Use facilitatorsguidebook draft 10 lowres by finance4impact

The Game of Financial Life

Facilitatorâ&#x20AC;&#x2122;s Guidebook 1

HOW TO USE THIS BOOK The following guide is designed to support you as a facilitator in smoothly conducting the Game of Financial Life with your audience. It details the materials to be used, the rules that apply and the instructions to be shared with the participants. To help the latter understand the key learnings of the Financial Capability concept, the game is built upon the story of a typical rural family that could easily be your participants’ neighbour or even their own household. Most of the story is conveniently outlined as a script, including pointers for discussion and notes to the facilitator that help you coordinate the various activities throughout the game. From page 8 onwards visual cues are used to help guide you through the game: • Text in Orange denotes instructions to you as the facilitator of actions to be taken • Text in Grey refers to narratives and instructions to be given by you as the facilitator to the participants;

• Text in Italic marks questions you should pose to your audience

CONTENTS 1. Instructions for the Facilitator 4 2. Before Getting Started

3. Getting Started

4. Play Phase 1 Phase 2 Phase 3 Phase 4

16 28 50 62

5. Knowing Your Own Abilities & Targets

• The names of the Family Members are in Light Grey. • A Note to the Facilitator gives additional suggestions and offers reminders or details on how to conduct the game. This section contains the narrative content as well as instructions and guidance to be shared by the facilitator with the participants. This symbol hints to questions and queues for discussion to be placed by the facilitator to the participants, expecting a longer exchange between the participants.

1. INSTRUCTIONS FOR THE FACILITATOR What is Financial Capability?

Players and Timing of ‘The Game of Financial Life’

Financial Capability is the ensemble of abilities related to making informed financial choices, managing money effectively, and using financial services for one’s own benefit. The local financial capability study identified 13 abilities that are necessary in order to manage money and use financial services effectively. These abilities can be aggregated into four focal areas - three of which relate to financial functions while the fourth pertains to personal attributes (knowledge, skills and attitude) and social relations in the family and community.

Objective of the Game The objective of the game is to get the participants familiarized with the basic principles of the Financial Capability concept, namely the focal areas and the abilities that constitute ‘Financial Capability’. As the story unfolds, the players are asked to associate the various life events of the game’s sample household with the corresponding focal areas and abilities by placingtokens on the respective fields. Each of the four phases of the game ends with a round of discussions, prompting the participants to reflect not only on the story and learnings at hand but also on their own lives and comparable situations they may have experienced.

The game is ideally played by 10 to 12 players. In case there are more players you may make them sit in groups of 3-4 people with one group on each side of the game board. The average playing time of the game sums up to approximately 2.5 hours. 20 min

INTRODUCTION

20 min

30 min

20 min for each stage (narration + discussion)

up to 30min

FOUR LIFE STAGES OF THE HOUSEHOLD PERSONA

ACTIVITY TO FILL THE ABILITY MAP ON A COMMUNITY LEVEL

20 min

ACTIVITY TO DO THE SAME ON AN INDIVIDUAL HOUSEHOLD LEVEL up to 20min

TOTAL PLAYING TIME : 2.5 hrs ( approximately )

Note that the timing might extend if the exchange is animated – allow for enough time not to smother a vibrant discussion. Eventually, it will depend on you as a facilitator, deciding on how much time to spend on a particular story and the amount of detail you want to provide. But in any case it is important that the stipulated time or more is spent on reflection after each phase.

Focal Areas

Generating, Managing and Using Money

Planning for the Future

Using Financial Services

Using Social Capital, Assets & Competencies

Name of the Abilities

Short Description

Ability to generate sufficient income

The ‘ability to generate sufficient income’ is affected by the number of income sources, the type of income sources, the number of earners who contribute to income generation, the regularity of income and the way time is managed.

Ability to spend money wisely

The ‘ability to spend money wisely’ has been associated with households which spend money for items that generate a benefit for the whole household and help the family to improve its living conditions.

Ability to handle money on daily basis

The ‘ability to handle money’ depends on how households are able to balance income and expenditure, and the knowledge to use budget planning instruments.

Ability to plan for the future

The ‘ability to plan for the future’ requires taking into account longer-term aspects of income and expenditure.

Ability to invest

The ‘ability to invest’ refers to the identification and use of investment opportunities.

Ability to use loans

The ‘ability to use loans’ refers to access to loans from diverse sources such as banks and PACS, to be able to repay on time, and to use loans for business development.

Ability to save

The ‘ability to save’ has been mainly associated with households that deposit money in a bank, save regularly, save for emergencies and retirement, and for building assets.

Ability to use bank accounts

The ‘ability to use bank accounts’ has been associated with households which have access to saving or loan accounts, and actually make use of banking services.

Ability to use insurance

The ‘ability to use insurance’ has been mainly associated with life insurance for all family members, while life insurance cover for only one family member was seen as low financial capability.

Ability to coordinate within the family

The ability to coordinate within the family has been associated with families in which all members have a voice, and decisions are made by taking into account the responsibilities and needs of all members.

Ability to participate in community life

The ‘ability to take part in community life’ has been associated with the reputation, respect and dignity households enjoy.

Ability to use assets

The ‘ability to use assets’ has been associated with the ownership of houses, land, farming assets and household items. The focus is on ownership and usage.

Ability to gain knowledge & skills

Levels of knowledge and skills are outcomes of investments into education and an environment conducive to learning.

Abilities Icons

2. BEFORE GETTING STARTED

Please check that the game kit is complete and all materials are in proper shape. 1. Facilitator Guidebook: If you have reached this far, you have the facilitator guidebook in your hands. 2. Game Board (canvas – 1x): The game board displays the 4 focal areas and within them the 13 ability icons. As the story of the sample household spreads over 20 years, it is divided into 4 shorter phases of 5 years each to allow for the concepts to be easily understood. Each phase displays a number of key events in the household’s life that impact the household’s overall financial capability. The Game Board can be spread out on the floor or a table, with all participants seated around it. 3. Flip Chart (1x): The Flip Chart offers more detailed illustrations of the events in each phase and will assist in discussions with the participants. It is to be placed in a way that it is visible for all participants to easily follow the story and discussion points.

4. Game Tokens (50x): The tokens are two-sided in order to represent a positive or negative impact of a life event and will be placed by the participants on the game board at various points in the game. Hand out at least 3 tokens to each participant. Note: As small tokens can easily get misplaced you can also substitute them by everyday objects such as bottle caps, playing cards, or any other object that can display the two distinct states – positive and negative impact.

5. Ability Map (1x): The Ability Map is a poster that displays the group’s life goals as identified by them at the end of the game. The map is to be used in the last stage of game to help participants set their goals and identify the abilities necessary for achieving them. Distribute replicas of the map (reprinted or xeroxed) among the players during the last phase of the game.

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6. Participant Booklet (xx): The diary is a ready reckoner for the participants that can help them recall and recount the story and its associated learnings to other members in their household and community. It is a visual aid to remember the story line and also follow it during game play. The diary would also be a record of a self assessment of abilities and a goal setting exercise that happens at the end of the game. Distribute the Participant Diaries at the beginning of the game. 7. Pens for annotations 8

3. GETTING STARTED

3.1 Introducing ‘Financial Capability’, the Game and its objectives Give your audience a simple introduction on what Financial Capability means in their context: Financial Capability is the ensemble of abilities related to making informed financial choices, managing money effectively, and using financial services for one’s own benefit. Those abilities that are necessary in order to manage money and use financial services effectively can be aggregated into 4 Focal Areas. Three of them relate to financial actions such as income generation and spending, saving habits and using loans, planning for the future and investment. The fourth on the other hand pertains to personal attributes (knowledge, skills and attitude), the availability and use of assets, and social relations in the family and community.

Explain the different phases of the game As you can see on the Board, the game is structured in 4 different Phases, each phase representing 5 years of the household’s 20 year journey. Before we start playing, I will tell you a bit more about each member of this household and give you a broad picture of where they stand. Each phase has Key Events that have different Repercussions on the household. We will discuss these ripple effects and how they affect the financial capability of the household. Some events may have both a positive and a negative effect as they affect several abilities at the same time.

Outline the objective and broad rules of the game to the participants The objective of the game is to get familiarized with the abilities that are necessary to become financially capable. We will follow the story of a typical rural household over a period of 20 years and how it faces challenges that most of us have faced in one form or another. As the story unfolds over the next 2.5 hours, you will learn to identify the four focal areas and the abilities that are affected through the various events. By the end of the game, you will even be able to set your own households targets and prioritize the abilities that are important to achieve them. Everybody is a winner in this game – nobody looses. Hence, the objective of the game is not for any one participant to come first, but for the whole group to understand what being financially capable means and how you can apply it to your own lives. 10

Phase 1: To get you familiarized with the broad ideas, I will use the events of the first 5 years to show case what focal areas may get affected by an incident. The 4 Focal Areas are: 1. GENERATING, MANAGING AND USING MONEY 2. PLANNING FOR THE FUTURE 3. USING FINANCIAL SERVICES 4. USING SOCIAL CAPITAL, ASSETS AND COMPETENCIES

3.2 The Background Story Introducing the Sample Household and its Situation in Year 1 Introduce the Family Members and name them. Our sample household consists of 5 members at first: A young villager of 27 years married to 24 year old wife. They have 1 child

their 5 year old

daughter. The young family lives with the Phase 2: After having mastered the focal areas I will show you in more details what abilities belong to each focal area. Again, we will identify together what and how abilities are affected by the key events occurring in between the year 6 and 10. Phase 3: In a third step you will identify yourself what impact the various key events through year 11 to 15 have on this household by identifying the corresponding abilities yourself. To make the participants more comfortable you could first ask them briefly about their own background (2-3 min max): How did you start your day? What expenses did you need to do, till now? (eg. Subji Walla) Only then outline the more abstract ideas of the 4 focal areas.

Phase 4: And at last we will think of the future â&#x20AC;&#x201C; first of our household persona and then of your own. With all the events and learning that would have happened by then, what are the future prospects?

father-in-law and

the

50 year old

the mother-in-law who is 47 years

old. Once we start playing, you will see that the family will increase by one,

the new born son.

How about you give them names?

Note to the Facilitator: Let the participants chose the names of the households so as to ensure higher levels of identification with the family members throughout the game.

Note that after every phase we will have time to review and discuss the events â&#x20AC;&#x201C; and more importantly, reflect on what that may mean for your own life. Probably you have already lived through a similar situation and want to share how you handled it. 13

MEMBERS OF THE FAMILY

Detailed Background on each Household Member Give your audience a narrative overview with respect to the different background stories to of each household member:

HUSBAND, 27 yrs

FATHER-IN-LAW, 50 yrs

• Not

• Has

educated

• Agricultural

farm labour

• In

off-seasons, he takes up work as a construction worker, a hired help or other NREGA work

a strong drinking problem

• Verbally

abuses his daughter-in-law (no physical abuse)

• Agricultural

farm labor and NREGA worker in off-seasons

WIFE, 24 yrs

MOTHER-IN-LAW, 47 yrs

• Earns

• Taking

• Takes care of most of the household work

• Supports

a small but irregular income by stitching clothes

• Helps out on the small plot of land that

is in the name of the father-in-law and in the afternoon she takes food to the family members working in the field

care of the grandkid(s) to allow her daughter-in-law to get some work her daughter-in-law to cultivating friendships with the neighbouring women

• Currently pregnant and expecting soon

DAUGHTER, 5 yrs • Not yet

going to school

• Once

her baby brother arrives, she would be taking care of him and support her mother in household chores

4. PLAY

At every phase of the Game, you as the Facilitator will tell the story of the 5 respective years of that phase.

Note to the Facilitator: Get properly familiarized with the story before the game.

Call out the KEY EVENTS that happen during those years.

indicate the order of the repercussions linked to the key events.

Highlight the REPERCUSSIONS, i.e. the interconnected events that happen as a cause of the phase’s main incidents.

PHASE 1 / 0 - 5 years Family member

Husband

Wife

Older Girl

• Bad agricultural season,

• Works on their own land

because of the flood • Primary source of income is no longer available • NREGA work is limited, public works absent • Has a young daughter • Lives with his parents

• Stitches clothes for a

Younger Boy

Father-in-Law

Mother-in-Law

Key Event

Floods

small additional income • Is pregnant • Their house is in a bad condition

New Born Child

• Health issues because

• Wife is pregnant and needs

of bad monsoons and floods

• Has a drinking problem and

prenatal care

whatever little NREGA money he gets is spent on alcohol. • As the grandkid is not getting better, FIL is abusive to the DIL, creating more stress.

1 • High expenses for the

3 • Birth of a son

child birth increase the financial pressure

• Approaches a Money Lender

• Post natal care expenses

in the village, leaving 1 Bhiga as security as the land is in his name

Money Lender Loan

• Unable to keep up with

Migrating to the city

• Getting daily wage

from the husband in the city

milk and baby food

6 • As her husband leaves

• First remittance sent

• Loan also used for the child’s

everyday needs and the medical expenses

• Used the loan for their

the pressure of repaying the loan and with the situation not improving, he decides to migrate to the city to get a daily wage job (e.g. to paint walls, plumber etc.)

she loses her only support and is under pressure to have to deal with the situation all by herself 8

6 • Daughter goes to village

school

• Everyday expenses of

• Pays back a bit of the loan

childcare begin to be partially covered

• Does repairs to the kuccha

house

11 17

a. THE FLOOD In the year 1999, the village of Icchapur where Mahendra and his family live, faces the most terrible flood in the recorded history of the region. Almost all the agricultural land is flooded with water and crops are destroyed across all of Icchapur and nearly all villages of the district. Houses also got damaged although luckily Mahendra’s house is not as badly affected as some others.

Remember: Some family details are already known

Like most households in the village, Mahendra and his family lost the only sources of income they had – which was by working as a hired agricultural help. There are no farming jobs to be had – and worse, because of the widespread devastation that the floods caused, NREGA work had also stopped.

It is up to you whether you want to start placing the tokens on the respective Focal Areas right away or first tell the story and reflect on it later.

As if things were not bad enough, their daughter also gets ill in the months following the floods because of the general state of hygiene and health in the wake of the catastrophe.

4.1 Narrative of the Key Events and their Repercussions - PHASE 1 As you tell the story of the first five years of the household you will highlight the FOCAL AREAS that are being affected on the GAME BOARD by placing the game TOKENS accordingly, for all participants to view. Note that the tokens have 2 sides – one indicating a positive effect, one a negative on the household’s Financial Capability. Display the tokens accordingly. Also invite the participants to follow the story as illustrated in their Participant’s Booklets.

The only source of income that they can count on now is some stitching that the wife does at home. But things are getting progressively worse – Mahendra’s father who is already a heavy drinker, now projects all his anxiety and frustration on to his daughter-inlaw. Being used to her husband’s unjustified ranting, Deepika’s mother-in-law tries to reassured her as best as she can, but it isn’t much. It is difficult for her to focus on her work or the household and she keeps complaining to Mahendra in turn.

Example

The floods cause a bad harvest, causing the husband to lose his primary source of income.

The focal area ‘Generating, Managing and Using Money’ is thus adversely affected,

Indicate the field that shows the Key Event ‘Flood’

Indicate the focal area ‘Generating, Managing & Using Money’

causing the household’s Financial Capability to sensibly degrade.

Place the token in the focal area, indicating a negative impact

Remember: Adapt the name as per the players’ wishes

A few months after the floods, Mahendra and his wife find out that they are expecting their second child. While this would have been news to rejoice at any other point in time, they are left feeling even more anxious with their deteriorating financial state and condition of the house.

Reflect on the different points of discussion: Now that I have told you the first bit of the story, let us together review the key events and place the tokens on the respective Focal Area

Remember to use the new names.

1 Floods and the loss of income: While it may not always be due to floods, a bad harvest is something that most of us may have already experienced. As Mahendra’s and Deepika’s family only have one major source of income, the effect on the whole household was substantial. Their ability to generate income was severely damaged. Ask a participant to place a token, (–) side up on the concerned Focal Area:

Animate the discussion by asking various participants to share a little story from their own life. Remind them, that the hardship does not necessarily need to be cause by floods – to widen the discussion, you may ask: What other events can cause a sudden loss in income? How did you react? What did you do to handle the situation?

You may allow for up to 5 min for this first round of discussion to ensure that your participants feel free to talk. Thank you all for sharing! Now let’s talk about another effect of the floods in the small village. 2 Health issues: You certainly remember from the story that due to precarious hygiene levels following the flood the young daughter falls sick. And not only that, their house too gets damaged and needs repairs. Before, I had only mentioned the increased expenses of the household, causing their ability to manage money to suffer. 20

>> GENERATING, MANAGING & USING MONEY In addition, we could also say that: If they had been saving some money, they would have probably been able to meet some of these urgent expenses. Their ability to plan for the future as well as their ability to save were thus not very strong to begin with.

You may indicate here the respective Focal Areas of PLANNING FOR THE FUTURE and USING FINANCIAL SERVICES

What about yourself? Do you get to anticipate a bit for unexpected expenses? Do you manage to save some money for emergencies?

You may again, hand out a token to the first participant to speak and have it be passed on the each following speaker.

Again, animate the discussion by asking some participants to share their own experience.

>> GENERATING, MANAGING & USING MONEY What about yourself? Who among you has already experienced similar hardship?

Ask a participant to place a token, (–) side up on the concerned Focal Area:

You may start the discussion by giving a token to a first participant. Every time another person speaks the token would be passed on.

As you ask who is able to save some money for future events, have all the participants saying ‘yes’ place a token – positive side up – on the Focal Area field ‘Planning of the future’. Note that the ‘Ability to Save’ also exists in association with ‘Using Financial Services’ and can thus also be explained as such. Thank you again. Let’s now discuss the remaining repercussion the family has been facing due to the floods. 3 Domestic quarrel: As the situation is not improving the tensions in the household rise. The father-in-law, already a heavy drinker now projects his anxiety and frustration on to the young woman – further affecting the family’s ability to coordinate well. Having gotten used to her husband’s unjustified ranting Deepika’s mother-in-law tries to reassure her daughter-in-law now and then. After all, isn’t it difficult to find a solution and properly weigh options when everybody is upset?

Animate the discussion by asking some participants to share from their own experience. You could ask questions like: Who of you have already found themselves in a similar situation? Not being able to talk to each other? What other reasons can you think of why a household may not be able to coordinate well?

b. THE BIRTH OF THE 2ND CHILD

Then, invite the participants again to share experiences from their own lives. You may ask questions such as:

A few months after the floods, Mahendra and his wife find out that they are expecting their second child. While this should have been good news, they are feeling even more anxious with their deteriorating financial state and condition of the house.

Who has already taken a loan from a money lender? – do you think that affected your household positively or negatively in the long run? Who from friends and family?

As Mahendra is still not finding any job as a poorly skilled labor, Om Kumar (the father-in-law) eventually decides to approach a money lender to cover the most urgent expenses. 5

What did you use the loans for? Who do you prefer taking a loan from – and why?

Finish the discussion by thanking the players again and inviting them to see what happens next to the ______’s and ______’s family.

c. THE LOAN FROM THE MONEY LENDER

After outlining the story, initiate again a discussion. This time, place the tokens together with the players only after the group has discussed it. Help them identify which Focal Area is affected and how.

Guide the discussion to the following outcome and let the participants decide regarding the positive or negative impact.

Again, you may start the discussion by giving a token to a first participant. Every time another person speaks the token is passed on.

Loan from the money lender >> USING FINANCIAL SERVICES Better health of the children leading to less tensions in the family >> USING SOCIAL CAPITAL, ASSETS & COMPETENCIES

( – ) Impact

7 ( + ) or ( – ) Impact

( + ) Impact

With the money from the loan the family is able to make due only for a short while. Since the money is only used for consumption – covering health care, post natal and running expenses – it becomes increasingly difficult to ensure the repayment of the expensive loan. The small and somewhat occasional income of the young mother is even further reduced after child birth and far from sufficient to cover the household’s financial needs. After a while even paying the mere interest becomes more and more of a hassle. The family consults – they all agree, taking another loan is not really a viable option. But what else is there to do? The local employment situation is still dire and neither the husband nor the father-in-law are able to find any work.

Then, have the participants place the tokens accordingly on the Focal Area fields, either (+) or (–) side up: Increased health care expenses >> GENERATING, MANAGING & USING MONEY

But also note that not necessary these and not absolutely all questions need to be asked

What about SHGs, PACSs, or a Bank – are they an option?

Having some money now to buy proper medicine and healthier food - even some fruits - the daughter gets finally better and the baby, too, is growing stronger. Seeing their worries decrease, the whole family is able to breathe again for a while.

Now it is again up to you – what FOCAL AREAS are being affected by the birth of the son?

Make sure to leave enough time for the discussion without taking too long either (5 min max)

Eventually, the family considers that Mahendra may move to the city in order to find employment there and send money back. After outlining the story, initiate again a discussion. As for section ‘b’ place the tokens together with the players once the group is done discussing it. Help them identify which Focal Areas are affected by the repercussions and how. 23

Now it is again up to you – what FOCAL AREAS are being affected as a consequence to taking a loan from the money lender?

Guide the discussion to the following outcome (see below) while letting the participants assess whether the event has a positive or negative impact on the household’s Financial Capability.

d. MIGRATION TO THE CITY FOR WORK

Start the discussion by giving a token to a first participant. Every time another person speaks the token is passed on.

Then, have the participants place the tokens accordingly on the Focal Area fields, either (+) or (–) side up:

At first, however, losing the support of her husband Deepika feels utterly left alone and under pressure as she now has to manage the whole household with the small children and her in-laws all on her own.

The situation changes as the first remittances reach home. The regular inflow of money allows the family to cover current expenses, start paying back the loan and even carry out some minor reparations of the house.

With the financial pressure decreasing over the following months Deepika doesn’t think twice to send her daughter to school as she turns 6 years old.

Temporarily more money >> GENERATING, MANAGING & USING MONEY (for a short while, this allows to have a positive balance and cover necessary expenses)

( – ) Impact

Increasing difficulties to repay the loan >> USING FINANCIAL SERVICES & PLANNING FOR THE FUTURE (non repayment is a sign for flawed money management – before taking a loan, the repayment capacity should be known and ensured; there was no longer, anticipated planning involved)

( + ) or ( – ) Impact

After outlining the story, initiate again a discussion. As for sections ‘b’ and ‘c’ place the tokens on the Game Board together with the players once the group is done deliberating.

Necessity to find a solution >> USING SOCIAL CAPITAL, ASSETS & COMPETENCIES (since the family confers together what to do – a common decision)

( + ) Impact

Have members of your family and/or friends migrated? What other solutions can you think of when short in loan repayment?

Again, help them identify which Focal Areas are affected by the repercussions and how. Now it is again up to you – what Focal Areas are being affected as a result to the husband migrating for work?

Then, invite the participants again to share experiences from their own lives. You may ask questions such as: What do you do when in difficulties to repay a loan?

As the family doesn’t see any other option to generate income, Mahendra does after all move to the city to find employment. He ends up living with a distant cousin who labors as a construction worker and helps him find a job at the same building site. Now Mahendra is again able to earn on a daily basis.

Remember that it is up to you how deep you delve into the discussion. More or less questions can be asked.

Guide the discussion to the following outcome (see below) while letting the participants assess whether the event has a positive or negative impact on the household’s Financial Capability.

Start the discussion by giving a token to a first participant. Every time another person speaks the token is passed on.

Then, have the participants place the tokens accordingly on the Focal Area fields, either (+) or (–) side up:

Have you ever taken a loan you were not sure to be able to repay?

Finish the discussion by thanking the players again and inviting them to see what happens next to the household’s life. 24

Lack of emotional support >> USING SOCIAL CAPITAL, ASSETS & COMPETENCIES (as the husband leaves for the city, his wife is left alone, with almost no voice of her own in her in-laws’ place; decision making can get imbalanced) Small but steady income >> GENERATING, MANAGING & USING MONEY (the regular remittances from the city balance out income and expenditure, thus allowing for better money management on a daily basis) Loan repayment >> USING FINANCIAL SERVICES (as the repayment capacity increases with the small but steady income of the husband, the household is able to repay and may even be in the position to take another, well planned loan in the future) Repairs on the house >> USING SOCIAL CAPITAL, ASSETS & COMPETENCIES (one of the family’s major assets gets improved ensuring a better quality of life) Girl child education >> USING SOCIAL CAPITAL, ASSETS & COMPETENCIES (sending the daughter to school is a sign of understanding the importance of girl child education)

(-) Impact

(+) Impact

Finish the discussion again by thanking the players. Then invite them to raise any questions that may remain and be ready to clarify if need be. Thank you again for you active participation throughout this first round. As we move on to Phase 2, the years 6 to 10 of our household, we will learn more about the individual ABILITIES that belong to each FOCAL AREA. By the end of the next session, you will be able to identify them yourself and link them to the various key events and their repercussions.

You may take notes of the answers given here for future review and assessment of your target group.

(+) Impact

Then, invite the participants again to share experiences from their own lives. You may ask questions such as: Does any of you receive remittances? If so, from whom and what for? Do you invest in your home? – do you maintain assets? (e.g agricultural equipment, etc.) Who has girls and sends them to school? Why is that important to you? Have you faced any difficulties with sending daughters to school? 26

PHASE 2 / 6 - 10 years Family member

Husband, 32 yrs

Wife, 29 yrs

Older Girl, 10 yrs

Younger Boy, 6 yrs

Father-in-Law, 55 yrs

Mother-in-Law, 53 yrs

Key Event

Wife joins SHG

of an SHG • Starts saving small amounts of money and managing money • Sends money through

ia ia

indiaindi k of of k ban ban e

erv

res

rve

rese

ind k of ind of

00 1100

e ban k ban e

erv

res

00 10 10

Livelihood Training & SHG Loans

• Good in school

• Still drinking

• Contributes a small income

sometimes from NREGA jobs

jobs on occasion

• Asks and pressures his

from other members of her SHG she opens an individual account which her husband can transfer money to

daughter-in-law repeatedly to withdraw money from her individual bank account – mainly to finance his drinking

• Livelihood training &

• With the increased income

loan from SHG • Buys sewing machine and raw material • Starts home stitching business to generate supplementary income • With the additional money, the family now affords an in-home gas connection

Deteriorating Health of In-laws

• Joins school at the age of 6

• Small income through NREGA

• Following the advice

a village person by bus and that gets stolen

0 10 0 10

Remittances Money Theft

• Wife becomes a part

from the SHG loan the relationship between daughter & mother-in-law improves; more support

6 • Starts showing symptoms of a

liver condition due to yearlong heavy drinking

a. BECOMING A MEMBER OF A SELF HELP GROUP

4.2 Narrative of the Key Events and their Repercussions – PHASE 2

While still missing her husband Deepika has settled into her new role as the silent manager of the household. By now the employment situation in the village has recovered to a certain extend and even Om Kumar and Sita Devi contribute from time to time to the household budget through small NREGA jobs. 1

Now that the FOCAL AREAS are understood by all the participants you should use the telling of the story of the second five years of the household to highlight and explain the ABILITIES. Before getting started with the actual ‘story telling’ introduce the ABILITIES as being part of the respective FOCAL AREAS – in other words, the ABILITIES can be understood as a more detailed version of the FOCAL AREAS. Briefly explain the ABILITIES one by one (brushing on the topics they cover) and pointing out their symbols.

The Ability to Participate in Community Life

Her children are Deepika‘s life joy. Radha, her daughter is doing great at school and Ajay her son is getting more and more excited to join his big sister in class. Only her father-in-law gives Deepika serious reasons for worries and trouble. His pronounced drinking habit often makes him verbally abusive and the little money he brings home gets often spent on liqueur. From her mother-in-law Deepika can only expect minor support in that matter. She has lived with her husband and his abuse her whole life. In need of confiding in someone, Deepika talks about her concerns to a neighbor’s wife she has befriended. Her friend shares her own story of an abusive husband, his excessive spending on tobacco and betel and how as a consequence she had trouble providing for her children. But she also tells Deepika about the women’s Self Help Group she became a member of and who helped her stir the situation around. By now, Deepika’s neighbor has her own regular source of income, saves regularly with the SHG and has set aside enough funds to cover her family’s needs in case of an emergency.

Example: This ability has been associated with the reputation, respect and dignity households enjoy in their community and how that may help in a precarious situation.

It is up to you whether you want to place the tokens already while telling the story or only after having finished the narration.

Deepika is impressed and wants to know more about this SHG. Her friend invites her to join the next group meeting and after getting to know the other members and the support they provide each other Deepika asks to join herself. The group accepts her and over the following months she gets accustomed with the SHG’s rules such as the regular meetings and the mandatory savings. Setting aside a fixed sum seems difficult at first, but the group helps her to make and monitor her household’s budget and plan for the little extra savings and over time Deepika finds the routine most comforting.

Place token on all Focal Areas since become member of an SHG positively affects them all

When her son turns 6, Deepika is happy to be able to buy him a good school uniform for his first day in class.

Ask the participants which ability they think is affected here – and why.

As mentioned earlier in the note to the facilitator, you have two options of timing the placing of tokens. See below:

Once the first round of discussion is over, invite your participants to consult their Participant’s Booklet and find the detailed descriptions of the abilities there.

Option A: Place the tokens while talking – in case you

To rekindle the discussion and refine participants’ understanding of an ability you may ask questions such as:

chose to already involve the participants, only go as far as placing tokens on the FOCAL AREA spots, not yet the ABILITIES. Detailing the abilities should only happen once you review the household’s situation and the repercussions of Deepika joining the SHG.

What other indicators could you think of to decide whether a household’s ABILITY TO COORDINATE WITHIN THE FAMILY is well developed?

Option B: Finish telling the story first and only then involve the participants during the review by asking them to place the tokens first on the FOCAL AREAS and then, after your explanation, on the respective ABILITIES.

Example: >> Family members don’t fight >> There is no domestic violence >> Regular communication between the family members

Reflect on the different points of discussion: While you are well familiar with the Focal Areas now and should have no trouble identifying them for each episode of the story, let’s look at them in greater detail and see what Abilities go along with each Focal Area.

Would you say that Deepika and her husband communicate regularly?

At the beginning of Phase 2:

Coordination and understanding, the sharing of worries and concerns is made difficult by Mahendra’s absence and thus, the ability to coordinate within the family is adversely affected. Yet, in her husband’s absence, Deepika has stepped up, adapted and taken over many of Mahendra’s responsibilities in the household.

>> NO

1 Deepika is still missing her husband What Focal Area is concerned?

>> USING SOCIAL CAPITAL, ASSETS & COMPETENCIES But let’s look more closely – What Abilities are associated with this Focal Area?

Point to the 4 Abilities on the Game Board that belong to the Focal Areas:

• Ability

to coordinate within the family

• Ability

to participate in community life

• Ability

to use assets

• Ability

to gain knowledge and skills

You may take notes of the answers as this can be used to later refine the community‘s local definition of the various abilities

You could have the participants answer the question and congratulate them for the correct answer

I leave it to you to decide which effect is greater: the (–) of Deepika not being able to consult regularly with her husband or the (+) of her adapting and becoming more independent. What do you think? What is more important to you?

Leave 2-3 min for discussion; then ask a participant to place a token on the field of the ABILITY TO COORDINATE WITHIN THE FAMILY, positive or negative side up – according to their view. 33

Reflect on the different points of discussion: Let’s see what other abilities may be affected by what is happening at the beginning of Phase 2: 2 The in-laws occasionally contribute to the household income.

You may have the participants answer the question and congratulate them for the correct answer

What Focal Area is concerned?

>> USING GENERATING, MANAGING AND USING MONEY

Point to the 3 Abilities on the Game Board that belong to the Focal Areas : • ABILITY TO SPEND MONEY WISELY • ABILITY TO HANDLE MONEY ON A DAILY BASIS

What other indicators could you think of to decide whether a household’s ABILITY TO GENERATE SUFFICIENT INCOME is high?

Example: >> Multiple income sources (how many?) >> Good types of income (what is a ‘good’ source of income?) What do you think shows that a household’s ABILITY TO GENERATE SUFFICIENT INCOME is low?

Example: >> Irregular income (what kind of jobs?) >> Children need to work, too (instead of going to school?)

What would you say applies to Deepika’s household? If you had to grade the household’s ability to generate sufficient income with a number between 1 and 5, what would you give them?

You can transcribe level 1 to 5 also as: 1 Very Low 2 Low 3 Medium 4 High 5 Very High Take notes of the answers!

By the end of this game, you should be able to identify your particular strengths and weaknesses, too. This way you will be able to set new targets and identify ways to achieve them.

• ABILITY TO GENERATE SUFFICIENT INCOME

To rekindle the discussion and refine participants’ understanding of an ability you ask questions such as:

GENERATE SUFFICIENT INCOME.

Also tell your participants that you will do the grading exercise for the other abilities that concern this household, too and that you will see together how its abilities evolve over time.

But let’s look more closely – What Abilities are associated with this Focal Area?

Ask the participants which ability they think is affected here – and why.

Ask one of the participants again to place a token (positive side up) on the fields of the ABILITY TO

Reflect on the different points of discussion: You may invite the participants again to consult their Participant’s Booklet in case of doubt. You may again take notes of the answers as this can be used to later refine the community‘s local definition of the various abilities

Let’s see what other abilities may be affected by what is happening at the beginning of Phase 2: 3 The father-in-law has a strong drinking problem. Can you indicate the Focal Area? >> USING GENERATING, MANAGING AND USING MONEY But let’s look again more closely – What Ability is concerned within this Focal Area?

Point to the 3 Abilities on the Game Board that belong to the Focal Area: • ABILITY TO GENERATE SUFFICIENT INCOME

Beware that 2 out of the potential abilities are concerned.

• ABILITY TO SPEND MONEY WISELY • ABILITY TO HANDLE MONEY ON A DAILY BASIS

Ask the participants which ability they think is affected here – and why. To rekindle the discussion and refine participants’ understanding of an ability you may ask questions such as:

You may invite the participants again to consult their Participant’s Booklet in case of doubt.

What other indicators could you think of that indicate whether a household’s ABILITY TO SPEND MONEY WISELY is high?

Example: >> No spending on harmful substances (like what?)

Remember to take notes of the answers as this can be used to later refine the community‘s local definition of the various abilities

>> Only spending within their means (e.g. not on credit)

(+): With the SHG Deepika saves on a regular basis through mandatory savings (at each group meeting).

>> No sufficient spending on education (government school?)

(+): Deepika is now part of a support group that can help her out in moments of emotional or financial crises.

• ABILITY TO PARTICIPATE IN COMMUNITY LIFE

>> Spends all money available at once (why not?)

Ask participants to share details about their own household situation. In case you feel that they are comfortable enough with each other, propose them to mutually grade each other on that ability.

Take notes of the answers!

• ABILITY TO SAVE

>> Lavish spending (what about social functions?)

What about your own household?

ABILITY TO HANDLE MONEY ON A DAILY BASIS (+): Deepika learns how to establish and maintain a household budget.

(+): Deepika sets some money aside for potential emergency situations despite her FIL’s drinking habit.

Example:

How would you grade the household’s ability to spend money wisely (ranging between 1 and 5)?

•

Note that these are only possible answers and by far not the only ones – there is no ‘wrong’ or ‘right’

• ABILITY TO PLAN FOR THE FUTURE

What do you think shows that a household’s ABILITY TO SPEND MONEY WISELY is low?

What about Deepika’s household?

Invite the participants to share their thoughts and lead the discussion so that eventually the following abilities are listed:

Take notes of the answers! Leave enough time to allow participants to familiarize themselves with the idea of grading an ability. Take at least 5 min.

(+): The SHG allows Deepika to gain some basic knowledge about financial management.

• ABILITY TO GAIN KNOWLEDGE AND SKILLS

To guide the discussion again towards the participants’ own life you may ask questions such as: What indicators could you think of that indicate whether a household’s ABILITY TO HANDLE MONEY ON A DAILY BASIS is high/low?

Example: >> (-) Daily earning & spending with acute shortages

Reflect on the different points of discussion:

>> (+) Only spending according to income

Let’s get back to the repercussions of Deepika joining an SHG:

>> (-) No notion of making a budget (would the household know what it spent on over the past 7 days?)

5 Deepika becomes an SHG member. Can you indicate the Focal Area?

>> ALL – In some way or another, all Foca Areas are affected. Let’s take a closer look at the Ability that may be concerned. Take a look at your Participants’ Booklets and tell me what abilities may fit here. 36

Encourage exchange and teamwork between literate and illiterate participants 37

What indicators could you think of that indicate whether a household’s ABILITY TO PLAN FOR THE FUTURE is high/low?

Example: >> (-) Day-to-Day planning >> (-) Fatalistic view of the world (e.g. it’s all meant to be) >> (+) Makes realistic plans for the future with a timeline What indicators could you think of that indicate whether a household’s ABILITY TO SAVE is high/low?

Example: >> (+) Saves on a regular basis (what means ‘regular’ to you? – every day, every week, every month, other?) >> (+) Location of savings (e.g. at home, a bank, a friend, livestock and assets, etc.? What indicators could you think of that indicate whether a household’s ABILITY TO TAKE PART IN COMMUNITY LIFE is high/low?

Example: >> (+) Has a good reputation within the community (How would that show? Why would people respect or trust him/her? What advantages does that imply?) >> (-) Can’t make him/herself heard and has now contact to higher casts or local representatives (e.g. panchayat) >> (+) Helps people (Has the means? Or does that also imply immaterial help?) and can expect help in return in times of need (Of what nature? - money? better conditions for loans?)

Remember, that again these options are not exhaustive. May more may exist

What indicators could you think of that indicate whether a household’s ABILITY TO GAIN SKILLS AND KNOWLEDGE is high/low?

Example: >> (-) Poorly educated (low or no levels of functional literacy) >> (+) Educated (How much? What’s the threshold? What would that enable him/her to do?) >> (+) Skilled labourer (Through vocational training? What kind of skills? For what jobs?) Again, how would you grade the household’s respective abilities on a scale from 1 to 5? What about your own household?

Ask one participant per ability and have them explain their grading. Reflect on the different points of discussion: Let’s get back again to Deepika before moving on to the next event: 4 Deepika’s son starts going to school. Can you indicate the Focal Area?

>> USING SOCIAL CAPITAL, ASSETS AND COMPETENCIES And what about the Ability in question?

Shorten the discussion here since this is largely known by now: (+): Deepika’s son is learning for the future and lays the basis to become a well educated, skilled member of the workforce, potentially earning a good salary later.

• ABILITY TO GAIN KNOWLEDGE AND SKILLS

Since we have seen this ability already, let’s move on to the next key event between the 6th and the 10th year. Should still questions arise, make sure you allow for some extra time to answer them. 38

b. THE LOSS OF REMITTANCES Mahendra is doing quite well in town – he has advanced from a mere day laborer to a fixed employee in a small electronic repair shop. His wage has increased but he is only paid twice a month now. He has met another villager from his native place to take the money with him, but he travels home only once a month. 4

One day when Deepika goes to meet the returning villager to pick up the monthly sum his husband has sent, the villager acts all surprised – he does not have the money; it must have gotten stolen in the bus while he was sleeping. Deepika can’t prove anything but feels uncomfortable trusting this man again. The sum Mahendra had sent was substantial as he had gotten paid late and had sent the due for 2 months. Drenched in tears Deepika tells her fellow SHG members about the incident. Although she has saved up enough to cover the family’s immediate needs, she feels helpless and unsure how to make sure further money her husband sends does not get amiss. To her surprise, the SHG leader offers a solution: The SHG already has a group bank account, they are well known at the bank – surely Deepika can open an individual bank account in her name to receive Mahendra’s remittances in a 100% secure way.

Deepika follows the advice and opens her own bank account. And thanks to the nice and recurring small talk with the cashier each time she withdraws the money transferred by her husband, Deepika soon feels comfortable in a place she never thought to set a foot inside. The cashier even advises her to apply for a debit card so she doesn’t even need to stand in line but can withdraw directly from the ATM.

While she is proud of having gained so much financial autonomy, Deepika now often feels harassed and put under pressure by her father-in-law to give him money. Having seen the funds Deepika is accumulating through wise budgeting and savings, Om Kumar repeatedly pushes her to withdraw money – mainly to finance his worsening liqueur consumption. Finish telling the story and then ask the participants to reflect briefly on the Abilities they think are being affected. Reflect on the different points of discussion: As we have done it for the first key event of Phase 2, let us also analyze the impact of the next major incident and how it affects the household’s Financial Capability (i.e. the set of abilities).

Leave room for discussion – players may have diverging opinions

4 The remittance money is stolen. What Focal Area(s) is/are being affected in your opinion?

>> GENERATING, MANAGING & USING MONEY >> USING FINANCIAL SERVICES >> USING SOCIAL CAPITAL, ASSETS AND COMPETENCIES Give participants the chance to justify their choice then move on to the abilities being affected. Assess them one by one with the participants, eventually guiding the discussion in the following direction: What Abilities are associated with this event?

(-): The family still depends on the remittances the husband is sending; the loss of 2 months of salary is only attenuated by the small emergency fund Deepika was able to set aside while learning to save with the SHG.

• ABILITY TO GENERATE SUFFICIENT INCOME

Reflect on the different points of discussion:

(+): As a consequence to the loss of funds Deepika discovers a more secure way of receiving money by opening a bank account and using formal financial services.

• ABILITY TO USE A BANK ACCOUNT

Let’s get back again to Deepika before moving on to the next event: 6 Deepika’s FIL pressure her to give him money

(-): While she can’t be sure the villager transporting the money is lying, Deepika feels less trusting and unsure she could rely on other community members in case of need.

• ABILITY TO PARTICIPATE IN COMMUNITY LIFE

Can you indicate the Focal Areas(s)?

>> USING SOCIAL CAPITAL, ASSETS AND COMPETENCIES >> GENERATING, MANAGING & USING MONEY And what about the Abilities in question?

Ask the participants to place the tokens on the respective abilities, with either the positive or negative side visible.

Shorten the discussion here since this should be largely known by now: (-): Deepika’s FIL still hasn’t developed any concern for the well being of the rest of the household and wastes money that could have been invested more gainfully.

• ABILITY TO SPEND MONEY WISELY

To refine the discussion and further details about the yet unseen ABILITY TO USE A BANK ACCOUNT you could ask questions such as: What other indicators could you think of to judge whether a household’s ABILITY TO USE A BANK ACCOUNT is well developed or not?

Example:

Probe the players’ perceptions regarding the signs of this ability being highly or poorly developed: E.g. Someone who uses a bank account very well, what does s/ he uses it for?

(-): Putting his DIL under pressure to finance his alcohol consumption only creates tensions.

• ABILITY TO COORDINATE WITHIN THE FAMILY

>> (+) Uses the bank account for individual savings

Since we have seen this ability already, let’s move on to the next key event between the 6th and the 10th year.

>> (-) Only uses the bank account for receiving direct government transfers like NREGA wages

Should still questions arise or participants feel like sharing personal experience, make sure you allow for some extra time.

>> (+) Uses the bank account regularly and for more than the mere deposits & withdrawals (e.g. Fixed or Recurring Deposits?)

c. LIVELIHOOD TRAINING AND SHG LOAN d. SERIOUS HEALTH ISSUES OF THE FIL

>> (+) Repays on time and know his/her repayment capacities >> (-) Needs to sell assets or cut expenses to repay a loan? May even take out a new loan to repay an old one? Since you have already seen the other abilities I propose we move on to analyzing the next repercussions. Or has anybody still a question or wants to share some of their own experience?

Leave 2-3 min for discussion if necessary then move on. 42

Deepika’s SHG has been doing well and the NGO that nurtures the women now offers some vocational training. The group members have the choice between goat rearing and tailoring. Since Deepika has already some experience in stitching and needlework she decides to take part in the training course for basic skills in tailoring. Another senior group member who is overseeing this class has already promised her to teach her some more after the course if she is doing well. 43

Thus, for 8 classes over 2 months, Deepika is learning the basic trade of tailoring. A neighbor buys the kurta she has made has her final piece and encourages her to pursue this activity. Now that the benefits from being a member in an SHG become more and more apparent even, Deepika’s MIL supports her and approves of the idea to take a loan from the SHG to buy her own sawing machine. After having done her financial planning with the group, Deepika receives a loan from the SHG. And as her little sewing business takes up, her MIL helps her by taking care of the children.

What Abilities are associated with this event?

(+): Deepika is able to acquire a set of skills that let her evolve from an unskilled laborer, carrying out occasional stitching tasks, to a trained tailor that finds more and better paid jobs, thus generating a higher income in the future

• ABILITY TO GAIN KNOWLEDGE & SKILLS

(+): With her increased financial weigh in the family, Deepika gains respect and eventually the support from her MIL who is ready to share household chores with her.

• ABILITY TO COORDINATE WITHIN THE FAMILY

The family is reaping the benefits from the moderate but steady new income and paying for a gas connection to be installed in their modest home. They feel like luck is finally on their side when Om Kumar, Deepika’s FIL shows signs of a rapidly deteriorating health due to his long lasting alcohol abuse. Om Kumar’s (FIL) liver is failing.

Ask the participants to place the tokens on the respective abilities, with the positive side visible.

It is advisable to probe the players’ perceptions regarding the signs of this ability being highly or poorly developed: E.g. Someone who’s ability to gain knowledge and skills is very well, would typically have what type of skills or gone to school for how long What are the most pronounced differences to someone who’s ability to gain skills & knowledge is very low?

Since you have already seen the other abilities I propose we move on to analyzing the next repercussions. Yet, you are most welcome to share some more of your own experiences if you like.

Finish telling the story and then ask the participants to reflect quickly on the Abilities they think are being affected.

Leave 2-3 min for discussion if necessary then move on. Reflect on the different points of discussion:

Reflect on the different points of discussion:

8 SHG Loan to finance a Sewing Machine. What Focal Area gets affected?

As we have done it for the first two key events of Phase 2, let us also analyze the impact of the next major incidents and how they affect the household’s Financial Capability (i.e. the set of abilities).

>> USING FINANCIAL SERVICES >> PLANNING FOR THE FUTURE >> USING SOCIAL CAPITAL, ASSETS & COMPETENCIES

7 Vocational Training in the SHG. What Focal Area is being affected?

>> USING SOCIAL CAPITAL, ASSETS AND COMPETENCIES Give participants the chance to justify their choice, then move on to the abilities being affected. Assess them one by one with the participants, eventually guiding the discussion in the following direction:

Note that the discussion regarding the Focal Areas is no longer stricktly necessary and can be left out if you want speed up the game

Give participants the chance to justify their choice then move on to the abilities being affected. Assess them one by one with the participants, eventually guiding the discussion in the following direction:

Note again that the discussion about Focal Areas is optional

What Abilities are associated with this event?

(+): Deepika plans well how to use and repay the loan thanks to the support and learning she gets from her SHG.

• ABILITY TO USE A LOAN

(+): Thus far Deepika’s family has only taken loans for consumption purposes and emergency expenses; this loan is an investment in a valuable assets that allows higher income generation.

• ABILITY TO INVEST

(+): Through the SHG’s vocational training Deepika has learned how to handle and maintain her new asset.

• ABILITY TO USE ASSETS

Ask the participants to place the tokens on the respective abilities, with the positive side visible. What other indicators could you think of to judge whether a household’s ABILITY TO INVEST is well developed or not?

Example: >> (-) Has no financial capacity to think about investments? >> (+) Has a plan to increase income through investments. >> (+) Actively seeks new opportunities? >> (+) Invest in business, higher education, houses, land – long term pay-offs?

>> (+) Owns assets that are worth insuring / stealing? >> (+) Takes care and maintains his/her assets? Ask the participants to place the tokens on the respective abilities, with either the positive or negative side visible. How would you grade Deepika’s household’s respective abilities on a scale from 1 to 5? What about your own household?

Ask participants once more to share details about their own household situation. In case you feel that they are comfortable enough with each other, propose them to mutually grade each other on those abilities. Now that we have seen almost all of the abilities that households and rural communities like yours identified as being important indicators for good money management, let’s go back to the last key event of Phase 2, the FIL’s deteriorating health. Leave 2-3 min for questions if necessary then move on. Reflect on the different points of discussion: 9 Rapidly deteriorating health of Deepika’s FIL. >> GENERATING, MANAGING & USING MONEY >> USING FINANCIAL SERVICES

Example:

>> USING SOCIAL CAPITAL, ASSETS & COMPETENCIES

>> (-) Has minor assets (e.g. land) but cannot make proper use of it – no gain from assets?

Optional!

Can you identify the Focal Area?

What other indicators could you think of to judge whether a household’s ABILITY TO USE ASSETS is well developed or not?

>> (-) Has no property, land or other noteworthy assets?

Don’y forget to take notes!

>> (+) Generates business from assets?

How would grade Deepika’s household’s abilities (to use insurance) on a scale from 1 to 5?

What Abilities are associated with this event? • ABILITY TO HANDLE MONEY ON A DAILY BASIS (-):

The FIL’s health problems represent an important outflow, regular and acute expenses are to be expected

What about your own household?

(-): Deepika’s family has never taken any health insurance. All prior health care expenses were associated with smaller or predictable costs; the costs for attending to the FIL are yet unknown but are likely to become quite high

Leave 2-3 min for questions if necessary then move on to Phase 3.

Ask participants once more to share details about their own household situation.

• ABILITY TO USE INSURANCE

Remember the option of mutual grading among participants

(-): Attending the enfeebled FIL puts a strain on the whole family and tensions are likely to arise.

• ABILITY TO USE COORDINATE WITHIN THE FAMILY

Ask the participants to place the tokens on the respective abilities, with the positive side visible. To refine the discussion and further details about the yet unseen ABILITY TO USE INSURANCE you could ask questions such as: What other indicators could you think of to judge whether a household’s ABILITY TO USE INSURANCE is well developed or not?

Example: >> (-) Negligible awareness about insurance and its benefits – perceived as too abstract a concept?

Remember to probe the players’ perceptions of what indicates the highest and the lowest level of this ability

>> (-) Only partial insurance cover – e.g. only one male? >> (+) Knows and probably even uses health insurance for all family members? Might have an asset insurance? Ask the participants to place the tokens on the respective abilities, with the negative side visible.

PHASE 3 / 11 - 15 years Family member

Husband, 37 yrs

Wife, 34 yrs

Older Girl, 15 yrs

Younger Boy, 11 yrs

Father-in-Law, 60 yrs

Mother-in-Law, 58 yrs

Key Event

Husband’s Accident

• Accident in the city

• She is able to access

and consequent return home • Surgery & Medical expenses

some money through the SHG for accident expenses • Some savings but not enough to cover all expenses • Learns through her SHG about the importance of insurance (could have been helpful in such a time)

• Drops out of school

New SHG Loan to start a small business with Financial Long term Planning

• Business begins to pick

• Has money to invest in a

up for both him and his wife and they are helping each other out.

TV and a bicycle for her son’s daily commute to the private school in the nearby town

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

000011

001 001

from the SHG to start her husband’s business • Helps maintain his books and accounts at first and teaches her husband

7 • They start planning

ahead as they see his parents getting such meager pensions decide to set up a pension account for their own old age 10 50

expenses for the enfeebled father-in-law because of his liver which is failing (multiple hospitalizations) • Starts to get small pension as he crosses 60 years of age (about 500 Rs. quarterly)

• Takes another loan

looking to start something that is based on his job in town. Possibly a repair shop for odds and ends

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

• Repeatedly high medical

• After recovery, is

00 01 1 0

• Continues going to school

because her help in the household is direly needed after her father’s accident

• Joins (vocational?)

• Starts going to a private

training to become an Anganwadi teacher once the family is settled

• Starts receiving a small

school

pension at the age of 60

• Also start saving for

daughter’s wedding insurance for herself and her husband

• Gets health

9 51

a. ECONOMIC SETBACK THROUGH ACCIDENT & MEDICAL EXPENSES

4.3 Narrative of the Key Events and their Repercussions – PHASE 3 Phase 3 is largely a repetition of Phase 2 in terms of activities – let the participants more autonomy in discussing which FOCAL AREA(s) and ABILITIES come into play for the various events. You will still guide the narration and stir the discussion, but give the players the feeling of discovering and deciding more on their own. Now that you all know both the Focal Areas and Abilities well, I will let you identify fully on your own what belongs where – just like you started doing it for Phase 2. The following section tells us what happens between year 11 and 16.

It’s been a bit over 5 years now that Mahendra has migrated to town. Deepika often wishes he could come back and find work closer by – but when he actually does it is under greatly different circumstances than she would have hoped for: While going to work, Mahendra a hit by a car, leaving him with a badly injured leg and arm. Continuing to work becomes impossible in that state of health and as a consequence Mahendra moves back to his native village.

To care for her infirm father, Radha has to drop out of school. Her mother is heart-broken by this decision, after all Radha was the first of her class and was full of prospects. But at that time, Deepika becomes again the only one with a stable income and can’t take off much time. With the need to pay for surgery and expensive medicine Deepika even takes on more orders than usual despite the small emergency loan she gets from her SHG.

For a while, Deepika feels overwhelmed with the situation – the health care expenses seem to go out of hand - her FIL’s liver deteriorates even further. The only silver lining is her son doing just as well in school as his older sister did.

Then, as Om Kumar, the FIL turns 60, he starts getting a small pension. It isn’t much, but it helps taking off at least a little bit of the pressure. Reflect on the different points of discussion Now it’s your turn – how are the Focal Areas and Abilities affected by the key events and their repercussion? Where would you place your token? 4 Mahendra meets with an accident.

You may let the discussion flow freely for 2-3 min and leave the participants the chance to come to a consensus themselves.

What Focal Area is concerned?

>> GENERATING, MANAGING & USING MONEY >> USING SOCIAL CAPITAL, ASSETS AND COMPETENCIES What about the Abilities associated? 52

• ABILITY TO GENERATE SUFFICIENT INCOME (-):

Due to the severe damage to his arm and leg Mahendra’s is unable to take up work for several months – without any security for unemployment this means the loss of income for him (-): Mahendra’s injuries cause high, unexpected expenses that offset the household’s financial balance of income and expenditure ***

• ABILITY TO SPEND MONEY WISELY

Remember that this choice is just a suggestion – might be that your participants identify other abilities to be affected, too. *** This also applies for the FIL’s medical needs

What about the Abilities associated with the event’s repercussions?

(-): Deepika’s daughter was doing really well in her class; her dropping out of school is a severe setback for her professional aspirations. What

• ABILITY TO GAIN KNOWLEDGE AND SKILLS

do participants expect women to aspire to in terms of carrier and life?

(+/-?): The fact that her brother is allowed to stay in school might lead to increased levels of frustration for Deepika’s daughter.

• ABILITY TO COORDINATE WITHIN THE FAMILY

(+/-?): Now caring for her father, Mahendra’s daughter will probably grow closer again to him after they hadn’t seen each other in a long time.

• ABILITY TO COORDINATE WITHIN THE FAMILY

Let the participants place the tokens accordingly. 54

>> USING FINANCIAL SERVICES What about the Abilities associated with the event’s repercussions?

you need to know in your community? Who can help when? Who would / do you help?

Again, these choices are just a suggestion – perhaps the players identify other abilities to be affected, too.

(+/-?): Having taken and repaid several loans with the SHG by now, Deepika knows how to organize her financials to be able to cover the installments. What do you do

• ABILITY TO USE LOANS

Let the participants place the tokens accordingly.

>> USING SOCIAL CAPITAL, ASSETS AND COMPETENCIES

fact that Deepika is part of an SHG allows her to access funds which she would probably not have gotten otherwise in her position. Who do

(+/-?): Mahendra’s unplanned return requires the family to readjust its internal balance. This may work out fine or create another set of challenges, depending of the unity of the household.

What Focal Area is concerned and where would you place your token?

What Focal Area is concerned?

Further discussion might be needed / interesting here

• ABILITY TO PARTICIPATE IN COMMUNITY LIFE (+/-?): The

• ABILITY TO COORDINATE WITHIN THE FAMILY

2 The daughter drops out of school while the son stays.

3 Emergency SHG loan to cover most urgent medical expenses (surgery and hospitalisations).

Let the participants place the tokens accordingly. Further discussion might be needed / interesting here Again, these choices are just a suggestion – perhaps the players identify other abilities to be affected, too.

to ensure your repayment capacity? What if there is a shortage? Do you feel comfortable with not paying or paying late or do you resort to other options?

Let the participants place the tokens accordingly. 4 FIL starts receiving a small pension. What Focal Area is concerned?

Further discussion might be needed / interesting here

>> GENERATING, MANAGING & USING MONEY What about the Abilities associated with the event’s repercussions? • ABILITY TO GENERATE SUFFICIENT INCOME

(+): Even if small, that’s always more income for the household.

(+/-?): There might be a risk of the FIL spending his meager pension again on his alcohol addiction. Yet,

• ABILITY TO SPEND MONEY WISELY

with his failing liver he might be less inclined to do so... do you know people that knowingly harm themselves due to an addiction? How would you handle such a situation?

Let the participants place the tokens accordingly.

Reflect on the different points of discussion:

You have followed Deepika’s and Mahendra’s household for a while now - How would you say, their abilities evolve?

Now it’s your turn again – how are the Focal Areas and Abilities affected by the key events and their repercussion?

Before we had given them grades for each abilities on a scale from 1 to 5?

5 Mahendra is recovering and wants to set up a small business with the help of his wife Deepika.

Where do you think they are now after Mahendra’s accident?

Guide the discussion gently and help your participants understand that each ability can evolve (both positively and negatively).

b. SETTING UP A SMALL BUSINESS TOGETHER

Mahendra is starting to recover, helping his wife out with delivering her orders and taking on new ones; and after about a year of his return he feels strong enough to handle an activity of his own. Having acquired valuable skills while working in town, Mahendra would like to open up his own electrical repair shop. More and more people in the village start to have small electrical appliances, radios and TVs – there should be enough work. Not wanting her husband to become again solely dependent on NREGA wages or have him consider moving back to town, Deepika supports Mahendra’s idea. During the next group meeting she presents the couple’s business plan to her SHG – including the repayment schedule and ideas of profit – and obtains a loan to buy the necessary tools. The take up of the activity is slow at first – Mahendra’s first clients are neighbors he has known for years. Little by little though the word spreads and after 3 more months it’s Deepika who has to help out her husband with the accounts.

What Focal Area is concerned? You may note down the highlights of the participants’ thought process.

>> GENERATING, MANAGING & USING MONEY >> PLANNING FOR THE FUTURE >> USING SOCIAL CAPITAL, ASSETS & COMPETENCIES What about the Abilities associated with the event’s repercussions?

(+): Due to Mahendra’s recovery, medical expenses decrease and leave more room for covering other financial needs

• ABILITY TO GENERATE SUFFICIENT INCOME

Remember that this choice is just a suggestion – might be that your participants identify other abilities to be affected, too.

(+): Mahendra’s motivation and the freed funds let the family think about future projects

• ABILITY TO PLAN FOR THE FUTURE

(+/-?): Husband and wife forge a common goal and become a good team. But does that always work

• ABILITY TO COORDINATE WITHIN THE FAMILY

out? …who works together with their spouse? Do things work smoothly or do you face challenges with sharing professional responsibilities with your partner? How do you work out hierarchy?

Let the participants place the tokens accordingly. 6 SHG productive loan to invest in tools for Mahendra’s business. What Focal Area is concerned?

>> USING SOCIAL CAPITAL, ASSETS AND COMPETENCIES >> PLANNING FOR THE FUTURE >> USING FINANCIAL SERVICES

What about the Abilities associated with the event’s repercussions?

(+/-?): After having paid back the small emergency fund, Deepika is in a position to approach her SHG again for a more livelihood oriented loan – other financing options would probably have been more cumbersome for Deepika in her position.

• ABILITY TO PARTICIPATE IN COMMUNITY LIFE

c. INVESTMENTS & THINKING ABOUT THE FUTURE

Further discussion might be needed / interesting here Let the participants place the tokens accordingly Again, these choices are just a suggestion – perhaps the players identify other abilities to be affected, too.

(+/-?): The family is having a tangible plan and invests in assets to be used for income generation. What assets (or trainings

• ABILITY TO INVEST

for skill development) have you invested in?

(+/-?): The family/the spouses have developed a business plan together, including the repayment schedule and what they think the demand for Mahendra’s service will look like. Thus, they feel well prepared.

• ABILITY TO USE A LOAN

Let the participants place the tokens accordingly. As earlier, how would you say, their abilities evolve after Mahendra’s recovery and the couple investing in a new livelihood? What grades would you give them now for the concerned abilities on a scale from 1 to 5?

Again, guide the discussion and make sure your players have properly grasped the idea that each ability is able to evolve (both +/-).

As the years pass, the family’s business grows – moderately but steadily. They start investing in some home improvement such as a TV and minor repairs. But their biggest investment is sending their son to a better private school in a close-by town and the motorcycle he uses to commute. To Deepika’s delight, her daughter, too has taken up school again and is now following classes to become an Anganwadi teacher. The only strain on the family is the father-in-law’s health, causing him repeated hospitalizations and the complete loss of the facility to take care of himself. Even with the extra amount of pension they start receiving once Sita Devi, the mother-in-law turns 60, the parents are totally dependent on Deepika and Mahendra. Starting to think ahead and consider their own future, Deepika and Mahendra decide to take a small health insurance cover and set some money aside to be paid to a private pension fund that would later on complement their government pension. For their daughter, they start saving some extra money for the day she wants to get married. Reflect on the different points of discussion: 7 Economic stabilization and home improvements What Focal Area is concerned?

>> GENERATING, MANAGING & USING MONEY >> USING SOCIAL CAPITAL, ASSETS & COMPETENCIES What about the Abilities associated with the event’s repercussions?

(+): Steady increase in income with now 3 regular incomes: Deepika’s tailoring, Mahendra’s electronic repair shop and the in-laws’ pension.

• ABILITY TO GENERATE SUFFICIENT INCOME

How many incomes do you have in your family? Are they regular?

(+): The family carries out repairs on the house again, buys some appliances and even a motor vehicle. What do

(+/-?): Deepika and Mahendra start weighing options for their own future; the acute financial dependency of his parents to cover every day living and medical bills let’s them start searching for other options for their own future.

• ABILITY TO USE ASSETS

• ABILITY TO PLAN FOR THE FUTURE

you consider your most valuable assets? How do you maintain them?

(+): Both children are benefiting from a continued education, allowing them to have higher prospects and aspirations for their professional life than their parents may have had. What do you expect for your

• ABILITY TO GAIN KNOWLEDGE

Let the participants place the tokens accordingly. 10 Health insurance, pension fund & wedding plans. What Focal Area is concerned?

children? What school do you send them to and why?

>> PLANNING FOR THE FUTURE

Let the participants place the tokens accordingly.

>> USING FINANCIAL SERVICES 8 Teachers Classes. What Focal Area is concerned?

>> USING SOCIAL CAPITAL, ASSETS & COMPETENCIES What about the Abilities associated?

(+): Back to school Deepika’s daughter builds a solid base for her future by gaining the necessary knowledge to become a teacher.

• ABILITY TO GAIN SKILLS & KHOWLEDGE

Let the participants place the tokens accordingly. 9 MIL starts receiving a small pension. What Focal Area is concerned?

>> GENERATING, MANAGING & USING MONEY >> PLANNING FOR THE FUTURE What about the Abilities associated ? ABILITY TO GENERATE SUFFICIENT INCOME (+/-?): Although both in-laws are eligible for a pension, the even the combined amount is very small. Deepika and Mahendra wonder whether that little pension is going to be sufficient for them in old age. What about yourself?

Beware that it is likely to have an impact on more than just the listed ability. Eg. Planning for the Future etc.

What about the Abilities associated with the event’s repercussions?

(+/-?): Deepika and Mahendra start setting aside a small but regular sum to put in a private pension fund – although the payout is not immediate, they feel like they are investing in their future. Who DOESN’T think it

• ABILITY TO INVEST

makes sense to invest in old age pension – after all, it’s a long way off?

(+): Deepika and Mahendra become proactive and get a small health insurance for themselves. Who here

• ABILITY TO USE INSURANCE

has health insurance? Do you know what you are covered for?

Let the participants place the tokens accordingly. As earlier, how would you say, the household’s abilities evolve after their business is growing? What grades would you give them now for the concerned abilities on a scale from 1 to 5?

How do you plan for old age? Does anybody here have a private pension, is planning to get some or know the procedures?

PHASE 4 / 16 - 20 years Family Member

Husband, 42 yrs

Wife, 39 yrs

Older Girl, 20 yrs

• Funeral expenses for his

Younger Boy, 16 yrs

Father-in-Law, 60 yrs

• Becomes a teacher at

father

• Passes away at the age of 62

the local primary school

due to his continuously bad health

2 • Build a pucca house with 2 more rooms than their

Mother-in-Law, 58 yrs

1 • Continues education at college

former kutcha house

4.4 Outlook in the future – PHASE 4

REFLECT ON THE FUTURE

Phase 4 is intended to give the participants closure on the household’s story by imagining a few things that might happen next, based on the household’s learning and experiences of the former stages in life.

I now would like to invite you to share a bit of what you think is most likely to happen in the last 5 years and why. Deepika and Mahendra sure have lived through a lot, learned a lot from the different experiences. Based on the grading of their evolving abilities throughout the last Phase, think of what life might hold for them and how they are going to face it.

You may let the discussion flow freely for about 5 to 10 min. Note that the table above holds a number of suggestions of what might be likely events. They are but ideas and by no means final.

Thank the participants, after the discussion for their time and attention and invite them now to evaluate more closely their own community and individual households.

5. KNOWING YOUR OWN ABILITIES & TARGETS 5.1 A community baseline of relevant abilities • Establishing

a baseline of the abilities that your community perceives as relevant is crucial for identifying your participants’ goals and being able to monitor them later on.

• Note

that much of the information needed for this exercise has already been discussed during the game itself and you should ideally have written some or even most of it down (e.g. when you would have asked your participants to identify affected abilities and later on to grave them).

By then, more than the mere participants might have joined the scene.

• Get

started by taking out the ABILITY MAP and fixing it somewhere visible for all in the audience to see.

a. RELEVANT ABILITIES Dear all, As you can see (e.g. on the wall), this ABILITY MAP lists again all the abilities we have come across during the game. Show the Ability Map. By now you should be fairly familiar with all of them – in case of doubt you can always consult your Participant’s Booklet. It has the same list in its last section. But as it often happens – there is no ‘one fits them all’.

Remember that your Toolkit contains a blank version that can be xeroxed for the purpose of filling out a fresh Ability Map for a new audience You should not forget to associate each new ABILITY to the respective FOCAL AREA.

Therefore, let’s review the abilities and decide which ones are actually relevant for your own community. Perhaps you can even think of others that were left out here – this is why there is a blank line where we can fill in other abilities we think are missing here. Indicate the lower line on the Ability Map. Give the participants a moment to consult together. You should put each ability to a vote by asking: ‘Who thinks this ability is relevant for your own context?’

Áfrfnu iSlk dekus dh {kerk lksp le> dj [kpZ djus dh {kerk çfrfnu iSlk la“kyus dh {kerk Òfo"; ds fy, ;kstuk cukus dh {kerk fuos'k djus dh {kerk _.k dk mi;¨x djus dh {kerk

Remember The ABILITY MAP will display the group’s life goals as will be fixed by them next (use a blank copy for each group/ community). It contains all the abilities that you have seen and discussed with your participants during the game as well as a section for grading them for the community context 64

cpr djus dh {kerk C©ad [kkrk mi;ksXk djus dh {kerk chek mi;®Xk djus dh {kerk ikfjokfjd rkyesy dh {kerk lkeqnkf;d thou esa ÒkXk ysus dh {kerk iwath dk mi;ksXk djus dh {kerk Kku v©j dkSS'kYk çkIr djus dh {kerk

Mark each Ability on the Ability Map that your audience thinks is important to describe their own situation (e.g. When 3 out of 10 participants vote ‘yes’).

b. DEFINE WHAT MAKES AN ABILITY STRONG OR WEAK Now that we have decided which abilities are relevant in our situation, let’s decide what makes us say ‘This person has a strong ability to…’ (e.g. save) or ‘This person’s ability to… (save) is weak.’

User your notes if necessary to recall the details!

Already earlier during the game I had asked you repeatedly what other Indicators or Markers you could think of in order to decide whether a household’s ability is well or poorly developed.

Let us do that again in a more organised manner and write it down in the ABILITY MAP. For each ability your participants highlighted under section ’a’, establish a common understanding of what marks the levels of development of this ability. For your reference, you can even use the markers that describe the evolution of the abilities as detailed by the FINANCIAL CAPABILITY MATRIX – see below or Annexure.

The given markers stem from an exercise like yours – it is thus highly possible that your audience finds others or more precise indicators that reflect their understanding of a growing ability in their own local context!

c. DEFINE INDIVIDUAL TARGETS Invite the participants to have a closer look at the last section of their Participant’s Booklet. Similar to what you see on the ABILITY MAP you will find a list with the abilities we have seen earlier. Mark the abilities that seem of particular importance to you.

You should anticipate that this exercise may take longer than 10 min depending on the understanding and need for exchange of your participants

Then, on a scale from 1 to 5, grade your own strength for each of the marked abilities (as we have done it during the game for Deepika’s and Mahendra’s household and for some of you). Leave them 5 to 10 min to do so and help out where necessary. To speed up the process, you can also divide the audience in smaller sub-groups and do the exercise for one household per group.

Áfrfnu iSlk dekus dh {kerk

And now – decide where you want to go! What do you want to achieve for each of your abilities?

lksp le> dj [kpZ djus dh {kerk

Invite them to discuss and share their goals with the whole group and encourage them.

If participants are ready to share, you may even encourage them to exchange their PDs for others to see and vice-versa.

From now on, let’s work towards those goals ! çfrfnu iSlk la“kyus dh {kerk Òfo"; ds fy, ;kstuk cukus dh {kerk

– and every … meeting, depending on your organization’s approach we shall have a look at it and see where we have made progress and what we still need to work on and where you might need help. Thank you everybody!!!

fuos'k djus dh {kerk

Enter the details of each ABILITY in the ABILITY MAP plainly visible all. djus _.kfor dk mi;¨x dh {kerk

Great! Thank you again – so this is how AN INCREASINGLY FINANCIALLY CAPABLE HOUSEHOLD looks like IN YOUR COMMUNITY. cpr djus dh {kerk Now let’s look where you see yourself and where you want to go! C©ad [kkrk mi;ksXk djus dh {kerk

chek mi;®Xk djus dh {kerk

Published By Deutsche Gesellschaft F端r Internationale Zusammenarbeit (GIZ) Gmbh Rural Financial Institutions Programme C ont a ct 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 oncept a n d L a y o u t Quicksand and Design Route

Apr i l 2 0 1 4

R espons i b l e Dr. Detlev Holloh New Delhi, March 2014