle all members
withdraw their savings and receive a dividend.
Financial education and other health-related Due to legal age restrictions, withdrawals must be done with the
trainings are held at group meetings. Safe spaces groups mentor. Targeted mobilization through existing clients;
are arranged by the partner financial institution announcements at schools, churches, mosques, and existing
and a mentor over 18 chosen by the group, who community programs, word of mouth, and door-to-door
facilitates financial transactions and serves as a role recruitment. Delivery channels differ among institutions but
model and source of support. deposits are usually done at group meetings or at a bank branch.
Financial education is linked with health training Withdrawals limited during the savings cycle. Malawi program
and practical learning experience, and incorporates includes credit; others are savings-only. Participants establish
games, simulations, and participatory exercises. savings plans with specific savings targets, although the end use is
The financial literacy curriculum is developed and not controlled.
revised for the relevant youth context.
There are after school financial literacy activities in The accounts are restricted for educational and/or small-business
partnership with the partner financial institutions. development. The savings accounts are matched by 2:1. A participant
must have saved, and must be attending school to receive the match.
Financial education activities and reproductive Withdrawals were restricted and could only be made when leaving
health training was provided. the program.
Financial literacy activities are not integrated into World Vision deposits approximately USD10 each year.
the program. Withdrawals are restricted before age 18 or by special request for
justifiable reasons approved by World Vision (to prevent guardians
from exploiting children). Savings to be used for microenterprise,
skills acquisition, or for continuing higher education. World
Vision performs targeted outreach to identify beneficiaries.
Financial education messages have been integrated No withdrawal limitations for demand deposits and card accounts.
into the marketing of the products, which are tailored For time deposits, if withdrawal occurs before the maturity date,
to low-income girls and their parents/guardians. In the interest rate reverts to that of a demand deposit. Incentives
the capital city there are some facilitated financial edu- include gifts for opening accounts, reaching various deposit levels,
cation classes provided by Microfinance Opportunities. and for regular deposit behavior for demand deposit accounts.
Key: (-) means data is unavailable; (n/a) means it is not applicable.
Institution Account Name Number of Volume of Target Age Account Opening Deposit and
Accounts Deposits Group Manager Minimum Balance
Mobilized
Bayelsa State Nigeria Child Up to 1,000 n/a 11-15 Parent/ Bayelsa State
Government, Development guardian Government makes
Nigeria Accounts (pilot and/or youth the initial deposit of
study to begin in USD 265
2010)
The Fundisa Fund, Fundisa 10,000 USD 1.8 0-35 Parent/ USD 5
South Africa million guardian
Type 2:
students
in 6th-8th
grade
Initial deposit of USD 265. 2:1 match Withdrawal restrictions: government funds to only be used for skills
(match cap of USD 265 in a year. Students acquisition, continued education, or microenterprise investment;
in the top 15 percentile of the national withdrawals from youths contribution are not restricted. Outreach efforts:
examination receive an annual bonus of communication campaign including radio, selecting public schools
USD65 through a lottery system and involving community stakeholders.
The amount of the bonus can be as much Minimum monthly deposit of USD 5. Withdrawals restricted to educational
as 25% (one quarter) of annual savings, to purposes, or any bonus will be lost. Specialized marketing: targets
a maximum of USD 80 per child. low-income communities by radio, newspaper, and video campaigns
distributed through Stokvels (informal savings groups) and health clinics.
Type 1: Payment of USD 36 every two Beneficiaries receive the subsidy based on fulfilling certain conditionalities
months (not account-linked) for only 2 years, counting the initial year when they were selected
50% match for 3 years. Savings can be used for productive projects, health, and education;
monitoring is done through agricultural colleges. Only 50% of the match
can be withdrawn.
Annual rewards deposited into accounts No withdrawals until graduation from secondary school or until the
every year that youth remain in school. age of 22.
Key: (-) means data is unavailable; (n/a) means it is not applicable.
Aflatoun
Association for Savings & Investment South Africa (for Fundisa)
Bancolombia, Colombia
Bangko Kabayan, Philippines
Butterflies, India (for Childrens Development Bank)
Cantilan Bank, Philippines
Center for the New Economy, Puerto Rico (for Cauguas program)
Center for Social Development, Washington University in St Louis (for child development accounts programs in Korea and
Singapore as well as the SEED USA, SEED/SUUBI Uganda programs)
Child Trust Fund, United Kingdom
Equity Bank, Kenya
Freedom from Hunger
Hatton National Bank, Sri Lanka
HFC Bank, Ghana
Green Bank, Philippines
Kenya Post Office Savings Bank
Mennonite Economic Development Associates (MEDA), Egypt and Morocco
Ministerio de Agricultura y Desarrollo Rural, Colombia
MICOOPE, Guatemala and World Council of Credit Unions
Opportunity International Bank of Malawi
Paglaum Multi-Purpose Cooperative (PMPC) Philippines
ProCredit Ghana
PLAN International, Niger, Sierra Leone and Senegal
SEED/SUUBI, Uganda
Population Council and K-Rep Development Agency (KDA), Kenya (for the TRY program)
World Vision, Ethiopia
Womens World Banking (for Xac Bank, Mongolia)
This survey was conducted by Save the Children, USA, and New America Foundation.
The data presented in these appendices are the most current available, and are gathered from a variety of sources including
a) desk research; b) information derived from the YouthSave Consortium field visits to Africa, Asia and Latin America, and;
c) responses to surveys administered between February and April 2010.
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cational outcomes: Child Development Accounts (CDAs) Kelly Hallman. Socioeconomic Disadvantage and Unsafe
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6 Social development scholars have identified five key types 18 J. Curley, F.M. Ssewamala, and C.-K. Han (in press).
of capital assets of the poor: human, financial, natural, social,
and physical. For this paper, the discussion of asset accumu- 19 F.M. Ssewamala, C,-K. Han, and T.B. Neilands (2009).
lation is limited to financial assets that are later invested for
development purposes. 20 F.M. Ssewamala, L. Ismayilova, M. McKay, E. Sperber, W.
Bannon, and S. Alicea (2010)
7 Schreiner and Sherraden (2007); Margaret S. Sherraden
and A.M. McBride (2010). 21 http://www.popcouncil.org/pdfs/TABriefs/PGY_Brief17_
Livelihoods.pdf.
8 See for example: Zhan and Sherraden (2009); and Hallman
(2004) and the research reviewed in G. Chowa et al (2009). 22 Defined as places in the community where it is safe for
unmarried adolescent girls to congregate.
9 T.W. Shanks et al (forthcoming); G. Chowa et al. (forth-
coming); M. Destin and D. Oyserman (2009); and W. Elliott 23 B. Mensch et al (2004).
and S. Beverly (2010).
24 Interviews with young savers explored saving patterns,
10 The research presented in this section was conducted using the extent of participation and barriers to savings, the use
a range of methodologies from simple interviews to cluster of savings and degree of autonomy therein, and girls per-
randomization. The Population Council employed a survey ceptions and experience with the schemes or accounts
methodology to explore savings demand in Gujarat, India. The they had. http://www.popcouncil.org/pdfs/IndiaUpdate/
TRY program in Kenya as well as the Population Council pro- IndiaUpdate_SEWASaving.pdf.
26 Financial Inclusion: Whats the Vision? Center for 40 23 percent of SANASAs voluntary deposits are from its
Financial Inclusion, http://www.centerforfinancialinclu- youth savings product. World Council of Credit Unions (2006).
sion.org/Document.Doc?id=778.
41 World Savings Bank Institute: Examples of WSBI mem-
27 For an extensive qualitative description of this process, bers initiatives in the field of financial education (September
see M. Collins et al (2009). 2007).