FINANCIAL EDUCATION PROGRAM (FEP) National G2P Cash Transfer Program Volume I-A: Learner’s manual Introduction Who are we and why are we here? Life is a lesson that one never finishes learning 2 Learner's Manual Introduction Introduce yourselves 3 Learner's Manual Introduction Name Marital Status Age Occupation Children Dependent Money Level of elderly transfers/Re schooling mittances 4 Learner's Manual Introduction Questions by session… Session 1 : Setting financial goals Session 2 : Why is it necessary to make a budget? Session 3 : Can a budget be prepared without a methodology? Session 4 : What are our household’s incomes? Session 5: What are our household’s expenses? Session 6: How to match expenses with incomes? Session 7: What needs to be done in case of an unexpected event? Session 8: Why save money? Session 9: How to save money? Session 10: Where to save money? 5 Learner's Manual Introduction Questions by session… Session 11 : Saving for retirement Session 12 : When to use savings? Session 13 : Why borrow money? Session 14: Understanding terms of borrowing Session 15: Comparing terms of loan Session 16: Negotiating with a lender Session 17: Managing continuously repayment of debt and building trust Session 18: Communicating with confidence Session 19: How to use mobile money 6 Learner's Manual Introduction What will be covered in each session? 1. Listen to a story on each question 2. What does each story tell us? 3. Do you experience such situations and how do you deal with those? 4. Which important messages must be remembered? 7 Learner's Manual Introduction Listen to a story 8 Learner's Manual Introduction Who are our characters? Father Mother Daughter Nana Son 9 Learner's Manual 9 Session 1 The question of session 1 is : Session 1 : Setting financial goals Session 2 : Why is it necessary to make a budget? Session 3: Can a budget be prepared without a methodology? Session 4 : What are our household’s incomes? Session 5:What are our household’s expenses? Session 6: How to match expenses with incomes ? Session 7: What must be done in case of an Setting financial goals unexpected event? Session 8: Why save money? Session 9: How to save money? Session 10: Where to save money? Session 11: Saving for retirement Session 12: When to use savings? Session 13: Why borrow money? Session 14: Understanding terms of borrowing Session 15: Comparing terms of loan Session 16: Negotiating with a lender Session 17: Managing continuously repayment of debt and building trust Session 18: Communicating with confidence Session 19: How to use mobile money 10 Learner's Manual Session 1 Sketch #1 Setting Financial goals 11 Learner's Manual Session 1 12 Learner's Manual Session 1 13 Learner's Manual Session 1 14 Learner's Manual Session 1 15 Learner's Manual Session 1 16 Learner's Manual Session 1 17 Learner's Manual Session 1 18 Manuel du participant Session 1 19 Learner's Manual Session 1 Your turn, what do you think of the story? What are we talking about? 20 Learner's Manual 20 Session 1 And in your life?Do you have money objectives? which ones? 21 Learner's Manual Session 1 What do you do in a similar situation? 22 Learner's Manual Session 1 What important points must be remembered? • In order to move forward in money matters, the simplest way is to target objectives on each aspect of money matters. • Objectives must be precise, realistic, and understood by all members of the household. 23 Learner's Manual Session 8 Key Messages « Going slowly does not prevent from arriving » 24 Learner's Manual Session 2 Session 1 : Setting financial goals The question of session 2 is : Session 2 : Why is it necessary to make a budget? Session 3: Can a budget be prepared without a methodology? Session 4 : What are our household’s incomes? Session 5:What are our household’s expenses? Session 6: How to match expenses with incomes ? Session 7: What must be done in case of an unexpected event? Why is it necessary to Session 8: Why save money? Session 9: How to save money? make a budget? Session 10: Where to save money? Session 11: Saving for retirement Session 12: When to use savings? Session 13: Why borrow money? Session 14: Understanding terms of borrowing Session 15: Comparing terms of loan Session 16: Negotiating with a lender Session 17: Managing continuously repayment of debt and building trust Session 18: Communicating with confidence Session 19: How to use mobile money 25 Learner's Manual Session 2 Sketch #2 The importance of having a budget 26 Learner's Manual Session 2 27 Learner's Manual Session 2 28 Learner's Manual Session 2 29 Learner's Manual Session 2 30 Learner's Manual Session 2 31 Learner's Manual Session 2 32 Learner's Manual Session 2 33 Learner's Manual Session 2 Your turn. What do you think of the story? What are we talking about? 34 Learner's Manual 34 Session 2 And in your life? Do you often have difficulties to meet your expenses? 35 Learner's Manual Session 2 What do you do in a similar situation? 36 Learner's Manual Session 2 What important points must be remembered? • Be well prepared to face life’s money challenges. • Anticipate cash inflows and outflows – this is what budgeting is all about. 37 Learner's Manual Session 2 Key message « It is not on the day of battle that you sharpen your blade » 38 Learner's Manual Session 3 The question of session 3 is : Session 1 : Setting financial goals Session 2 : Why is it necessary to make a budget? Session 3: Can a budget be prepared without a methodology? Session 4 : What are our household’s incomes? Session 5:What are our household’s expenses? Session 6: How to match expenses with incomes ? Session 7: What must be done in case of an Can a budget be prepared without a unexpected event? Session 8: Why save money? methodology? Session 9: How to save money? Session 10: Where to save money? Session 11: Saving for retirement Session 12: When to use savings? Session 13: Why borrow money? Session 14: Understanding terms of borrowing Session 15: Comparing terms of loan Session 16: Negotiating with a lender Session 17: Managing continuously repayment of debt and building trust Session 18: Communicating with confidence Session 19: How to use mobile money 39 Learner's Manual Session 3 Sketch #3 How to prepare a budget? 40 Learner's Manual Session 3 41 Learner's Manual Session 3 42 Learner's Manual Session 3 43 Learner's Manual Session 3 44 Learner's Manual Session 3 Your turn, what do you think of the story? What are we talking about? 45 Learner's Manual 45 Session 3 And in your life? How do you manage the money of your household? 46 Learner's Manual Session 3 What do you do in a similar situation? 47 Learner's Manual Session 3 What important points must be remembered? Making a budget must be done methodically. Identify incomes and expenses, and put those in a timetable. A budget is prepared step by step. 48 Learner's Manual Session 3 Key message « To lie down, one must begin by sitting down » 49 Learner's Manual Session 4 Session 1 : Setting financial goals The question in session 4 is : Session 2 : Why is it necessary to make a budget? Session 3: Can a budget be prepared without a methodology? Session 4 : What are our household’s incomes? Session 5:What are our household’s expenses? Session 6: How to match expenses with incomes ? Session 7: What must be done in case of an unexpected event? What are our Session 8: Why save money? Session 9: How to save money? household’s incomes? Session 10: Where to save money? Session 11: Saving for retirement Session 12: When to use savings? Session 13: Why borrow money? Session 14: Understanding terms of borrowing Session 15: Comparing terms of loan Session 16: Negotiating with a lender Session 17: Managing continuously repayment of debt and building trust Session 18: Communicating with confidence Session 19: How to use mobile money 50 Learner's Manual Session 4 Sketch #4 Identifying all sources of income 51 Learner's Manual Session 4 52 Learner's Manual Session 4 53 Learner's Manual Session 4 54 Learner's Manual Session 4 55 Learner's Manual Session 4 56 Learner's Manual Session 4 Your turn,what do you think of the story ?What are we talking about? 57 Learner's Manual 57 Session 4 And in your life? Are you able to identify your sources of income, their level and frequency? 58 Learner's Manual Session 4 Are you able to put these in a timetable? 59 Learner's Manual Session 4 What are the important points to be remembered? For each household member, it is important to know the type of income, the level, the frequency, the seasonality, the degree of certainty to know on what we depend. 60 Learner's Manual Session 4 Sources of income 61 Learner's Manual Session 4 Regular incomes +++++++ +++++++ +++++++ +++++++ +++++++ +++++++ 62 Learner's Manual Session 4 Irregular or Occasional Incomes 63 Learner's Manual Session 4 Incomes from money transfers (Windfalls) 64 Learner's Manual Session 4 Level of income +++ ++++++++++ +++ ++++++++++ +++ ++++++++++ +++ ++++++++++ +++ +++ ++++++++++ ++++++++++ 65 Learner's Manual Session 4 Key message « Think about the quality of your teeth before taking a bone in the cooking pot » 66 Learner's Manual Session 5 The question in session 5 is : Session 1 : Setting financial goals Session 2 : Why is it necessary to make a budget? Session 3: Can a budget be prepared without a methodology? Session 4 : What are our household’s incomes? Session 5:What are our household’s expenses? Session 6: How to match expenses with incomes ? Session 7: What must be done in case of an unexpected event? What are our Session 8: Why save money? Session 9: How to save money? Session 10: Where to save money? household’s expenses? Session 11: Saving for retirement Session 12: When to use savings? Session 13: Why borrow money? Session 14: Understanding terms of borrowing Session 15: Comparing terms of loan Session 16: Negotiating with a lender Session 17: Managing continuously repayment of debt and building trust Session 18: Communicating with confidence Session 19: How to use mobile money 67 Learner's Manual Session 5 Sketch #5 Identifying the various categories of expenses 68 Learner's Manual Session 5 69 Learner's Manual Session 5 70 Learner's Manual Session 5 71 Learner's Manual Session 5 72 Learner's Manual Session 5 73 Learner's Manual Session 5 74 Learner's Manual Session 5 Your turn,what do you think of the story? What are we talking about? 75 Learner's Manual 75 Session 5 And in your life? Are you able to identify your household’s expenses, their level and frequency? 76 Learner's Manual Session 5 Can you put these in a timetable? 77 Learner's Manual Session 5 What important points must be remembered? Identify the expenses, their frequency, seasonality and level. Distinguish between regular expenses (and necessary) and irregular (and occasional). 78 Learner's Manual Session 5 Household’s expenses 79 Learner's Manual Session 5 Regular expenses +++++++ +++++++ 80 Learner's Manual Session 5 Irregular expenses 81 Learner's Manual Session 5 Level of expenses +++ ++++++++++ +++ ++++++++++ +++ ++++++++++ +++ ++++++++++ 82 Learner's Manual Session 5 Key message « The new rope is woven at the end of the old rope » 83 Learner's Manual Session 6 Session 1 : Setting financial goals The question of session 6 is : Session 2 : Why is it necessary to make a budget? Session 3: Can a budget be prepared without a methodology? Session 4 : What are our household’s incomes? Session 5: What are our household’s expenses? Session 6: How to match expenses with incomes ? How to match Session 7: What must be done in case of an unexpected event? Session 8: Why save money? Session 9: How to save money? Session 10: Where to save money? expenses with Session 11: Saving for retirement Session 12: When to use savings? incomes? Session 13: Why borrow money? Session 14: Understanding terms of borrowing Session 15: Comparing terms of loan Session 16: Negotiating with a lender Session 17: Managing continuously repayment of debt and building trust Session 18: Communicating with confidence Session 19: How to use mobile money 84 Learner's Manual Session 6 Sketch #6 How to match expenses with incomes? 85 Learner's Manual Session 6 86 Learner's Manual Session 6 87 Learner's Manual Session 6 88 Learner's Manual Session 6 Your turn,what do you think of the story? What are we talking about? 89 Learner's Manual 89 Session 6 And in your life? Have you ever matched your incomes and expenses in the same timetable? 90 Learner's Manual Session 6 Step 1 : Incomes May June July August +++++++++ +++++ +++++++ +++ 91 Learner's Manual Session 6 Step 2 : Incomes and expenses May June July August +++++++++ +++++ +++++++ +++ ------- --- ------- ------- 92 Learner's Manual Session 6 Step 3 : Preliminary result May June July August +++++++++ +++++ +++++++ +++ ------- --- ------- ------- ---- ++ ++ 93 Learner's Manual Session 6 Solution 1 : Expenses to be eliminated or decreased May June July August +++++++++ +++++ +++++++ +++ ------- --- ------- --- ++ ++ 94 Learner's Manual Session 6 Solution 2 : Transferring of incomes May June July August +++++++++ +++++ +++++++ +++ +++++++++ +++++ +++++++ +++ ++++ ------- --- ------- ------- ++ ++ 95 Learner's Manual Session 6 Solution 3 : Increasing of incomes May June July August +++++++++ +++++ +++++++ +++ ++ ------- --- ------- ----- ++ ++ 96 Learner's Manual Session 6 Solution 4 : Combined solution (Solution 1,2 and 3) May June July August +++++++++ +++++ +++++++ +++ +++++++++ +++++ +++++++ +++ ++ ++++ ------- --- ------- --------- ++ ++ 97 Learner's Manual Session 6 What important points must be remembered? As « Each trickle of water has its way », each household can have a budget by matching expenses with incomes. One must wait for time periods during which we have more money to incur bigger expenses, like « Do not throw water from the jar simply because the rain is coming ». 98 Learner's Manual Session 6 Key message All incomes and expenses are integrated in a unique and same household budget. « The dog may have four legs, but it cannot take two paths at the same time » 99 Learner's Manual Session 7 Session 1 : Setting financial goals The question of session 7 is : Session 2 : Why is it necessary to make a budget? Session 3: Can a budget be prepared without a methodology? Session 4 : What are our household’s incomes? Session 5:What are our household’s expenses? Session 6: How to match expenses with incomes ? Session 7: What must be done in case of an unexpected event? What must be done in Session 8: Why save money? Session 9: How to save money? case of an unexpected Session 10: Where to save money? Session 11: Saving for retirement event? Session 12: When to use savings? Session 13: Why borrow money? Session 14: Understanding terms of borrowing Session 15: Comparing terms of loan Session 16: Negotiating with a lender Session 17: Managing continuously repayment of debt and building trust Session 18: Communicating with confidence Session 19: How to use mobile money 100 Learner's Manual Session 7 Sketch #7 The surprise visit 101 Learner's Manual Session 7 Unexpected event: Our family will receive a surprise visit next week, the family of Mamadou’s cousin comprising 5 persons will pass by the village. All of them happy, and in order to host them in the best possible way and celebrate our reunion after an absence of 10 years, Mamadou and Khadidjatou want to organize a party for their surprise visit. As such, how to deal with this unexpected expense? 102 Learner's Manual Session 7 103 Learner's Manual Session 7 104 Learner's Manual Session 7 105 Learner's Manual Session 7 106 Learner's Manual Session 7 Your turn,what do you think of the story? What are we talking about? 107 107 Learner's Manual Session 7 And in your life? Did you have to deal with unexpected events? 108 Learner's Manual Session 7 What did you do in a similar situation? 109 Learner's Manual Session 7 Step 1 : Budget May June July August +++++++ +++++ +++++++ +++ ------- ----- ------- --- 110 Learner's Manual Session 7 Step 2 : Unexpected event May June July August +++++++ +++++ +++++++ ++++++ ------- ----- ------- ------ --- 111 Learner's Manual Session 7 Solution 1 : Cut or decrease expenses May June July August +++++++ +++++ +++++++ ++++++ ------- ----- ------- --- --- 112 Learner's Manual Session 7 Solution 2 : Use one’s savings May June July August +++++++ +++++ +++++++ +++ +++ ------- ----- ------- --- --- 113 Learner's Manual Session 7 What are the important points to be remembered? A budget must be adaptable and is not fixed in time as life is full of surprises that must be «integrated» in the former. As such, the budget must be updated on a regular basis. 114 Learner's Manual Session 7 Key messages « The fig never falls from the branch of the tree right into your mouth » 115 Learner's Manual Session 8 The question of session 8 is : Session 1 : Setting financial goals Session 2 : Why is it necessary to make a budget? Session 3: Can a budget be prepared without a methodology? Session 4 : What are our household’s incomes? Session 5:What are our household’s expenses? Session 6: How to match expenses with incomes ? Session 7: What must be done in case of an unexpected event? Session 8:Why save money? Session 9: How to save money? Why save money? Session 10: Where to save money? Session 11: Saving for retirement Session 12: When to use savings? Session 13: Why borrow money? Session 14: Understanding terms of borrowing Session 15: Comparing terms of loan Session 16: Negotiating with a lender Session 17: Managing continuously repayment of debt and building trust Session 18: Communicating with confidence Session 19: How to use mobile money 116 Learner's Manual Session 8 Sketch #8 Why save money? 117 Learner's Manual Session 8 118 Learner's Manual Session 8 119 Learner's Manual Session 8 120 Learner's Manual Session 8 Save to purchase and generate income 121 Learner's Manual Session 8 Save to generate income 122 Learner's Manual Session 8 Save to meet social obligations 123 Learner's Manual Session 8 Save for the unexpected 124 Learner's Manual Session 8 Save for the unexpected 125 Learner's Manual Session 8 Save to enhance one’s well being 126 Learner's Manual Session 8 Save to be able to borrow in the future 127 Learner's Manual Session 8 Save for old age 128 Learner's Manual Session 8 Save for old age 129 Learner's Manual Session 8 No Saving = Less security, difficulties to meet social obligations and the unexpected, less well being, more precarious situation during old age 130 Learner's Manual Session 8 Your turn, what do you think of the story?What are we talking about? 131 131 Learner's Manual Session 8 And in your life? Did you ever try to save? Why? 132 Learner's Manual Session 8 What are the important points to be remembered? In order to face higher level of expenses, to generate income, to increase security, to handle social obligations, old age and improve your well-being: you must SAVE together. 133 Learner's Manual Session 8 Key messages « Whoever has a pestle, does not use his teeth» 134 Learner's Manual Session 9 The question of session 9 is : Session 1 : Setting financial goals Session 2 : Why is it necessary to make a budget? Session 3: Can a budget be prepared without a methodology? Session 4 : What are our household’s incomes? Session 5:What are our household’s expenses? Session 6: How to match expenses with incomes ? Session 7: What must be done in case of an unexpected event? Session 8:Why save money? Session 9: How to save money? How to save money? Session 10: Where to save money? Session 11: Saving for retirement Session 12: When to use savings? Session 13: Why borrow money? Session 14: Understanding terms of borrowing Session 15: Comparing terms of loan Session 16: Negotiating with a lender Session 17: Managing continuously repayment of debt and building trust Session 18: Communicating with confidence Session 19: How to use mobile money 135 Learner's Manual Session 9 Sketch #9 How to save? 136 Learner's Manual Session 9 137 Learner's Manual Session 9 138 Learner's Manual Session 9 139 Learner's Manual Session 9 Advice 1: Put small amounts aside each month from earned income 140 Learner's Manual Session 9 ++++ ++++ ++++ ++++ ---- ---- ---- ---- January February March April ++++ ++++ ++++ ++++ ---- ---- ---- ---- May June July August ++++ ++++ ++++ ++++ ---- ---- ---- ---- September October November December 141 Learner's Manual Session 9 Advice 2: Transfer part of our windfalls in our savings 142 Learner's Manual Session 9 ++++ ++++ ++++ ++++ ---- ---- ---- ---- January February March April ++++ ++++ ++++ ++++ ---- ---- ---- ---- May June July August ++++ ++++ ++++ ++++ ---- ---- ---- ---- September October November December 143 Learner's Manual Session 9 Advice 3: Reduce less necessary expenses to top up our savings 144 Learner's Manual Session 9 ++++ ++++ ++++ ++++ ---- ---- ---- ---- January February March April ++++ ++++ ++++ ++++ ---- ---- ---- ---- May June July August ++++ ++++ ++++ ++++ ---- ---- ---- ---- September October November December 145 Learner's Manual Session 9 Advice 4: Combined strategies (1, 2, 3) ++++ ++++ ++++ ++++ ---- ---- ---- ---- January February March April ++++ ++++ ++++ ++++ ---- ---- ---- ---- May June July August ++++ ++++ ++++ ++++ ---- ---- ---- ---- September October November December 146 Learner's Manual Session 9 Your turn,what do you think of the story?What are we talking about? 147 Learner's Manual 147 Session 9 And in your life? Have you ever tried to save? How? 148 Learner's Manual Session 9 What do you do in a similar situation? ++++ ++++ ++++ ++++ ---- ---- ---- ---- January February March April ++++ ++++ ++++ ++++ ---- ---- ---- ---- May June July August ++++ ++++ ++++ ++++ ---- ---- ---- ---- September October November December 149 Learner's Manual Session 9 What are the important points to be remembered? • To save we must spend less than we earn. • We must save regularly, with discipline and have objectives. It is a slow and gradual process but rewarding. 150 Learner's Manual Session 9 Key messages « When a tree falls we hear it, however, the forest grows silently » 151 Learner's Manual Session 10 The question of session 10 is : Session 1 : Setting financial goals Session 2 : Why is it necessary to make a budget? Session 3: Can a budget be prepared without a methodology? Session 4 : What are our household’s incomes? Session 5:What are our household’s expenses? Session 6: How to match expenses with incomes ? Session 7: What must be done in case of an unexpected event? Session 8: Why save money? Session 9: How to save money? Where to save money? Session 10: Where to save money? Session 11: Saving for retirement Session 12: When to use savings? Session 13: Why borrow money? Session 14: Understanding terms of borrowing Session 15: Comparing terms of loan Session 16: Negotiating with a lender Session 17: Managing continuously repayment of debt and building trust Session 18: Communicating with confidence Session 19: How to use mobile money 152 Learner's Manual Session 10 Sketch #10 Where to save? 153 Learner's Manual Session 10 154 Learner's Manual Session 10 155 Learner's Manual Session 10 156 Learner's Manual Session 10 157 Learner's Manual Session 10 Your turn, what do you think of the story? What are we talking about? 158 Learner's Manual 158 Session 10 And in your life? Where do you save? 159 Learner's Manual Session 10 What do you do in a similar situation? 160 Learner's Manual Session 10 What are the important points to be remembered? You must decide to save in a reliable institution au instead of hiding money under the mattress, which does not yield interest income. 161 Learner's Manual Session 10 Key Messages « No matter how long you leave it in the river, the piece of wood will not become a caiman » 162 Learner's Manual Session 11 Session 1 : Setting financial goals The question of session 11 is : Session 2 : Why is it necessary to make a budget? Session 3: Can a budget be prepared without a methodology? Session 4 : What are our household’s incomes? Session 5: What are our household’s expenses? Session 6: How to match expenses with incomes ? Session 7: What must be done in case of an unexpected event? Session 8: Why save money? Session 9: How to save money? Saving for retirement Session 10: Where to save money? Session 11: Saving for retirement Session 12: When to use savings? Session 13: Why borrow money? Session 14: Understanding terms of borrowing Session 15: Comparing terms of loan Session 16: Negotiating with a lender Session 17: Managing continuously repayment of debt and building trust Session 18: Communicating with confidence Session 19: How to use mobile money 163 Learner's Manual Session 11 Sketch #11 Saving for retirement 164 Learner's Manual Session 11 165 Learner's Manual Session 11 166 Learner's Manual Session 11 167 Learner's Manual Session 11 168 Learner's Manual Session 11 169 Learner's Manual Session 11 170 Learner's Manual Session 11 171 Learner's Manual Session 11 Your turn, what do you think of the story?What are we talking about? 172 Learner's Manual 172 Session 11 And in your life? How do you plan for old age? 173 Learner's Manual Session 11 What do you do in a similar situation? 174 Learner's Manual Session 11 What are the important points to be remembered? For peace of mind concerning old age it is preferable to: • save continually in anticipation for when we will work less. • accumulate assets that will safeguard or increase its value and could be sold to suit your needs. • develop a capacity to generate income that is adapted to a period of less work intensity. 175 Learner's Manual Session 11 Key messages « Time is a file that works without sound» 176 Learner's Manual Session 12 The question of session 12 is : Session 1 : Setting financial goals Session 2 : Why is it necessary to make a budget? Session 3: Can a budget be prepared without a methodology? Session 4 : What are our household’s incomes? Session 5:What are our household’s expenses? Session 6: How to match expenses with incomes ? Session 7: What must be done in case of an unexpected event? Session 8: Why save money? Session 9: How to save money? When to use savings? Session 10: Where to save money? Session 11: Saving for retirement Session 12: When to use savings? Session 13: Why borrow money? Session 14: Understanding terms of borrowing Session 15: Comparing terms of loan Session 16: Negotiating with a lender Session 17: Managing continuously repayment of debt and building trust Session 18: Communicating with confidence Session 19: How to use mobile money 177 Learner's Manual Session 12 Sketch #12 When to use savings? 178 Learner's Manual Session 12 179 Learner's Manual Session 12 180 Learner's Manual Session 12 181 Learner's Manual Session 12 182 Learner's Manual Session 12 183 Learner's Manual Session 12 184 Learner's Manual Session 12 Your turn, what do you think of the story? What are we talking about? 185 Learner's Manual 185 Session 12 And in your life? When do you use savings? 186 Learner's Manual Session 12 What do you do in a similar situation? 187 Learner's Manual Session 12 What are the important points to be remembered? To use savings in the most efficient manner, we need to: • Have a saving target. • Be perseverent in achieving our target. • Avoid to be distracted using savings for unplanned expenses. 188 Learner's Manual Session 12 Key messages « The croaking of frogs does not prevent the elephant from drinking » 189 Learner's Manual Session 13 The question of session 13 is: Session 1 : Setting financial goals Session 2 : Why is it necessary to make a budget? Session 3: Can a budget be prepared without a methodology? Session 4 : What are our household’s incomes? Session 5: What are our household’s expenses? Session 6: How to match expenses with incomes ? Session 7: What must be done in case of an unexpected event? Session 8: Why save money? Why borrow money? Session 9: How to save money? Session 10: Where to save money? Session 11: Saving for retirement Session 12: When to use savings? Session 13: Why borrow money? Session 14: Understanding terms of borrowing Session 15: Comparing terms of loan Session 16: Negotiating with a lender Session 17: Managing continuously repayment of debt and building trust Session 18: Communicating with confidence Session 19: How to use mobile money 190 Learner's Manual Session 13 Sketch #13 Why borrow money? 191 Learner's Manual Session 13 192 Learner's Manual Session 13 193 Learner's Manual Session 13 Why not borrow? 194 Learner's Manual Session 13 195 Learner's Manual Session 13 196 Learner's Manual Session 13 197 Learner's Manual Session 13 Why borrow? 198 Learner's Manual Session 13 199 Learner's Manual Session 13 200 Learner's Manual Session 13 201 Learner's Manual Session 13 202 Learner's Manual Session 13 Your turn, what do you think of the story?What are we talking about? 203 203 Learner's Manual Session 13 And in your life? Have you ever tried to borrow money? Why ? 204 Learner's Manual Session 13 What do you do in a similar situation? 205 Learner's Manual Session 13 What are the important points to be remembered? • Borrow to generate future income can be a good idea. • Only borrow to the extent of your capability to pay back your debt. • Do not borrow if you know that you cannot reimburse the debt. 206 Learner's Manual Session 13 Key messages « A canoe is never too big too tip over » 207 Learner's Manual Session 14 The question of session 14 is: Session 1 : Setting financial goals Session 2 : Why is it necessary to make a budget? Session 3: Can a budget be prepared without a methodology? Session 4 : What are our household’s incomes? Session 5:What are our household’s expenses? Session 6: How to match expenses with incomes ? Session 7: What must be done in case of an unexpected event? Understanding terms of borrowing Session 8: Why save money? Session 9: How to save money? Session 10: Where to save money? Session 11: Saving for retirement Session 12: When to use savings? Session 13: Why borrow money? Session 14: Understanding terms of borrowing Session 15: Comparing terms of loan Session 16: Negotiating with a lender Session 17: Managing continuously repayment of debt and building trust Session 18: Communicating with confidence Session 19: How to use mobile money 208 Learner's Manual Session 14 Sketch #14 Understanding terms of borrowing 209 Learner's Manual Session 14 210 Learner's Manual Session 14 211 Learner's Manual Session 14 212 Learner's Manual Session 14 213 Learner's Manual Session 14 214 Learner's Manual Session 14 215 Learner's Manual Session 14 Your turn, what do you think of the story?What are we talking about? 216 Learner's Manual 216 Session 14 And in your life? How much did it cost you to borrow? How much time did it take to pay it back? 217 Learner's Manual Session 14 What do you do in a similar situation? 218 Learner's Manual Session 14 What are the important points to be remembered? To understand loan terms and conditions, we must grasp: • What interest will we have to pay ? • During how long il will we have to pay back? • Which part of the purchase price comes from our savings (how long does it take to save before borrowing, and to start earning money) ? 219 Learner's Manual Session 14 Key messages « The old man who puts fire to his beard, must be able to put it out » 220 Learner's Manual Session 15 Session 1 : Setting financial goals The question of session 15 is : Session 2 : Why is it necessary to make a budget? Session 3: Can a budget be prepared without a methodology? Session 4 : What are our household’s incomes? Session 5: What are our household’s expenses? Session 6: How to match expenses with incomes ? Comparing terms of Session 7: What must be done in case of an unexpected event? Session 8: Why save money? Session 9: How to save money? Session 10: Where to save money? loan Session 11: Saving for retirement Session 12: When to use savings? Session 13: Why borrow money? Session 14: Understanding terms of borrowing Session 15: Comparing terms of loan Session 16: Negotiating with a lender Session 17: Managing continuously repayment of debt and building trust Session 18: Communicating with confidence Session 19: How to use mobile money 221 Learner's Manual Session 15 Sketch #15 Comparing terms of loan 222 Learner's Manual Session 15 223 Learner's Manual Session 15 224 Learner's Manual Session 15 225 Learner's Manual Session 15 Compare the levers 226 Learner's Manual Session 15 227 Learner's Manual Session 15 228 Learner's Manual Session 15 Your turn, what do you think about the story?What are we talking about? 229 Learner's Manual 229 Session 15 And in your life? Have you had to choose from two services providers? 230 Learner's Manual Session 15 What do you do in a similar situation? 231 Learner's Manual Session 15 What are the important points to be remembered? The set of loan terms and conditions (interest, share of purchase price financed by the loan, loan maturity – which together create the debt service burden) must be linked to one’s capacity to pay the loan back. All loans are not equivalent and institutions offer different conditions that we must be able to compare correctly. the loan that is the It is more judicious to select in line with one’s financial means. 232 Learner's Manual Session 15 Key messages « We make friends with the elephant to escape the dew» 233 Learner's Manual Session 16 Session 1 : Setting financial goals The question of session 16 is : Session 2 : Why is it necessary to make a budget? Session 3: Can a budget be prepared without a methodology? Session 4 : What are our household’s incomes? Session 5: What are our household’s expenses? Session 6: How to match expenses with incomes ? Session 7: What must be done in case of an unexpected event? Session 8: Why save money? Negotiating with a Session 9: How to save money? Session 10: Where to save money? lender Session 11: Saving for retirement Session 12: When to use savings? Session 13: Why borrow money? Session 14: Understanding terms of borrowing Session 15: Comparing terms of loan Session 16: Negotiating with a lender Session 17: Managing continuously repayment of debt and building trust Session 18: Communicating with confidence Session 19: How to use mobile money 234 Learner's Manual Session 16 Sketch #16 Negotiating with a lender 235 Learner's Manual Session 16 236 Learner's Manual Session 16 237 Learner's Manual Session 16 Advice 1: Select based on the interest rate and the amount to pay back at loan maturity. 238 Learner's Manual Session 16 Advice 2: Select on the basis of loan maturity and the payback amount per period. 239 Learner's Manual Session 16 240 Learner's Manual Session 16 Your turn,what do you think of the story?What are we talking about? 241 Learner's Manual 241 Session 16 And in your life? How do you negotiate with the service providers? 242 Learner's Manual Session 16 What do you do in a similar situation? 243 Learner's Manual Session 16 What are the important points to be remembered? To negotiate a loan, we must: • Choose by comparing the terms of the loan • Be patient, calm • Listen carefully and ask questions • Take advantage of your customer’s status • Respect the person in front of us and remain firm on your goals • Perceive the lender as a partner, not an adversary 244 Learner's Manual Session 16 Key messages «Everything goes wrong when we lack patience» 245 Learner's Manual Session 17 Session 1 : Setting financial goals The question of session 17 is : Session 2 : Why is it necessary to make a budget? Session 3: Can a budget be prepared without a methodology? Session 4 : What are our household’s incomes? Session 5: What are our household’s expenses? Session 6: How to match expenses with incomes ? Session 7: What must be done in case of an Managing unexpected event? Session 8: Why save money? continuoulsy Session 9: How to save money? Session 10: Where to save money? repayment of debt and building trust Session 11: Saving for retirement Session 12: When to use savings? Session 13: Why borrow money? Session 14: Understanding terms of borrowing Session 15: Comparing terms of loan Session 16: Negotiating with a lender Session 17: Managing continuously repayment of debt and building trust Session 18: Communicating with confidence Session 19: How to use mobile money 246 Learner's Manual Session 17 Sketch #17 Managing continuously repayment of debt and building trust 247 Learner's Manual Session 17 248 Learner's Manual Session 17 249 Learner's Manual Session 17 Advice: Respect the given word. 250 Learner's Manual Session 17 251 Learner's Manual Session 17 Your turn,what do you think of the story?What are we talking about? 252 Learner's Manual 252 Session 17 And in your life? How do you build trust with your lenders? 253 Learner's Manual Session 17 What do you do in a similar situation? 254 Learner's Manual Session 17 What are the important points to be remembered? • NEVER miss a monthly payment regardless of the situation. • Be sure to always pay the required amount 255 Learner's Manual Session 17 Key messages « The dignity of man is in the word given » 256 Learner's Manual Session 18 The question in session 18 is : Session 1 : Setting financial goals Session 2 : Why is it necessary to make a budget? Session 3: Can a budget be prepared without a methodology? Session 4 : What are our household’s incomes? Session 5: What are our household’s expenses? Session 6: How to match expenses with incomes ? Session 7: What must be done in case of an unexpected event? Session 8: Why save money? Communicating with confidence Session 9: How to save money? Session 10: Where to save money? Session 11: Saving for retirement Session 12: When to use savings? Session 13: Why borrow money? Session 14: Understanding terms of borrowing Session 15: Comparing terms of loan Session 16: Negotiating with a lender Session 17: Managing continuously repayment of debt and building trust Session 18: Communicating with confidence Session 19: How to use mobile money 257 Learner's Manual Session 18 Sketch #18 Communicating with confidence 258 Learner's Manual Session 18 259 Learner's Manual Session 18 260 Learner's Manual Session 18 261 Learner's Manual Session 18 262 Learner's Manual Session 18 263 Learner's Manual Session 18 264 Learner's Manual Session 18 Your turn,what do you think of the story? What are we talking about? 265 Learner's Manual 265 Session 18 And in your life? How do you communicate with confidence? 266 Learner's Manual Session 18 What do you do in a similar situation? 267 Learner's Manual Session 18 What are the important points to be remembered? • Maintain ongoing and active communication with lenders • ALWAYS inform your lender of a change that could affect the repayment of your loan. 268 Learner's Manual Session 18 Key messages « Pleasant words pull the snake out of its hole» 269 Learner's Manual Session 19 Session 1 : Setting financial goals The question of session 19 is : Session 2 : Why is it necessary to make a budget? Session 3: Can a budget be prepared without a methodology? Session 4 : What are our household’s incomes? Session 5: What are our household’s expenses? Session 6: How to match expenses with incomes ? Session 7: What must be done in case of an unexpected event? Session 8: Why save money? How to use mobile Session 9: How to save money? Session 10: Where to save money? money Session 11: Saving for retirement Session 12: When to use savings? Session 13: Why borrow money? Session 14: Understanding terms of borrowing Session 15: Comparing terms of loan Session 16: Negotiating with a lender Session 17: Managing continuously repayment of debt and building trust Session 18: Communicating with confidence Session 19: How to use mobile money 270 Learner's Manual Session 19 Sketch #19 How to use mobile money 271 Learner's Manual Session 19 Need to receive a remittance ? 272 Learner's Manual Session 19 You can use your mobile !!! 273 Learner's Manual Session 19 Open and top-up a mobile money account 274 Learner's Manual Session 19 Receive money in your mobile 275 Learner's Manual Send money from your mobile 276 Learner's Manual Session 19 Pay your bills with your mobile account 277 Learner's Manual Session 19 Pay merchants with your mobile account 278 Learner's Manual Session 19 Cash can be lost or stolen 279 Learner's Manual Session 19 Store money in your mobile account 280 Learner's Manual Session 19 Filling mobile money is closer 281 Learner's Manual Session 19 Transfer money from your mobile to a savings account to earn interest 3 Months 6 Months 12 Months 282 Learner's Manual Session 19 Protect your mobile account 283 Learner's Manual Session 19 Choose a complex PIN 284 Learner's Manual Session 19 Fraud can still happen !!! 285 Learner's Manual Session 19 You are PROTECTED and have RIGHTS 286 Learner's Manual Session 19 File a complaint and obtain compensation 287 Learner's Manual Session 19 Mobile Money is Peace of Mind 288 Learner's Manual Session 19 Your turn,what do you think of the story? What are we talking about 289 Learner's Manual 289 Session 19 And in your life? Do you use mobile money? 290 Learner's Manual Session 19 What do you do in a similar situation situation? 291 Learner's Manual Session 19 What are the important points to be remembered? • We can use mobile money services to: – Send and receive money – Pay bills and merchants –Store money for security • Protect your mobile account • Enforce your rights 292 Learner's Manual Session 19 Key Messages Mobile Money is Peace of Mind 293 Learner's Manual Conclusion « It is in trying harder and harder that a monkey learns to bounce » Thanks for your participation 294 Learner's Manual Thank you! szottel@worldbank.org responsiblefinance.worldbank.org