FINANCIAL EDUCATION PROGRAM (FEP) National G2P Cash Transfer Program Volume III: Training-of-Trainers Manual FE Program TIME ACTIVITIES 08:30 – 09:00 Arrival and registration of participants 09:00 – 10:00 Presentation of all & Overview of the FEP and its objectives 10:00– 10:30 Presentation of the training methodology 10:30 – 11:00 Phase 1: Simulation of the training using Session 2 by the Master Trainer 11:00 – 12:00 Phase 2: Simulation of the training using Sessions 6 and 7 by Group 1 of Trainers 13:30 – 14:30 Phase 3: Simulation of the training using Sessions 8 and 9 by Group 2 of Trainers 14:30 – 15:30 Phase 4: Simulation of the training using Sessions 13 and 17 by the Master Trainer 15:30 – 16:30 What are the important points to remember in the FEP 16:30 End of the training of trainers Training-of-Trainers Manual FE Program Who are we and why are we here? Life is a lesson that one never finishes learning Training-of-Trainers Manual FE Program Introduce yourselves Training-of-Trainers Manual FE Program Name Marital Status Age Occupation Children Dependent Money Level of elderly transfers schooling /Remittances Training-of-Trainers Manual FE Program General Objectives The overall objective of the Financial Education Program (FEP) will be: • To give youth the basic tools necessary for them to improve their financial situation and manage their cash transfers in the most beneficial way possible. • To improve access to income generation opportunities for targeted youth in urban areas and strengthen the government's capacity to implement its cash transfer program. Training-of-Trainers Manual FE Program Beneficiaries Most of the G2P Cash Transfer Program beneficiaries have the following summary profile: • Beneficiaries consist in about 15,000 targeted youth aged 15 to 35 years from poor households • 50% of beneficiaries will be vulnerable female youth • The Program will provide apprenticeships to vulnerable youth in urban areas • The Program will also improve efficiency in the delivery of cash transfers to targeted households, including to youth • Youth will participate in the Program for no less than 6 months (from recruitment up to field work) • 88% listen to the radio Training-of-Trainers Manual FE Program FEP SESSION 1: G2P Cash Transfer Program SETTING Country FINANCIAL GOALS SAVING SESSION 2: WHY IS IT NECESSARY TO MAKE A SESSION 8: WHY SAVE BUDGET? MONEY? SESSION 9: HOW TO SAVE SESSION 19: HOW TO USE MOBILE MONEY MONEY? SESSION 4: SESSION 10: WHERE TO INCOMES SAVE MONEY? SESSION 3: CAN SESSION 6: HOW SESSION 11: SAVING FOR A BUDGET BE UNEXPECTED TO MATCH RETIREMENT EVENTS PREPARED EXPENSES WITH SESSION 12: WHEN TO USE WITHOUT INCOMES? SAVINGS METHODOLOGY? SESSION 5: EXPENSES BORROWING SESSION 7: SESSION 13: WHY BORROW BUDGET WHAT NEEDS MONEY? TO BE DONE IN SESSION 14: UNDERSTANDING A CASE OF TERMS OF LOAN UNEXPECTED SESSION 15: COMPARING EVENT? TERMS OF LOAN SESSION 16: NEGOTIATING WITH LENDER SESSION 17: MANAGING CONTINUOUSLY REPAYMENT OF DEBT AND BUILDING TRUST SESSION 18: COMMUNICATING WITH CONFIDENCE Training-of-Trainers Manual FE Program SESSION TIME OBJECTIVE PRINCIPAL THEME SESSION 1. SETTING 60 Prioritize between various goals Financial goals FINANCIAL GOALS? min Short term and medium term SESSION 2. WHY IS 60 Realize that it is necessary to have an Cost of life IT NECESSARY TO min. overview of the inputs and outputs of Social pressure on the MAKE A BUDGET? money to meet the money challenges household budget of everyday. Unexpected expenses Budget SESSION 3. CAN A 60 Become aware of the need for Method BUDGET BE min successive steps to achieve a budget Returned PREPARED WITHOUT Spent METHODOLOGY? Types of income and expenditure in the household SESSION 4. WHAT 60 Identify household income sources Sources of income ARE OUR min and become aware of how often and Income Level (Weight) HOUSEHOLD’S when they materialize in the year. Income Frequency INCOMES? SESSION 5. WHAT 60 Identify spending categories and Poids des dépenses ARE OUR min become aware of how often and when Fréquence des dépenses HOUSEHOLD’S they materialize in the year. fixes EXPENSES Dépenses imprévues Fond de sécurité Training-of-Trainers Manual FE Program SESSION TIME OBJECTIVE PRINCIPAL THEME SESSION 6. HOW TO 60 Put expenses and revenues for Weight of expenditure MATCH EXPENSES min periods of the year in a timetable and Frequency of fixed WITH INCOMES? ensure that entries are sufficient to expenses cover cash outflows Unexpected expenses Security background SESSION 7. WHAT 60 Know how to adjust the budget on a Occurrence of NEEDS TO BE DONE min daily basis as the reality comes that is unexpected events that IN A CASE OF AN different from what we anticipate alter the budget balance UNEXPECTED? as expected Strategies to align expenditure with revenue accordingly SESSION 8. WHY 60 Recognize the different reasons for Each type of savings SAVE MONEY? min saving: (1) the purchase of income- pattern has different generating assets (2) meet social requirements as to the obligations; (3) consumption of amount and duration of durable goods; (4) security for the old the effort days SESSION 9. HOW TO 60 Know how to save money base on the Spend less than you SAVE? min budget earn Save regularly SESSION 10. WHERE 60 Recognize that putting money in a Reliable financial TO SAVE? min financial institution is profitable than institution under the mattress Training-of-Trainers Manual FE Program SESSION TIME OBJECTIVE PRINCIPAL THEME SESSION 11. SAVING 60 Know how to be prepare for the old Retirement FOR RETIREMENT min days SESSION 12. WHEN 60 To know how to use your savings in the Goals TO USE SAVINGS min right way, you need to: Disturbing by events Goals for saving SESSION 13. WHY 60 Recognizing that borrowing to Identify the burden of BORROW? min generate income is easier than borrowing and the fact borrowing to buy non-income- that it is simpler to meet generating consumer goods when it is done to generate income SESSION 14. 60 Know the different terms of loans: Interest; UNDERSTANDING min interest, duration, leverage TERMS OF Duration; BORROWING Leverage SESSION 15. 60 Know how to compare the terms and Good loan; Bad loan COMPARING TERMS min make a good choice OF LOAN? Training-of-Trainers Manual FE Program SESSION TIME OBJECTIVE PRINCIPAL THEME SESSION 16. 60 Develop quality to be a good Negotiation Attitudes NEGOTIATING WITH min negotiator: patient, calm etc.. LENDERS? SESSION 17. 60 Know how to manage cash flows to Debt Repayment, Trust, MANAGING min build trust and eventually receive a Building trust CONTINIOUSLY loan REPAYMENT OF DEBT AND BUILDING TRUST SESSION 18. 60 Know how to Keep communication Communicating with COMMUNICATING min lines open with loan providers financial institutions WITH CONFIDENCE SESSION 19. USING 60 Know how to use mobile money Receive / send money; MOBILE MONEY min services Store money; Fraud; SERVICES Ombudsman Training-of-Trainers Manual General instructions for the rest of the training of trainers • The master trainer will illustrate the training approach using the content and material of 1 or 2 sessions • The master trainer will announce to the group of trainers that they will be divided in 2 groups: Group 1 will then act as the trainers to Group 2 who will act as learners, • Then the roles will be reversed and Group 2 will be the trainers and Group 1 will act as learners. • Different sessions will be used as material for each of these simulations. • Once these simulations are completed, a discussion should ensue during which trainers will give their impressions and difficulties as ‘trainers’ or as ‘learners’, with a view towards sharing their experience. • The basic purpose of this approach is to allow every trainer to live through the experience of learners, and identify strategies to increase to increase their efficacy as trainers • The master has to ensure that all trainers participate in the process. Training-of-Trainers Manual Training methodology Training Methodology Training-of-Trainers Manual Training methodology – Using an active learning approach – Combination of sharing experiences (sketches & own experiences) – Lessons learnt through positive & negative experiences – Using illustrations and key messages (for each session) – Using Audio segments combined with discusssions (for each session) Training-of-Trainers Manual Training methodology 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? Training-of-Trainers Manual Training methodology Who are our characters? Father Mother Daughter Nana Son Training-of-Trainers Manual 17 Practical Session Phase 1: Master Trainer Illustrates the approach Training-of-Trainers 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 Training-of-Trainers Manual Session 2 Sketch #2 The importance of having a budget Training-of-Trainers Manual Session 2 Training-of-Trainers Manual Session 2 Training-of-Trainers Manual Session 2 Training-of-Trainers Manual Session 2 Training-of-Trainers Manual Session 2 Training-of-Trainers Manual Session 2 Training-of-Trainers Manual Session 2 Training-of-Trainers Manual Session 2 Your turn. What do you think of the story? What are we talking about? Training-of-Trainers Manual 28 Session 2 And in your life? Do you often have difficulties to meet your expenses? Training-of-Trainers Manual Session 2 What do you do in a similar situation? Training-of-Trainers 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. Training-of-Trainers Manual Session 2 Key message « It is not on the day of battle that you sharpen your blade » Training-of-Trainers Manual Practical Session Phase 2: Group 1: Trainers Group 2 : Learners Training-of-Trainers 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 Training-of-Trainers Manual Session 6 Sketch #6 How to match expenses with incomes? Training-of-Trainers Manual Session 6 Training-of-Trainers Manual Session 6 Training-of-Trainers Manual Session 6 Training-of-Trainers Manual Session 6 Your turn,what do you think of the story? What are we talking about? Training-of-Trainers Manual 39 Session 6 And in your life? Have you ever matched your incomes and expenses in the same timetable? Training-of-Trainers Manual Session 6 Step 1 : Incomes May June July August +++++++++ +++++ +++++++ +++ Training-of-Trainers Manual Session 6 Step 2 : Incomes and expenses May June July August +++++++++ +++++ +++++++ +++ ------- --- ------- ------- Training-of-Trainers Manual Session 6 Step 3 : Preliminary result May June July August +++++++++ +++++ +++++++ +++ ------- --- ------- ------- ---- ++ ++ Training-of-Trainers Manual Session 6 Solution 1 : Expenses to be eliminated or decreased May June July August +++++++++ +++++ +++++++ +++ ------- --- ------- --- ++ ++ Training-of-Trainers Manual Session 6 Solution 2 : Transferring of incomes May June July August +++++++++ +++++ +++++++ +++ +++++++++ +++++ +++++++ +++ ++++ ------- --- ------- ------- ++ ++ Training-of-Trainers Manual Session 6 Solution 3 : Increasing of incomes May June July August +++++++++ +++++ +++++++ +++ ++ ------- --- ------- ----- ++ ++ Training-of-Trainers Manual Session 6 Solution 4 : Combined solution (Solution 1,2 and 3) May June July August +++++++++ +++++ +++++++ +++ +++++++++ +++++ +++++++ +++ ++ ++++ ------- --- ------- --------- ++ ++ Training-of-Trainers 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 ». Training-of-Trainers 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 » Training-of-Trainers 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 Training-of-Trainers Manual Session 7 Sketch #7 The surprise visit Training-of-Trainers 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? Training-of-Trainers Manual Session 7 Training-of-Trainers Manual Session 7 Training-of-Trainers Manual Session 7 Training-of-Trainers Manual Session 7 Training-of-Trainers Manual Session 7 Your turn,what do you think of the story? What are we talking about? Training-of-Trainers Manual 57 Session 7 And in your life? Did you have to deal with unexpected events? Training-of-Trainers Manual Session 7 What did you do in a similar situation? Training-of-Trainers Manual Session 7 Step 1 : Budget May June July August +++++++ +++++ +++++++ +++ ------- ----- ------- --- Training-of-Trainers Manual Session 7 Step 2 : Unexpected event May June July August +++++++ +++++ +++++++ ++++++ ------- ----- ------- ------ --- Training-of-Trainers Manual Session 7 Solution 1 : Cut or decrease expenses May June July August +++++++ +++++ +++++++ ++++++ ------- ----- ------- --- --- Training-of-Trainers Manual Session 7 Solution 2 : Use one’s savings May June July August +++++++ +++++ +++++++ +++ +++ ------- ----- ------- --- --- Training-of-Trainers 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. Training-of-Trainers Manual Session 7 Key messages « The fig never falls from the branch of the tree right into your mouth » Training-of-Trainers Manual Practical Session Phase 3: Group 2: Trainers Group 1 : Learners Training-of-Trainers 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 Training-of-Trainers Manual Session 8 Sketch #8 Why save money? Training-of-Trainers Manual Session 8 Training-of-Trainers Manual Session 8 Training-of-Trainers Manual Session 8 Training-of-Trainers Manual Session 8 Save to purchase and generate income Training-of-Trainers Manual Session 8 Save to generate income Training-of-Trainers Manual Session 8 Save to meet social obligations Training-of-Trainers Manual Session 8 Save for the unexpected Training-of-Trainers Manual Session 8 Save for the unexpected Training-of-Trainers Manual Session 8 Save to enhance one’s well being Training-of-Trainers Manual Session 8 Save to be able to borrow in the future Training-of-Trainers Manual Session 8 Save for old age Training-of-Trainers Manual Session 8 Save for old age Training-of-Trainers Manual Session 8 No Saving = Less security, difficulties to meet social obligations and the unexpected, less well being, more precarious situation during old age Training-of-Trainers Manual Session 8 Your turn, what do you think of the story?What are we talking about? Training-of-Trainers Manual 82 Session 8 And in your life? Did you ever try to save? Why? Training-of-Trainers 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. Training-of-Trainers Manual Session 8 Key messages « Whoever has a pestle, does not use his teeth» Training-of-Trainers 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 Training-of-Trainers Manual Session 9 Sketch #9 How to save? Training-of-Trainers Manual Session 9 Training-of-Trainers Manual Session 9 Training-of-Trainers Manual Session 9 Training-of-Trainers Manual Session 9 Advice 1: Put small amounts aside each month from earned income Training-of-Trainers Manual Session 9 ++++ ++++ ++++ ++++ ---- ---- ---- ---- January February March April ++++ ++++ ++++ ++++ ---- ---- ---- ---- May June July August ++++ ++++ ++++ ++++ ---- ---- ---- ---- September October November December Training-of-Trainers Manual Session 9 Advice 2: Transfer part of our windfalls in our savings Training-of-Trainers Manual Session 9 ++++ ++++ ++++ ++++ ---- ---- ---- ---- January February March April ++++ ++++ ++++ ++++ ---- ---- ---- ---- May June July August ++++ ++++ ++++ ++++ ---- ---- ---- ---- September October November December Training-of-Trainers Manual Session 9 Advice 3: Reduce less necessary expenses to top up our savings Training-of-Trainers Manual Session 9 ++++ ++++ ++++ ++++ ---- ---- ---- ---- January February March April ++++ ++++ ++++ ++++ ---- ---- ---- ---- May June July August ++++ ++++ ++++ ++++ ---- ---- ---- ---- September October November December Training-of-Trainers Manual Session 9 Advice 4: Combined strategies (1, 2, 3) ++++ ++++ ++++ ++++ ---- ---- ---- ---- January February March April ++++ ++++ ++++ ++++ ---- ---- ---- ---- May June July August ++++ ++++ ++++ ++++ ---- ---- ---- ---- September October November December Training-of-Trainers Manual Session 9 Your turn,what do you think of the story?What are we talking about? Training-of-Trainers Manual 98 Session 9 And in your life? Have you ever tried to save? How? Training-of-Trainers Manual Session 9 What do you do in a similar situation? ++++ ++++ ++++ ++++ ---- ---- ---- ---- January February March April ++++ ++++ ++++ ++++ ---- ---- ---- ---- May June July August ++++ ++++ ++++ ++++ ---- ---- ---- ---- September October November December Training-of-Trainers 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. Training-of-Trainers Manual Session 9 Key messages « When a tree falls we hear it, however, the forest grows silently » Training-of-Trainers Manual Practical Session Phase 4: Master Trainer Illustrates the approach Training-of-Trainers 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 Training-of-Trainers Manual Session 13 Sketch #13 Why borrow money? Training-of-Trainers Manual Session 13 Training-of-Trainers Manual Session 13 Training-of-Trainers Manual Session 13 Why not borrow? Training-of-Trainers Manual Session 13 Training-of-Trainers Manual Session 13 Training-of-Trainers Manual Session 13 Training-of-Trainers Manual Session 13 Why borrow? Training-of-Trainers Manual Session 13 Training-of-Trainers Manual Session 13 Training-of-Trainers Manual Session 13 Training-of-Trainers Manual Session 13 Training-of-Trainers Manual Session 13 Your turn, what do you think of the story?What are we talking about? Training-of-Trainers Manual 117 Session 13 And in your life? Have you ever tried to borrow money? Why ? Training-of-Trainers Manual Session 13 What do you do in a similar situation? Training-of-Trainers 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. Training-of-Trainers Manual Session 13 Key messages « A canoe is never too big too tip over » Training-of-Trainers 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 Training-of-Trainers Manual Session 18 Sketch #18 Communicating with confidence Training-of-Trainers Manual Session 18 Training-of-Trainers Manual Session 18 Training-of-Trainers Manual Session 18 Training-of-Trainers Manual Session 18 Training-of-Trainers Manual Session 18 Training-of-Trainers Manual Session 18 Training-of-Trainers Manual Session 18 Your turn,what do you think of the story? What are we talking about? Training-of-Trainers Manual 130 Session 18 And in your life? How do you communicate with confidence? Training-of-Trainers Manual Session 18 What do you do in a similar situation? Training-of-Trainers 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. Training-of-Trainers Manual Session 18 Key messages « Pleasant words pull the snake out of its hole» Training-of-Trainers Manual Important points to remember in the FEP Training-of-Trainers Manual Sessions Important points to be remembered Session 1: Setting Financial Goals • 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. Session 2: Why is it necessary to make a • Be well prepared to face life’s money budget? challenges. • Anticipate cash inflows and outflows – this is what budgeting is all about. Session 3: Can a budget be prepared Making a budget must be done without methodology? methodically. Identify incomes and expenses, and put those in a timetable. A budget is prepared step by step. Training-of-Trainers Manual Sessions Important points to be remembered Session 4: What are our household’s For each household member, it is important incomes? to know the type of income, the level, the frequency, the seasonality, the degree of certainty to know on what we depend. Session 5: What are our household’s Identify the expenses, their frequency, expenses? seasonality and level. Distinguish between regular expenses (and necessary) and irregular (and occasional). Session 6: How to match expenses with As « Each trickle of water has its way », incomes? 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 ». Training-of-Trainers Manual Sessions Important points to be remembered Session 7: What needs to be done in a case A budget must be adaptable and is not fixed of unexpected? 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. Session 8: Why save money? 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. Session 9: How to save money? 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. Session 10: Where to save money? You must decide to save in a reliable institution au instead of hiding money under the mattress, which does not yield interest income. Training-of-Trainers Manual Sessions Important points to be remembered Session 11: Saving for retirement 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. Session 12: When to use savings? 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. Training-of-Trainers Manual Sessions Important points to be remembered Session 13: Why borrow money? • 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. Session 14: Understanding terms of To understand loan terms and conditions, we borrowing 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) ? Training-of-Trainers Manual Sessions Important points to be remembered Session 15: Comparing of terms of loan • 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. • It is more judicious to select the loan that is the in line with one’s financial means. Session 16: Negotiating with lender 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 and Respect the person in front of us and remain firm on your goals • Perceive the lender as a partner, not an adversary Training-of-Trainers Manual Sessions Important points to be remembered Session 17: Managing continuously • NEVER miss a monthly payment repayment of debt and building trust regardless of the situation. • Be sure to always pay the required amount Session 18: Communicating with confidence • Maintain ongoing and active communication with lenders • ALWAYS inform your lender of a change that could affect the repayment of your loan. Session 19: How to use mobile money 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 Training-of-Trainers Manual Conclusion Thanks for your participation Training-of-Trainers Manual Thank you! szottel@worldbank.org responsiblefinance.worldbank.org