Giz participantbooklet lr

Financial Capability

Financial Capability Framework

The Abilities

Generating, Managing and Using Money

Planning for the Future

How households generate income

How households invest

How households handle money

How households plan for the future

How households spend money

FINANCIAL CAPABILITY

Using Financial Services How households use loans

Using Social Capital, Assets and Competencies

How households save

How people interact within family and community

How households use bank accounts

How households use assets

How households use insurance

How households gain knowledge and skills

Meet the Family

Game of Financial Life

0-

rs a e 5y Using c n ial Servi Fina ces Abil ity to

t

Abilit y to

plan for the

fut ur

e

A

y/wisely sibl on sp

ts sse ea

Genera t & Us ing, i n g M Ma o me co

edge and skills owl kn in

to ha n

to spend mo ne ility yr Ab e

nerate suf f ici en o ge ti yt n lit

1 00 1 00

ts se As s ie

Ability

r se re ev b r se na re k ev o i f nab dn ai i fo k n aid

1 00 1 00

011 00

r se re ev b r se na re ok ev i f nab dn ai i fo k n

aid

011 00

r se re r ev se b re na b ev o k k na if dn i fo ai idn a

r se re r ev se b re na b ev k o k na if dn i fo ai idn a

1 00001

6-1 0

s ar ye

us

g gin na ey n

life ity un m

Abilit y to

ga

1 00001

com

ney on daily basi mo s dle

participate in

y to ilit Ab

to ity bil

Abilit y to

Ab i

ars e y

co

Using Social C and Com apita p e ten l, c

Ability to

inv es

ac

ithin the f am ate w ily din or

Planning f the Futu or re

s oan el us

rance nsu ei us

The young family lives in the village of Icchapur with his father, who is 50 years old and his mother who is 47 years old.

ity to use ba Abil nk

ts un co

Abil ity to

lity to save Abi

1115

The family will soon have a new addition, their new born son.

5 s ar ye

16 -2

A young villager of 27 years is married to his 24 year old wife. They have one child, their 5 year old daughter.

0-5 years Floods in Icchapur

New Born Child

Increased health care Unemployment Loan against land from informal money lender Improvement in health

Loan Repayment

Migrant Life

No source of stable income Mounting debt Migration to city in search of job

Construction work in city Crop & house damage

Without support of husband

Loss of income

Regular remittances

Illness in thew family

Improvement in living conditions

Tensions in thefamily

Admit daughter in school

Axiety around soon to be born child GENERATING, MANAGING & USING MONEY

GENERATING, MANAGING & USING MONEY

GENERATING, MANAGING & USING MONEY

USING SOCIAL CAPITAL, ASSETS & COMPETENCIES

USING SOCIAL CAPITAL, ASSETS & COMPETENCIES

USING FINANCIAL SERVICES

USING FINANCIAL SERVICES

GENERATING, MANAGING & USING MONEY

USING SOCIAL CAPITAL, ASSETS & COMPETENCIES

PLANNING FOR THE FUTURE

USING FINANCIAL SERVICES

USING SOCIAL CAPITAL, ASSETS & COMPETENCIES

6-10 years Member of Self Help Group

Loss of Remittance

Training & loan through SHG

Health issues

Vocational training 00 00 1 1

Loan to buy sewing machine

a aiidni dn fo if kn o k ab e na vr es b ev er re se r

Home business picks up

0000 11

ai aid dn ni i f fo k o n k na ab e vr b es ev er re se r

00001 1

Managing house by herself

Support from mother in law to look after children

Father in law’s drinking problem

Remittances increasing because of better job

Join the village shg

Money stolen in transit

Regular savings & better money management

Open bank account

Drinking problem of fil becomes a health issue

Safer and regular transfer of funds

Boy admitted in school

Irresponsible spending

Social Capital, Assets & Competencies > Ability to coordinate within the family

Generating, Managing & Using Money

Social Capital, Assets and Competencies

Using Financial Services

> Ability to generate sufficient income

> Ability to gain knowledge & skills

> Ability to use insurance

Generating, Managing and Using Money > Ability to spend responsibly/wisely

Using Financial Services

Social Capital, Assets and Competencies

Social Capital, Assets & Competencies

> Ability to use a bank account

> Ability to coordinate within the family

> Ability to use coordinate within the family

Generating, Managing and Using Money > Ability to handle money on a daily basis

Social Capital, Assets and Competencies

Using Financial Services

> Ability to participate in community life

> Ability to use a loan

Planning for the future > Ability to plan for the future

Planning for the Future

Using Financial Services > Ability to save

Social Capital, Assets & Competencies

Social Capital, Assets & Competencies > Ability to participate in community life Social Capital, Assets & Competencies > Ability to gain knowledge and skills

> Ability to invest > Ability to use assets

11-15 years Accident

Medical expenses

Small business

Husband badly injured in accident

Electrical repair shop for husband

Returns home to recover

Loan from shg by showing financial planning

Daughter drops out of school

Thinking about future Business doing well Home improvements & better education for kids Small health insurance

Wife helps husband stabilise business

Private pension fund Extra savings for daughter’s wedding

Medical expenses met partially through savings & emergency loan from shg Pension for father in law as he turns 60

00 01 1 0

er aidni fo k nab evres aidni fo k nab e vreser

000011

001 001

er aidni fo k nab evres aidni fo k nab e vreser

Generating, Managing & Using Money

Social Capital, Assets and Competencies

Generating, Managing & Using Money

Generating, Managing & Using Money

> Ability to generate sufficient income

> Ability to participate in community life

> Ability to generate sufficient income

> Ability to generate sufficient income

Generating, Managing & Using Money

Using Financial Services

Planning for the Future

Social Capital, Assets & Competencies

> Ability to spend money wisely

> Ability to use loans

> Ability to plan for the future

> Ability to use assets

Social Capital, Assets and Competencies

Social Capital, Assets & Competencies

Social Capital, Assets & Competencies

> Ability to coordinate within the family

> Ability to coordinate within the family

> Ability to gain knowledge

Social Capital, Assets and Competencies

Social Capital, Assets & Competencies

Planning for the Future

> Ability to gain knowledge and skills

> Ability to participate in community life

> Ability to invest

Planning for the Future

Using Financial Services

> Ability to invest

> Ability to use insurance

Using Financial Services

> Ability to use a loan

16-20 years Father’s funeral expenses

Where do you think they are going ?

Son’s higher studies

Daughter’s wedding

Build house

Self Assessment & Goal Setting Ability to generate sufficient income

Ability to use bank acconts

Ability to spend money responsibly / wisely

Ability to use insurance

Ability to handle money on daily basis

Ability to coordiante wihtin the family

Ability to plan for the future

Ability to participate in community life

Ability to invest

Ability to use assets

Ability to use loans

Ability to gain knowledge and skills

Ability to save

Published By Deutsche Gesellschaft F端r Internationale Zusammenarbeit (GIZ) Gmbh Rural Financial Institutions Programme C o n ta c t Dr. Detlev Holloh, GIZ Programme Director A-2/18, 4th Floor, Safdarjung Enclave, New Delhi 110029 India T : +91 11 49495353 F : +91 11 49495393 E : Detlev.Holloh@Giz.De W : Giz.De C o n c e p t a n d L ay o u t Quicksand and Design Route Responsible Dr. Detlev Holloh New Delhi, March 2014