FINANCE, COMPETITIVENESS & INNOVATION GLOBAL PRACTICE Education FinancialEDUCATION FINANCIAL PROGRAM (FEP) National G2P Cash Transfer Program Program Program “CASH for WORK” Volume II: Trainer’s Manual Urban YOP Liberia Trainer’s Manual REFERENCE, June 2018 LIBERIA, June 2017 ii © 2018 International Bank for Reconstruction and Development / The World Bank Group 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. 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Acknowledgements This Trainer’s Manual on financial education was prepared by a team led by Siegfried Zottel (Senior Financial Sector Specialist)1 from the World Bank Group’s (WBG) Finance, Competitiveness & Innovation Global Practice and included Fares Khoury (Economist and President of Etude Economique Conseil, EEC Canada). Douglas Pearce (Practice Manager, GFM2B), Massimo Cirasino (Advisor, GFM2B), and Harish Natarajan (Lead Financial Sector Specialist, GFM2B) provided overall guidance to the team. The team is grateful to the peer reviewers of this content – Suleiman Namara (Senior Social Protection Economist, GSP07), Laura Ralston (Economist, GSP07) and Mack Capehart Mulbah (Social Protection Specialist, GSP07) - for their valuable support and comments. The team benefited from the valuable inputs provided by Jessica Lee Massie (Financial Education Consultant, GFM2B). The team is also grateful to Julie Lee (Financial Education Consultant, GFM2B) who provided technical advice and inputs at early stages of this project. The team expresses its deepest appreciation to the authorities of Guinea, Liberia, and Sierra Leone for their cooperation and collaboration during the needs assessment phase as well as during the testing and piloting of this content. The team would also like to express its gratitude to EEC Canada’s core and field team, led by Isabelle Leyder (Deputy Project Director of the project). We are grateful to all national team members of EEC Canada whose efforts and commitments made this project possible. The team’s sincere appreciation is further extended to Linda Bergeron, of Développement International Desjardins (DID) who provided pragmatic guidance during the preparation of the material. This Trainer’s Manual was produced under the National Payments System Development in Ebola Affected Countries project (P155002) funded by a grant from Ebola Rapid Response Trust Fund (ERRTF). 1 Can be contacted at: szottel@worldbank.org 1 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM TABLE OF CONTENTS 1. CURRENT SITUATION ....................................................................................................................................................... 4 2. DESIRED SITUATION ........................................................................................................................................................ 4 3. PREREQUISITES FOR SMOOTH INTEGRATION OF PROGRAMS ................................................................................................ 5 A. Ensuring the quality of the cascade of trainers ...................................................................................................................................................................................... 5 B. Taking into account the quality of training spaces ................................................................................................................................................................................. 6 4. PEDAGOGICAL APPROACH ............................................................................................................................................... 7 5. GENERAL TRAINING GUIDELINES....................................................................................................................................... 7 6. TRAINING OBJECTIVES ..................................................................................................................................................... 9 7. TRAINING STRUCTURE ................................................................................................................................................... 14 8. GLOBAL STRUCTURE OF THE PROGRAMME ...................................................................................................................... 15 9. DETAILED TRAINING STRUCTURE .................................................................................................................................... 18 Introduction ..................................................................................................................................................................................................................................................... 18 MODULE 1: FINANCIAL GOALS .................................................................................................................................................................................................................... 22 Session 1: Setting Financial Goals................................................................................................................................................................................................................ 22 MODULE 2: THE BUDGET .............................................................................................................................................................................................................................. 26 Session 2: Why Is It Necessary To Make A Budget? ................................................................................................................................................................................... 26 Session 3: Can We Make A Budget Without A Methodology?.................................................................................................................................................................... 30 Session 4: What Are Our Household’s Incomes? ........................................................................................................................................................................................ 35 Session 5: What Are Our Household’s Expenses?...................................................................................................................................................................................... 41 Session 6: How To Match Expenses With Incomes?................................................................................................................................................................................... 47 Session 7: What Needs To Be Done In Case Of An Unexpected Event? ................................................................................................................................................... 52 MODULE 3: SAVE ............................................................................................................................................................................................................................................ 57 Session 8. Why Save Money? ........................................................................................................................................................................................................................ 57 2 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM Session 9: How To Save Money? .................................................................................................................................................................................................................. 63 Session 10: Where To Save Money? ............................................................................................................................................................................................................. 67 Session 11: Saving For Retirement ............................................................................................................................................................................................................... 70 Session 12: When To Use Savings?.............................................................................................................................................................................................................. 73 MODULE 3: BORROW ..................................................................................................................................................................................................................................... 76 Session 13. Why Borrow Money? ................................................................................................................................................................................................................. 76 Session 14: Understanding Terms Of Borrowing ........................................................................................................................................................................................ 80 Session 15: Comparing Terms Of Loans ...................................................................................................................................................................................................... 84 Session 16: Negotiating With A Lender ........................................................................................................................................................................................................ 87 Session 17: Managing Continiously Repayment Of Debt And Building Trust .......................................................................................................................................... 90 Session 18: Communicating With Confidence ............................................................................................................................................................................................. 93 MODULE 5: MOBILE MONEY ......................................................................................................................................................................................................................... 96 Session 19. How To Use Mobile Money ....................................................................................................................................................................................................... 96 Conclusion ..................................................................................................................................................................................................................................................... 103 Closing Of The Session ................................................................................................................................................................................................................................ 107 10. ANNEX 1: TEACHING MATERIALS .................................................................................................................................. 108 11. ANNEX 2: PATHWAY TO SUB-LOCAL ‘GRANULAR’ ADAPTATIONS ................................................................................... 115 3 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM 1. CURRENT SITUATION Most of the cash transfer program beneficiaries have the following summary profile: • Beneficiaries consist of about ##### targeted female and male participants aged ## to ## years from poor households • ##% of beneficiaries will be vulnerable women • The program will also improve efficiency in the delivery of cash transfers to targeted households • ##% listen to the radio The following curriculum considerations and principles were taken into account when the training modules and sessions were designed: • Materials are audio and/or visual, very simple, and not require significant reading and writing • Content are geared towards general concepts that will appeal to those from urban backgrounds • Content focuses on how to improve spending on necessities • Basic business and income generating activities are presented as ideas to produce more available cash • Basic bank services are introduced (savings and credit, but with an emphasis on savings – economic levels of households should be considered and credit decisions taught, as loans that beneficiaries are unable to repay could cause more hardship) • Modules are based on the active participation of learners after storytelling and group discussions, using audio material, pictures and images to illustrate key financial education messages. • Radio programs or sketches (with relatable characters with typical day-to-day stories delivering simple take-away messages) are included to be used during training as inroads for participants to express their own personal experience. 2. DESIRED SITUATION The overall objective of the Financial Education Program (FEP) is to give the vulnerable segments of the population some basic tools necessary for them to improve their financial situation and manage their cash transfers in the most beneficial way possible. The objectives of this project are to improve access to income generation opportunities for targeted population in both urban and rural areas and strengthen the government's capacity to implement its cash transfer program. The FEP has been designed to support and enhance overall success of the cash transfer program. The training program will consist of 5 modules divided into 19 sessions amounting to 21 hours; All the sessions plus the introduction and conclusion will have a training time of 1 hour. 4 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM 3. PREREQUISITES FOR SMOOTH INTEGRATION OF PROGRAMS Several prerequisites are essential for the integration of the financial education program. It is important that the organization planning the activities of this program on the ground or the host partner of the program become acquainted with these in order to be well aware of the conditions of success. a. Ensuring the quality of the cascade of trainers The quality of the cascade of trainers is essentially based on two criteria: 1. Professionalize the human resources involved 2. Very good preparation of trainers to disseminate the activities of the financial education program in the training spaces. PROFESSIONALIZATION As far as possible, the desired profile for the trainers is as follows: Profile of trainers • At least 3 to 5 years of experience in the delivery / animation of training. • Be a good facilitator, i.e. a person with a good ability to listen to the participants in order to encourage participation in the training space and to share experience. • Be a good communicator who can communicate instructions and present content while maintaining the attention of the audience. PREPARATION OF TRAINERS Financial Education • Trainers should not only implement the program activities for beneficiaries during training but also prepare their own personal budgets in order to familiarize themselves with the stumbling blocks that will be encountered by learners. At the end of this exercise, they will have appropriated the activities, content and budgeting practice to which the program relates. They will 5 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM thus be more comfortable to accompany the learners, having tested the financial education principles on themselves. Experience has shown the importance of training trainers in the first place on the themes and practices of financial education they will have to introduce to the populations in order to have a prior experience on the subject. Trainers • The training of trainers should last at least 6 hours. • The structure of the training of trainers should be substantially the same as that of FEP that will be delivered to the final learners. It should also be an opportunity to experience the activities of the program by providing space for reflection on their application. b. Taking into account the quality of training spaces Logistics and organization of rooms • Training rooms for trainers must be suitable for ‘physical conversion’, i.e. chairs and tables can be moved to the desired configuration. It should also be possible to place or find there a board or flip chart with markers. • A projector and electrical extension cord are desirable with the presence of at least one white or fairly uniform white wall, failing to have a screen. • The quality of the speakers should be reviewed prior to launching the training sessions in order to properly use the audio- sketches. • It is, essential to count on the presence of an electric generator in case of power failure. In case of electrical failure, trainers have to be prepared to distribute the material on paper, and be ready to read the scripts of the various stories supporting the FEP. Hence, knowing the stories and being able to read them through to the group of learners is an essential part of preparation in case of electrical shortages. • Test all the equipment at least 30 minutes prior to the training sessions. Organization of groups • Maximum of 20 beneficiaries per training given the importance of exchanges and sharing of experience. • Provide pencils for each beneficiary as they will have to do practical work on the financial tools provided. • Include in the recipients' schedules the workloads of women who often have to be present in the morning and at the end of the day with their families. 6 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM • Where possible, invite household members to trainings as the budget is often family-oriented. 4. PEDAGOGICAL APPROACH The activities of this financial education program have been developed in accordance with certain design principles, including but not limited to: • Focus on building new knowledge. Each session of the program has been designed to introduce a new concept that will be used when the time comes to construct a budget. • Promote interaction and practice. This program offers reflective and practical activities that, following a series of sessions that make them aware of everyday situations related to family financial management, invite the participants to create a financial flow. • Take account of contexts. The contents of audio capsules make it possible to put the financial concepts into play by illustrating situations typical to the context and the importance given to the exchanges on the financial problems presented. • Recognize existing knowledge. It is important to keep learning active by inviting participants to interact on the contents of the audio capsules but also on their own financial management practices. Although this management is often done informally, it is experienced daily by the participants who have to manage cash inflows and outflows. 5. GENERAL TRAINING GUIDELINES Knowing that the ultimate beneficiaries of training are adults, it is important to recognize that their learning style is different from that of children. Indeed, as adults, participants will have both positive and negative life experiences that can be used fully for better learning. In order to make the most of a strong and participatory approach to adult learning, it is necessary to keep in mind the following tips: • Prepare yourself before training. Each session includes learning objectives clearly identified in the course materials to guide the trainer on expected outcomes. The trainer should review the material and ensure that it is finely adjusted to the effective time available for the training. • Goals. Present objectives at the beginning of each session, as an introduction. • The key message(s). Likewise, at the end of each session, as a synthesis, give some key messages to share with the participants and that it is improbable that they keep in mind. These key messages are identified in the teaching materials used at the end of each session. It is useful to remind participants that at the beginning of the next session, the trainer will ask to review 7 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM these key messages. All key messages are anchored in traditional proverbs or sayings that relate popular wisdom and rely on the oral tradition of the targeted participants. • Demonstrate respect for participants and their experience. Participants are adults who deserve respect: they have found solutions to their problems, and probably need to acquire new skills and strategies in financial education, but do not usually start from scratch. They are not ignorant nor helpless, and can learn better from each other's experiences. • Use audio segments for each session. The audio material has been developed for the radio program in financial education and it is also intended to be used to support training sessions. Each audio segment presents episodes of the life of a family to which the participants in the training can identify. Thus, the participants can recognize themselves in the characters and it will therefore be easier to open the discussions on the main themes of each session. • Respect the planned training schedule. Training hours are limited and the material to be covered is abundant. The trainer must carefully manage his time. • Presentation at the first session. The trainer should, at the beginning of the first training session, introduce him/herself to the participants and invite them afterwards, to do likewise, and to take turns. It is important that everyone has about 30 seconds to a minute to do it. In a group of 20 participants, this represents about twenty minutes. This is not a waste of time, quite the contrary: experienced trainers will rely on the personal characteristics of the participants to re-ignite these during subsequent moments of the training sessions. • Rule to follow. The training is interactive and it is therefore essential to be attentive to what is going on in the training room, to avoid any kind of distraction (your mobile phone for example or those of the participants should be shut off) in order to devote yourself entirely to the elements of the training session. • Be joyful and energetic. Do not underestimate the communicative effect of good mood on the audience to allow your messages to pass more easily. • Finally, a good trainer must be flexible and able to adapt to a group of participants. If a specific topic or question is of concern to the participants, the trainer should devote more time and not to be rigid in following the training schedule. Similarly, if a concept is obvious to everyone, the trainer can speed up and move on. Participants in these sessions are generally well disposed towards the trainer and will appreciate that the trainer adapts to their interests and specifics. 8 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM 6. TRAINING OBJECTIVES GENERAL THEMES SUB-THEMES DESIRED BEHAVIORS KNOWLEDGE ABILITIES ATTITUDES At the end of this session, At the end of this session, At the end of this session, At the end of this session, participants: participants: participants will be able to participants will believe that: 1. Financials goals 1. Setting financial Determine what is short- Know precisely what Prioritize between various Believe that a plan helps goals term, mid-term and long- financial goals we have goals to prevent any problems term financial goals and be able to plan to Evaluate the amount and and avoid any delays in (60 min) Prioritize financial goals in achieve them time necessary to meet meeting its goals order of importance Know the distinction different financial goals Make an estimate for how between short-term, mid- Apply the idea of financial much money is necessary term and long-term goals to the overall to meet stated goals Know how to budget budget Be able to evaluate financially every line of our plan 2. The budget 2. Why is it necessary Will be convinced that it is Will know what a budget Justify the necessity of Budgets will save them to make a budget? necessary to make a entails. making a budget in any some stress budget. situation. Budgets will help them (60 min) manage their money 3. Can we prepare a Will be assured that Will be able to apply a Put in place a clear and The methodology makes budget without a without method, the method to develop their precise method to make it possible to build a solid methodology? budget is obsolete household budget their budget budget (60 min) 4. What are the Calculate their own Will know the amount of Track their income from They can maintain a incomes of our income and how much money that goes into the multiple sources on a positive attitude even household? money comes in terms of household and the regular basis. when the level of money income and when frequency. is low. (60 min) Understand the difference between a regular income and an irregular income such as the cash transfer program. 9 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM GENERAL THEMES SUB-THEMES DESIRED BEHAVIORS KNOWLEDGE ABILITIES ATTITUDES 5. What are the Plan their expenses on Will know how to make Prioritize significant The medium term is expenses of our the basis of a hypothetical decisions based on expenditures versus important and possible to household? (but realistic) cash transfer income. optional expenditures plan. (60 min) that will be received in addition to other hypothetical revenues. 6. How to match Determine their own Will know how to budget in Provide budget lines for Making a budget and expenses with spending priorities. the short and medium unforeseen expenses sacrifices today will help incomes? Achieve realistic budgets term. Decide which expense is them achieve their (60 min) that take into account their Will know how to prioritize important and which is financial goals for priorities. spending optional tomorrow (medium term). Establish short and medium-term objectives 7. And what if an Respect their own Will be able to readjust Be able to readjust a Rebalancing a budget is unexpected event spending priorities. priorities on a regular budget, understand what not a failure and today’s occurs, what do we basis. worked or not on a regular sacrifices will help do? basis. achieve the financial goals of tomorrow (in the medium term) (60 min) 3. Savings 8. Why save money? Will Determine their own Will know the advantages To justify the need to save Without saving we have reasons for saving in and disadvantages of for the achievement of less security, more relation to their situation. saving. their objectives. difficulties to face social (60 min) obligations and unexpected events, less comfort and a more precarious old age 9. How to save Will Determine the way to Will know the most To allocate money in their we have to spend less money? save money in relation to important ways to save savings by using different than we earn, to save. their situation. money. way to do it (60 min) we have to save regularly, with discipline and having goals. It is a gradual and slow process but pays off. 10 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM GENERAL THEMES SUB-THEMES DESIRED BEHAVIORS KNOWLEDGE ABILITIES ATTITUDES 10. Where to save Evaluate different saving Difference between under Ask questions about Trust/confidence in money? options and choose most the mattress and in a products/services to find if formal financial system (60 min) appropriate financial institution these meet one’s needs product/service based on one’s needs Know different financial Think long-term, not just services to save short-term 11. Saving for Will be convinced that it is Will know the importance To allocate money in their For the peace of our old retirement necessary to save for of saving money for savings to plan for days it is preferable: (60 min) retirement retirement retirement To save constantly in anticipation of the period when we will work a little less. To accumulate assets that will retain or increase in value, and which may be sold to meet our needs. To develop a capacity to generate income to adapt to a period of lesser work intensity. 12. When to use Will Determine the best Will know the importance Will be able to keep their To use your savings in savings? moment to use their of having a goal saving until achievement the right way, you need savings of their goal to: (60 min) Have a target to save. Persevere until reaching our target. Avoid being distracted from using savings for other expenses. 11 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM GENERAL THEMES SUB-THEMES DESIRED BEHAVIORS KNOWLEDGE ABILITIES ATTITUDES 4. Borrowing 13. Why borrow Will Determine their own Understand the To justify the need to Borrowing to generate money? reasons for borrowing in advantages of borrowing borrow for the future income is a good relation to their situation. for a productive activity achievement of their idea and should be done and the disadvantages of objectives. according to its financial (60 min) doing so for a non- ability. productive activity. Let us not borrow if we cannot repay. 14.Understanding Borrow according to debt What terms of a loan are Understand “true price” of They can be confident to terms of borrowing capacity (interest, duration, leverage)? borrowing borrow for productive (interest, duration, Comply with terms and Terms and conditions of Determine one’s debt purposes or time-limited leverage) conditions of loans loans at an institution capacity investments (60 min) They should not be afraid of loans, but see them as tools when used correctly 15.Comparing terms Consider terms before When to borrow and not to Differentiate between “good” They can choose the of loans borrowing between many borrow and “bad” loan best terms of loan when (60 min) institutions they decide to borrow 16.Negotiating with Compare options for loans The research to do to find How to efficiently Be confident that lenders & products and identify the best product with best compare various products research and knowledge (60 min) pros and cons terms Calculate debt capacity will help one’s situation and basic interest to avoid becoming over indebted Not be afraid of loans see them as tools when used correctly 17.Managing Manage debt in a sound How to manage debt and Use credit only for Managing debt properly continuously way for planned and credit? necessities with help in the future repayment of debt necessary expenses How to build trust in Be consistent with and building trust Managing cash flows to community to receive loan spending to build trust (60 min) build trust and eventually receive a loan 12 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM GENERAL THEMES SUB-THEMES DESIRED BEHAVIORS KNOWLEDGE ABILITIES ATTITUDES 18.Communicating Keep communication lines Importance of regular Develop confidence in Not be afraid to discuss with confidence open with loan providers communication to ensure communicating to get with loan providers (60 min) loan provider’s support desired support from the loan providers Update loan providers Communication and immediately if problem negotiations are useful arise repaying debt tools in various situations (business and personal) 5. Mobile Money 19.How to use Mobile Explore the way to receive Usefulness of mobile Understand how mobile Having a mobile money Money money/send money money services money products can account is not (60 min) improve one’s situation complicated to get. Explore the way to store money 13 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM 7. TRAINING STRUCTURE 14 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM 8. GLOBAL STRUCTURE OF THE PROGRAMME SESSION DURÉE OBJECTIF PRINCIPAUX THÈMES ACTIVITÉS SESSION 1. SETTING FINANCIAL GOALS? Prioritize between various goals Financial goals 60 min Short term and medium term MODULE 1 SESSION 2. WHY IS IT NECESSARY TO Realize that it is necessary to have an Cost of life 60 min. overview of the inputs and outputs of Social pressure on the household budget MAKE A BUDGET? money to meet the money challenges of Unexpected expenses everyday. Budget SESSION 3. CAN A BUDGET BE PREPARED Become aware of the need for successive Method 60 min steps to achieve a budget Returned WITHOUT METHODOLOGY? Listening to the Spent radio capsule Types of income and expenditure in the General household discussion in group Identify household income sources and Sources of income Self-reflection SESSION 4. WHAT ARE OUR 60 min and sharing of HOUSEHOLD’S INCOMES? become aware of how often and when they Income Level (Weight) materialize in the year. Income Frequency life situations MODULE 2 Practice related to the theme of the session SESSION 5. WHAT ARE OUR Identify spending categories and become 60 min aware of how often and when they Importance of expenses HOUSEHOLD’S EXPENSES Frequency of fixed expenses materialize in the year. Unexpected expenses Funds for safety SESSION 6. HOW TO MATCH EXPENSES Put expenses and revenues for periods of Weight of expenditure 60 min the year in a timetable and ensure that Frequency of fixed expenses WITH INCOMES? entries are sufficient to cover cash outflows Unexpected expenses Security background SESSION 7. WHAT NEEDS TO BE DONE IN Know how to adjust the budget on a daily Occurrence of unexpected events that 60 min basis as the reality comes that is different alter the budget balance as expected A CASE OF AN UNEXPECTED? from what we anticipate Strategies to align expenditure with revenue accordingly 15 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM SESSION 8. WHY SAVE MONEY? Recognize the different reasons for saving: Each type of savings pattern has 60 min (1) the purchase of income-generating different requirements as to the amount assets (2) meet social obligations; (3) and duration of the effort consumption of durable goods; (4) security for the old days SESSION 9. HOW TO SAVE? Spend less than you earn 60 min Know how to save money base on the budget Save regularly MODULE 3 SESSION 10. WHERE TO SAVE? 60 min Recognize that putting money in a financial Reliable financial institution institution is profitable than under the mattress SESSION 11. SAVING FOR RETIREMENT 60 min Know how to be prepare for the old days Retirement SESSION 12. WHEN TO USE SAVINGS To know how to use your savings in the 60 min right way, you need to: Goals Disturbing by events Goals for saving SESSION 13. WHY BORROW? Recognizing that borrowing to generate Identify the burden of borrowing and the 60 min income is easier than borrowing to buy non- fact that it is simpler to meet when it is income-generating consumer goods done to generate income SESSION 14. UNDERSTANDING TERMS OF 60 min Know the different terms of loans: interest, Interest BORROWING duration, leverage Duration MODULE 4 Leverage SESSION 15. COMPARING TERMS OF 60 min Know how to compare the terms and make Good loan LOAN? a good choice Bad loan SESSION 16. NEGOTIATING WITH 60 min Develop quality to be a good negotiator: Negotiation LENDERS? patient, calm etc.. Attitudes 16 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM SESSION 17. MANAGING CONTINUOUSLY 60 min Know how to manage cash flows to build Debt REPAYMENT OF DEBT AND BUILDING trust and eventually receive a loan TRUST Repayment Trust Building trust SESSION 18. COMMUNICATING WITH 60 min Know how to Keep communication lines Communicating with financial institutions CONFIDENCE open with loan providers SESSION 19. USING MOBILE MONEY 60 min Know how to use mobile money services Receive / send money SERVICES MODULE 5 Store money Fraud Ombudsman 17 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM 9. DETAILED TRAINING STRUCTURE INTRODUCTION FEP ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS TOTAL General objectives: Before each training session, if it is broadcast on 60 MINUTES the same day, read all the stories in the Sketches’ During this introductory phase, participants will: document and listen to the soundtracks to learn more about the characters and content of the - Learn more about their trainer episodes specific to each lesson. The more you - Present themselves and make a brief description of their master the essence of the stories, the better you households will be able to tackle the main themes of this - Clearly understand the objectives of the training program training program and ask the key questions that will allow your audience to think. Materials: • A presentation board to include the names of all participants INTRODUCTION: 60 MINUTES and identify whether they have dependents, if they are The trainer should break the ice, by setting an married, their schooling, etc. This is available as an example and revealing information about himself appendix to this manual. in order to make the participants feel at ease. For example, where did he come from, what did he do • Wall clear enough to project slides before being a trainer? From the start, it is • Projector important to create a pleasant atmosphere. • Electrical extension wire • Table for installing the projector • Presentation table allowing to enter the names of all the participants as well as to present their individual characteristics. • Pencils for the participants Guidelines: • Welcome all participants first, then introduce yourself and give the reasons for your presence today. 18 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM FEP ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS • Then, using the presentation table, let each participant present himself using the information elements of the table. It is important to gather as much information as possible about each participant so that you can refer to it during each session, so let participants talk while limiting overflows in time. This table is attached and will be your guide during all training sessions. By allowing yourself to have as much information and details about the participants as possible, you will be well equipped in your interventions. 19 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM FEP ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS The trainer can present the questions for each session. However, the challenge is to make participants understand the main themes, concepts and those that will be addressed in this program. The questions are important because they invite participants to link these stories to their own context. But this is not enough, it is also important that many of these reflections, Guidelines: comments, ideas re-emerge to create interaction between groups in plenary sessions. • Explain the structure of each session: 1) Listen to the story 2) Reflect on the story 3) Ask about their own situation 4) This work of group reflection will allow to Finish by identifying the key message. recognize their financial situation and identify • Present the style of questions that will be used in this better ways to plan their finances. Moreover, by training. sharing their own stories, they will not feel as the • Specify that, at the end of the training, each participant or only ones with specific problems. family should have an idea of the important times of the year when there are exits and cash receipts. • Mention that they will have a small tool to make a budget It is likely that participation at the beginning of the and correctly identify their incomes (cash inflows) and their session will be less active. However, little by little, expenses (cash outflows) in order to see if it balances each a certain confidence should be established if the month and at the end of the year. climate of the group is favorable and respectful. We should note a sharing of personal stories more and more, which will allow the trainer to link these situations to seeking concrete solutions with the group through, among other things, better planning. But beware, training should not become the place of financial complaint. 20 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM FEP ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS Guidelines: • Before beginning the audio segment, introduce the characters of the stories starting with the father, the mother, the grandmother (Nana), the eldest daughter, the son ... 21 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM MODULE 1: FINANCIAL GOALS SESSION 1: SETTING FINANCIAL GOALS NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS SESSION 1. SETTING FINANCIAL GOALS Objectives of Session 1: At the end of this session, participants will know precisely what financial goals are, and the type of characteristics that financial goals should have. Materials: - Wall clear enough to project slides - Projector - Electrical extension wire - Table for placing the projector - Presentation board allowing to enter the names of all the Never forget to use the ‘presentation participants and highlight their individual characteristics. table’ which contains information on - Pencils for the participants household composition, type of activity, etc. to take concrete Guidelines: examples in the participants' lives, and probe them if they do not spontaneously draw from their life - After the introduction of the program, we begin with a module on experience. TOTAL SESSION 1: 60 MINUTES financial goals. - Ask: What do you think is a financial goal? Response elements: A financial goal is a monetary target you set: it is composed of something you want to achieve, its value in monetary terms and a period within which you would like to attain it. It is usually driven by specific future financial needs. 22 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS INTRODUCTION SESSION 1: .. MINUTES Guidelines: - Open the discussion by inviting participants to express themselves freely about the story. Summary of the history of Session 1: - Your turn, what do you think about the story? The young adults of the household talk about future income generation - What are we talking about? projects that they would like to implement, in collaboration with a group of friends. - Assist participants to identify concretely the elements of the story related to the financial goals. Already their parents are both encouraging them while giving them - How are these financial goals different one from the other? advice on qualities required to attain these goals (persistence for Productive good or non-productive good instance), and give them cautionary advice (roles between friends Productive good: use to generate revenue. (Sewing machine, tools, involved in a common project will motorbike, etc.…) have to be defined, etc.). Non-productive good: use to improve our comfort only. (Couch, television, walking stick etc...) 23 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS Guidelines: Recommendation: - Invite participants to think about their own situation or that of the It is tricky to share information on members of their household. income and expenses in public. The - And in your life, do you have ‘money objectives’? Which ones? trainer can start by being transparent about his own situation. As this is very early in the training process, the - Are these specific? trainer can still invite participants to Your goal has to be precise and clear instead of vague and difficult express at least 1 financial goal, or to identify. one goal in monetary terms. The trainer can then build on the goals -Are these achievable? expressed by participants. Your goal must be directly related to your income (and expected income). Don’t count on unrealistic / hypothetical income to achieve The trainer can ask if these goals are your goal. clear enough, measurable, attainable. If these goals are distinct - Are these measurable? from simple desires or dreams. By measurable, can you put a specific monetary value on the goal. - Are these realistic? Do you think your goal can be attained, with some degree of effort, Recommendations: or is it unrealistic at first glance? Consider your personal limitations, the external obstacles. But do not eliminate the goal if it simply In this section, aiming to focus on requires efforts. real life experiences of participants, do not be afraid to leave some - Can you identify the time frame your goal? moments of silence. In fact, it is necessary to allow time so that You should have a sense of the length of time required to attain the learners can ‘connect’ to their lives goal: for instance, by the end of the year, or within the next 3 years, and extract specific examples that or in three to five years. they can share with others. Often, once one of the learners verbalizes - Take the time to identify these. Record answers and correct if his /her experience, other learners necessary. will be prodded to dig into their own lives and present their own Verify if the financial objective expressed is known to other experience. household members, or if it kept as a secret. Examine if once shared with other household members, if these are supportive of one another, or if the burden of attaining the objective, relies solely on the shoulders on one of the household members. 24 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS Meaning of the proverb: Guidelines: Sometimes, some goals will seem - After the discussion, ask participants to remember the proverb very far away from the starting point. ("Going slowly does not prevent from arriving"). Can anyone Also, some goals may appear recall the proverb? What does this proverb mean in the context of disproportionately high relative to this session? one’s income. Nevertheless, once the - Conclude with the meaning of the proverb, and explain it so that goals are set, and you start pursuing the participants all understand it in the same way. them, even if it takes a long time to get there, you can still make it. The - Invite participants to recap what was discussed during the session: fact that progress towards a final goal Financial goals, are specific, measurable, achievable, and realistic. is slow, does not mean that you should be discouraged. - Ask: What is important to remember? • 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. 25 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM MODULE 2: THE BUDGET SESSION 2: WHY IS IT NECESSARY TO MAKE A BUDGET? NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS Objectives of Session 2: TOTAL: 60 MINUTES During this session, participants will: Summary of the story of the session • Know the usefulness and necessity of having a budget 1: • Become aware of cash inflows and outflows in the household. Father discusses with his wife, they will be joined by their son, their daughter and then by grandmother (Nana). The conversation is going to speed up, as the parents realize the Materials: accumulation of expenses that are coming from all sides without being - Wall clear enough to project slides fully prepared to handle them. The father will propose to buy the walking - Projector stick promised to the grand-mother - Electrical extension wire first, and start by beating himself up - Table for placing the projector for not adequately planning his - Presentation board allowing to enter the names of all the household’s expenses. The participants and highlight their individual characteristics. household is struggling to cope with SKETCHES #2: 60 MINUTES all the expenses they have to tackle, - Pencils for the participants and the young adults of the household are going to suggest organizing a ‘budget session’ to have a better vision as to where they should go from there. Guidelines: • Clarify that participants can follow the story using their handbook, as the actions of characters are summarized. • Start by asking participants to listen and understand what is going on, as they will be asked to discuss it. 26 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS • Explain to the participants that you will begin the Content Elements session with a discussion on some terms that will often come back in the session. A budget is simply a tool for forecasting and managing one’s money during a given period of time. Quite simply, it is a financial tool that makes it possible to better know the inflows and outflows of money in the household. Then, this tool allows anybody to see what types of expenses are costlier. The budget also makes it possible to assess future spending. Once this information is known, it is easier to make good financial decisions. Guidelines: Recommendation: • Open the discussion by inviting participants to express This first stage of discussion must themselves freely about the story: remain broad. It is about breaking the  Your turn, what do you think of the story? ice and demonstrating to the  What is the problem with this household? participants that this training is also a DISCUSSION ABOUT THE STORY: .. MINUTES  What are we talking about? place of discussion and reflection. • Conclude the discussion by asking participants if they have ever heard about the concept of a budget and under what circumstances? • Explain with simple words what a budget is. 27 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS SHARE OF EXPERIENCES: .. MINUTES Guidelines: • Invite participants to reflect on the cash outflows in their household. Request: And in your life, do you often have difficulties to meet your expenses? Guidelines: • After allowing the participants to present certain spending situations, ask which ones are: essential, Conclude at this level that to make necessary, occasional, unexpected ... spending decisions, you must • Note the participants' responses carefully so that they determine what to spend, when to can be used to provide additional explanations when spend and how to spend? You also you present the budget in more detail in subsequent need to know what you will have as sessions. This will allow you to illustrate key concepts money, when it will be available, and with examples of their everyday life. if it will not already be tied for a particular expense / obligation. Guidelines: As such, it is absolutely necessary to • After the discussion, ask participants to remember the make a budget proverb: Can anyone recall the proverb? In your CONCLUSION: .. MINUTES opinion, what does this proverb mean? ‘It is not the day of battle that you sharpen your blade’ Meaning of the proverb: • Conclude on the meaning of the proverb, and explain it so that the participants all understand it in the same The proverb simply means that way preparation is at the heart of any • Invite participants to recap what was discussed in the successful endeavor in our lives. session: there are incoming and outgoing flows of Otherwise failure is hardly avoidable. money and different types of expenses. It is the same if we want to face the • Before going to the next session - at the discretion of money challenges of our lives. the trainer and time available - invite participants to take a short break. 28 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS Important points to be remembered: Conclude with this message after What important points must be remembered: • Be well prepared to face life’s money challenges. • One must plan ahead to face the money challenges of • Anticipating cash inflows our lives. This ‘planning ahead’ expresses the and outflows – this is what necessity to have a budget. budgeting is all about. This is what will be seen step by step in the following sessions. 29 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM SESSION 3: CAN WE MAKE A BUDGET WITHOUT A METHODOLOGY? NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS SESSION 3. CAN WE MAKE A BUDGET WITHOUT A METHODOLOGY? Objectives of Session 3: During this session, participants will know how to: - Identify the elements of a budget - Define a method for developing a budget Note: Having understood that it is necessary to make a budget for our Take a minute or two with the household, it is important to know now how to set it up. participants, asking them what they have remembered from Session 2. What did we learn in Session 2? They should recall that it is necessary Let the participants bring some answers in their own words. to prepare a budget in order to meet life’s money challenges, and more If the trainer feels that session 2 was not well understood or precisely to be able to determine if remembered, the trainer can use his own words to remind learners and when they can afford to TOTAL: 60 MINUTES that it is necessary to have a budget, and why. undertake some specific expenses. Use the recommendations from the previous session to inspire you. Ask participants if they have ever heard the notions of method? Repetition being pedagogical, this will Income? Expense? And under which circumstances? be beneficial for the participants. Come back on each of the following notions:  Method: a set of tools and rules to perform a better job and achieve a better result.  Income: any money coming into the household.  Spending: any money going out of the household. This is important because this sketch and the others to come are These notions should be understood dealing precisely with ‘the notion of a budgetary method’: how to by the participants, so do not hesitate identify incomes and expenses and aligning them in a manner such to explain them with examples if that it will correspond to a budget. necessary. 30 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS Tell the participants that we are defining these concepts to enable them, once again, to better extract the lessons from the sketches. Ask participants: Do you sometimes use methods to do a better job? Small steps, after other small steps to achieve a result? Highlight a concrete example provided by the audience, steps to make patties or to change a tire, etc. If we mix the steps, does it work? Then take advantage of the opportunity to specify that to realize a budget, one also needs a method. Invite participants to listen to the sketch to find out how the family starts to develop (or make) their budget. Do they get confused? How do they correct themselves? Before presenting the sketch, remind the participants the same procedure as in earlier sessions:  We listen to the story  We reflect on the story  We wonder about our own situation  We finish by identifying the key message. 31 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS Guidelines: Summary of Sketch 3: Clarify to participants that they can listen to the story, but can also The family meets as planned in order follow the story using their handbook, as the actions of the to prepare a budget, but the ‘random’ characters are summarized in the illustrations. way with which income and expenses are listed proves inefficient. They will Guidelines: conclude by deciding to have another get together solely on incomes. Open the group discussion by inviting participants to express themselves freely about the story:  Your turn, what do you think of the story?  What are we talking about? Recommendations: Does it seem easy for the family to make a budget? Does the family seem to have a method that allows them to put in Record the important elements of the order incomes and expenses and have clarity on the overall money participants' comments. They may situation of the household for the coming year? serve as examples for your If we help the family by putting some order, what are the incomes explanations. and expenses in this sketch? To help participants identify concrete elements of this story related to a methodology, draw 2 columns on the flip chart, one column for Incomes and another one for expenses, and then probe participants. 32 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS Key questions to guide the discussion: Guidelines: How should the family begin? Identify • Invite participants to reflect on the situation in relation to incomes (all receipts of money) or their household: expenses (all cash outflows) of the  Do you sometimes sit with your family to talk household? about household incomes and expenses? Is it a good idea to say that it is better  How do you go about deciding which expenses to wait to know the incomes of the to undertake apart from the daily expenses? family before deciding to spend for  And how do we put all these numbers together the wedding? (cash inflows and outflows)? Apply a method that allows you to make a coherent budget. • Conclude by reinforcing the importance of: Recommendations:  All incomes in the household and knowing these.  Major expenditures Invite participants to search in their  All of them in a calendar own experience to participate in the discussion. Do not be afraid to leave some moments of silence giving Elements of content: learners a chance to remember their own experience in relation to the • Often, more occasional income allows money to be paid notions discussed in this session. for urgent expenses or for the purchase of necessary things such as medicines, school supplies, etc. • Knowing incomes and expenses will help to make a budget. It will take some method to get there. − 33 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS Guidelines: Note the main elements of participants' answers on the table or After the discussion, ask participants to remember the proverb. Can flip chart so that they can be used to anyone recall the proverb? What does this proverb means? provide additional explanations when you see the budget in more detail in As Nana said so well in the sketch we just heard: "To lie down, subsequent sessions. This will allow you start by sitting down" you to illustrate key concepts with Conclude on the meaning of the proverb, and explain it so that the examples of their everyday life. participants all understand it in the same way Invite participants to recall what was discussed in the session: Ask: What is important to remember? To prepare a budget one has to do it step-by-step: First by identifying all incoming flows of money, then all outgoing flows of money, and placing all of them in a calendar, to see how they even out. Before going to the next session, invite the participants to stretch themselves: small exercise, a song, coffee, food, etc. Meaning of the proverb: One cannot make a budget without a methodology, so one must proceed step by step. To make a budget it is necessary to do it methodically, to identify incomes and expenses and put them in a timetable. 34 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM SESSION 4: WHAT ARE OUR HOUSEHOLD’S INCOMES? NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS SESSION 4. WHAT ARE OUR HOUSEHOLD’S INCOMES? Objectives of Session 4: At the end of this session, participants will know how to: - Identify all sources of incomes of household members - Classify these incomes in terms of sources, frequencies, seasonality and levels. Guidelines: Never forget to use the presentation board to draw concrete examples in - Having understood that it takes a clear and precise methodology to the participants' lives. prepare a budget, go to the first design step. - Ask: What do you think is the first step in designing a budget? Take a minute or two with the participants, asking them what they Response elements: remember from the previous sessions. This would make it possible to start this session and make sure - The first step would be to identify all incomes, their amount, type, that they can follow without problems. TOTAL SESSION 4: 60 MINUTES frequency and seasonality. 35 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS INTRODUCTION SESSION 4: Guidelines: - Open the discussion by inviting participants to express themselves freely about the story. Summary of the history of Session - Your turn, what do you think about the story? 4: - What are we talking about? The family meets as planned to start - Does it seem easy for the family to identify incomes? their budget and talk about incomes. - If we helped the family, what are the incomes mentioned in this Each one, in turn, beginning with the sketch 4? father, come and talk about his/her income. - Assist participants to identify concretely the elements of the story related to sources of income, frequencies, seasonality and levels. - How are these incomes different? Following the methodology, the family realizes that incomes have different characteristics that must be taken into account to make its budget 36 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS Guidelines: Recommendation: - Invite participants to reflect on the situation in the context of their It is tricky to talk about the levels of household. personal income in front of a group of - Identify the types of incomes in your households: Salary, ‘strangers’. Remain general when it retirement pension, sewing, selling garden products, donations. comes to specific levels of income of - Who has regular income? What are the less regular incomes? Do learners. The important thing is to you know the amount of such incomes (per month for example)? understand that there are different categories of incomes. Also that - Take the time to identify these. Record answers and correct if some are regular or irregular. This necessary. information will help to record the - Explain to the participants the concepts of predictable or regular amounts methodically in the income and those of less predictable or occasional income. timetable and provide a better understanding of the perspective of Show the slide with the timetable. Take the example of a participant. household incomes. Without asking him /her the amount of income, ask him /her when does the income materialize on a calendar? Then check with the group: is it an occasional or regular income? Recommendations: In this section, aiming to focus on real life experiences of participants, do not be afraid to leave some moments of silence. In fact, it is necessary to allow time for the memory to look back on specific situations related to the concepts. 37 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS Response elements: - Predictable or regular income: it is money that comes into the household in the same period (E.g. salary, retirement pension). - Less predictable or casual income: it is money that comes into the household in variable amounts and time intervals. (e.g.: sewing work, sale of garden products, etc.) - Ask if some participants receive transfer income. And take the opportunity to explain this concept Response elements: Use the information on the ‘presentation board’ to probe - Transfer Income: This is an income that comes to the household participants using some of their from a third person by money transfer. personal characteristics, which can - Introduce the notion of income level, explain to them what is meant then inspire others to recall their own by this concept. Use as an example the allowance that learners experience. receive in the context of the social support programs. 38 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS Response elements: - Income levels can vary as a function of the intensity of the activities performed by someone. (for example, you can earn more money by working more during the last months of the year). - Participants should be encouraged to cite other examples than what they see in their notebooks, or what they heard during the sketch. Have participants reflect on the following thoughts: - What are the "best" incomes, which ones can be trusted? - Can we increase our incomes rather than relying on luck? - Can you plan your spending based on irregular income? Ask participants to decide on what they can count on when planning their spending, setting aside money and achieving their goals. Focus on predictable revenue for the bulk of planning, and the least predictable and random for less important items. 39 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS Guidelines: Meaning of the proverb: - After the discussion, ask participants to remember the proverb Always make sure that you always ("Think of the quality of your teeth before taking a bone in the have the means to cope with an pot"). Can anyone recall the proverb? What does this proverb expense before committing it. Make mean? sure you have solid and reliable - Conclude with the meaning of the proverb, and explain it so that incomes. the participants all understand it in the same way. - Invite participants to recap what was discussed during the session: Types of income, income weight, casual or regular income ... - Ask: What is important to remember? - Before going to the next session, invite the participants to stretch themselves: small exercise, a song, coffee, food, etc. (at the trainer's discretion) It is paramount to know, for each member of your household, the type of income, the level of income, the frequency, seasonality, and the degree of certainty or randomness of your inflow of funds in order to have a firm idea of what you can count on. 40 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM SESSION 5: WHAT ARE OUR HOUSEHOLD’S EXPENSES? NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS SESSION 5. WHAT ARE OUR HOUSEHOLD’S EXPENSES? Objectives of Session 5: At the end of this session, participants will know how to: - Identify all types of expenditures of household members - Classify expenditures in terms of sources, frequencies, seasonality and levels. - Revisit the notion of expenditure and say that it will be viewed more Instructions: thoroughly in this session. - An expense is any money that goes - After identifying all revenues clearly and precisely, move on to the out of the household. next preliminary step in designing a budget - Ask the following question: What do you think is this other step? - Take two or three participants and ask them for examples. Then move on to the next step Response elements: TOTAL DE LA SESSION 5: 60 MINUTES - The second step would be to identify all types of expenditures, their amount, frequency and their level. 41 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS INTRODUCTION OF THE SESSION: Guidelines: Always the same instructions as before: - We listen to the story - We reflect on the story - We wonder about our own situation - We finish by identifying the key message. Summary of the history of Session 5: - Clarify that participants can follow the story using their handbook, as the actions of the characters are summarized. The family meets as planned to carry - Start the story by asking participants if they fully understand what out the next stage of their budget is going on, as it will be discussed in groups. process and talk about spending. Each one, in turn, starting with the father, comes and talks about his own expenses. The family realizes that there are numerous expenses that have to be taken into account while preparing the budget. 42 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS Guidelines: Recommendation: Open the discussion by inviting participants to express themselves freely about the story: It is tricky to talk about the levels of Your turn, what do you think of the story? personal expenses in front of a group What are we talking about? of ‘strangers’. Remain general when Does it seem easy for the family to list and identify all household it comes to specific levels of expenses? expenses of learners. The important Looking at this family, what are the expenses that it faces in this thing is to understand that there are sketch? different categories of expenses. Also Help the participants identify in this story all expense elements, that some are regular or irregular. including frequencies, seasonality and levels. This information will help to record How are such expenses different one from the other? the amounts methodically in the timetable and provide a better Guidelines: understanding of the perspective of household expenses. Invite participants to reflect on this situation as it affects their households. Identify the types of expenses in their households: food, clothing, electricity, etc. Who has regular expenses? What are the irregular expenses? Do you know the corresponding amounts of such expenses (per month for example)? Take the time to identify these. Record answers and correct if necessary. Explain to the participants the concepts of regular and irregular expenditure. Show the slide with the timetable. Take an example of a participant. Without asking for the amount of these expenses, ask when he/she is making each expense. Then check with the group: are these regular or irregular expenses? 43 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS Recommendations: - In this section, aiming to focus on real life experiences of participants, do not be afraid to leave some moments of silence. In fact, it is necessary to allow time for the memory to look back on specific situations related to the concepts. 44 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS Response elements: - A regular expense: it is money that comes out of the household frequently on a continuous basis. (e.g., food, daily) - An irregular expenditure: it is money that comes out of the household but less frequently and on a discontinued manner. (e.g. clothes, books, tools, once every quarter, or every six-months, etc.) -After defining these concepts, ask the participants to give other examples for each one. - Note examples and correct participant responses - Introduce and explain the notion of level of expenditure with participants. Response elements: - The level of expenditure: There are variations in expenditures depending on the intensity of the period in which they occur. (Ex: you can spend more on food during festive periods, or at the beginning of the school year). Participants should be encouraged to give other examples than what they see in their notebooks. - Make participants think about the level of spending: What are the most important expenses for your family? (Mark the most important expenses on the chart with an X.) - What are the expenses that are important, but not at the same level? (Mark these expenses with a circle O) - Finally, what are the optional expenses? (Mark these expenses with another sign – a square for instance). - Emphasize that sometimes, certain expenses are very important for one family, but not for another. But in general, some are always essential (rent, school, transport to work, medication), others are optional: (changing furniture for instance) 45 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS Guidelines: - After the discussion, ask participants to remember the proverb. Meaning of the proverb: Can anyone recall the proverb? What does this proverb mean? - "It is at the end of the old cord that we weave the new one" It is a step by step process involving - Conclude on the meaning of the proverb, and explain it so that all first identifying income, then participants understand it in the same way expenses, and then, for the next - Ask: What is important to remember? session, aligning them one on the - Before going to the next session, invite the participants to stretch other. To identify all expense themselves, small exercise, a song, coffee, food. (at the discretion components is an intermediate step of the trainer). on which the rest can be built. For each member of the household, it is important to identify expenditures, their frequencies, seasonality and levels. Distinguish regular/ essential and irregular/occasional 46 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM SESSION 6: HOW TO MATCH EXPENSES WITH INCOMES? FEP ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS SESSION 6. HOW TO MATCH EXPENSES WITH INCOMES? Objectives of Session 6: - During this session, participants will know how to prepare a simple budget Take a minute or two with the participants, asking them what they remember from the previous sessions. This would make it possible to start this session and make sure Guidelines: that they can follow without problems. - After identifying the revenues and expenses the next step is to prepare a budget. - Ask the following question: In your opinion, what will this step consist in? Response elements: TOTAL SESSION 6: 60 MINUTES It will consist in preparing a detailed plan by matching our expenses with our revenues to make sure that we can cover our expenses with our incoming flows of money 47 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM FEP ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS INTRODUCTION SESSION #6: Guidelines: Always the same instructions as in previous sessions: Summary of the history of session We listen to the story # 6: We reflect on the story We wonder about our own situation The family meets as planned to make We finish by identifying the key message. their budget with all the various elements that they have previously identified and to talk about balance between incomes and expenditures. Clarify to participants that they should listen to the story, but can also follow the story using their handbook, as the actions of the characters are summarized in the illustrations. 48 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM FEP ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS Guidelines: Recommendation: Open the discussion by inviting participants to express themselves Always speak of amounts in general freely about the story terms. The important thing will be to Your turn, what do you think of the story? understand how to match spending What are we talking about? with incomes, how to strike a balance Does it seem easy for the family to match spending with incomes? over a period of time, and how to If we were to help the family, how would we do it? allocate funds intelligently. Help the participants identify concretely the elements of the story that apply to the establishment of a balanced budget. Recommendations: Guidelines: In this section, aiming to focus on real life experiences of participants, Invite participants to reflect on the situation as it relates to their do not be afraid to leave some household moments of silence. In fact, it is necessary to allow time for the memory to look back on specific In our budget, are expenditures greater than income, or vice versa? situations related to the concepts. In cases where spending is higher than income, what can be done? Allow participants to share their ideas. If they do not mention any constructive idea, suggest to: 1) look for expenses to decrease, eliminate, or downgrade to optional expenses; Or 2) We can look for another way to make money. It is so important to have a balanced budget. Or, 3) Transfer income from a period when we have more to a period when we have less. 49 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM FEP ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS In periods where incoming flows exceed our basic expenses, what Allow participants to share their should we do? ideas. If they do not mention, add: 1) We can save, or set aside, the money that remains for the future; Or 2) we can use that excess cash to engage on things that we have been holding back on, and as a priority think of the most important expenses that have been neglected (on better nutrition, education, improving income generating capabilities). Explain to the participants the notion of balanced budget Use the information on the ‘presentation board’ to probe Balanced budget: sometimes, our income exceeds our basic participants using some of their expenses and we are able to set money aside. It is that amount that personal characteristics, which can can be mobilized in periods where we do not have enough money to then inspire others to recall their own meet our basic needs. experience. If you have enough time you can take the case of one participant and Show the slide with the timetable and the different steps to achieve replicate the same process with a balanced budget, gradually revamping the process with everyone. It would serve as a participants, enabling them to assimilate and replicate in their own practical exercise. home environment. 50 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM FEP ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS Guidelines: Like "every trickle of water has its -After the discussion, ask participants to remember the proverb. path," each household can have a Can anyone recall the proverb? What does this proverb mean? budget by matching spending with - Conclude on the meaning of the proverb, and explain it so that all income. participants understand it in the same way You have to wait for periods when - Invite participants to recap what was discussed in the session: you have more money to incur higher balanced budget, cut in expenses, setting aside money, transfer expenses, just like "you should not income ... throw water out of the jar just because the rain is coming." Session 6 - Ask: What is important to remember? Key message - Before going to the next session, invite the participants to stretch themselves: small exercise, a song, coffee, food, etc. (at the All incomes and expenses are integrated in a unique and same household budget. discretion of the trainer) - All incomes and expenses are integrated part of a single household budget. « The dog may have four legs, but it cannot take two paths at the same time » All incomes and expenses are "The dog may have four legs but it cannot take two paths at the integrated in a unique and same same time " Trainer of Trainers' Manual household budget 51 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM SESSION 7: WHAT NEEDS TO BE DONE IN CASE OF AN UNEXPECTED EVENT? NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS SESSION 7. WHAT NEEDS TO BE DONE IN CASE OF AN UNEXPECTED EVENT? Objectives of Session 7: At the end of this session, participants will know how to adjust their Session 7 budgets to one or more unforeseen events. Budgets are adjusted constantly also The question of session 7 is : Session 1 : Setting financial goals because some income may be lower than expected, or some expenses 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? may reveal themselves to be higher Session 6: How to match expenses with incomes ? than expected. It is not only Session 7: What needs to be done What needs to be done Guidelines: in case of an unexpected event? ‘unexpected events’ that trigger the Session 8: Why save money? in case of an Session 9: How to save money? necessity to adjust budgets. Session 10: Where to save money? unexpected event? - After learning how to put in place a solid and consistent budget Session 11: Saving for retirement Session 12: When to use savings? over time, it is important to test this tool. 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 - Ask the following question: In your opinion, what will this stage consist of? debt and building trust Session 18: Communicating with confidence Session 19: How to use mobile money 100 Learner's Manual Response elements: It will consist of knowing how a budget will stand in face of an unforeseen event and how to make the necessary adjustments in TOTAL SESSION 7: 60 MINUTES this specific case. 52 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS INTRODUCTION SESSION #7: Guidelines: Always the same instructions as in previous sessions We listen to the story We reflect on the story We wonder about our own situation We finish by identifying the key message. Summary of the history of Session 7: The family will receive a surprise visit next week. How is it possible to deal with this unexpected expense? All household members will offer solutions to adjust the budget. All these solutions have merit and can be discussed. Clarify to participants that they should listen to the story, but can also follow the story using their handbook, as the actions of the characters are summarized in the illustrations. 53 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS Guidelines: Recommendation: Open the discussion by inviting participants to express themselves freely about the story. Always mention amounts in general Your turn, what do you think of the story? terms. The important thing will be to What are we talking about? understand how to deal with an Define for participants the notion of an unforeseen event. unexpected event and provide for it in An unexpected event is when something happens and you do not the budget, how to strike a balance expect it. (Ex: a surprise trip, rain in the dry season). over a period of time, and how to Does it seem easy for the family to face such event? allocate the funds wisely. If we were to help the family, how would we do it? Help the participants identify concretely the elements of the story relating to such kind of event and its consequences. Guidelines: Recommendations: - Invite participants to reflect on the situation as it relates to their household. - In this section, aiming to focus on - Have you had to deal with unforeseen events in your life? real life experiences of participants, do not be afraid to leave some moments of silence. In fact, it is necessary to allow time for the memory to look back on specific situations related to the concepts. - If they say "borrow from a friend or family member", ask them how they will repay. They might be able to eliminate certain expenses, but very quickly they should cut into the essentials: food, etc. - What have you done in such a situation? 54 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS Always use the presentation board by giving participants specific examples that can inspire others to bring up interesting types of life experiences. If you have enough time you can take - Show the slide with the timetable and the different steps to the case of one participant and manage an unexpected event. replicate the same process together with everyone. This would serve as a practical exercise. 55 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS Guidelines: After the discussion, ask participants to remember the proverb. Can anyone recall the proverb? What does this proverb mean? "The fig never falls right in the mouth" Conclude on the meaning of this proverb, and explain in such a way Proverb: the budget must be able to that all participants understand it in the same way. adapt and is not fixed in time Invite participants to recap what was discussed in the session: because life is full of surprises that unexpected event, etc. must be "fed back" into the process. Ask: What is important to remember? As such, budgets must be revised and updated on a regular basis. Before going to the next session, invite the participants to stretch themselves: small exercise, a song, coffee, food, etc. (at the discretion of the trainer) Tell the participants that now they are ready to develop their own budgets with their families. This allows us to move on and introduce to them the topic to be addressed in the next session – saving. 56 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM MODULE 3: SAVE SESSION 8. WHY SAVE MONEY? NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS SESSION 8. WHY SAVE MONEY? Objectives of Session 8: - At the end of this session, participants will know the reasons for saving Do not forget to use the ‘presentation board’ to use concrete examples in participants' lives. Material: - Wall clear enough to project slides - Projector - Electrical extension wire - Table for placing the projector - Presentation board allowing to enter the names of all participants TOTAL SESSION 8: 60 MINUTES and highlight their individual characteristics. - Pencils for the participants 57 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS INTRODUCTION SESSION 8: .. MINUTES Guidelines: Take a minute or two with the Tell the participants that now that they know how to make a budget, participants, asking them what they it is important for them to understand a very important notion, which remember from the previous is saving. sessions. This would make it possible Ask: In your opinion, what is saving? to start this session and make sure that they can follow without problems Response elements: It will consist in finding ways of putting some money aside from the budget on a regular basis. Guidelines: Always the same guidelines as in previous sessions We listen to the story We reflect on the story We wonder about our own situation We finish by identifying the key message. Clarify that participants can follow the story using their handbook, as it summarizes the actions of the characters. Clarify to participants that they should listen to the story, but can also follow the story using their handbook, as the actions of the characters are summarized in the illustrations. 58 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS Saving to generate income: Investing your savings in income- generating activities in order to convey part or all of the income earned to savings. Saving for social obligations: Use your savings to cover inevitable social expenses such as weddings, funerals, and other ceremonies. Give your explanations in your own Saving for the unexpected: Use your savings to cover all words if this is necessary to make it unexpected expenses related to unforeseen events and not put much more obvious to the yourself in a precarious financial situation. participants. Do not hesitate to give examples of some participants if possible to illustrate this or reinforce your explanations. Saving to improve your comfort: Use your savings to buy all the things necessary for your well-being. 59 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS Saving to borrow more: Savings determine our ability to meet a repayment obligation. It is a guarantee of our financial health and good management habits. Saving for your old age: Using your savings to support yourself when you have reached an age where it is difficult for you to maintain an income-generating activity. 60 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS Guidelines: Without Savings = Less income, less Invite participants to reflect on the situation as it relates to their security, difficulties in dealing with household. social obligations and unforeseen And do you often save yourself? circumstances, less comfort, more If YES, do you have reasons to save? precarious for old age. - The more difficult it is to save, the more important it is to have strong motivations to save. The trainer should coach learners to identify targets for saving. We all have dreams and plans for the future, right? What are your reasons for saving, what would your savings goals be? - If some participants indicate that they have been capable of saving, the trainer should invite them to share their experience with the group. And if possible, let them give their reasons for saving. Be very courteous with participants and do not force their answers, some may have personal reasons they do not want to disclose so do not be insistent if you feel some reluctance. Always use the presentation board with specific examples of participants, this can inspire you by taking examples drawn directly from them. If you have enough time you can take the case of a participant who has not saved in the past, and ask him/her if he/she can formulate a target for saving. This could serve as a trigger for others in the same situation. 61 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS Guidelines: Meaning of the proverb: - After the discussion, ask participants to remember the proverb. Can anyone recall the proverb? What does this proverb mean? Having savings makes material life - "Who has a pestle does not use his teeth" easier. Without savings meeting monetary challenges is more difficult. - Conclude on the meaning of the proverb, and explain in such a If we have savings (a ‘pestle’ as in way that participants by remembering the proverb, will remember the proverb) things will be easier for the importance of saving. you (‘you won’t have to use your teeth to grind the grains, as you will be using the pestle’) - Invite participants to recap what was discussed in the session: saving to purchase and generate income, saving to meet social obligations, saving for unexpected, saving for comfort, saving for borrowing more later, saving for old age ... - Ask: What is important to remember? To cope with higher - Before going to the next session - at the discretion of the trainer expenditures, those for income and time available - invite participants to take a short break. generation, those for security, those to meet social obligations and the precariousness of old age, those for increased comfort: it is necessary to SAVE together. 62 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM SESSION 9: HOW TO SAVE MONEY? NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS SESSION 9. HOW TO SAVE MONEY? Recommendation: Objectives of Session 9: - Always speak in general terms - At the end of this session, participants will know, through some when utilizing amounts. The advices, how to save money at a regular basis. important thing is to understand the advices on how we can save money on a regular basis. Guidelines: Tell the participants that now that they know why to save, it is important for them to learn how to save their money. . Ask the following question: How do you think we can save money? Response elements: TOTAL SESSION 9: 60 MINUTES This will consist in putting in place certain techniques / habits / strategies allowing us to save. Clarify to participants that they should listen to the story, but can also follow the story using their handbook, as the actions of the characters are summarized in the illustrations. 63 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS 64 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS INTRODUCTION SESSION #9: Guidelines: Allow participants to share their ideas. If they do not mention any, Invite participants to reflect on the situation as it relates to their help them find one. household. And you, have you ever tried to save money? How? Emphasize that for saving money, they can follow some rules and apply them considering their situation like: - Put small amounts aside Ask participants: Do you have any practices you use to save in your each month from earned household? Invite those that do to share them income. Here it’s really important to maintain some habit even if we don’t put the same amount every Show the slide on the different tips on HOW TO SAVE MONEY, time. explain the slides along with the participants so they can understand - Transfer part of our windfalls the advices and assimilate these. in our savings. When they receive, for example, a transfer from family members living abroad or transfer from government, they can use a part of this for personal consumption and transfer the other part in their savings. - Reduce less necessary expenses to top up our savings. 65 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS Guidelines: - After the discussion, ask participants to remember the proverb. . Meaning of the proverb: Can anyone recall the proverb? What does this proverb mean? - "When a tree falls we hear it, however the forest grow silently" Save regularly with discipline and have objectives. It is a slow and - Conclude on the meaning of the proverb, and explain in such a gradual process but rewarding. way that participants understand it in the same way. Similar to the forest that grows silently, savings do not make noise to grow, but is impressive to - Invite participants to recap what was discussed in the session... contemplate once it has grown. - Ask: What is important to remember? 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. 66 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM SESSION 10: WHERE TO SAVE MONEY? NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS SESSION 10. WHERE TO SAVE MONEY? Objectives of Session 10: - At the end of this session, participants will know the difference between saving money ‘under the mattress’ and saving money in reliable institution. Reliable institution: It’s an institution which is ready to help you at every stage of your life, understand your needs and fill them. Under the mattress: By using the expression ‘under the mattress’ we are referring here to money set aside outside of financial TOTAL SESSION 10: 60 MINUTES institutions: it could be in a hole in the ground, in a box at home, or anywhere. All these locations are subject to loss or deterioration (by the rain, rodents, theft or simple forgetfulness). 67 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS INTRODUCTION SESSION #10: Guidelines: Recommendation: Tell the participants that now that they know How to save, it is - Always speak in general terms important for them to learn where we must keep our savings. when utilizing amounts. The important thing is to understand Ask the following question: Is there any differences where we save where we can keep our money safely our money? and make interest. Response elements: Your money works differently and faces different risks depending on where you keep it. Clarify to participants that they should listen to the story, but can also follow the story using their handbook, as the actions of the characters are summarized in the illustrations 68 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS Guidelines: Allow participants to share their ideas. If they do not mention any, Invite participants to reflect on the situation as it relates to their help them find one. household. And you, where do you save? Emphasize that you must decide to save in RELIABLE INSTITUTION instead of hiding money under the mattress, which does not yield Is it under the mattress or a reliable institution? interest income Meaning of the proverb: Guidelines: - After the discussion, ask participants to remember the proverb. Even if you keep your savings for a Can anyone recall the proverb? What does this proverb mean? very long time under the mattress, - "No matter how long you leave it in the river, the piece of wood will the amount set aside will remain at not become a caiman" best the same (it may actually have deteriorated, or be stolen). Similar to the piece of wood in the water, that - Conclude on the meaning of the proverb, and explain in such a will not change one bit, no matter way that participants understand it in the same way. how long it remains floating: it will never change into a caiman. Contrary - Invite participants to recall what was discussed in the session: to your savings that you put in a Saving under the mattress, saving in a reliable institution... financial institution, it will increase - Ask: What is important to remember? overtime with interest that you will - Before going to the next session - at the discretion of the trainer earn, and if after a long time you and time available - invite participants to take a short break. need to use the savings you will discover a bigger amount. 69 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM SESSION 11: SAVING FOR RETIREMENT FEP ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS SESSION 11. SAVING FOR RETIREMENT Objectives of Session 11: - At the end of this session, participants will know the reasons why they must save at an old age. Retirement: When a person decides to leave the workforce Explain it to the participants in order for them to in old age. understand what it is about in this session. Saving for your old age: Using your savings to support yourself when you have reached an age where it is difficult for us to maintain an income-generating activity. TOTAL SESSION 11: 60 MINUTES 70 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM FEP ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS INTRODUCTION SESSION 11: Guidelines: Tell the participants that now that they know where it is preferable to save, it’s important for them to think about their retirement. Ask: In your opinion, what is saving for retirement? Response elements: It will consist in finding ways of putting some money aside for the budget on a regular basis in order to cover the retirement needs. Clarify to participants that they should listen to the story, but can also follow the story using their handbook, as the actions of the characters are summarized in the illustrations Guidelines: You can develop this points with the participants by some practical examples. Always based on Invite participants to reflect on the situation as it relates to the presentation board with their characteristics. their household. Have ever think about your retirement? If YES, how do you plan for old age? Without Savings = More precarious for old age. 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. 71 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM FEP ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS Meaning of the proverb: . Guidelines: Time flies, and old age arrives much faster than - After the discussion, ask participants to remember the one expects. Essentially, one day, you discover proverb. Can anyone recall the proverb? What does this that your energy is decreasing and that you can proverb mean? no longer rely exclusively on your work for - "Time is a file that works without sound" income generation. - Conclude on the meaning of the proverb, and explain in such a way that participants understand it in the same way. - Invite participants to recall what was discussed in the session on saving for old age ... Savings for retirement give us the tools to - Ask: What is important to remember? avoid being confronted with situations that are - Before going to the next session - at the discretion of the difficult to sustain during old age. trainer and time available - invite participants to take a short break. 72 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM SESSION 12: WHEN TO USE SAVINGS? NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS SESSION 12. WHEN TO USE SAVINGS? Objectives of Session 12: - At the end of this session, participants will know how to keep their savings until the achievement of their goals. Use as always the ‘presentation board’ to use concrete examples in participants' lives. Saving target: the reason or the motivation for saving money. TOTAL SESSION 12: 60 MINUTES 73 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS INTRODUCTION SESSION #12: Guidelines: Take a minute or two with the Tell the participants that now that they understand the importance of participants, asking them what they saving for retirement, it will be important for them in order to keep remember from the previous their saving to know when to use them. sessions. This would make it possible to start this session and make sure Ask: In your opinion, what do you understand by `when to use our that they can follow without problems savings`? Response elements: It will consist in understanding and applying some rules to use savings in the most efficient manner. Clarify to participants that they should listen to the story, but can also follow the story using their handbook, as the actions of the characters are summarized in the illustrations 74 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS Guidelines: Invite participants to reflect on the situation as it relates to their household. And do you when do you use your savings? Do you use them effectively for the goal you were saving for? How do you do to use them in the most efficient manner? To use savings in the most efficient manner, we need to: • Have a saving target. In order to help the participants to • Be persistent in achieving our target. understand this, you can give them some practical examples on • Avoid to be distracted using savings for unplanned and `perseverance`, `unplanned avoidable expenses. expenses to illustrate your arguments. Guidelines: Meaning of the proverb: - After the discussion, ask participants to remember the proverb. Can anyone recall the proverb? What does this proverb mean? The movement to save is equated to - "The croaking of frogs does not prevent the elephant from drinking" an ‘elephant drinking’, he does not get distracted by the croaking of frogs, similar to the ‘saver’ who - Conclude on the meaning of the proverb, and explain in such a should not listen to the sirens of way that participants understand it in the same way. ‘distracting spending’. - Invite participants to recall what was discussed in the session: To use savings in the most efficient saving target... manner, we need to: - Ask: What is important to remember? • Have a saving target. - Before going to the next session - at the discretion of the trainer • Be perseverant in and time available - invite participants to take a short break. achieving our target. • Avoid to be distracted using savings for unplanned expenses. 75 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM MODULE 3: BORROW SESSION 13. WHY BORROW MONEY? NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS SESSION 13. WHY BORROW MONEY? Objectives of Session 13: - At the end of this session, participants will know the reasons for borrowing and not borrowing. Material: - Wall clear enough to project slides - Projector - Electrical extension wire Take a minute or two with the - Table for placing the projector participants, asking them what they - Presentation board allowing to enter the names of all participants remember from the previous TOTAL SESSION 13: 60 MINUTES and highlight their individual characteristics. sessions. This would make it possible - Pencils for the participants to start this session and make sure that they can follow without problems Borrow: To obtain or receive something on loan with the promise or understanding of returning it or its equivalent. Debt: Something that is owned or that one is bound to pay to or perform to another Capacity of pay back: Refers to a capacity’s borrower to make good on his loan obligations. It is also call `financial capacity` 76 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS INTRODUCTION SESSION #13: Guidelines: Tell the participants that now that they know why save, how to save, where to save, why to save for retirement and when to use their savings, it is important for them to learn an equally important notion, which is borrowing. Ask the following question: What do you think the loan is? Response elements: It will consist in finding the necessary financing for an income- generating project with a reliable institution, when our savings are not sufficient. Guidelines: Always use the same guidelines as in previous sessions: We listen to the story We reflect on the story We wonder about our own situation We finish by identifying the key message. Clarify that participants can follow the story using their handbook, as it summarizes the actions of the characters. Clarify to participants that they should listen to the story, but can also follow the story using their handbook, as the actions of the characters are summarized in the illustrations 77 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS Recommendation: - Always speak in general terms Show the slide on the different tips on WHY NOT BORROW and when utilizing amounts. The WHY BORROW, explain the slides along with the participants so important thing is to understand the they can understand the reasons and assimilate them. reasons for borrowing. Recommendation: - In this section, aiming to focus on real life experiences of participants, do not be afraid to leave some moments of silence. In fact, it is necessary to allow time for the memory to look back on specific situations related to the concepts. 78 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS Guidelines: Allow participants to share their ideas. If they do not mention any, Invite participants to reflect on the situation as it relates to their help them find one. household. And you, have you ever tried to borrow? Why? Emphasize that when borrowing for investments, income generating projects, money works for us, and we are able to generate more income. If Was it to borrow for income-generating projects? we borrow for non-essential motives, or consumption, the money has disappeared – and we have not won anything. In addition, we are always responsible for paying back this credit. Always use the presentation board with specific examples of Guidelines: participants, this can inspire you by - After the discussion, ask participants to remember the proverb. taking specific cases from the lot to Can anyone recall the proverb? What does this proverb mean? illustrate a point. - "A canoe is never too big to tip over" If you have enough time you can take the case of another participant and replicate the same process together - Conclude on the meaning of the proverb, and explain in such a with everyone. This would serve as a way that participants understand it in the same way. practical exercise. - Invite participants to recall what was discussed in the session: Meaning of the proverb: Borrow, debt, capability to pay back... - Ask: What is important to remember? Always borrow depending on his - Before going to the next session - at the discretion of the trainer capacity to pay back the debt, to and time available - invite participants to take a short break avoid sinking under the weight of this debt. Important to be remembered: - Borrowing to generate future income can be a great idea. - Borrow only on the basis of one’s ability to repay the debt. - Do not borrow if you know you will not be able to pay back. 79 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM SESSION 14: UNDERSTANDING TERMS OF BORROWING NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS SESSION 14. UNDERSTANDING TERMS OF BORROWING Objectives of Session 14: - At the end of this session, participants will know what terms of loans are (Interest, duration, lever). Interest: It is the cost of renting money. Duration: Repayment period of a loan. Lever: The amount that you can borrow relative to the amount that you have saved and are allocating to acquire the good bought with TOTAL SESSION 14: 60 MINUTES the loan. 80 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS INTRODUCTION SESSION #7: 5 MINUTES Guidelines: Recommendation: Tell the participants that now that they know what to borrow for, it is - Always speak in general terms important for them to understand the terms of borrowing to be well when utilizing amounts. The prepared. important thing is to understand the terms of borrowing. Ask the following question: What do you think terms of borrowing are? Response elements: Interest, duration or length period, lever. The slide shows that the person is borrowing the same amount from 2 different institutions (notice the colour of the institutions), and generates income – and uses that income to repay the loan, but in one case the amount paid back will be higher than the other. This shows that not all institutions have the same interest that they charge for a loan. Here the slide shows that you can borrow the same amount (the ‘brown bag’), the burden of debt, is identical but in one case you repay over a longer period of time: the periodic payment is smaller (since you are depreciating the loan over a longer period), notice the green monthly square is smaller in the lower calendar of repayment, but the effective cost is greater (the glass is fuller when the term is longer). 81 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS Here you can see that in the upper portion of the slide the amount saved is bigger, the portion of the loan is smaller relative to the value of the sewing machine. The acquisition is delayed (and so is the income generation) since accumulating savings takes time. In the lower illustration, the portion of the loan in the value of the sewing machine is bigger, you require less savings (you have a bigger lever), the burden of debt is greater, but the income generation can start earlier. 82 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS Guidelines: Invite participants to reflect on the situation as it relates to their household. And you, how much did it cost you to borrow? How much time did it take to pay it back? Guidelines: - After the discussion, ask participants to remember the proverb. Can anyone recall the proverb? What does this proverb mean? Meaning of the proverb: - "The old man who puts fire to his beard must be able to put it out" When you borrow (‘you put your - Conclude on the meaning of the proverb, and explain in such a beard on fire’ in the proverb) you way that participants understand it in the same way. have to afford the debt and be able to refund it otherwise you get burnt (you have to be able to put the fire out). - Invite participants to recall what was discussed in the session: Interest, duration, lever... Important to be remembered: - Ask: What is important to remember? - Before going to the next session - at the discretion of the trainer and time available - invite participants to take a short break To understand loan terms and conditions, we must grasp: • What interest will we have to pay? • During how long 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)? 83 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM SESSION 15: COMPARING TERMS OF LOANS NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS SESSION 15. COMPARING TERMS OF LOANS Objectives of Session 15: Recommendation: - At the end of this session, participants will know how - Always speak in general terms when utilizing to compare terms of loan and make a choice between amounts. The important thing is to understand the different lender based on them. terms of borrowing. TOTAL SESSION 15: 60 MINUTES Guidelines: Tell the participants that now that they understand the terms of loan, it is important for them to compare them to be able to make an efficient choice. Ask the following question: How can we make a difference between a bad loan and good loan? Response elements: By comparing the terms of loan (Interest, duration, lever) from different services providers. 84 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS Numerous differences exist when comparing terms of loans between lending institutions. The first illustration shows that for the same eventual acquisition, and with the same level of personal contribution, you can borrow different amounts. All institutions do not offer the same leverage to lenders. The second illustration shows that with 2 different starting levels of savings, you can borrow different amounts, over different periods of time. The monthly payment will not be the same, and the cumulative amount paid back during the entire period will not be the same. The third illustration shows that the same amount of savings may offer different levers for borrowing (on the left hand side the borrower keeps a portion of their savings, borrows more, but depreciates the loan over a longer period). The monthly payment is smaller, but total disbursements are higher over the entire period. 85 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS Guidelines: Invite participants to reflect on the situation as it relates to their household. And you, in your life, have you had to choose from two services providers? Meaning of the proverb: Guidelines: When selecting a financial institutional from which to borrow, you should select the one that offers - After the discussion, ask participants to remember the you the loan that is most in line with your capacity proverb. Can anyone recall the proverb? What does to pay it back. this proverb mean? - "We make friends with the elephant to escape the dew" Important to be remembered: - Conclude on the meaning of the proverb, and explain The set of loan terms and conditions (interest, in such a way that participants understand it in the share of purchase price financed by the loan, loan same way. maturity – which together create the debt service burden) must be linked to one’s capacity to pay the loan back. - Invite participants to recall what was discussed in the All loans are not equivalent and institutions offer session: compare Interest, maturity, lever... different conditions that we must be able to - Ask: What is important to remember? compare correctly. - Before going to the next session - at the discretion of It is more judicious to select the loan that is the the trainer and time available - invite participants to take most congruent to one’s financial means. a short break 86 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM SESSION 16: NEGOTIATING WITH A LENDER NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS SESSION 16. NEGOTIATING WITH A LENDER Objectives of Session 16: - At the end of this session, participants will know how to negotiate their loan efficiently. Negotiate: To deal with a lender as in the preparation of a contract in order to borrow an amount of money. Take a minute or two with the participants, asking them what they remember from the previous Lender: is an individual or a financial institution that make funds sessions. This would make it possible available to another with the expectation that the funds will be repaid to start this session and make sure in addition to any interest or/and fees. that they can follow without problems. TOTAL SESSION 16: 60 MINUTES 87 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS INTRODUCTION SESSION #16: .. MINUTES Guidelines: Recommendation: Tell the participants that now that they understand the terms of loan - Always speak in general terms and how to compare them, it is important for them to develop their when utilizing amounts. The negotiation’s skills. important thing is to understand the skills we need to make a good Ask the following question: What do you understand by the negotiation. expression `negotiate with a lender`? Response elements: Agreeing to borrow money, is not unlike buying fruits and vegetables. You have to make sure that what you buy is edible. You have to agree with the merchant that the price you pay is in line with the quality and the quantity of what you are acquiring. You are always comparing the prices of various merchants to make sure that you get the best deal. Also, if you regularly buy from the same merchant you expect to be treated as a regular client or customer, and be given some advantages every now and then. The same holds if you want to borrow. According to what we learn previously, what are the basic advice you need to apply before going to negotiate with a lender? - Select based on the interest rate and the amount to pay back at loan maturity - Select on the basis of the repayment burden relative to the cash flow that you can count on. 88 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS Guidelines: Invite participants to reflect on the situation as it relates to their household. And you, in your life, how do you negotiate with the service providers? Meaning of the proverb: Guidelines: Patience during negotiations is a virtue. You do not have to rush to a - After the discussion, ask participants to remember the proverb. decision, it may lead you to the Can anyone recall the proverb? What does this proverb mean? wrong path. - "Everything goes wrong when we lack patience" Important to be remembered: - Conclude on the meaning of the proverb, and explain in such a way that participants understand it in the same way. To negotiate a loan, we must: • Choose by our comparison - Invite participants to recall what was discussed in the session... of the terms of loan - Ask: What is important to remember? • Be patient, calm - Before going to the next session - at the discretion of the trainer • Listen carefully and ask and time available - invite participants to take a short break some questions • Take advantage of our customer’s status because the institution need us • Respect the person in front of us and remain firm on your goals • Perceive the other as a partner, not an adversary 89 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM SESSION 17: MANAGING CONTINIOUSLY REPAYMENT OF DEBT AND BUILDING TRUST NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS SESSION 17. MANAGING CONTINUOUSLY REPAYMENT OF DEBT AND BUILDING TRUST Objectives of Session 17: - At the end of this session, participants will know how to manage debt efficiently and to build trust in the community. Debt management: Learn how to live on a budget and provide for repayment of loans. Trust: The lender that has agreed to lend you money, is actually trusting you with something that he owns, and is expressing confidence in the fact that you will pay him back. As long as the debt exists, you have to show him the respect he deserves and be worthy of his trust in you. This is essentially done by abiding by the terms of reimbursement that you have agreed to. TOTAL SESSION 17: 60 MINUTES 90 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS INTRODUCTION SESSION #16: Guidelines: Tell the participants that now that they know how to negotiate with lender, it is important for them to learn how to manage their repayment of debt and maintain mutual trust. According to what we learn previously, what are the basic advice you need to apply for building trust? - Respect the given word 91 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS Guidelines: Invite participants to reflect on the situation as it relates to their household. And you, in your life, how do you build trustworthiness with the service providers? Meaning of the proverb: Guidelines: Trust is at the heart of durable financial relations, not unlike most of human relations. - After the discussion, ask participants to remember the proverb. Can anyone recall the proverb? What does this proverb mean? - "The dignity of man is in the word given" Important to be remembered: - Conclude on the meaning of the proverb, and explain in such a • Do not miss a monthly payment. way that participants understand it in the same way. • Be sure to always pay the required amount - Invite participants to recall what was discussed in the session: debt • Should you find yourself in difficulty you management, trust... will need to address this (as will be seen in the next session) - Ask: What is important to remember? - Before going to the next session - at the discretion of the trainer and time available - invite participants to take a short break 92 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM SESSION 18: COMMUNICATING WITH CONFIDENCE NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS SESSION 18. COMMUNICATING WITH CONFIDENCE Objectives of Session 18: - At the end of this session, participants will know the importance of regular communication to ensure loan provider’s support. Communication: The act or the process of exchange with the loan provider, in good and in bad times. Take a minute or two with the participants, asking them what they remember from the previous sessions. This would make it possible to start this session and make sure that they can follow without problems. TOTAL SESSION 18: 60 MINUTES 93 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS INTRODUCTION SESSION #18: Guidelines: Tell the participants that now that they know how to manage their repayment of debt and maintain, the next and last step in this module is to learn how to communicate with confidence in all circumstances. Explain with your own word what happens in these pictures to help the participants understand. Clarify to participants that they should listen to the story, In particular, here, the borrower foresees that she but can also follow the story using their handbook, as the will not be able to repay the loan for at least actions of the characters are summarized in the maybe two months. The best approach consists illustrations in going to the lender, and explaining that this happening. When possible, the lender may reschedule the loan by adding a few periods to the term of the loan, and allowing the borrower to get over the difficult period encountered. This is not always possible, but it is preferable to still go and see the lender, as they may have other solutions to offer. 94 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS Guidelines: Invite participants to reflect on the situation as it relates to their household. And you, in your life, how do you communicate with assurance and serenity? Meaning of the proverb: Guidelines: No matter how dreadful the situation may seem to you, it is better to communicate with clarity and - After the discussion, ask participants to remember the honesty, and work together to find a solution. This proverb. Can anyone recall the proverb? What does will always be welcomed by the other party no this proverb mean? matter how antagonistic you may think they are. - "Pleasant words pull the snakeout of its hole" Important to be remembered: Session 18 - Conclude on the meaning of the proverb, and explain Key messages in such a way that participants understand it in the same way. ALWAYS be proactive to discuss with the lender. - Invite participants to recall what was discussed in the session. - Ask: What is important to remember? - Before going to the next session - at the discretion of « Pleasant words pull the snake out of its hole» the trainer and time available - invite participants to take 269 Learner's Manual a short break 95 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM MODULE 5: MOBILE MONEY SESSION 19. HOW TO USE MOBILE MONEY NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS SESSION 19. HOW TO USE MOBILE MONEY? Objectives of Session 19: - At the end of this session, participants will know the usefulness of mobile money services. TOTAL SESSION 19: 60 MINUTES Material: Session 19 - Wall clear enough to project slides Session 1 : Setting financial goals The question of session 19 is : - Projector Session 2 : Why is it necessary to make a budget? Session 3: Can a budget be prepared without a methodology? - Electrical extension wire - Table for placing the projector 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? How to use mobile - Presentation board allowing to enter the names of all participants and highlight their individual characteristics. Session 8: Why save money? Session 9: How to save money? Session 10: Where to save money? money Session 11: Saving for retirement Session 12: When to use savings? - Pencils for the participants 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 This definition gives you an idea money Mobile Money services: Refers to payment services operated and a base to be able to explain under financial regulation and performed from or via a mobile 270 Learner's Manual it in your own words. This is the device. In other words, the mobile device is considered as a wallet best way to get a message (Electronic Wallet) to carry out our daily transactions instead of across. using cash. 96 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS INTRODUCTION SESSION #19: Guidelines: Tell the participants that now that they know many things about Session 19 Session 19 budgeting, saving, borrowing. it is important for them to be initiated Need to receive a remittance ? You can use your mobile !!! to the usefulness of the mobile money services. Ask the following question: How do you think we can use Mobile Money (MM) services for? Response elements: 272 Learner's Manual 273 Learner's Manual Tell to the participants that all We can use MM services for cashing in or cashing out money, these points will be reviewed in person-to-person fund transfer, account-to-account fund transfers, details later. Bill payments or merchant payments, storing money. Guidelines: Always use the same guidelines as in previous sessions: We listen to the story We reflect on the story We wonder about our own situation We finish by identifying the key message. • How to open an account (Sketch #1) Clarify to participants that they should listen to the story, but can also follow the story using their handbook, as the actions of the characters are summarized in the illustrations Open the group discussion by inviting participants to express themselves freely about the story:  Your turn, what do you think of the story?  What are we talking about? 97 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS Open and top-up a mobile money Session 19 Help participants identify concrete elements of this story related to open a mobile money account. account Invite participants to reflect on the situation as it relates to their household. And you, have you ever tried to open a mobile money account et receive money in it? Was it easy to open one? How did you do it? Review this procedure with the participants to help them First of all, it’s important to have a mobile phone with a SIM card. To understand the ease with which 274 Learner's Manual subscribe: open a MM account. - Go to a mobile money operator and provide a valid identification card (Passport, driver’s license, Voter’s ID). You can also lead them by - Fill in the membership’s form example, if you have a MM - Load money in your mobile money account to activate it. account, by talking about your experience in opening an Tell to the participants that there will get more details on the account. usefulness of MM by listening again to the sketch #2 on mobile money. • Receive money and send money via your mobile (Sketch #2) Clarify to participants that they should listen to the story, but can also follow the story using their handbook, as the actions of the characters are summarized in the illustrations. Session 19 Open the group discussion by inviting participants to express Receive money in your mobile themselves freely about the story:  Your turn, what do you think of the story?  What are we talking about? Help participants identify concrete elements of this story related to receive and send money via mobile money account. 275 Learner's Manual 98 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS Invite participants to reflect on the situation as it relates to their Send money from your mobile household. And you, have you ever tried to receive or send money via your mobile? Was it easy to do it? How did you do it? Show the slide on RECEIVE MONEY ON YOUR MOBILE and SEND MONEY VIA YOUR MOBILE, explain the slides along with the participants so they can understand what does it mean. 276 Learner's Manual For sending money: - Select the option “Send money” in the menu of the telephone. - Enter the telephone’s number of the receiver and note the digits PIN number. - Send this digits PIN number to the receiver, to be able to cash in or cash out the money. For receiving money: - Request and accept payments via text message (SMS confirmation) - Present an ID to an agent with your mobile money account - Cash in (deposit in your account) or Cash Out (withdraw) Session 19 • Pay bills and merchant (Sketch #3) Pay your bills with your mobile account Clarify to participants that they should listen to the story, but can also follow the story using their handbook, as the actions of the characters are summarized in the illustrations Help participants identify concrete elements of this story related to pay bills via mobile money. 277 Learner's Manual 99 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS Invite participants to reflect on the situation as it relates to their Session 19 household. And you, have you ever tried to pays bills via your Pay merchants with your mobile account mobile? How? - Select the option “Pay Bills” (“Pay merchant) in the menu of the telephone. - Enter the account’s number after selecting the supplier. - Put the amount you want to pay. - Confirm with your PIN code. 278 Learner's Manual Session 19 Session 19 Cash can be lost or stolen Store money in your mobile account • Store Money (Sketch #4) Help participants identify concrete elements of this story related to store money via mobile money. 279 Learner's Manual 280 Learner's Manual Session 19 Session 19 Invite participants to reflect on the situation as it relates to their You can ask to the participants Filling mobile money is closer Transfer money from your mobile to a savings account to earn interest household. And you, have you ever tried to store money via your to recap this procedure. mobile? How? Same procedure as a deposit. 3 Months 6 Months 12 Months 281 Learner's Manual 282 Learner's Manual 100 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS • Protect your Mobile Money Account (Sketch #5) Session 19 Session 19 Protect your mobile account Choose a complex PIN Help participants identify concrete elements of this story related to protect your Mobile Money account. Invite participants to reflect on the situation as it relates to their household. And you, have you ever tried to protect your mobile 283 Learner's Manual 284 Learner's Manual money account from fraud? How? - Choose a complex PIN (mobile locking code hard to guess for those close to you). - Never answer to a suspicious SMS or click on a link send you by SMS or Email / give your personal information on the phone (Phishing) - Avoid putting on display your personal ID - Be vigilant when you proceed a transaction with a mobile Don’t give an opportunity to be a money agent. victim of fraud. So be smarter than these persons and be ‘if you lick the lion’s tongue, he will devour you’ proactive. Session 19 Session 19 Fraud can still happen !!! You are PROTECTED and have RIGHTS • What to do in case of fraud (Sketch #6) Help participants identify concrete elements of this story related to what to do in case of fraud. Invite participants to reflect on the situation as it relates to their 285 Learner's Manual 286 Learner's Manual Session 19 File a complaint and obtain compensation household. And you, have you ever tried to proceed a complaint in case of fraud? How? - Go to your agency and lodge a complaint to your mobile money service provider - Keep all the traces of the procedure you initiated (to have a recourse in case) 287 Learner's Manual 101 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM NATIONAL G2P CASH TRANSFER PROGRAM ACTIVITIES, DURATION, SLIDES ACTIVITY OBJECTIVES, MATERIALS AND GUIDELINE RECOMMENDATIONS - File a complaint with the ombudsman (after waiting 14 days and you are not satisfied) Session 19 What are the important points to be remembered? • We can use mobile money services to: – Send and receive money - Invite participants to recall what was discussed in the session. Important points to – Pay bills and merchants remember: –Store money for security • Protect your mobile account - Ask: What is important to remember? We can use mobile money • Enforce your rights services to: Learner's Manual – Send and 292 receive money Session 19 – Pay bills and Key Messages merchants – Store money for security Protect your mobile account Enforce your rights Mobile Money is Peace of Mind 293 Learner's Manual MOBILE MONEY IS PEACE OF MIND 102 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM CONCLUSION At the end of the formation, the trainer must review with the participants the important points to be remembered: 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 Budget? • Be well prepared to face life’s money challenges. • Anticipate cash inflows and outflows – this is what budgeting is all about. Session 3: Can a Budget Be Prepared Without Methodology? Making a budget must be done methodically. Identify incomes and expenses, and put those in a timetable. A budget is prepared step by step. Session 4: What Are Our Household’s Incomes? 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. Session 5: What Are Our Household’s Expenses? Identify the expenses, their frequency, seasonality and level. Distinguish between regular expenses (and necessary) and irregular (and occasional). 103 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM Session 6: How to Match Expenses with Incomes? 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 ». Session 7: What Needs to Be Done in a Case of Unexpected? 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. 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. 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. 104 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM 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. 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 borrowing 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) ? 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. 105 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM 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 Session 17: Managing Continuously Repayment of Debt and • NEVER miss a monthly payment regardless of the situation. Building Trust • 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 106 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM CLOSING OF THE SESSION FEP CLOSING OF THE SESSION THEMES, SUB THEMES / DURATION CONTENTS RECOMMENDATIONS CLOSING OF THE SESSION Ask participants if they remember the key messages on: - expenditure and income - the budget Conclude by thanking and TOTAL TIMES:5 MINUTES - saving congratulating all the participants - borrowing - using Mobile Money services Review the key messages with them one by one. 107 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM 10. ANNEX 1: TEACHING MATERIALS TRAINER LIST Instruction Number Completed Trainer Manual 1  Participant Manual # participants  Pencils # participants  Laptop computers, including PowerPoint presentations 1  Backup of PowerPoint presentations (CD or USB key) 1  Chalk board or flip chart Chalk or large tip erasable markers for flip chart (2-4 colours) 1 package  Calculator 1  LIST OF LOGISTICAL ELEMENTS TO CARRY OUT ON SITE To improve training organization, we recommend verifying if all listed points below are in place before, during, and after the session. • Welcome the participants.  108 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM • Insure that the arrangement of tables and chairs correspond to the proposed plan.  • Insure that there is fresh water available in sufficient quantity for each participant.  CLASSROOM ORGANIZATION Flip chart Trainer Projector As much as possible, arrange chairs and tables, if appropriate, so that participants are seated in a semi-circle. Think of promoting interaction so that the participants do not feel they are in a classroom where interactions are seldom permitted. 109 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM PRESENTATION BOARD Names Marital Status Age Occupation Children Dependent Money Level of elderly Transfers/Remittances schooling 1. 2. 3. 4. 5. 110 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 111 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM 17. 18. 19. 20. 112 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM INCOMES FORM 113 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM EXPENSES FORM 114 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM 11. ANNEX 2: PATHWAY TO SUB-LOCAL ‘GRANULAR’ ADAPTATIONS In order to be able to adapt the training materials in Financial Education Programs (FEPs) at the sub-local level, so that it can be accessible to specific populations in various localities within the country, the following presents a step-by-step approach to further adapt the FEPs: Phase 1: Generic Adaptations of Names, Activities and Dress • One of the first steps would be to adapt the character names to the locality. Indeed, some regions have local names based on the predominant ethnic group in the region, So, the names of the characters can be adjusted for this purpose to adequately match the region or locality targeted. The names would have to be replaced in the full text of the sketches, as well as the learners’ manual. • A second step may be to also consider the dress code which may be ethnic- or regional-specific, and hence require a change in the ‘illustration’ package of the entire FEPs (mostly the Learner’s Manual, the Calculation Supplement, the Trainer’s Manual • A third step may be to also consider specific economic activities (Agriculture, Fishing or Trading) typical of the localities. In which case, the sketches, and the entire set of documents supporting the FEPs would also have to be reviewed (Learner’s Manual, the Calculation Supplement, the Trainer’s Manual). Phase 2: The level of vocabulary • While it is true that the vocabulary of the sketches and the literary content of the FEPs have already been simplified to take account of our target populations, in some localities there may still be a need to further adjustment this level. We suggest that a series of adjustment be identified, and then a list of the material containing these terms be also identified, and then that adjustment be implemented in a coherent manner across all the components of the FEPs. The changes introduced should at all timed remain consistent and maintain the simplicity, clarity and coherence of the entire FEP. Phase 3: Adjustment to the audio-material 115 TRAINER’S MANUAL – FINANCIAL EDUCATION PROGRAM – NATIONAL G2P CASH TRANSFER PROGRAM • Finally, one of the last phases of the granular adjustment would consist in adapting the audio material to any adjustment of character names, profession, or level of vocabulary, using very local accents that would reflect sub-local language idiosyncrasies. If local actors are not available, it would be a good idea to try and have a ‘read-through’ of the material by the trainer, and record that as part of the training material to replace the audio-files of the FEP. Since all the FEP components are ‘interdependent’, any adjustment made in one document must migrate to the others. 116