Savings Scheme Micro Entrepreneurship And Financial Literacy
Savings schemes are a safe and appropriate alternative to the rather expensive bank loan option or using spare funds to slowly accumulate building materials. FHI360 initiated the savings scheme protocol and assisted with the schemes constitution. Moya Centre hosts two Saving Schemes under the direction of Carol that have 24 members each and include staff members and Caregivers that meet once a month to discuss financial literacy and financial goal keeping. Started in September 2016 and ending in November 2017, members buy shares of the Savings Scheme for 50E a share. The group then decides who to loan money out to for their various projects. Those members taking a loan from the Savings Scheme then pay back what they borrowed plus the 10% interest agreed upon by the group and eventually the shared money grows to a substantial amount. This year the Savings Scheme was disbanded and everyone who initially bought a share received an E 24.9 increased return per share. Through the explanation and implementation of the Saving Scheme along with the monthly meetings those in the Savings Scheme learn valuable skills on financial literacy such as money management, the benefit of saving, setting financial goals, and being able to better pull themselves out of poverty instead of focusing on subsistence purchasing.