Population Council Research that makes a difference

Increasing attention is being given to adolescent girls’ economic empowerment. We have seen—and expect to see on a larger scale—adolescent girls saving small amounts of money, planning for future financial goals, and preparing for unexpected emergencies.

Watch a video about the Council’s Safe and Smart Savings project.

In June 2008, at the start of this project, there were no formal, accessible ways for girls in East Africa to save their money, which increased their risk and vulnerability. Girls without safe, planned places to store their savings have been robbed; suffered harassment by family members, boyfriends, husbands, and others in their communities; and become targets of sexual violence. Having access to savings accounts can help alleviate some of these consequences as well as facilitate the savings process. This in turn can increase adolescent girls’ economic stability as they move toward adulthood.

Girls also are not routinely taught basic savings and budgeting skills, without which their ability to save successfully and manage their money wisely is diminished. With the growing trend toward encouraging girls to take charge of their own finances, they need to develop these skills. In addition, barriers to translating health knowledge into safer sexual behavior often are economic in nature for adolescent girls, as frequently they are financially dependent on their parents, guardians, or other men in their lives.  Therefore, the combination of financial literacy and savings has the potential to give them independence in both their financial and health decisions.

Council researchers are working with two financial institutions in Kenya and two in Uganda that have already begun to develop ways for low-income clients to save money. We are working closely with them to develop appropriate products and services for adolescent girls that are delivered in the context of a program that encourages girls' engagement and empowerment.

With this project, the Population Council is partnering with MicroSave, a consulting company with expertise in market-driven financial product development, in addition to financial institutions from Kenya (K-Rep Bank and Faulu Kenya Limited) and Uganda (FINCA-Uganda and Finance Trust). The activities build on prior work, including the development of a financial literacy curriculum for adolescent girls in Kibera, Kenya, and a market research study on savings products for adolescent girls in Kibera. Savings products are also designed to build on what the Council has learned in regard to high-quality programming for girls—including providing safe spaces and building social networks through friends and mentors.  To that end, the program involves a three-part model: (1) weekly girls group meetings with a female mentor; (2) financial education; and (3) a savings account.

As of early 2011, pilot tests in both Kenya and Uganda have been completed (along with baseline and endline surveys), and the scale-up phase has begun. The girls savings program is now being offered in 12 bank branches, with plans to reach an additional three during the year. More than 3,400 girls have opened accounts and been reached with financial education, with plans to reach an additional 7,500 girls by the end of 2011.

Initial findings from the pilot evaluation show a positive impact on girls on a range of indicators. Program participants show a positive change in social networks and mobility, gender norms, financial literacy, use of bank services, saving behavior, and communication with parents/guardians on financial issues.