The outline of the existing abilities is appropriate (max 2 abilities to add or delete); focus on refining the local definition of the markers of existing abilities.
cap i t al , The Financial Capability Concept developed by GIZ is based on findings from 96 Focus Group Discussions (524 participants) across 4 states.*1 While the conceptual core remains the same, the Financial Capability approach offers the flexibility to be locally adapted. For every region, community and individual has its own peculiarities, perceptions and understanding of what good money management means.
1 For the complete methodology, approach and findings please refer to: “An Exploration in how rural low-income households perceive financial capability” by Jonna Bickel & Thomas Mehwald, 2014)
The following manual provides hands-on, step by step guidance on how to identify a community’s perspectives on Financial Capability and thus adapt the concept to the local specifications and needs of your target group. Generate your own Local Financial Capability Matrix, reflective of your community’s preferences in order to best design and adapt your organization’s interventions.
Is the regularity and source of income a recurring concern in your community? Is domestic violence a pertinent topic amongst your target group? Are people in your community preoccupied with the nature of spending? If so, what does ‘excessive spending’ (e.g. on alcohol) – what is perceived as worth or even ‘wise spending’ on?
Is access to financial support and services (both formal & informal) contingent on one’s standing within the community?
Is the inability to save considered a major or minor cause for a household’s failure in handling money well?
Is family size perceived as an important variable to the economic success of a household?
Is the education of girls a point of confrontation in your community? And if so, in what way?
Do your education materials include content on how to do a household’s budget? And if so, does the Financial Capability Matrix brush on the same points you are already educating your community on?
When conceiving training materials (e.g. through Training Needs Assessments), what topics have been identified as prominent?
Using Soc ial
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Adapt & refine markers to measure levels of existing abilities
ices
ompetencise nd C a s
Redefine abilities
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The local verification of the Matrix will define the extent of adjustments needed in order to fit the local context
Adapt the concept to the perceptions of a local community
local adaptation
Future
A St e p by st e p gu i de
P
Usin g F in an
Guiding questions probing abilities and their markers
ing
the for
T h e Rule of T h um b
local verification
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ging & Using Mon ana ey M ,
Ge
ne
Knowing your community best, you can easily assess whether the content of the existing Financial Capability Matrix reflects relevant points of interest raised within your target group.
ing nn la
adapting the concept locally
minor adjustments
l cia
Financial Capability
Does the content of the existing Financial Capability Concept describe the local situation of your target group adequately?
major adjustments The existing set of abilities is inadequate or insufficient (more than 2 additions or deletions). A new matrix needs to be generated through Focus Group Discussions