Understanding the VSLA cycle - Weebly



44056302222500188595330200002377440-46355000FINANCIAL EDUCATION FOR CARE ACCESS AFRICAFinancial Education for VSLAsFOR TRAINERS WHO WILL TRAIN: FIELD OFFICERS, AND FSP AND PARTNER STAFFDRAFT FOR REVIEW AT APRIL 2013 LEARNING MEETING 2339975-482600004063365-17653000CARE Access AfricaCARE International’s signature program, Access Africa, is a bold, 10-year investment whose returns will be dramatic: 150 million people in 39 sub-Saharan African countries will have the means to break the vicious cycle of poverty, and transform it into a virtuous cycle of rising income, improved health, better education and greater participation in their communities and nations. Over the next decade, the Access Africa program will reach 30 million people – 70 percent of them women – with a suite of basic financial services. To achieve this, CARE is establishing partnerships with governments, microfinance institutes, telecom providers and financial institutions. CARE itself has engaged in economic development work since 1980, and currently manages 74 projects in 66 countries, reaching more than 8.8 million people, mostly women. CARE’s interventions span from improving market access to microfinance to business development services.CARE Access Africa InitiativeIn 2008 CARE launched Access Africa, a 10-year program designed to scale up the VSLA methodology to reach 30 million people in 39 African countries during the decade.Table of Contents Table of ContentsiiiIntroductionivActivities in the Training Agenda Welcome and Introductions7Workshop Objectives, Map and Norms11Introduction to Financial Education for VSLA Members15Key Principles and Practices of Adult Learning21Demonstration of a Learning Session25Analysis of Experience as Participants31The 20/40/80 Rule35Overview of Savings Sessions39Understanding and Using Loans45Monologue vs. Dialogue59Overview of Managing Money Sessions63Introduction to Financial Institutions69Effective Use of Stories and Pictures77Overview of Risk Management and Tech/Mobile Money Sessions81Preparation to Present a Learning Session89Presentations of the Learning Sessions with Feedback93Adapting for Your VSL Members95Training Your Own Trainers and Partners103Monitoring and Evaluation107Re-Enforcement of Participatory Methodology and Wrap-Up113Post-Test and Evaluation117Lavish Affirmation119Offering Financial Services in a Clear and Transparent Way121References128Introduction This Training of Trainers (TOT) manual has been developed to train Master Trainers in financial education for Access Africa. Training a cadre of master trainers is an important first step in the process of implementing a financial education program. This Master Training of Trainers manual includes sessions on methodology, content, M&E, adaptation, and curriculum modification which will help to develop and manage a program. This TOT can be used and adapted as needed. It focuses on all areas of the binder. TECHNICAL NOTE: Choosing your Master Trainers is an important step in the process of designing and implementing your financial education program. CARE has a number of staff with experience in financial education who have been trained using the Master Training of Trainers Manual who can be called upon for support at country level. Contact Access Africa to find them before getting started. The TOT CurriculumThe curriculum targets skill development in two areas: the specific financial education content and how that content is delivered. Activities to Develop Technical Skills: The financial education curriculum for Access Africa has been built around a participatory approach. The TOT manual introduces key learning principles and outlines activities that enable participants to put these principles into practice.Financial Education Content Activities: The remaining learning activities focus on the content—budgeting. Participants will familiarize themselves with the Trainer’s Guide and a short introduction to the topic, and discuss market research and local knowledge about budgeting. Finally, participants will see the sequence of the learning sessions in the Trainer’s Guide and prepare and practice facilitating them with their peers.Getting StartedBefore you can offer a TOT, you need to select the curriculum that trainers will use. Start with the Trainer’s Guide, which you may choose to follow selectively or in its entirety. Read the Trainer’s Guide. It is suggested that you have participants prepare and present all sessions in small groups, time-permitting. Adapt the selected sessions as needed. Read the entire TOT Manual and adapt the workshop objectives and agenda to the learning sessions you have selected from the Trainer’s Guide.Select and prepare the handouts, flip charts and other materials you will need for the TOT agenda you have designed (refer to the complete list of handouts, flip charts and other training aids in the TOT Manual to identify those items requiring preparation).Complete logistical preparations in advance of the workshop.Features of the Activities in the Training of Trainers Manual There are a variety of features written into the text and embedded in the format of each Training of Trainers Manual activity. The intention is to give the trainer written signals that make it easier to deliver the activity. A list of features is found below:Trainer’s Information Box—The box at the start of each activity contains five elements:Objectives—list of actions that the steps in the activity are constructed to accomplish.Preparations/Materials—list of actions or materials that the trainer must ensure are ready before the activity can be presented.Flip charts are listed and incorporated into the step in which they occur. Their shaded borders easily identify the flip charts.Handouts needed for each activity are listed with the step in which they occur. All of the handouts can be found in the TOT Toolkit. They are identified by number.Time—an estimated amount of time needed to implement all of the steps designed for the activity.Steps—a list of the steps needed to complete the activity. The titles capture the process to be used and the content to be covered.Steps—The steps needed to complete the activity are listed in the order in which they should be implemented. Special features for the trainer to note include:Italics font = instructions for the trainer (not to be read to the participants)Regular font = specific information, instructions or questions for the trainer to read or closely paraphrase to the participantsArrow () = symbol that highlights specific questions to askBox () = special technical or summary information to share with the participantsBox with shaded borders () = recommended flip chart design to consider using with the participants[Square brackets] = the “correct” answer to expect from a technical question(Parenthesis) = additional instructions or informationActivity 1: Welcome and IntroductionsObjectivesBy the end of the activity, participants will have:Introduced themselves to the groupIdentified something they have in common with othersMaterialsBig name tagsFlip ChartsBlank flip chart with the title “Financial Education Is…”Definition of financial educationHandoutsPre-test (1 copy per participant)Time60 minutesStepsWelcome and greetings – 10 minutesDefine financial education – 10 minutesAdminister the pre-test – 20 minutesIntroduction by participants – 20 minutes*Note: If applicable, notify an appropriate representative of CARE or a CARE partner organization to prepare a welcome greeting for the participants attending the workshop. In the case that you invite a guest speaker, add the appropriate amount of time to this session.Step 1: Welcome participants to the training – 10 minutesIntroduce yourself and give a short welcome greeting. Thank CARE, and if applicable, introduce the guest speaker who will open the workshop. When all VIPs have finished giving their greetings, ask everyone to participate in a short quiz. Say:Stand up if you:Took a bus to come to this workshopDrove to this workshopKnow how much you spent on groceries last monthHave a savings plan Follow your savings planKeep a budgetBriefly discuss the quiz and emphasize the point that financial education is relevant for everyone. It is not just for the very poor, or for VSLA members – everyone has a place in which they can improve their financial management!Step 2: Define financial education – 10 minutesSay:We have just seen that financial education is important for everyone. However, we need to be on the same page about our definition of financial education. Ask:What is financial education?Post the flip chart “Financial Education is” and record participants’ responses:Financial Education Is…Allow 2-3 minutes for comments. Then present the flip chart with the definition of financial education. Definition of Financial EducationFinancial Education builds the knowledge, skills, attitudes and behaviors that people need to adopt good behaviors for spending, saving, managing money, using financial services, investing and borrowing.Ask for 1 volunteer to read the definition. Then ask:How does your definition of financial education compare to this definition?How is financial education different from entrepreneurship education?During this discussion participants clarify that financial education involves asset protection and growth at the individual and household levels. It is useful to anyone who makes decisions about money. Thus, FE is geared towards the household, while entrepreneurship or business education targets entrepreneurs, business people, and their businesses. Access Africa also has an entrepreneurship education component – the Selection, Planning and Management of Income-Generating Activities, or SPM – that will be dealt with outside of this TOT.Explain:This distinction is important because sometimes financial education is confused with entrepreneurial and business education. We will explore the key concepts of the CARE financial education program during this workshop. We will also discuss areas of overlap with the SPM and Financial Linkages modules.Step 3: Administer pre-test – 20 minutesSay:Before we get started, I want to give you a short quiz. Don’t worry – this quiz doesn’t come with a mark! You can’t pass or fail. This quiz measures knowledge, skills, attitudes and behaviors, just as we discussed in the definition of financial education. This will help us understand and evaluate if our training program is meeting our objectives.Keep to yourself – here you go!Distribute one copy of the pre-test to each participant. Ask them to write their ID number or telephone number at the top, so that you do not know who the taker of each test is. Give them 15-20 minutes to complete. Then, collect the pre-test and make sure to score it that evening so that you can compare the pre- and post-test results at the end of the training.Explain to participants that they will also take a post-test at the end of the training.Step 4: Introductions by participants – 20 minutesSay:Let’s do something more fun now!Find someone that you do not know well. Talk this person for 2 minutes. Your goal is to find out something you have in common with each other. This could be anything! For example, maybe you are wearing the same color today, or have the same number of children. Be creative!Use your watch or cell phone to track the time. When 2 minutes have passed, instruct participants to find a new partner, and to repeat the process. Keep the game moving!When participants have each talked to 2-3 other participants, bring everyone together in a circle, still standing. Ask participants to introduce themselves one by one, giving their name and ONE thing they learned they had in common with another participant.When all participants have given their names and something they have in common with another participant, say:We have a lot to learn about and from each other during this workshop. Let’s continue to get to know each other, and work together!Activity 2: Workshop Objectives, Map and NormsObjectivesBy the end of the activity, participants will have:Discussed the workshop objectives, approach and structureReviewed the workshop map and agenda and asked questionsDecided on workshop norms and discipline to be maintainedDiscussed their expectations for the workshopMaterialsNote CardsBlank sheets of paperPensMarkersTapeFlip ChartsWorkshop Objectives Workshop Roadmap Blank flip chart with title: Norms and Training RulesBlank flip chart with title: Parking LotHandoutsWorkshop Objectives and Map Workshop AgendaTime30 minutesStepsPresent the objectives and workshop map – 15 minutesDiscuss norms and training rules – 15 minutesStep 1: Present the objectives and workshop map – 15 minutesSay:We are here today to improve the knowledge and skills of trainers in the implementation of the financial education curriculum for [your target group].Post the flip chart Workshop Objectives. Ask a volunteer to read the workshop objectives out loud in a loud voice:Workshop ObjectivesBy the end of this workshop, participants will have:Gained a clear understanding of financial education.Developed skills in facilitating learning.Developed knowledge of the financial education curriculum and the technical information contained in it.Practiced presenting learning sessions and giving and receiving feedback.Say:Many of you have rich experience training Village Savings and Loan Association (VSLA) members in poor communities. This workshop will build on your existing skills, and prepare you for your next task. You will become trainers, and will be equipped with the curriculum and other tools to be able to train others. The map (below) is an example of what your workshop map will look like. The “stops” will be those in the bullet-pointed list below.Distribute the handout Workshop Objectives and Map to participants. Post and review the flip chart Workshop Roadmap. Use the example on the right as a model. Make sure to include the following “stops”:Opening and OverviewTraining TechniquesTechnical ContentPresentation and Practical WorkImplementation242887542545Explain the sequence of the main components. Highlight some of the key elements that comprise each component. Be sure to present the workshop map as a framework for the training and as a sequential process or journey that will be followed during the workshop. Say:The workshop map is our road map for this course. It shows the content that we will cover over the next (insert number of days) days. This workshop map is not a daily agenda; it is rather an overview of what we will cover during the workshop. We will present a daily agenda each day for that day. Here (give Agenda handout) is a summary agenda for the week.Instruct participants to look at the day-by-day agenda and review together, going over the schedule for the workshop:Each day will begin at __________ and end before ___________.Lunch will be served between____________.Tea breaks __________________________.Bathrooms are located _________________.Folders/bags _________________________.Materials will be distributed ______________.Ask:What questions or comments do you have? Step 2: Discuss norms and training rules – 15 minutesPost the flip chart Norms and Training Rules:Norms and RulesAsk:What norms do you want to set for the workshop? Record their answers on the flip chart. List everything on the flip chart and leave it posted in a place where everyone can see it. Possible answers are:Norms and RulesOne person speaks at a timeTurn off cell phonesWrite big block letters anytime they write on a flip chart or a note cardTimekeepingArrive on timeSay:One norm that we have found to be helpful is to keep a running list of issues that come up during the meeting that can then be discussed on the last day. We call this a Parking Lot of ideas. I will post this flip chart and leave it up throughout the workshop. Whenever we find that we do not have enough time to talk about a topic, or a new idea comes up, we can “park” it and revisit it later in the workshop. Post the flip chart Parking Lot in a place where it is easily accessible when you need to “park” an idea for the moment.Parking LotActivity 3: Introduction to Financial Education for VSLA MembersObjectivesBy the end of the activity, participants will have:Understood the underlying rationale and development process of the curriculum.Reviewed a sampling of the sessions for content, structure and materials.Materials1 packet per group of 6 large cards with the labels: Using Financial Services, Spending, Saving, Managing Money, Investing, and BorrowingFlip ChartsSections of the Trainer’s GuideDirections to Trainers in the Trainer’s GuideHandoutsWhere Can I Find…?Time45 minutesStepsReview the background of financial education for CARE – 15 minutesReview the contents of the curriculum – 30 minutesStep 1: Review the background of financial education for CARE – 15 minutesPoint to the flip chart “Definition of Financial Education” and say:We just discussed the definition of financial education, and we saw that it includes knowledge, skills, attitudes and behaviors. To become financially literate, we need to acquire good knowledge, skills and attitudes, and adopt beneficial behaviors. In the definition, I listed spending, saving, managing money, using financial services, investing and borrowing. Using Financial ServicesSpendingSavingsManaging MoneyTechnologyBorrowingPresent the 6 large cards with Using Financial Services, Spending, Saving, Managing Money, Technology, and Borrowing written on them. Each card should be a different color.Put participants into 6 groups, and give each group one of the topic cards. Ask each group to consider the main learning needs of their VSLA members in this topic. Give the groups 5 minutes to work together and be sure to circulate during the session.When 5 minutes have passed, ask each group to write their priorities on separate cards. Review them together as a large group. Ask:Why did you choose these learning needs? What would anyone from the rest of the group add? Subtract?Explain:When we designed the financial education curriculum for CARE VSLA members, we prioritized the learning needs through a needs assessment. We also had information from prior work with CARE Burundi. We will continue to talk together about needs and priorities, but let’s now look at the learning sessions that resulted from our exercise.*Note: Take a photo or keep the priorities that participants express for the report.Step 2: Review the contents of the curriculum – 30 minutesSay:First let’s take a look at how the Trainer’s Guide is structured.Ask participants to work in pairs. Give each participant a copy of the handout ‘Where Can I Find…?’ (see the following page). Say:In pairs, take 10 minutes to look through the Trainer’s Guide. Using the clues at the bottom of the handout “Where Can I Find…?” find the sections of the Trainer’s Guide that each clue refers to. Right now, focus on the structure of each different section within the guide. Where Can I Find?QuestionSECTION of the GUIDEI am not sure what the purpose of each session is.Where I can see a description of the purpose of each of the sessions? Learning Sessions at a GlanceI am not sure where in the Trainer’s Guide to find the sessions.Where do I find out the page where Chapter 4 starts? Table of ContentsAll of these topics are great, but I am confused about how to teach them.Where can I find detailed facilitation instructions for each learning session? Learning SessionsI would like to look at the materials and resources that the authors used when writing this module.Where can I find the information about the sources consulted? ReferencesI can’t remember all of the good tips I learned about how to be a better trainer.Where can I review tips and ideas of how to be a good trainer?How to Be a Good TrainerAllow 10 minutes for the pairs to complete the worksheet/hand-out. When 10 minutes is up, go over each of the sections. (If you have sweets, give one out for each correct answer.)Then, present the following flip chart (see the next page) summarizing the key features of the Trainer’s Guide. You can ask them to flip to each section in their Trainer’s Guides but give them the page number for each. Be sure to note these beginning page numbers before the session. Ask:What questions do you have about the Trainer’s Guide?Sections of the Trainer’s GuideTable of Contents Introduction — The introduction provides a brief overview of financial education as well as information on additional financial education topics for adults. How to Be a Good Trainer – This section gives tips on what to do before, during and after a training session to maximize participants’ learning.Learning Sessions at a Glance — This section provides a summary of the steps in the Learning Sessions of each of the four chapters. It also provides an overview of the structure of the learning sessions and youth principles.Learning Sessions — Each chapter focuses on a different topic and contains a number of learning sessions on that topic.References – This is the place to find out more if you would like to review other financial education materials, specifically those used in creating this module.Then say:Turn to page (choose a Session and page) in your Trainer’s Guide. You will see several different types of font, or writing, on that page. What do you see? [Italics, regular font, bold font with arrows, and a box with a story.]Then post the following flip chart:Directions to Trainers in Trainer’s GuideItalics font = instructions for the trainer (not to be read to the participants)Regular font = specific information, instructions or questions for the trainer to read or closely paraphrase to the participantsArrow () = symbol that highlights specific open questions to askBox () = special technical or summary information or stories to share with the participants[Square brackets] = the “correct” answer to expect from a technical questionAsk participants what questions they have. Then say:Finally, turn to the Table of Contents. Take a look once more at the list of priorities from the beginning of this session.Which priorities do you see reflected in the CARE financial education learning sessions? Allow participants to discuss in a large group for 3-5 minutes. Then explain:It is almost never possible to cover ALL learning needs in one curriculum. However, by prioritizing, we can help to set the scene for behavior change. We will continue to talk throughout this TOT, and we will make some changes to the manual based on our experiences here. However, this is the general outline of the manual. Let’s keep going to learn more!Activity 4: Key Principles and Practices of Adult LearningObjectivesBy the end of the activity, participants will have:Listed key principles and practices of adult education from their own pared these principles and practices with those of expert educators.MaterialsMarkersTapeNote cardsFlip ChartsAdult Learning Principles and PracticesDefinition of Financial Education (from Activity 1)HandoutsAdult Learning Principles and PracticesTime30 minutesStepsDiscuss factors that create a good learning environment – 15 minutesCompare experience with “experts” list – 15 minutesStep 1: Discuss factors that create a good learning environment – 15 minutesInstruct participants to work in pairs and discuss the following:Briefly describe a very good learning experience you have had in your life. Think about a time you learned a new idea, skill or anything – something you had never known before. This could be a learning experience that happened in school, or out of school. Analyze the experience. What made it so good? You have about 5 minutes for this discussion. Circulate to make sure everyone understands the activity, to answer any questions, and to listen to what participants have to say. At the same, give each participant a note card. When they have discussed together for 5-8 minutes, say:Write 1 key idea that made your experience so good on the note card I just gave you. Write just 1 word!Encourage participants to be as specific as possible. For example, if someone says a key factor was that their experience was participatory, ask that participant to describe what made the experience participatory. Show them an example of “participatory” written clearly on a note card:158750046990PARTICIPATORY4000020000PARTICIPATORYSay:Keep your note card for one moment. At the end of this activity, we will use the cards.Step 2: Compare experience with “experts” list – 15 minutesPost the flip chart Key Learning Principles and Practices. Distribute Handout 2—Key Principles and Practices of Adult Learning. Summarize the key points in this flip chart:Key Principles and Practices PrincipleDescriptionRespectLearners feel respected and feel like equals.AffirmationLearners need to receive praise for even small attempts.RelevanceLearners learn best by drawing on their own knowledge and experience and when training meets real-life needs—jobs, family, etc.DialogueLearning must be two-way to allow the learner to enter into a dialogue with the trainer.EngagementLearners must get involved through discussion, small groups and learning from peers.ImmediacyLearners must be able to apply the new learning immediately.20/40/80 RuleLearners remember more when visuals are used to support the verbal presentation and best when they practice the new skill. We remember 20 percent of what we hear, 40 percent of what we hear and see, and 80 percent of what we hear, see and do.Thinking, Feeling, ActingLearning should involve thinking and emotions as well as doing.SafetyLearners need to feel that their ideas and contributions will be valued—that they will not be ridiculed or belittled.AccountabilityTrainers need to be accountable to learners that their learning needs are met, and that the exercise will be useful to them. Instruct participants to come to the front of the room with their note card, and tape their factor next to the principle it best resembles. If it does not resemble one of the principles on the “experts” list, place it above or next to the flip chart. Ask:What is different about your responses compared to what the “experts” say?What is similar?What principles would you add to this list by “experts”?Congratulate them on the work they did to identify these principles from their own experiences. Conclude by asking:What questions do you have about these principles and practices?Explain that during the rest of the TOT, many of the principles and practices will be discussed and in greater detail.Activity 5: Demonstration of a Learning SessionObjectivesBy the end of the activity, participants will have:Participated in a financial education learning sessionMaterialsProps (a shawl, hat, etc) to indicate that you are a trainer in the role-play while participants are VSLA members Mats or cloth to set on the ground Note cardsMarkersFlip ChartsNoneHandoutsNoneTime50 minutesStepsIntroduce the learning session – 5 minutesMotivate: Discuss what makes someone a good money manager – 10 minutesPresent New Information: Discuss dreams for the future – 10Practice: Examine the three types of savings goals – 10 minutesApply: Analyze the three types of savings goals using a story – 15 minutesStep 1: Introduction to the learning session – 5 minutesAsk participants to sit inside the u-shape table set-up. Explain:Close your eyes. You are now going to participate in one of the learning sessions of the CARE curriculum. This learning session is generic, and has not yet been adapted. In this activity, I want you to play the role of participants. In other words, you will represent the VSLA members who will participate in your Financial Education program. As we conduct this activity, we ask that you try to view this learning session from the perspective of a VSLA member. You will be role playing VSLA members as long as you are sitting on this cloth. I will be the trainer, and to indicate that I am taking on a new identity as trainer for you, the clients, I will put on this scarf. As long as you see me wearing it, the role play is ACTIVE. When I remove it, the role play is over. After we complete this learning session, you will have an opportunity to discuss the learning session from your perspective as a trainer.Step 2: Discuss what makes someone a good money manager – 10 minutesWelcome participants to the session. Ask participants to STAND UP, MOVE AROUND, and FIND A PARTNER. Then, say:Think about someone you know who you think is a GOOD WITH MONEY – A GOOD MONEY MANAGER. Describe this person to your partner. It can be anyone – a friend, a family member, a neighbor – you choose. 260353937000If participants do not understand, give an example of someone you think is a good money manager. Keep things moving! Count or look at a watch to track 2 minutes. Ask 2-3 volunteers to offer their answers. If anyone suggests a topic outside of financial education, such as marketing or SPM, remind participants that the focus of this course is on household level finances. Say:Financial education is important because it teaches us the knowledge, skills and attitudes we need to adopt good money management practices – just like our friends and neighbors who are good with money. This can involve earning, spending, savings, borrowing, using financial services, managing risk, and making investments. Our goal is to become better, more-informed money managers!For more literate groups of participants, show the image of the Wheel of Financial Management. Otherwise, simply explain: There are several reasons that we are offering financial education to you. These are:There are many financial service providers in the market that are offering their services, and you need to know how they operate for you to benefit from themFinancial education will help you know your rights as a consumer and make informed decisionsFinancial service providers who deal with financially literate clients must offer improved servicesFinancial education can improve financial decision making to increase financial stability, plan for the future, create and build wealthFinancial education teaches you to plan and budget your money usage for both investment and consumption.We will begin by discussing savings together.Step 3: Examine the three types of savings goals – 10 minutesSay:Good money managers, like those we listed above, know how to use the little they have to the biggest benefit. One way a good money manager does this is by thinking about their dreams and putting money aside to reach those dreams.Ask the group:What are your dreams for the future? Invite 2-3 volunteers to share their dreams. Explain the following, and show one picture for each type of goal:These dreams about the future can be called goals. A goal is something you want to achieve in the future – perhaps related to your family, perhaps in your business. A goal might be to visit a relative who lives in another place, to learn a new skill, or to buy a mobile phone.Goals that involve what we want to do with the money we save are savings goals. Generally, these savings goals fall under 1 of 3 categories, the 3 TYPES OF SAVINGS GOALS: 396176526035300319456401079520023549651587510200001Show the pictures you have prepared while you explain:Personal or family use – like a mobile phone, the fee for the mutuelle or metal for your house’s roof.Emergencies – save in case of a fire, a landslide, or a drought, for example.Future opportunities – renting or buying land, buying a pig, goat or cow, or starting a business.Ask the group:Which of your goals are for personal or family use? Emergencies? Future opportunities? Step 4: Analyze the three types of savings goals using a story – 15 minutesSay:12192005143500The Blessings Family GoalsMr. and Mrs. Blessings live in [NEARBY TOWN] with their 4 children. Mr. Blessings grows and sells sorghum and Mrs. Blessings buys avocadoes in bulk and sells them. Mr. and Mrs. Blessings just joined a VSLA, and are dreaming about the future. They both want to improve their house by adding a metal roof. They have also discussed buying chickens, which they could use to produce fertilizer, eggs, and more chickens! Both agree that they should save some money for the rainy season, in case they or their children get sick.Together, the Blessings are also discussing their individual dreams and goals. Mrs. Blessings dreams of buying a mobile phone this year! Mr. Blessings has kept a little money aside to buy local beer twice a week, and he plans to buy a used bicycle to help expand his business.00The Blessings Family GoalsMr. and Mrs. Blessings live in [NEARBY TOWN] with their 4 children. Mr. Blessings grows and sells sorghum and Mrs. Blessings buys avocadoes in bulk and sells them. Mr. and Mrs. Blessings just joined a VSLA, and are dreaming about the future. They both want to improve their house by adding a metal roof. They have also discussed buying chickens, which they could use to produce fertilizer, eggs, and more chickens! Both agree that they should save some money for the rainy season, in case they or their children get sick.Together, the Blessings are also discussing their individual dreams and goals. Mrs. Blessings dreams of buying a mobile phone this year! Mr. Blessings has kept a little money aside to buy local beer twice a week, and he plans to buy a used bicycle to help expand his business.I am going to tell you a story about Mr. and Mrs. Blessings. Listen carefully! I want you to think about their savings goals. Read the story of Claudine and Venant, below. If possible, use pictures like those provided to help guide you. When you have finished reading the story, ask:What are the Blessings’ savings goals? [home improvement, chickens, money to buy medicine during the rainy season, a mobile phone, local beer, used bicycle.]Which goals are for personal or family use? [home improvement, mobile phone, local beer]Which are for emergencies? [medicine during the rainy season]Which goals are for future investment? [chickens, used bicycle]Step 5: Analyze the three types of savings goals using a story – 5 minutesWrap the session up by saying:Like the Blessings, you have savings goals. What are the savings goals for your VSLA as a group? What are your personal goals?How can having a savings goal help you to save? [When you save for something you really want, or that is important to you, you are motivated and have discipline to control your spending.]Thank everyone for a job well done!Activity 6: Analysis of Experience as ParticipantsObjectivesBy the end of the activity, participants will have:Discussed the content, methods and materials used in the learning sessionReviewed how the components that make up a learning session will be reviewed throughout the workshopMaterialsTrainer’s GuidesFlip ChartsWorkshop Roadmap (from Activity 2)HandoutsNoneTime50 minutesStepsExamine the content of the learning session – 10 minutesExamine the methods and materials used in the learning session – 15 minutesDiscuss the 4-Step process – 15 minutesIntroduce adaptation – 10 minutesStep 1: Examine the content of the learning session – 10 minutesSay:Thank you for your participation in one of the FE Learning Sessions! Our objective in having you participate in an actual FE Learning Session is to provide you with a brief introduction to the elements that comprise a Learning Session.What did the learning session teach about savings goals? [It emphasized the importance of having personal savings goals, it presented three categories of savings goals (personal or family, emergency, and future opportunities) and it asked participants to pick out the goals for a family.]After 5 minutes of discussion, summarize their discussion, acknowledging participants’ ideas.Step 2: Examine the methods and materials used in the learning session – 15 minutesSay:The Learning Session we presented is the first session – What Are Your Savings Goals? - in the Trainer’s Guide, which starts on page (verify the page number of Session 1 and insert here). Please turn to that page and take a few minutes to review the Learning Session. After 5 minutes, ask:What activities did we do together in the learning session? Fill in the flip chart below. Make sure the following points are mentioned:ActivitiesPair discussionLarge group discussionBrainstorming personal goalsLecture (short)Case study/storyPicturesAllow 5 minutes for discussion. Then ask:Why do you think we chose these activities? [They are fun, interactive, relate to participants’ lives, and can be done with people who have low levels of literacy or have not studied. They do not require many materials.]What materials were used in the learning session? [The story and the Trainer’s Guide]Why do you think that we chose to use these materials? [They are inexpensive, easy to carry, and simple.]What other materials could you use in this learning session? For what purpose would you use other materials?List participants’ ideas on a blank flip chart. Explain the advantages of these kinds of materials: inexpensive or free, easy to find and carry, and useful for lots of hands-on work.Step 3: Discuss the 4-Step method – 15 minutesSay:Now let’s discuss the process of the session. Think again through the session and its flow.What were the different steps of the session? That is, what did we do first? Second? Third? Last?Why did I structure the learning in this way?Explain:The Trainer’s Guide was designed using a Learning Cycle approach. The purpose of curriculum design using a learning cycle approach is to lead participants from the known to the unknown. A learning cycle approach is generally comprised of four steps. The first orients the learner and begins with what they already know. In the second step, new information is presented. The third step is guided practice, in which the learner interacts with the new information using guided exercises and activities. Finally, in the fourth step – which may occur either in the learning session or at home – the learner is challenged to apply new knowledge, skills, attitudes or behaviors to a novel situation.Review Table 3 on page 17 of the Binder Guide. Emphasize the need for moving from a curriculum that only targets knowledge change to a curriculum that also targets behavior change and builds like a staircase. (KSA Staircase.) Review the 4 steps in each learning session together.Step 4: Introduce adaptation – 10 minutesSay:The FE sessions we have developed for this project are geared towards a specific target group: CARE VSLA members in Africa. However, even though this is targeted at a specific group and written for them, you WILL find that there are regional differences that require you to make small changes to the learning sessions.Now, assume that tomorrow, you are going to do this session with your target group. By target group – I mean the end users, not the trainers you will train.Then ask:Would you do anything differently? If so, what? Allow 5 minutes for discussion. Inform participants that they will continue to talk about adaptation during the presentations. Tell them that it is fine to make minor adjustments to the sessions – such as substituting names, types of goals, pictures, etc. The key is to make sure that you plan in advance!Summarize their key points on a flip chart, and save those points so that you can refer to them again if needed. Point out the Adaptation Guide in the binder, as well as the adaptation notes at the beginning of each learning session. Conclude by pointing to the Workshop Roadmap and saying:As you see in the Workshop Roadmap, this week you will have an opportunity to become familiar with the content of all the core themes in the curriculum – Managing Money, Saving at a Financial Institution, and Understanding and Using Loans. You will practice presenting some of the learning sessions. The learning methods that we use in the learning sessions are an integral part of our approach to promote behavior change. We will review the principles of adult and youth learning throughout this training, and you will have an opportunity to apply these principles in various activities. In addition, we will review the process for adapting these materials to your local context and practice adapting some of the learning sessions to this context.Then ask:What questions do you have about the learning sessions?Thank participants for their contributions!Activity 7: The 20/40/80 Rule ObjectivesBy the end of the activity, participants will have:Attempted to develop a skill using only hearing, then seeing and hearing, and finally by seeing, hearing and doingDiscussed the importance of seeing, hearing and doing in adult learningMaterialsBottle of waterSquare sheets of paper (three times as many as there are participants)Flip ChartsInstructions for Making a Paper CupHandoutsNoneTime45 minutes StepsExplain (verbally) how to make a paper cup – 10 minutesShow how to make a paper cup – 10 minutesGuide the participants through the making of a paper cup – 15 minutesDiscuss the effect of participation on learning – 10 minutes(*Note: See the end of this learning session for a visual guide to making the paper cup.)Step 1: Explain (verbally) how to make a paper cup – 10 minutesExplain:We will learn how to make something using a sheet of paper. Please listen. When I am finished, I will give each of you a piece of paper and you can follow my instructions.Read the instructions in the box that follows. Keep a straight face, as participants will likely be perplexed and most will not be able to complete the activity.Distribute 1 sheet of paper to each participant. Give participants 5 minutes to attempt to execute the instructions. Do not repeat the instructions or assist in any way. Write the number of successfully produced cups on a flipchart.Instructions to Make a Paper CupFold the bottom corner of the sheet up to form a triangle.Fold the right corner to the mid-point of the left edge.Fold the top edge that is facing you down.Turn the paper over.Fold the bottom right edge so that its pointed end touches the pointed edge on the right side.Fold the remaining top corner down.Put 2 fingers into the opening and open the cup.Pour water into the cup to see that it works!Step 2: Show how to make a paper cup – 10 minutesSay:I will show you how to make something out of paper. Please watch. When I am finished, I will give each of you a piece of paper and you can make one on your own.Make a paper cup with a piece of square paper. Do not talk or explain what you are doing – just demonstrate. Distribute 1 sheet of paper to each participant. Give participants 5 minutes to attempt to execute the instructions. Do not repeat the information nor assist in any way. After 5 minutes, determine how many successful cups were made and write the number on the same flipchart.Participants will still be perplexed – remember to keep a straight face!Step 3: Guide the participants through the process of making a paper cup – 10 minutesDistribute 1 sheet of paper to each participant and say:We will make something out of paper. I will demonstrate and explain each step so that you can follow along and repeat each step after me. Please ask questions if you need additional help. Post a flip chart with the instructions for how to make a paper cup. Instructions to Make a Paper CupFold the bottom corner of the sheet up to form a triangle.Fold the right corner to the mid-point of the left edge.Fold the top edge (the one facing you) down.Turn the paper over.Fold the bottom right edge so that its pointed end touches the pointed edge on the right side.Fold the remaining top corner down.Put 2 fingers into the opening and open the cup.Pour water into the cup to see that it works!Step 4: Discuss the effect of participation on learning – 10 minutesWhen participants have finished making their cups, congratulate them. Post the flip chart “The 20/40/80 Rule” (see next page). Ask a volunteer to read it aloud. Then, ask the series of questions in the box that follows.The 20/40/80 RuleWe remember 20% of what we hear.We remember 40% of what we hear and see.We remember 80% of what we hear, see and do.Paper Cup Exercise: Follow-up QuestionsHow is the information on the flip chart related to making the paper cup? [The first time we made the paper cup was similar to point 1 on the chart. The second time we made the paper cup was similar to point 2 on the chart. The third time we made the paper cup was like point 3 on the chart.]How much contact did I have with your paper when you were making the cup? [none]Did I make the cup for you? [no]How would it have affected your learning if I made the cup for you? [I would not be able to do it by myself the next time.]Why is the 20/40/80 rule important when facilitating a training?Which of our principles and practices are related to the 20/40/80 rule?Say:As you experience each activity in this learning event, think about how participation was encouraged or could have been improved. We will ask for your insights later.Instructions for Making an Origami CupStep SEQ Step \* ARABIC 1: Use a square piece of paper if possibleStep SEQ Step \* ARABIC 2: Fold the bottom corner upStep 3: Fold the top edge down towards the bottom left-hand cornerStep SEQ Step \* ARABIC 4: Fold the top edge down towards the bottom left-hand cornerStep SEQ Step \* ARABIC 5: Turn the paper over and fold the right-hand edge to the leftStep SEQ Step \* ARABIC 6: Fold the final top corner downStep SEQ Step \* ARABIC 7: Use your fingers to open the origami cupActivity 8: Overview of Savings SessionsObjectivesBy the end of the activity, participants will have:Brainstormed long- and short-term savings goalsCreated a savings plan for a personal savings goalDiscussed how to find more money to saveSelected a place to save using criteria of safety, access, cost and return MaterialsCountersMasking tapePensMarkersFlip ChartsUpdateHandoutsNoneTime90 minutesStepsSetting long-and short-term goals – 20 minutesSet priorities for your money – 20 minutesSaving more – 20 minutesDeciding where to save – 30 minutesStep 1: Long- and short-term goals – 20 minutesReview the ideas from the session demonstration on Day 1. Draw participants’ attention to the sessions and learning objectives for the savings sessions. Explain that you will continue to discuss the savings sessions together now:Reaching your savings goals is like climbing a ladder. At each step, you must consider several things. At the beginning of our climb, we must think about how much we can realistically save and, given that, when we will reach our goals.Ask:How much do your VSLA members normally save each time they meet? Estimate.What types of savings goals do VSLA members normally set?How much do these cost? Take note of participants’ answers on a flip chart. When you have a list of 3-5 goals, ask:Given how much they save, which of these goals will take VSLA members only a few weeks or months to reach?Which goals will take more time – such as a year or more – to reach? Give an example to illustrate comparing capacity to save to when someone can meet a goal:For example, I want to buy a new mobile phone. I normally save about 2 dollars each time we meet. The mobile phone I want to buy is simple, and it costs about 20 dollars. If I continue to save 2 dollars each week, I will be able to buy my mobile phone in 10 weeks.A goal that will take just a few months to reach – such as 1-3 months – is a short-term goal. You can reach a short-term goal in a short amount of time. A goal that will take longer to reach – such as a year or more – is a long-term goal. A long-term goal is a big dream that you hope to achieve someday in the future. Give each participant a copy of the Savings Plan Worksheet and allow them to work out a personal short- and long-term goal. Explain the existence of medium-term goals, as well as the importance of knowing how much goals will cost and when you will meet them, but the non-importance of splitting hairs over whether a goal is long, medium-, or short-term. Go over a savings plans together. Step 2: Set priorities for your money – 20 minutesKeep this activity moving and the energy up! Get your Expense Example pictures ready. Ask the group:In a typical week, what do you spend money on? How about in a typical month?Each time a volunteer mentions an expense on one of your pictures, call a volunteer to the front of the group and give him/her the correct picture (see below). When all pictures have been distributed, say:Now, as a group, I would like you to prioritize these expenses. Decide and agree on which expenses are the most important and which are the least. Ask yourselves which expenses you cannot live without making, and which are not important to survival. Rank them from here (show participants the place for most important) to here (show participants the least important.)1233170147955Most Important Less ImportantWaterFoodSchoolSoapSugarTeaLocal BeerSay:The expenses we have that necessary for our survival are called NEEDS. Some needs are urgent – we need them immediately, like food and water – and other needs are important, like a roof or school fees. Things like tea or local beer are pleasurable, but they are not necessary for survival. We call these things that are desired but not necessary WANTS. Knowing the difference between our own needs and wants – what is necessary and what is optional – is important as we begin to plan how to save and manage money. Ask:Which of the goals we listed when discussing long- and short-term goals are NEEDS? Which are WANTS?How can we prioritize our own goals?Give participants a few moments to think through their own goals and prioritize them. Step 3: Saving more – 20 minutesSay:What are the major challenges of saving enough money to meet goals?List ideas on the left side of a flip chart. When you finish, put participants into small groups and assign each small group one challenge. Their task is to suggest ways to overcome those challenges.Savings ChallengesSolutionsAfter discussing challenges and solutions, discuss one way to increase savings using a small demonstration. Say:There are two ways to increase your savings:Increase your income – which we will talk about in later sessions; andDecrease your expensesLet’s focus on decreasing expenses before we discuss planning.What is one expense you have per week that you could decrease?Allow 4-5 participants to offer their answers. Choose one to use an example. Use the script below which focuses on beer as a guide. Let’s say that someone drinks a local beer 4 nights a week. Each local beer costs 1 dollar. If this person cuts down on 2 beers per week, how much extra money will he have each week? [2 dollars]If this person continues to cut down on 2 beers per week, how much extra money will he have in 1 month? [8 dollars]And if this person continues for 6 months, how much will he have? [48 dollars]What could someone buy with 48 extra dollars?Allow 4-5 participants to offer their answers. Say:Just by cutting out one small optional expense, another savings goal can be reached. Now let’s discuss the places we have to choose from to keep our money safe. Step 4: Choose where to save – 30 minutesAsk:Where do people keep their money for future use? Name all possible places to save.Places to save can include:At home (in a box, under a mattress, in a suitcase, etc.)In-kind (livestock, goods)With a friend, family member, or other trusted personIn a mobile money accountIn a VSLA or groupIn a financial institution (bank, MFI, SACCO, etc.) Now, let’s talk about how to choose between different places to save. We will focus on saving at home, in a VSLA and in a financial institution.Ask:When choosing where to save your money, what are all of the factors that you consider?There are a number of things to consider when deciding where to save. The main criteria to focus on are SAFETY, COST, ACCESS, and RETURN.Use the box below to help you explain these four criteria:Safety: The security of the money. Is it guarded? Is it insured? Cost: Are there any fees to save in the place chosen? Will I have to pay for transportation to get to my money? If I save in-kind, for example, will I have to pay for upkeep of an animal or a piece of land?Access: Where is my money located? Is it close to me and easy to access, or is it far away? Do I prefer to keep it farther away so it is safe from unplanned spending?Return: Does my money have the potential to grow, as with land that yields a sellable crop or an account that gives a good interest rate?Place the pictures Home, VSLA and Financial Institution in different places. Ask participants to “Vote with their Feet”. When you announce each criterion, they should think about which is best. When you have finished voting and discussing the votes, ask:Which consideration is most important to you?VSLAAt HomeIn a Financial InstitutionSafetyUsually very safe if there is group trustMoney is safe from thieves – banks are guardedBanks sometimes have insurance to protect your money in case of natural disaster or theftPrivateCan be stolenCostNo cost – unless your money is lost or stolen!Usually there is a cost to save (treasurer, tea)Sometimes fees for depositing, withdrawing, and maintaining your account.Cost of photos, ID, etc. AccessVery closeVery closeAvailable when you need itDepends on the bank – if there is a branch or agent near youIf the bank has many branches, you can access your money in more than one place-You can only access your money according to the meeting scheduleSometimes only located in a town or urban centerReturnEarn interest on your savings when it is lent Depends on the bank – if there is interest, your savings will earn money-Return depends on how much is lent- No returnUse the following stories to help participants practice their new knowledge about how to choose a place to save.CASE 1Mrs. HastyMrs. Hasty lives on a farm, far away from town. She would like to save money from her day labor making bricks to buy a new hoe. Home CASE 2Mr. BlessingsMr. Blessings has been saving in a VSLA for 2 years. He has met a number of goals, and now would like to save to build a small shop. Financial InstitutionCASE 3Mrs. BlessingsMrs. Blessings lives in a very rural area. She makes very little money, but knows that savings is important. She would like to begin saving a very small amount on a regular basis to meet her goal of buying a mattress. VSLAFinish the session by reviewing the Savings Trainer’s Guide with participants, and pointing out the Rules of Thumb as a review at the end. Activity 9: Understanding and Using LoansObjectivesBy the end of the activity, participants will have:Classified terms about loans and borrowingListed direct and indirect costs of borrowingDistinguished between good loans and bad loansMaterialsSample pictures from the picture packetCountersFlip ChartsBorrowing GridHandoutsMatching Terms and DefinitionsTime90 minutesStepsReasons for borrowing – 30 minutesDirect and indirect costs of borrowing - 20 minutesGood loan or bad loan? – 20 minutesAvoiding over-indebtedness – 20 minutesStep 1: Reasons people borrow – 30 minutesAsk: What are the two main ways to get a large sum of money? [Use your savings or borrow]Explain:When a VSLA member wants to deal with a problem or emergency, buy an asset, make an investment, or spend on a large expected event like a wedding, he or she has two choices: save or borrow. (Or join a merry go round.) When deciding how to access a lump sum, VSLA members must understand the advantages and disadvantages of using their own money or someone else’s. Tell the story of Mr. and Mrs. Blessings, both members of VSLAs.Mr. and Mrs. Blessings in their VSLAsMrs. Blessings has been saving for 4 months in her VSLA to buy inputs to improve her farming. When the time comes to share out in 5, she will take the money to a nearby town and buy her inputs.Mr. Blessings is also in a VSLA, and he has taken a small loan to buy seeds, seedlings and fertilizer. He has agreed to repay the money over 2 months, and will pay 10% interest. If he fails to repay the loan in the set time, he will have to pay a small fee.Ask:What is the difference between Mr. Blessings’ money and Mrs. Blessings’ money? [Mrs. Blessings’ money is her own, and she does not have to pay it back. Mr. Blessings’ money is a loan, and it belongs to the entire VSLA. He must pay it back with interest.] What are the advantages of Mr. Blessings’ loan? Disadvantages? [Advantages: He can improve his farm right away and begin to make money. Disadvantages: He will pay a small fee, interest, for the use of the VSLA’s money.]What are the advantages of Mrs. Blessings’ savings? Disadvantages? [Advantages: She will not pay any fees or interest. Disadvantages: She will have to wait to improve her farm and make money on it.]A useful way to explain a loan is to use the concept of renting. Basically, the definition of a loan is money that a borrower can use temporarily. The borrower pays for the privilege of using the money, just like someone who rents a house or rents land, and is responsible for paying it back. After a defined period of time, the money is repaid to the owner, usually with interest and other fees. Some of the advantages and disadvantages of borrowing are:A loan costs money, just as renting a house or a parcel of landA loan comes with responsibilities, including repaying in full, on time and with interestWhen you borrow, you might have access to a larger sum than you have with your own moneyBorrowing allows you to get money more quickly than if you save little by littleThere are three main reasons that people borrow. Can anyone tell me what they are? [Consumption, emergencies, or investments]Which of these reasons will help earn new money for the borrower? [Only investment can earn new money for a borrower.]Say:I am going to give you 4 short examples of people who need money. I would like you to think about what we have just discussed, and decide:What is the reason that this person wants to borrow?In your opinion, should this person save or borrow? Read each example one by one, and after each one, discuss the questions above as a group. Suggested answers follow each example.Save or Borrow?#1: Mr. Hasty has found a used refrigerator in good condition that he would like to buy for his shop. The owner is discussing selling the refrigerator with many people. Mr. Hasty could use the refrigerator to store goods for longer and to sell cold drinks. SUGGEST BORROWING: The refrigerator is a deal with limited time, and is an investment. Mr. Hasty could make more money and improve his business with the refrigerator.#2: Mrs. Blessings has seen that in the market, there are brand new pots and pans that she would like to use at home. Her old pots and pans are heavily used, and difficult to cook with. She often burns her fingers! SUGGEST SAVING: While the pots and pans sound like a wise purchase that will help Mrs. Blessings with her housework, they will not make money. She should consider them a savings goal and put money aside to purchase them.#3: Mrs. Hasty has had a small accident on a motorcycle taxi, and is having trouble walking. She cannot work in her field and is losing money because she needs to raise and sell some of her vegetables. There is a very good doctor in the city that she would like to go to see. SUGGEST BORROWING: If Mrs. Hasty does not have an emergency fund, she could borrow to see the doctor and heal her leg. While seeing the doctor will not earn money, it will take care of a big problem and allow Mrs. Hasty to work again soon.#4: Mr. Blessings has noticed that there are not many motorcycle taxis that can bring goods into his village. At the same time, there is a big demand for household goods, and many people walk miles and miles to a nearby market to buy them. He would like to buy a taxi from a shop in the city and start to bring goods in and sell them.SUGGEST SAVING, POSSIBLY BORROWING LATER: Mr. Blessings is not facing a time-limited deal, and buying the taxi is a long-term goal. In order to maximize the profits from his idea, he should at least save part of the money to buy the motorcycle. Perhaps he can consider borrowing once he has saved some money.Finish by explaining:Our goal is to help VSLA members borrow wisely, and not to scare them away from borrowing. Therefore, it is important to leave them with positive messages about the reasons to borrow. These could be:Loans are not gifts! Borrowing is just like renting money, you are not the owner. Taking a loan has many benefits – like allowing you to make an investment you could not make just by saving.Taking a loan also has responsibilities – like paying back with interest, and on time.Are there any other positive messages you leave your clients with?Step 2: Direct and indirect costs of borrowing – 30 minutesSay:Many VSLA groups have asked you how to borrow more money, as their businesses need more capital than they can borrow from their own VSLA. As you know, there are some banks, MFIs and SACCOs that are starting to offer loans to people in your countries. However, when we take a loan from a bank, SACCO or MFI, we must be careful and cautious and plan well. Today we will talk about the costs of borrowing from a financial institution.Ask:When someone takes a loan from a VSLA, what are the costs they have to consider? [Interest, contribution to the social fund, any fees or penalties for late payments, how much you have saved.]Who has taken out a loan from a financial institution? [Ask for a show of hands.]What additional costs do you have to consider when taking out a loan from a financial institution? Note participants’ ideas on a flip chart. Make sure the following are mentioned:Costs of BorrowingPrincipal (not exactly a cost, but must be calculated in the final price of the loan)InterestCommissionInsuranceCollateral (not exactly a cost)Upfront savings/TransactionsTransportationPassport, picture, IDCommunication costsTime/ Labor lostPenalties or feesSay:When you borrow from a bank, SACCO or MFI, you also have to consider interest and fees or penalties for late payments. However, there are other considerations to make.Banks, SACCOs and MFIs are businesses, and they need to make money to continue to run. So, when a bank has money from deposits – like your group or individual savings accounts – it does not just sit in the bank. The bank, SACCO or MFI gives loans or invests the money, for a profit. This is like the money in your box.However – unlike your VSLA – the bank or MFI will often charge fees for their services. Also, the interest that the bank, SACCO or MFI charges you on your loan is kept in the bank – it is not shared out at the end of a cycle. Because you receive a service, and the opportunity to borrow a greater amount of money, you will have more responsibility.Let’s talk more about the costs of borrowing with a bank, SACCO or MFI. Start by explaining the Borrowing Grid:2571750Loan capitalIInterestInsurance FeesCommissionTransport00Loan capitalIInterestInsurance FeesCommissionTransportIn this chart, the bag of money represents the LOAN CAPITAL, or the total amount of money that someone borrows. I The “I” represents INTEREST. This is the percentage of the loan that you will pay back as a fee for the service of borrowing money. The car accident represents INSURANCE. Often, financial institutions charge a one-time fee called insurance, which protects your family from having to repay if you were to die.56261012001500The notebook represents FEES. These could be any costs – like an application fee or commission – that an institution adds so that they can afford to offer loans to customers like us.The man represents COMMISSION. This is another small, one-time charge that a financial institution makes to help pay the person who does the work to administer your loan. Finally, we sometimes forget that with a loan from a financial institution, we have to consider things like TRANSPORT to and from the institution to make repayments, and other costs – like hiring someone to work in a field or run our business while we travel. Don’t forget these indirect costs! They are represented here by the bicycle.Next, tell the story below and guide participants through the questions. Explain that in this story, you are teaching both the costs of the loan, and giving a visual representation about how to calculate costs. Walk participants through the true cost of the loan using the questions below:Mr. Blessings’ Loan CostsMr. Blessings has decided to take a loan of 200 dollars from Credit MFI.(Count out 20 counters in the box for Loan Capital. Explain that each represents 10 dollars.)The loan comes with an interest rate of 5%, monthly. Mr. Blessings has agreed to pay the loan back over 6 months. What is the total amount of interest he will pay? [10 dollars per month, 60 dollars total.](Count out 6 counters to represent 60 dollars. Put them in the “Interest” box.)In addition to interest, Mr. Blessings paid a one-time fee of 10 dollars for loan insurance. How much will he pay for the insurance? [10 dollars](Count out 1 counters to represent 10 dollars.)Another cost is 10 dollars for the commission and application fees.How much will he pay in fees?(Count out 1 counter1 to represent 10 dollars.)Finally, he must also pay to take a taxi to Credit MFI’s agent each month. The cost of each return trip is 5 dollars.How much will he pay in total for transport over the 6 months? [30 dollars](Count out 3 counters to represent 30 dollars.)228600107315Loan capitalIInterestInsuranceFeesTransport 00Loan capitalIInterestInsuranceFeesTransport Explain the difference between direct and indirect costs:Costs of a LoanDirectPayments on the loan itself. (Called principal)InterestFees for serviceInsuranceAny late penaltiesIndirectTransport to and from the financial institution’s office or agencyWages paid to a worker to keep a business open while you travel to repay the loanIncome lost when closing a business or not working because of traveling to repay the loanAsk:What is the total cost of Mr. Blessings’ loan – not counting the initial capital? [110 dollars]Say:It is important to emphasize to VSLA members – who are new to using financial services – that these costs are not there because banks want to steal their money. The important thing is to understand all of the costs and to make an informed decision before borrowing.Step 3: Good loan or bad loan? – 20 minutesTo warm up, ask participants to STAND UP if they agree with the following statements. After each statement, take a moment to ask 2-3 volunteers to explain why they chose to sit or stand:Any time you can take out a loan, you should.There’s no such thing as a bad loan.Loans are a necessary part of life. I or someone I know has borrowed money to repay another loan.Use an example of isombe to introduce the concept of bad loans:What is the difference between well-cooked isombe and badly cooked isombe? [Badly cooked isombe is overcooked or undercooked, has a bad taste, is dry, or has too much water or oil, for example. Well-cooked isombe tastes good and nourishes you.]Allow several volunteers to respond. Then say:Just as there is good isombe – that fills you up, tastes good, and nourishes you – and bad isombe – that might even make you sick! – there are good and bad loans.Good loans help the borrower to improve his or her current life situation. The borrower is able to repay a good loan without too much hardship.Bad loans bring the borrower more costs than benefits. It is difficult to repay a bad loan, and it sometimes causes the borrower to have a worse life situation than before the loan.Have you ever known someone who took out a bad loan? What happened?Ask participants to think of important rules to follow when taking out a loan. Make sure the following points are mentioned:Always make sure you have a plan B to pay off the loanFigure out how much of your own money you can use instead of borrowingAsk yourself – what will a loan help me do that I could not do without it?Explain:There are different ways to finance a business. Some people use their own money – their own capital – and reinvest it as they are able, one step at a time. Others borrow money to get started or to make a big change. If someone has the opportunity to make a good investment, or start or expand a profitable business, borrowing money can be a positive experience. It can even help someone respond to an emergency in the family. Sometimes, it can help them improve their living conditions sooner rather than later. But taking a loan always carries a risk – the risk of not being able to repay. When a loan helps someone in those ways, it is usually a good loan. When it ends up costing too much money or forcing someone to go deeper into debt or to fail to pay, it is a bad loan. Participants may emphasize that there are actually no “good” or “bad” loans, but loans that are taken without good planning or used for purposes other than they were intended can cause harm.*Note: If you are running short on time, you can simply read the scenarios below to participants and ask them to judge if the loan is good or bad in a large group.Finally, separate participants into 5 groups. Give each group one of the scenarios in the list on the following page, and instruct the groups to come up with a short role-play to demonstrate the story. Give them 5 minutes to prepare the role-play. Emphasize that they must not TELL others if the loan is good or bad – the audience will guess and discuss.Give each group a chance to present their short role-play. After each role-play, ask:Was that role-play an example of a good or bad loan? Why?Congratulate participants on their good acting!Good Loans vs. Bad LoansSituation 1: Marie borrows 1,000 francs on a 4-week term to buy vegetables to sell in town. By the end of week 1, she sells all of her vegetables for a total of 1,500 francs. She has 1,000 francs to buy more vegetables for week 2, 300 for her loan payment and 200 for her expenses and savings. [GOOD]Situation 2: Solange borrowed 2,000 francs to buy t-shirts in bulk at a lower price. But after she sold all of the t-shirts, she still owed 200 francs on the loan. [BAD]Situation 3: Jean de Dieu, a baker, borrowed money for a used mixing machine that allowed him to make more bread. By the time he has paid off the loan, the machine has broken down. [IT DEPENDS. If he has made a profit using the machine, it is a good loan. If he has lost money, it is a bad loan. The important thing is the used machine’s ability to help Jean de Dieu make a profit.]Situation 4: Regine borrowed 20,000 francs to buy a small used refrigerator for her tea room. She is able to sell cold drinks, and now earns 5,000 francs more each month. Most of that income is used to repay the loan, but a year from now, when she has finished repaying the loan, she will still have the refrigerator. [GOOD]Situation 5: Aline has applied for a loan to make jewelry to sell in town at Christmas time. When the loan is finally approved, she doesn’t have enough time to make the jewelry before Christmas. [BAD]STEP 4: Avoiding over-indebtedness – 20 minutesAsk:What are some of the reasons that people cannot repay loans?Discuss the reasons that people are unable to repay their loans: Business does poorly or not as well as expectedLoan money meant for business is spent on personal purchases (i.e. hair, clothes)Loan money meant for business is taken by a spouse or other family member (i.e. husband takes loan money and spends on social activities)TheftBorrower has an illness that keeps him/her from working Natural disasters or “acts of God”Loan money is diverted to deal with a household emergencyBorrower follows risky business practices like selling on creditBorrower does not keep track of loan repayment scheduleWhat are some of the consequences of not repaying a loan? Ideas can include:Your property may be seized (guarantee or security lost)You may need to pay penalties and feesIt may be difficult for you to get another loan in the future, or more costlyYou will feel embarrassed among your family and community (loss of face)You could be listed as a risk with the Credit Reference Bureau which will limit your ability to borrow from any institutionExplain:There are 3 important ways to avoid the risks and their consequences that we just discussed:Use your loan for the reason that you borrowedUse the loan for a productive purpose, rather than for consumptionKnow your capacity to borrow, and use it as a guideReview the Box Budget (see Step 3) and say:Let’s look at an example together to better understand “capacity to borrow” and how to calculate it. We will use this “Box Budget” as a guide. To borrow within her capacity, Mrs. Blessings must be sure that her expenses, savings, and debt payments must not be more than her income. The same is true for you when you choose to borrow.Find a volunteer to place counters in each box of the Box Budget as you read the story (below):Mrs. Blessings’ Capacity to BorrowMrs. Blessings has now been doing her small grocery business for almost 2 years. She now knows that if she buys vegetables in bulk from a local farmer for 10 dollars each Monday, she can sell those vegetables for 45 dollars over the week. Her income is 45 dollars per week, and from that, her business expenses are 10 dollars per week. Instruct the volunteer to place 45 counters in the “income” box, each counter = 1 dollarInstruct the volunteer to place 10 counters in the “expenses” boxMrs. Blessings has worked out that she, her husband (not working now) and 2 children can live on 20 dollars per week if they are very careful. She puts aside 15 dollars each week for household expenses. She also saves 5 dollars in her VSLA each week.Instruct the volunteer to place 5 counters in savings to represent 5 dollars and 15 in expenses to represent 20 dollars for household expenses.Mrs. Blessings has recently learned that she could buy metal roofing for her house for 6 dollars per sheet. She would like to buy 5 sheets of roofing.How much money does she need to buy all the metal roofing now? [She needs 6 dollars X 5 sheets = 30 dollars.]Over the year, she has managed to save 20 dollars with her VSLA. Because of this, she can get a loan for the 30 dollars for the roofing from her VSLA group. The interest on the loan would be 10%. In total she would pay back 33 dollars, and her weekly payments would be just over 8 dollars.Instruct the volunteer to place 8 counters in savings to represent 8 dollars in the debt and loans box.261747045085Box Budget1: Income2: Expenses3: Savings4: Debt and Loans020000Box Budget1: Income2: Expenses3: Savings4: Debt and LoansCan Mrs. Blessings afford to take this loan? [Yes. Because her debt payments, business and household expenses, and savings would not be more than her income each week, she has the capacity to take this loan and reach her goal now.]How could Mrs. Blessings adjust her saving and / or her spending to make sure she makes her payments if her expenses suddenly increased? [She can use some of the money she normally saves to make the loan payments, and she will still be able to save each week.]What does Mrs. Blessings have that can help her to make a payment in case she has an emergency or does not make money? [She will still have the money she saved with her VSLA, which she could draw on in the case of an emergency to make the loan payment or supplement her income.]Finalize the session by skimming the Borrowing module with participants, and pointing out the “Where to Borrow” and “Rules of Thumb” sessions. Activity 10: Monologue Versus Dialogue PurposeTo contrast monologue and dialogue in a learning environment and evaluate how to create dialogue in learning sessions.Objectives By the end of this activity, trainees will have:Defined how dialogue would look in a learning session.Listed characteristics of monologue.Developed an analogy for dialogue.Preparations/MaterialsFlip charts for use in the following step:Step 1: Monologue and Dialogue (prepare during workshop)Handout for the following stepStep 2: Handout: Excerpt on Monologue (supplementary handout)Blank sheets of paperTime45 minutesStepsPresent monologue and dialogue – 10 minutesSmall group discussion to draw an analogy for dialogue – 15 minutesLarge-group discussion on how to create dialogue in the education sessions – 10 minutesSTEP 1: Present monologue and dialogue – 10 minutesSay:Raise your hand if you have ever had a teacher who talked or lectured for long periods. Raise your hand if you had more than one teacher who did this.As a facilitator, your job is to create opportunities for participants to learn through active involvement with the topic. So, now we are going to compare and contrast two different ways to do this. Read a section from one of the content notes or part of a story from a magazine in a dull tone, as if it was a lecture. Next, to demonstrate dialogue, distribute copies of the same material you just read to participants and ask them to read it. Then ask them open questions about what they just read. Ask:What was the difference between the two situations? [The first was a monologue, with only one person talking. The second was a dialogue or a discussion that involved more people.] Review the principle of dialogue from the Key Principles and Practices of Adult Learning flip chart. Post the following (shortened) definitions of monologue and dialogue. Invite a volunteer to read each definition.Monologue and DialogueMonologue: to “speak alone,” a long speech.Dialogue: to “speak across or between,” a conversation. Participants will have the following handout as part of their handout booklet. It contains the full definitions of monologue and dialogue.Definition of Monologue and DialogueMonologue literally means “speak alone.” It also refers to a long speech that monopolizes the conversation.Dialogue literally means to “speak across or between” or “a word between”—implying 2 or more speakers. It refers to a conversation between 2 or more persons.Ask trainees:What questions about these definitions do you have?STEP 2: Small-group work to draw an analogy for dialogue – 15 minutesSet a glass and a bottle of water in front of you. Explain:Let’s say this glass is a student, and the water bottle a teacher. Pour water from the glass into the cup. Ask:What do you think I am saying about training with this little demonstration? [The bottle of water represents the teacher who has all of the knowledge and fills up the empty glass or the student with knowledge.]Allow 3-4 participants to give their own ideas, and probe for their opinions on this analogy. That is, based on the ALPPs and what we have discussed so far, is this the type of learning experience we want to create?Pass out blank sheets of paper. Ask the trainees to form a group with 2 or 3 other people. Say the following:A famous Brazilian educator, Paulo Freire, described monologue as the “banking approach” to education. In this metaphor, the teacher ‘deposits’ knowledge in the students’ heads. We need a similar phrase or image to communicate dialogue. Your activity, in your groups, is to think of and draw an image to help describe dialogue. Do not forget that dialogue describes a type of education that involves sharing information not only between teacher and students but among students as well.After about 10 minutes, ask some groups to volunteer to share their drawing of dialogue education.STEP 3: Large-group discussion on creating dialogue in the education sessions - 10 minutes As trainers, what can you do to encourage dialogue? What have you seen or experienced with other trainers that promotes dialogue?What are the advantages of using a dialogue approach? What are the challenges?How has dialogue been used in this training so far? [What did we do to give you an option to do more than listen?] Make sure that the idea of conversation between field agent (financial education trainer) and members (participants in a financial education session) and conversation among members (financial education session’s participants) is raised. If not, make sure that both types of dialogue are included.How will you apply the information discussed here in future trainings you will conduct?Close by saying the following:Trainers can be committed to dialogue and still give short lectures to participants. Sometimes lectures are the best way to present new information. However, using dialogue means that each time you present something you must also give participants the opportunity to discuss it, ask questions about it or do something with the material. In dialogue, you never simply ask people to repeat what you have presented; rather, you provide them with the opportunity to do something with it, to learn by doing.Activity 11: Overview of Managing Money SessionsObjectivesBy the end of the activity, participants will have:Examined challenges that VSLA members face in managing money and proposed solutions to those challengesReviewed the concepts of budgeting and cash flow MaterialsCountersMasking tapePensMarkersFlip ChartsSimple BudgetHandoutsSimple BudgetTime60 minutesStepsWhy budget? – 20 minutesReview how to make a budget – 30 minutesPutting your money to productive use – 20 minutesStaying within your budget – 20 minutesStep 1: Why budget? – 20 minutesShow the picture illustrating different types of money management personalities from CARE Kenya. Explain:Your behavior when it comes to managing money is a reflection of your MONEY PERSONALITY. What type of personality are you? A MISER refuses to spend money on anything, even the necessities such as food for the family and improved shelter.A SPENDER has trouble holding on to money. One might say this person has a hole in his or her pocket. He spends easily without thinking about wants, needs or the future.An INVESTOR saves and spends with careful planning, and makes sure that she understands the risks and benefits before making a purchase.Ask:What is your money personality? What kind of money manager do you aspire to be?Our goal should be to become the best money managers we can be, without being misers or spenders. One of the tools we can use to best manage our money is a budget.Ask volunteers to identify who among them uses a budget, and what is the definition of a budget:A budget is a summary of estimated income and expenses, including savings, over a period of time.A budget is a plan that lays out what you will do with your money. It includes your income and your expenses. A budget is a simple tool that anyone, rich or poor, can use to manage money. It serves as a master plan for your future. A budget is a road map that can help you get from where you are now to a financial goal in the future. Your budget will help you to plan 3 things:How you will spend your money for day-to-day needs such as food, housing, transportation, clothing, healthcare, debt repayment, and wants such as tea, movies, or travelHow you will save your money for emergencies, future opportunities, or meeting your savings goalsHow you will invest your money to earn more incomeThe first step to creating a useful budget is to identify and prioritize expenses.Summarize by saying:Budgets give us a road map to arrive at our future goals. They are important tools in money management. A budget helps you to plan your expenses, investments, and savings.Be sure to separate your household and business expenses when you budget.Step 2: Review how to make a simple budget – 30 minutesTell the story of Mrs. Hasty using the script below. As you go through the script, either you or a volunteer should fill out the blank boxes on the budget to demonstrate:Mrs. Hasty became a member of a VSLA 2 months ago. She is puzzled as to why she is having trouble saving money. Let’s follow her through a typical week:On Monday, Mrs. Hasty received an income of 25 dollars and puts it straight into her pocket. She feels rich, and so she buys some lotion and perfume she has wanted for quite some time, for 10 dollars.Write 25 in the “income” box and 10 in the “personal items” box.On Tuesday, Mrs. Hasty gets pocket money from her husband, 5 dollars, and spends 1 dollar on transportation when she goes to the market. Normally she walks!Write 5 in the “income” box, and 1 in the “transport” box.On Wednesday, Mrs. Hasty takes a taxi again – another 1 dollar for transport!Write 1 in the “transport” box.On Thursday, Mrs. Hasty goes to a nearby town, but does not plan her purchases in advance. She ends up spending 10 dollars in one day on food. What is more, she buys a shirt that she sees for 3 dollars. Write 10 in the “food” box and 3 in the clothes box.On Friday, Mrs. Hasty finds she is out of airtime. She spends 4 dollars on airtime to call her sister and her mother.Write 4 in the “airtime” box. On Saturday, one of the children becomes ill, and Mrs. Hasty will need 10 dollars to pay for medicine. Ask the questions below to be sure that everyone understands Mrs. Hasty’s story.How much money did Mrs. Hasty take in during the week? [30 dollars]How much did she spend in total? [39 dollars]Given her money in and money out, what is the problem? [Mrs. Hasty is spending more money than she takes in because she is not planning. She has a “deficit” in her budget.]Have you ever been in the same situation? What happened?In your opinion, what is the cause of the problem? [Mrs. Hasty spends more than she earns. She spends her money without thinking about her income and expenses. Eventually, the math will not add up.]What are some solutions you can suggest for Mrs. Hasty? [She can find a way to make more money or ways to decrease her expenses. She should use a budget to plan her expenses as well.]How can Mrs. Hasty better manage her budget by prioritizing wants and needs? Which expenses might she reduce by doing this? [Decrease spending on airtime and personal items, only spend on transport when necessary.]By “making sure the money in is more than the money out” Mrs. Hasty can avoid a problem. Just a little bit of estimation will help her!Mrs. Hasty’s BudgetMoney In – Income Income from Wages or Salary25 dollarsGifts or Pocket Money5 dollarsTOTAL30 dollarsMoney Out - ExpensesFood10 dollarsAirtime4 dollarsClothes3 dollarsTransport1 dollar1 dollarPersonal Items10 dollarsMedical Expenses10 dollarsSavingsTOTAL39 dollarsSurplus or Deficit? = -9 dollarsGive participants the budget handout for their own review.Step 3: Putting your money to productive use – 20 minutesSay:There are a number of areas of overlap with the SPM module when it comes to money management. We will explore some of those areas on Day 4. For today, let’s think about one major area that concerns both household and business budgeting: putting your money to productive use.Instruct participants to look at the “Putting Money to Productive Use” session in the Money Management module. Examine the session together to be sure it teaches material NOT covered in the SPM module, and that all points are understandable.Step 4: Staying within your budget – 20 minutesSay:Expert financial planners say that people must make a regular habit of paying off their loans, paying for basic necessities, and saving some money. There are many competing priorities for little money. Think about your VSL members for a moment and answer this question:What are the day-to-day pressures that make it difficult for VSL members to afford their priorities? [Income only covers basic necessities and there is nothing left to save and pay off debt; family pressures lead to unplanned spending; emergencies]Allow 2-3 volunteers to respond. Then ask:What are the challenges you face that make it difficult for VSL members to stay within a budget? [Unexpected events, emergencies, lack of discipline, poor income from a business or farm, etc.]Allow several volunteers to list their experiences and then say:Everyone – rich and poor – has these experiences. However, some people still manage to stay within their budget and manage their income and expenses. Because it is a certainty that VSL members will face those challenges, it is important to help them think about them beforehand.If you choose, you can tell participants to work in small groups to come up with answers to the following questions in a participatory way. Ask.What can someone do to stay within a budget? Give the groups 5 minutes to answer the question. Allow several minutes to talk together in a large group when they have finished. Make sure the following ideas are mentioned. Remember what you have planned to spend in your budget and stick to itKeep track of how much you spendPut something in the budget for unexpected needs and emergenciesKeep your savings out of reach so that you do not spend themFind ways to cut your planned expensesAllow your family to participate in developing and sticking with the budgetWhen investing in a business, consider what to do if the investment failsIf you overspend on one item, find a way to spend less on something elseSay:One of the best ways to stay within a budget is to cut down on unnecessary spending. Think about all the things you spend money on during the day, week or year and answer the following question:What are 3 ways to cut down on spending?Give the groups 5 minutes to answer the question. Allow several minutes to talk together in a large group when they have finished. Make sure the following ideas are mentioned. Consume fewer non-essential items (beverages, snacks, luxuries) – but do not cut them all outSpend less on holidays and festivalsLower expenses on life events such as marriages and funeralsSave enough to buy necessities (rice, beans, salt) in larger amounts at lower costsPlan ahead to buy necessities when the prices are lowerBuy less on creditCarry less money or save money in a safe place to keep the temptation to spend awaySay:By following this advice, we can all find ways to stay within our budgets, save more, and meet our goals!Finish the session by skimming the Money Management module, and pointing out the Rules of Thumb session at the end. Activity 12: Introduction to Financial InstitutionsObjectivesBy the end of the activity, participants will have:Defined common terms used by financial service providersListed the advantages and disadvantages of different savings optionsExamined myths and facts about different savings optionsMaterialsCards: Financial Service Terms and Definitions (prepare in advance)Blank flip chart paperFlip ChartsHandoutsCommon Financial Service Terms and Definitions Time90 minutesStepsExamine terms used by financial service providers – 25 minutesExplore savings options – 35 minutesMyths and facts about financial institutions – 30 minutesStep 1: Examine terms used by financial service providers – 25 minutesSay:In the introduction to your Trainer’s Guide, a short list of terms and definitions is presented to you, the trainer. The majority of these terms relate to financial services. It is important that you know as many of the commonly used terms as possible in case you are asked about them.In this activity, each of you must draw a card from this container. Some of the cards are terms, and some of the cards are definitions for those terms. First, read your card and decide whether you have chosen a term or a definition. Then, walk around the room, talk to the others, and look for your match. Don’t worry if you don’t know what the terms mean; you will learn as you search for your match and eliminate the obvious mismatches.Note that there are other terms that deal with credit and borrowing, and those will be dealt with at a later session.This matching game includes 15 terms and 15 definitions—enough for 30 people to play. When each participant has drawn a card, tell them they have 3 minutes to find the match for their definition or term.Financial Services Terms and Definitions CardsTransaction FeesFees charged for withdrawals from, or for, deposits into a savings account.Financial InstitutionAny institution that provides commercial financial services. This can be a SACCO, an MFI, a microfinance bank, a bank or an insurance company.SavingsSomething--sometimes money and sometimes an asset--which is kept aside and stored for future use.Group Savings AccountSavings held inside a formal financial institution for a group, such as a VSLA.Individual Savings AccountSavings held inside a formal financial institution for an individual person.Savings and Credit Cooperative (SACCO)A cooperative financial institution that is owned by its members and provides savings and credit services to its members ONLY.Minimum Transaction The smallest amount of money possible to do a transaction at a financial institution. This is not always part of a product.Microfinance InstitutionA financial institution that is licensed and regulated by the Central Bank and can offer savings and credit services. Usually does not offer cheque services and has lower capital requirements than a Bank.PassbookA written, paper book that is used to record transactions at a financial institution, such as deposits and withdrawals.BankA licensed financial institution regulated by a government banking supervisory agency like the Central Bank. It may provide multiple financial services, including savings, loans, and money transfers.WithdrawalA sum of money taken out of an account.OverdraftWhen someone tries to withdraw more money from an account than is in the account. There are often restrictions on this activity.DepositTo put money into an account, OR an amount of money placed in an account.Minimum BalanceThe minimum amount of money needed to keep a savings account open.InterestA fee paid for the use of money. A borrower pays this to the bank on a loan. A bank usually pays this to its savers for the use of their savings deposits.*Note: If you have more than 30 participants, add more terms and definitions.If you have fewer than 30 participants, choose only the most important for your group and eliminate the others. After 3 minutes, ask each pair to read the term and its definition. Correct any mismatches. Ask participants to provide an example of when they have seen someone deal with one of those terms. What questions do you have about these terms?Where else can you get information to clarify specific questions about financial services? [Visit various financial service providers, interview staff of financial institutions; obtain brochures with information, etc.]Answer any questions that arise and tell participants that all of this information on financial services is explained in more detail in the Linkages manual. Step 2: Explore financial service options – 35 minutesExplain:There are a growing number of financial products and services becoming available every day. For people who have had little or no exposure to financial services, learning about their options is critical, but it might also be intimidating. Let’s explore this topic in more detail. Our discussion will be based on the information provided both in the Trainer’s Guide and the Linkages Manual, as well as information provided by VisionFinance on their accounts.Ask participants:What different ways are there to save money? [Banks, microfinance institutions, through tontines/ibimina, in assets like cows and sheep, in a VSLA, at home or with a trusted friend, neighbor or family member.]If participants are having difficulty coming up with answers that will lead to a discussion on formal versus informal financial services, ask the following probing question:What are some different places where people can save money?Write their answers on a flipchart. When participants have given 6–8 different options for savings, explain:You have generated lots of options for saving money. Some of the places you named are financial services, and others are simply methods. Today we are talking about financial services. There are a variety of financial services available. Some are formal services, some are informal.What is the difference between a formal and informal financial service? Participants will likely come up with a number of criteria for “formal” and “informal” services, and may bring up the category of semi-formal financial services as well:Formal: Commercial banks and government-regulated or licensed financial institutions. Also could be regulated microfinance deposit-taking institutions (MDIs). VisionFinance, UBPR, and Banque de Kigali are good rmal: VSLAs, tontines. Often cooperatives or unlicensed MFIs. They could be non-bank financial institutions that provide training and technical services for business, encourage and facilitate savings, and /or extend credit. These institutions may not have safeguards that formal institutions like commercial banks have to protect savings.Ask:Which on our list are formal financial services? Which are informal?Mark each savings option that you have written on the flipchart with an “F” or “S”. Use different markers of different colors for “F” and “S” to make the different types of financial services stand out. Make sure the following are mentioned:Financial ServicesFormalInformalBanksPost officesCredit unionsSACCOsSome MFIsVSLAsHome – “Under the Mattress”Savings clubs and cooperativesSelf-help groupsTontinesAsk:What is the difference between these formal and informal services? [The main difference is that with informal services, the rules are often made and enforced by members, and their operations are based largely on trust. Formal services are governed and monitored by the law, and because of that, they provide certain protections to consumers, including the safety of deposits.]Why is this distinction important? [VSLA members have had little exposure to financial services, but as they start earning money and develop an ability to save, they will need to know the difference between formal and informal services in order to make informed decisions about where to put their money.]The learning sessions in the Trainer’s Guide do not explicitly name formal and informal financial services. However, it is important that you, the trainers, know the distinction between these two types of services in case someone asks questions about them. Both formal and informal financial services provide options for saving and borrowing. Separate participants into small groups of 3-4 people. Give each group one of the “ways to save” or financial institutions you listed together. Ask them in their small groups to decide what advantages and disadvantages each might have. When they are working together in their groups, give each small group one sheet of flip chart paper. Instruct them to write the advantages and disadvantages as they are written in the examples below (you will have more and/or others): (I don’t think the last bulllets under ‘disadvantages’ of Saving a Home belong there?)16192578105Saving at HomeAdvantagesDisadvantagesEasy and convenientNo bank chargesNo minimum balance requiredNo age limitsMoney can be more easily accessed in emergenciesTheftTemptation to spend the money if it is easily accessibleMoney might not earn interestBorrowing can be more expensive than banksLittle or no privacyWaiting time for a loanLoan amounts can be limited.00Saving at HomeAdvantagesDisadvantagesEasy and convenientNo bank chargesNo minimum balance requiredNo age limitsMoney can be more easily accessed in emergenciesTheftTemptation to spend the money if it is easily accessibleMoney might not earn interestBorrowing can be more expensive than banksLittle or no privacyWaiting time for a loanLoan amounts can be limited.16192531115Saving at BankAdvantagesDisadvantagesSaved money is saferSavings can earn interestMore privacyDiverse savings products availableAccess to various financial services (e.g. loans)Money not readily accessible and therefore more difficult to spendMinimum borrowing or savings requirements can be difficult to meetFees charged for some servicesCan have limits on withdrawing moneyLimited hours can make withdrawing money difficult in an emergencyLocations can be inconvenientAge limits00Saving at BankAdvantagesDisadvantagesSaved money is saferSavings can earn interestMore privacyDiverse savings products availableAccess to various financial services (e.g. loans)Money not readily accessible and therefore more difficult to spendMinimum borrowing or savings requirements can be difficult to meetFees charged for some servicesCan have limits on withdrawing moneyLimited hours can make withdrawing money difficult in an emergencyLocations can be inconvenientAge limitsWhen groups have had a chance to brainstorm and write some points, bring everyone back to a plenary discussion. Ask for a volunteer from each group to briefly present their points. When each group has finished presenting, ask: What other advantages and disadvantages are there for (each option)?Ask:Why is it important for VSLA members to understand the advantages and disadvantages of different options? [So that they can make informed choices about where to keep their money – even if it is in more than one place.]Say:It is important to point out that MFO and the curriculum we designed does not advocate saving at a bank over other types of financial services. The important thing is to know your audience and the options available to them. In the learning sessions, you will be guiding them in finding out the services that exist, and comparing them.Step 3: To bank or not to bank – 30 minutesSay:Finally, one of the most important things to understand when helping people use financial institutions is the myths and facts about those institutions.What is a myth? [A myth is a story, usually not true but based on something true, which is used to explain something that is difficult to understand.]What are some common myths here in [country]?Allow 2-3 volunteers to offer examples of myths. Then ask:What are some myths that VSLA members have about financial institutions?Note participants’ ideas on a flip chart paper. You will most likely have some of the following myths:Common Myths about Financial InstitutionsOnly rich people can use financial institutionsFinancial institutions will “eat” your money You must speak English or French to use a financial institutionYou must be able to read or write to use a financial institutionFinancial institutions are not secureWhen you have a list of 5-6 myths, separate participants into 4 groups. Choose 4 of the myths, and assign one to each small group. Explain that each group must create a very short (2-3 minute) role-play that debunks the myth. For example, a group could show a role-play about someone who is not rich who uses a financial institutions.Make sure to keep time, and congratulate each group on their good acting! Finish the session by skimming the Financial Services sessions together.Activity 13: Effective Use of Stories and PicturesObjectivesBy the end of the activity, participants will have:Described the characteristics of an effective storytellerPracticed telling a story effectivelyMaterialsFlip ChartsEffective StorytellingHandoutsWhy Wisdom is Everywhere (or any other suitable short folktale!)Time60 minutesStepsIdentify the qualities of effective storytelling – 15 minutesPractice telling a story – 45 minutesStep 1: Identify the qualities of effective storytelling – 15 minutesSay: Many of the sessions in the Trainer’s Guide involve presenting a case study in the form of a story. As a result, trainers need to be good storytellers who can engage participants and make it easy for them to follow the story. Think of someone who is an excellent story teller. Think about why you enjoy (or enjoyed) hearing that person’s stories. When you have thought of someone, turn to the person next to you and briefly describe your favorite storyteller.After about 5 minutes, ask for 2-3 contributions from the group. Then say:I will now demonstrate storytelling for you using a folktale. You may recognize this story! (*Note: If you do not exaggerate the demonstration, participants will have a difficult time identifying good techniques later. You must exaggerate!)Tell the folktale “Why Wisdom Is Everywhere” (or any short story or tale of your choice) while demonstrating how NOT to tell a story. How NOT to Tell a Story:Do the following to demonstrate how not to tell a story:Hold the paper in front of your face and read the story directly from itBegin by speaking too softlyWhen someone says they cannot hear, speak too loudSpeak too quickly for participants to understandSlur your words togetherDo not show any emotions – tell the story in as dull a manner as possibleWhile telling the story, do the points above at different points in the story in an exaggerated manner.Why Wisdom is EverywhereA long time ago, Anansi the spider had all the wisdom in the world stored in a huge pot. Nyame, the sky god, had given it to him. Anansi had been instructed to share it with everyone.Every day, Anansi looked in the pot, and learned different things. The pot was full of wonderful ideas and skills.Anansi greedily thought, “I will not share the treasure of knowledge with everyone. I will keep all the wisdom for myself.”So, Anansi decided to hide the wisdom on top of a tall tree. He took some vines and made some strong string and tied it firmly around the pot, leaving one end free. He then tied the loose end around his waist so that the pot hung in front of him.He then started to climb the tree. He struggled as he climbed because the pot of wisdom kept getting in his way, bumping against his tummy.Anansi’s son watched in fascination as his father struggled up the tree. Finally, Anansi’s son told him “If you tie the pot to your back, it will be easier to cling to the tree and climb.”Anansi tied the pot to his back instead, and continued to climb the tree, with much more ease than before.When Anansi got to the top of the tree, he became angry. “A young one with some common sense knows more than I, and I have the pot of wisdom!”In anger, Anansi threw down the pot of wisdom. The pot broke, and pieces of wisdom flew in every direction. People found the bits scattered everywhere, and if they wanted to, they could take some home to their families and friends. That is why, to this day, no one person has ALL the world’s wisdom. People everywhere share small pieces of it whenever they exchange ideas. Accessed 5/7/2008 at When you have finished telling the story, say:I hope you were all reminded of your favorite storyteller during the telling of that story. Now, let’s discuss the story and the techniques for telling it.What was your favorite part of this story? Participants are likely to say that they did not understand the story. The question is meant to elicit some of their confusion. When someone says they did not understand, ask:What did I do that made it difficult to understand or follow the story?How did you feel during the telling of the story?Based on what we have just said, and on your favorite storyteller, what are some qualities of effective storytelling?Write participants’ ideas on a sheet of blank flip chart paper, and make sure the following points are mentioned:Effective Storytelling A good storyteller:Speaks clearlySpeaks at a pace that the listener can follow – not too fast, not too slowSpeaks audibly – not too quiet or too loudUses gestures and facial expressionsUses emotion in his/her voiceTells the story from memory – does not read off of a pageStep 2: Practice telling a story – 25 minutesExplain:Now you have the chance to practice some of these storytelling skills. Keep our “Qualities of Effective Storytelling” in mind as you prepare, present, and also give feedback to the other members of your group.In this exercise, you will use stories from the financial education module to practice. Separate participants into pairs or groups of three. Assign one of the stories in your Trainer’s Guide to each pair, quickly. It does not matter if more than one pair gets the same story.Explain:You will now have about 10 minutes to read through the story and make notes of the main points to help you remember. Then, you must each practice telling your assigned story to your partner using the rules of effective storytelling.Direct the pairs to move to different parts of the room(s) so that they do not disturb each other. Circulate to help participants stay on task and to answer any questions that arise.While you circulate, listen for any particularly good stories and watch for any particularly good storytellers. With time remaining, give several participants the chance to present to everyone and review what was done well. This will provide a number of positive examples to participants.Conclude by saying:Thank you for your participation! I really enjoyed the stories I heard. These qualities can help you become a better storyteller who can use stories to engage participants and the trainers (or mentors) you train. You will show them, and they will learn from you how to become effective storytellers.You can continue to practice these skills throughout the workshop, as we present full learning sessions to each other. Don’t forget these qualities!Activity 14: Overview of Risk Management and Tech/Mobile Money SessionsObjectivesBy the end of the activity, participants will have:Examined the risk management learning sessionsExamined the technology learning sessionsMaterialsBlank flip chart paperFlip ChartsHandoutsWays to Manage RisksRisks when using ATMs and POS DevicesTime90 minutesStepsExamine the risk management learning sessions – 45 minutesExamine the technology learning sessions – 45 minutesStep 1: Examine the risk management learning sessions – 45 minutesSay:At this point in our TOT, you have a very good idea of how the learning sessions and the content within are structured. We also designed two specialized modules on Risk Management and Technology to help train VSL members in these new areas. We will not have time to practice presenting these sessions, but we would like to review them together. Give participants 5-10 minutes to review the module themselves. When they finish, ask:What are the objectives of the sessions in risk management?How would these sessions be helpful to your VSL members? Please explain.What are the main financial risks that VSL members like yours face?Write ideas on the flip chart. These can include:Spouse is injured in an accident and cannot work for a period of timeChild has a serious illness and must stay in hospitalFire destroys home or businessElderly parent diesFlood or heavy rains destroy houseMain income earner loses jobThieves steal from business or homeDisease kills animalsDrought destroys cropsSpouse leaves or runs awayAccident destroys family transport (bicycle, motorcycle, car)Ask:When a life event like this happens, what is the impact on a member’s income and expenses?What do they have to do to cover those expenses?Finally, what can VSL members do to protect themselves from those difficult events before they occur? [Diversify income sources, ask relatives and neighbors for help, save money, purchase assets that could be sold in an emergency, join a savings club, borrow money, purchase and use insurance (if possible)]Explain:There are two main ways in which families deal with emergencies. When a family deals with an emergency after it has happened, this is called a REACTION strategy. When a family deals with an emergency before it happens – because they know that there are certain risks in life that everyone will face – this is called a PROTECTION strategy.Some REACTION STRATEGIES are:Borrowing money / taking a loanWorking longer hours Finding another way to earn extra moneyReducing expensesSelling assetsSome PROTECTION STRATEGIES are:Having an emergency savings fundHaving general savingsBeing a member of a VSLA with a social fundHaving insurance (discuss only if your participants are ready and already familiar)Divide the group into two teams. Ask Team 1 to discuss the advantages and disadvantages of protection strategies. Ask Team 2 to discuss the advantages and disadvantages of reaction strategies. After 5 minutes, come back together and allow groups to present their ideas. Add any ideas from the table below that they miss:ADVANTAGESDISADVANTAGESProtection StrategiesHaving money saved to cover at least some of the costs is less stressfulMay avoid going to family and friends or to the moneylender for moneySaving for emergencies before they occur is less expensive than paying interest on a loan after they occurRequires disciplineRequires sacrificing other needs and desiresRequires having surplus income to save or pay for membership in a mutual aid groupIt is difficult to save enough to pay all the costs of a serious crisisIf no emergency occurs, you may pay for nothing other than “peace of mind”Reaction StrategiesYou pay only when something happens You can invest your surplus cash in other things like a businessYou do not have to make sacrifices in the present for something that might or might not happen in the futureInterest on loans is expensiveLoan payments are a burden in addition to the struggle to recover from lost income If you do not have enough income to make loan payments, you may be forced to sell assetsReduces the ability to cope with future emergenciesMay reduce the ability to borrow in future if the assets sold could have been used for a guaranteeShow the handout on ways to manage risk from the Risk Management sessions. Then, focus on insurance as a way to manage risk. Ask:What are the terms and conditions that a client needs to know when purchasing and using insurance? List their ideas, and tell the story of Mrs. Blessings to review terms and conditions. Explain:Insurance has many new terms to learn. When you speak to an agent at an insurance company you must understand these terms. If participants are literate, you can write these terms on a flip chart or chalkboard along with their definitions. If participants are not literate, put them in pairs and assign each pair one definition and term to memorize. Let’s say that Mrs. Blessings wants to purchase insurance to protect her new sewing business from loss due to fire, flooding and theft. She has several sewing machines and a lot of fabric. If she loses these things, she will lose her business. If Mrs. Blessings goes to meet with an insurance agent, he will give her a policy to review. A POLICY is a contract between a client and an insurance agency. The policy will include details about:PREMIUM: A premium is the price Mrs. Blessings has to pay the insurance company for the protection described in her insurance policy. If an umbrella is your “insurance” against the rain, the money you pay for the umbrella would be the premium.BENEFITS: This is the money that the insurance company promises to pay Mrs. Blessings if a loss covered by the policy occurs. For example, if a fire occurs and Mrs. Blessings loses her sewing machines, the insurance company will pay her the value of the machines.BENEFICIARY: This is the person who receives the benefits that the insurance company pays. For each type of insurance, the beneficiary (or beneficiaries) can be different. In the case of property insurance, as the owner, Mrs. Blessings is the beneficiary. ELIGIBILITY: This is the criteria to determine who can purchase an insurance policy. Sometimes there are restrictions that prevent people above or below a certain age from purchasing a policy, for example.CLAIM: A claim is the request for the payment that the policyholder gives to the insurance company when she suffers a loss. If Mrs. Blessings’ business is robbed, she must submit a claim to the insurance company for the value of the things she lost. EXLCUSIONS: Exclusions are specific conditions or circumstances that a policy does not cover. Perhaps a property insurance policy will not pay for losses caused by a fire if the owner starts the fire. Some life insurance policies will not cover the death of the beneficiary if that person commits suicide. Allow several minutes for participants to ask questions. Answer them as best you can.Finish by showing the Microfinance Opportunities Risk Management module, and explaining that should members need in-depth training on insurance, CARE could use this module or task the insurance company with training the VSL members. NOTE: Since any program training on insurance is likely to be different, the financial education on CARE’s side on insurance is quite limited. However, this could be updated if it is found that there is a need for general education on insurance on an Africa-wide basis.Step 2: Examine the technology learning sessions – 45 minutesNOTE: For the below, you can add in the optional demonstration on giving instructions if you feel it is necessary for your group. Be sure to budget an additional 10-15 minutes for the demonstration. Alternatively you could use this as an activity to begin the day or close the day.Optional Demonstration on Giving InstructionsExplain: In CARE projects, participatory education is an important objective. In order to achieve a participatory model, you must often do activities with participants.The key to leading successful activities for learning is CLEAR INSTRUCTIONS. If participants don’t understand what is expected of them or how the activity works, they may become frustrated and miss out on the benefits of the game. Giving clear instructions requires conscious effort by the trainer. To demonstrate this, let’s play a quick game called “Catch or Be Caught”.Select a simple game and give POOR instructions. Make sure to do the following things to demonstrate unclear instructions in an EXAGGERATED way:Leave out a step and start overWhen you start over, rephrase in a confusing wayTalk VERY quicklyUse complicated language that is difficult to followDo not model the motions – just speakExplain the game to everyone using the mistakes above. Remember, this is meant to confuse your participants: Get up and stand in a circleHold your hands out to either sideOpen your right hand so your palm faces upTake your left hand and point your left index finger down towards the floor and place it on the open palm of the person to the left’s right hand.Tell participants that when you say “Go”, they should move their left hand (with the pointed finger) away as quickly as possible. Say:Ready? Go!Participants will not be able to play the game at all, and as an important instruction is missing, there will be no point. Ask:How did you feel playing that game?What comments do you have on my instructions? On a blank sheet of flip chart paper, write comments on giving clear instructions. Make sure the points on the following page are covered. Finally, when you have elicited the answers above, play the game the correct way!How to Give Clear InstructionsExplain all steps in order – do not leave anything outUse simple, clear languageSpeak clearly and at a normal paceWhen possible, model or demonstrateAsk clarification questions (What questions do you have?)Say and demonstrate: Stand up and form a circle. Everyone in the circle needs to be close enough to comfortably touch each other’s hands!Hold your right hand to the side with the palm up and open. Point your left index finger down and place it on the open palm of the person to your left. When I say “Go!” do two things at once: Try to catch your neighbor’s finger with your right hand, and try to pull their own finger away so that your neighbor doesn’t catch it.After you have played the game 2-3 times, explain:Good directions, even for the things we know how to do, can be challenging. Next, we’ll practice preparing and giving directions in small groups.Explain:Let us look together at the learning sessions on technology. Since technology-based products like mobile money, online banking, POS devices, etc. are financial services, these sessions on technology are best combined with sessions on financial services that the VSL members will use and be helped by technology.Ask participants:How do you make use of technology when you bank?How has this helped or hindered your use of financial services? Explain the importance of considering their own experience with new products when they teach others. Then, do the following activity:Separate participants into groups depending on who has Mobile Money, Mobile Banking, POS Devices, or ATMs available in their contexts AND has used them.Ask each group to think through the steps of properly using such a device. They should note these down in a notebook as 1., 2., 3. and so on.Ask each group to demonstrate (mime) the use of their technology without talking. The audience should try to guess what is happening in each step.When everyone has finished, review the first technology session together and point out the demonstration of how to use a device. Then ask:What are the risks associated with using new technologies?Write their answers on a flipchart. When participants have finished, ask them to compare their list with the list in the first technology session. Finish the session by reviewing both sessions in Technology together, and allowing participants to offer their views and ask questions. Find out if they plan to use such sessions with their own VSL members..Activity 15: Preparation to Present a Learning SessionObjectivesBy the end of the activity, participants will have:Read the learning session they will presentReviewed the materials needed for the learning sessionPracticed presenting the learning session with a small groupMaterialsTrainer’s GuidesFlip ChartsSign Up Sheet for PresentationsPreparation StepsHandoutsNoneTimeVariesStepsSign-up to present learning sessions Preparation for learning session facilitation Giving and receiving feedback Step 3: Sign-up to present learning sessions *Note: You may wish to prepare in advance numbers to be drawn from a hat or other type of container in order to determine the order of sign-up.Post the sign-up sheet for Learning Session Presentation. Say:Sign up by writing your name under the presenter’s column on the sign-up sheet posted at the front of the room. You will have time to prepare for these presentations. I (your trainer) will provide the instructions after you sign-up.Insert the learning sessions to be presented in the left-hand column.Make sure all participants sign up for one learning session. When everyone has signed up, explain that the others who signed up for the same session are their group, and that they will have time later today to prepare to present together.Learning Session Presentation Sign-Up SheetLearning Session TitlePresenter(s)Step 2: Prepare for learning session facilitation - variesTell participants: You have already chosen your learning session, and hopefully you took a look at it last night. Now, you will have a little more time to prepare. Look again through your learning session, noting any questions or areas of confusion. Then, review the materials you need for the learning sessions. Finally, practice the steps with your small group. Be aware of the amount of time you need to present the session – 30 minutes ONLY – so that you do not go over the time limit. Each person in the group MUST facilitate at least one step of the assigned learning session.As you are preparing, keep in mind the principles and practices of learning that we have discussed in this workshop. During the Adaptation workshop, we will work more with any changes you want to make to the session– for now, just deliver the session as it is so that we can collect feedback.Note that you may present your session in whatever language you feel comfortable. If you decide to present in a local language, that is fine.Post the following flip chart:Preparation StepsRead the learning session.Prepare any materials needed for the presentation.Assign each group member a speaking role.Practice your steps.Explain that you will be circulating throughout the preparation to make sure that everyone is on task and that questions are answered. Tell participants they will have about one and a half hours to prepare. Step 4: Giving and receiving feedback Say: The topic of giving and receiving feedback is very important, whether you are giving feedback to your colleagues as you will during this workshop or to other members of your training staff. In our upcoming sessions, each group will present a learning session and the participants and trainers will provide feedback to this group. It is important to know how to properly provide this feedback and how to properly receive this feedback. Ask:When giving feedback, how should the feedback giver behave? [Give specific suggestions, offer solutions and alternatives, allow the receiver to give a self evaluation, be gentle – not harsh, point out positives as well as negatives.]When receiving feedback, how should the feedback receiver behave? [Do not interrupt – listen, ask questions to clarify giver’s advice, be open – not defensive, be calm – not angry, be appreciative and thank the feedback giver.]Post the flip chart Feedback Process:Feedback ProcessPresenters list what they liked Presenters list what they could improve Participants & trainer present what they liked Participants & trainer present what they would improve Explain: During each learning session presentation, you will have the chance to observe and give feedback to another group. You will pay attention to the list when observing, and after each learning session presentation, you will give feedback based on the following list of questions. Make sure to give specific examples to support your answers.Ask:What questions, comments or ideas do you have about how feedback will be conducted?ACTIVITY 16: Presentations of the Learning Sessions with FeedbackObjectivesBy the end of the activity, participants will have:Presented or participated in bank services learning Given feedback on the presentationMaterialsNoneFlip ChartsBlank flip chart with 2 columns: “What We Liked” and “What We Can Improve” (one for each session)HandoutsTimeVariesStepsPresent the practice learning session to the group Facilitate the feedback on the learning session Step 1: Present the practice learning session to the group Post on the wall the flip charts “Learning Session Feedback Process” and “Key Principles and Practices of Adult Learning.”Introduce the learning session by reminding the participants that this is a practice learning session. Tell participants who are not presenting or giving feedback that they will play the role of participants, just as they did during the demo session on Day 1. Also, remind the participants that they should respect the training norms that have been set for the training course.Invite the participants to begin presenting the session.After each presentation, be sure to collect the flip charts and/or materials used. You will save a sample from each group to post on the wall along with the feedback flip chart. Step 2: Facilitate the feedback on the learning session Manage the feedback process, ensuring that participants follow the key principles for giving and receiving feedback. Limit presenters’ comments about what they liked and what they could improve to 3-4. Also limit feedback from the large group to 3-4 comments per section. Add your own feedback and give specific examples when necessary.What We LikedWhat We Could Improve?Post the feedback flip chart underneath the appropriate flip chart for Summaries of the Savings Learning Sessions on the wall. Also post the group’s best-made flip chart there as well. After presentation of all sessions the facilitator should summarize the overall feedback on a flip chart at the end.Activity 17: Adapting for Your VSL MembersObjectivesBy the end of the activity, participants will have:Reviewed the steps of adapting a financial education program to your program Practiced choosing sessions using session selection toolsDiscussed the process of adapting individual sessionsMaterialsFlip chartMarkersProcess of Adaptation cardsFlip ChartsProcess of Adaptation (Program Level)HandoutsUse the Curriculum Modification and Adaptation section of the BinderOverview of Learning Sessions and Objectives for Financial Education, VS&L, SPM and LinkagesTime60 minutesStepsReview the process of adaptation at the program level – 15 minutesChoosing sessions - 25 minutesModifying individual sessions – 20 minutesStep 1: Review the process of adaptation at the program level – 15 minutesBriefly review the concept of adaptation. Say: Your binder is like a large tool that you can use to choose, modify, implement, and track results of your financial education program. Let’s use a short game to talk you through the steps that you will take when you modify at the program level. We will talk about modification at the session level at the end of this session.Play a short game to talk about the process of adaptation at the institutional level. Ask participants to work in pairs or groups of three, and give each group a set of the cards below mixed up well. Explain:In your groups, you will have five minutes to put these steps into the order you think they should occur. Process of Adaptation CardsConduct a baseline analysis (of some kind) to find out learning needs and establish baseline.Outline key learning objectives and topics.Choose learning sessions that match key learning objectives and fit within your available timeframe.Adapt and modify individual sessions so they fit your context.Assemble a program Trainer’s Guide by putting together your modified sessions.Translate the guide into all necessary languages. Train the trainers who will train VSL members.Pilot test your module with select VSL groups.Analyze the results of the pilot test with appropriate staff.Make necessary modifications to your program using pilot test results as a guide.Program roll out and ongoing monitoring and evaluation.After 5 minute, ask for volunteers to give you their answers on the correct ordering of the steps. Then post the flip chart with the Process of Adaptation and review it together.Process of Adaptation (Program Level)Conduct a baseline analysis (of some kind) to find out learning needs and establish baseline.Outline key learning objectives and topics.Choose learning sessions that match key learning objectives and fit within your available timeframe.Adapt and modify individual sessions and their related materials (i.e. pictures, radio programs, etc.) so that they fit your context.Assemble a program Trainer’s Guide by putting together your modified sessions. Translate the guide into all necessary languages.Train the trainers who will train VSL members.Pilot test your module with select VSL groups.Analyze the results of the pilot test with relevant staff.Make necessary modifications to your program using pilot results as a guide.Program roll out and ongoing monitoring and evaluation.Draw participants’ attention to the section of the binder on modification and adaptation, and talk them through the process here. You can show examples of other materials that have been modified and put together based on a similar work plan. This means pointing out that Step 4 may have a number of activities, including adapting for different delivery channels.Step 2: Choosing sessions – 25 minutesExplain:We will discuss baseline studies, and monitoring and evaluation, in a session this afternoon. However, you will use your baseline results along with the specifications for your program, which may come from funders or partner, to choose which sessions you will use.Distribute the handout “Case Study: Developing a Financial Education Program” and put participants into groups of 3-4. The case study follows the Eight Elements of Design, a tool created by Global Learning Partners for planning. Distribute the overviews of the SPM, Linkages, Financial Education, and VSL modules. Explain:In real life, your design process will go something like this. Make sure not to over-complicate the process. Plan well, but don’t be afraid or nervous to put your program into place. You can always make refinements after your pilot test.First, take a look at your case study. Following a baseline or needs assessment, you should always have information like this at hand to help you plan your program. Second, compare your case study to the information available in the Financial Education, SPM, Linkages, and VSL modules. Answer these two questions as you fill in the blanks on your case study sheet. You have 10 minutes to work together.Given the timeframe in the case study, how many sessions can you give?Given the sessions you choose, what should the schedule of training look like? When 10 minutes has passed, bring everyone back together to talk through the programs they have designed.Case Study: Developing a Financial Education ProgramCARE Kangan has assessed that the VSL members in their programs are in need of financial education as part of their offerings. Use the information below to fill in the blanks on the next page and plan CARE Kangan’s program.WhoLearners:VSL members in Kangan’s coastal region, approximately 8,000 members in 300 groupsVery low levels of literacy; most members have only completed the first cycle of primary school85% of members are women between the ages of 25-55Majority of members are interested in starting or improving a small businessTrainers:Field officers of CARE’s partner organizationsFOs have experience in delivering the SPM module and VSL module in the pastWhyThe government of Kangan has recently adopted a financial inclusion strategy that calls for all citizens to be able to use and access basic financial services, primarily savings, in five years’ time. CARE would like to work to support government policy.Through this program, CARE aims to use their VSL methodology to instill basic money management skills and an introduction to savings and credit. At the end of their cycle, they will invite representatives of local institutions to give more information on their products and services. The goal of the program is that those members who are ready to take up appropriate savings services, will take them up and use them.Desired ChangeBased on interviews with key CARE staff, partners, and other stakeholders, as well as a financial capabilities survey and supporting FGDs, the following changes in knowledge, skills, attitudes and behaviors are desired*. Following training, members should:save even small amounts of money on a regular basisplan their savings following their capacity to save and prioritiescontinue to save even when they meet unexpected events or emergenciescreate and use a simple budget to help them manage household and business expensesmake informed choices about whether to use savings or borrow understand the realities of using formal financial services rather than assuming myths and misinformation are trueexercise their rights and responsibilities as clients of financial institutionsfeel confident to try out new technologies in financial services, such as mobile banking and POS devices which are now available in even the most rural areasconsider purchasing new insurance products to help manage risks and emergenciesfeel confident about their capacity to save, perhaps through meeting a goalWhenCARE will work with local partners and local financial institutions over a 10-month period to deliver this program. Groups will meet on a weekly basis. WhereCoastal Region, Kangan, West Africa* Note that these KSABs are in addition to those built through the VSL process.Fill-In-The-BlanksUsing the given information, what kind of program will you design for CARE Kangan?As there are 10 months in this cycle, with weekly meetings, you will have approximately 40 meetings in which to achieve your goals.The abridged schedule below assumes that the preparatory phase is not part of the schedule, and that it has already been finished when week 1 begins.Week Session to Be DeliveredRationale – Why?Intensive Phase1VSL Trainings 1 – 4 23456789101112Development Phase131415161718192021222324Week Session to Be DeliveredRationale – Why?Maturity Phase25VSL Trainings 1 – 4 262728293031323334353637383940*NOTE: Not all weeks need to have educational sessions. *Think about: - How would you change the schedule if you had less time? - How would you change the schedule if you needed to introduce credit or insurance?*SAVE this sheet for consideration during the Monitoring and Evaluation session.Step 3: Adapting individual sessions – 20 minutesExplain:Finally, once you have your work plan in place, and you have done the first steps of a baseline and/or needs assessment and laid out an outline of the sessions you will offer, you need to put the finishing touches on your curriculum: adapt your sessions.Note that you can also develop supplementary materials such as images, radio programs, theatre, etc. as part of your program. You will need to plan this in, but no matter what, you will need to be sure that the learning sessions you choose are contextualized for your learners. Ask:Why do you think it is so important to adapt the learning sessions to reflect the local reality? Write comments and ideas on a flip chart:Why Adapt the Learning Sessions?Then, direct participants to the Adaptation tool in the Binder. Ask them all to look at Savings Session Number 1 and, using the Adaptation tool, to quickly suggest changes in the learning session. End by emphasizing that this is a step-by-step process to be followed for each program. Activity 18: Training Your Own Trainers and PartnersObjectivesBy the end of the activity, participants will have:Reviewed the umbrella chart of a financial education program Discussed the contents of the Training of Trainers manualPracticed creating a Training of Trainers planMaterialsFlip chartMarkersNote Cards Masking TapeFlip ChartsTraining Flow ChartHandoutsUse the Training of Trainers section of the BinderTime45 minutesStepsReview the umbrella chart – 15 minutesCreate a sample Training of Trainers scheme - 30 minutesStep 1: Review the umbrella chart – 15 minutesAsk:Who are the stakeholders involved in all parts of a CARE educational program? Write the answers on note cards as participants offer them. You should have the following notecards filled out:Staff of Financial Service ProvidersSupervisors of Trainers (Program Managers)Trainers of Ed Recipients (CARE and Partners)Government and Public SectorCARE Access Africa StaffHigh Level Country StaffEd Recipients’ FamiliesLearners – Ed RecipientsOn a flip chart, ask participants to show how the different stakeholders relate to each other in a visual way. You can guide them as they work together to create a cascading model of a program.Cascading Model of a ProgramWhen they have finished the cascading model, add in the information in red above by asking:Which resources from your binder will be used at which levels of our cascading model of training? Step 2: Skim the Training of Trainers Manual – 30 minutesExplain: There are 2 Training of Trainers Manuals in your binder. They are similar, but not exactly the same document. Take a look at the front pages of each, and tell me:What is the difference between these two modules? [One is meant for training Master Trainers, such as themselves; the other is meant for training trainers of end users.]Why is it important to train these two groups in a slightly different way? [The first group needs higher level topics, such as M&E and adaptation, while the second needs the skills and content to work on the ground. Because of limited time, each must develop a slightly different skill set.]Take a few minutes to look through the Table of Contents of the Training of Trainers Manual for Trainers of End Users, and to use the tool in the binder to plan a sample Training of Trainers for the program you designed in the Adaptation session. Make sure to point out:The Rule of Thumb: “It is better to do a little well than a lot poorly”.The “Good Practice” from CARE Kenya in training content and skills in the morning, practicing in the afternoon.For behavior change, it is important not to throw out the methodology in favor of the content – the methodology is the road that will lead you to your new behaviors. You don’t want the equivalent of a group of smokers who can recite all of the health benefits of quitting smoking, but have not changed their behavior!The basic idea of the Training of Trainers is for participants to actively participate in sessions and then practice leading them with feedback.Activity 19: Monitoring and EvaluationObjectivesBy the end of the activity, participants will have:Reviewed the umbrella chart of a financial education program Discussed the contents of the Training of Trainers manualPracticed creating a Training of Trainers planMaterialsFlip chartMarkersNote Cards Masking TapeFlip ChartsTraining Flow ChartHandoutsUse the Training of Trainers section of the BinderTime45 minutesStepsReview the umbrella chart – 15 minutesCreate a sample Training of Trainers scheme - 30 minutesStep 1: Review current M&E systems – 15 minutesAsk:What tools and systems do you currently use to monitor quality and quantity of your outreach? Write the answers on a flip chart as participants offer. Explain:In monitoring and evaluation, there are a number of frameworks used by organizations to show how the activities we do, or products we offer, lead to changes in knowledge, skills, attitudes, and behaviors. Keep in mind that there are many different types of frameworks, and all are valid for their intended purposes. The types of frameworks you are familiar with are good examples. We’ll talk more about tools in just a moment, but first, let’s discuss a framework that has been developed specifically for monitoring and evaluating financial education programs. Post the flip chart “Framework for Tracking Results”. Walk participants through each part of the Framework, reading the explanations together.Say:This framework, developed by Microfinance Opportunities, may or may not resemble frameworks that you have worked with in the past. Note that the terms “Outputs” and “Outcomes” enable you to be more precise about the various successes or challenges of your education delivery. Practice the concepts on the framework together. Read each of the following examples, and ask participants which part of the framework each statement is an example of.Framework ExamplesA person begins to save money on a regular basis. [A behavior – Medium-term Outcome.]A savings session on “how to save money regularly. [An example of an educational input – Input.]Overall savings in the community grows, and most community members are saving regularly and in a safe place. [Change in overall well-being – Long-term Outcome.]300 community members are trained in a series of 3 short workshops on saving regularly and in a safe place. [Number of learners trained, number of trainings delivered – Output.]85% of workshop participants can name a safe place to save and are able to budget for their savings. [Knowledge and skills – Short-term Outcomes.]Let’s take a look at some of the tools we can use to measure outputs and outcomes. As a manager, you will need to use these types of tools.Step 2: Examine tools for measuring quality and quantity – 15 minutesAsk participants to review the Monitoring and Evaluation section of the binder. Then present the flip chart with the tools to measure quality and quantity of education. Tools to Measure QuantityTracking tools (overlap with VSL M&E tools and MIS)Tools to Measure QualitySecondary sources like national surveysObservation checklistFinancial capabilities surveys Focus group discussionsAsk:Which of the tools that you see in the binder correspond with the items on our list? Say:Some of the tools you use to monitor your outreach and progress – or the questions on them – will be quantitative and some will be qualitative. Let’s begin by looking at quantitative tools and indicators. Ask participants to focus on the tools in the binder. Tell participants to spend about 15 minutes reviewing the tools. Then, bring everyone back to plenary to discuss the tools. Answer any questions participants have, and then post the following questions on a blank sheet of flip chart paper:What data will this tool generate?How will this information be useful to an education service provider?How will this tool also be useful for a financial service provider?How would this type of tool help you to achieve your program goals?Go through each question in plenary. Explain to participants that although these tools are quantitative, they have some qualitative questions as well. Focus them only on the quantitative sections right now. Quantitative Tools:What data will these tools generate? [1) Demographic information about the target group: age, gender, schooling, marital status, self-help group membership status. 2) Which sessions have been delivered.3) When the sessions were delivered.4) Respondents’ knowledge, skills, attitudes and behaviors about the topics, survey.]How would this information be useful to an education service provider?[Patterns in who is attending will prompt the organization to determine if the topic or methods appeal more to some age groups than others or if the sessions should be delivered at different times of day. If attendance is lower among married girls, for example, it may suggest that additional outreach needs to be done with husbands and in-laws to enable married girls to attend. If particular sessions are being avoided it may point to a problem with the facilitators – perhaps they or the girls are uncomfortable with the content.]How would this information be useful to a financial service provider – not just to an education provider? [The demographic information is helpful to a financial service provider in terms of understanding who is being reached by non-financial services, and to what extent. In the surveys, sections on savings behaviors could help a financial service provider to gauge current savings behaviors as well as the potential of this target group to use their services.]How do you think this type of tool could help you to achieve your program goals? Qualitative ToolsRefer again to the questions on the flip chart. Again, go over each question together in plenary:What data will this tool generate? 1) Respondents’ opinions and assessments of the sessions: What they liked, if they would recommend the sessions to others.2) Respondents’ knowledge, skills, attitudes and behaviors about savings and whether they change over time if more than one interview is conducted.]How would this information be useful to an education service provider?[While the quantitative tools give a good idea of “what” is happening, the qualitative tools are helpful in explaining “why” things are occurring in a certain way. The qualitative tools will give explanations from the participants and trainers themselves about what is working, what is not working, etc. Also, the content that is remembered and forgotten will prompt changes to the curriculum to improve it. If respondents find a session particularly useful, or particularly difficult, it can be pointed out through an interview or focus group.]How would this information be useful to a financial service provider – not just to an education provider? [The section on savings behaviors could help a financial service provider to gauge current savings behaviors as well as the potential of this target group to use their services. A financial service provider could ask specific questions to find out about a target group’s needs or demand for a certain type of product.]How do you think this type of tool could help you to achieve your program goals? Make sure to give participants the opportunity to ask any lingering questions about the tools before you move on to the next step:What questions do you have about these tools? How would you relate the concepts of quantitative and qualitative to the education monitoring framework? [Outputs and outcomes would involve measuring quantitative information such as “how much” education was delivered to “how many” participants. How many participants recalled specific pieces of knowledge, or how many used the skills and which skills, or how many adopted a particular behavior and how frequently did they practiced that behavior?” Qualitative indicators would also be useful in outputs and outcomes because they would help measure “why” certain members of the target group participated and other’s didn’t, “why some trainers delivered the education better than others, “why” some skills and behaviors were adopted and other’s weren’t, etc.]How do these tools compare to tools you have used in your work? How are they similar or different?Ask any participants who raised their hand for the first question to describe the tools they have experience usingStep 3: Plan for your own program – 15 minutesAsk:How can you fit these tools into your own action plan for your own program? Refer participants to the overall work plan in Section 1 of the binder. Ask:Now that we have reviewed all parts of our program, what will be your steps in planning your own program? Activity 20: Re-Enforcement of Participatory Methodology and Wrap-UpObjectivesBy the end of the activity, participants will have:Reflected on the practice presentations they have just finishedLinked the material in the learning sessions to the Adult Learning Principles and PracticesMaterialsSamples from presentations10 note cards (one Adult Learning Principle written on each card)Flip ChartsFeedback flip charts from presentationsAdult Learning Principles and Practices flip chart (from Activity 4)HandoutsNoneTime45 minutesStepsLink learning sessions to adult learning principles – 25 minutesReflect the main issues discussed in giving and receiving feedback – 20 minutes*Note: The flip charts with feedback from the presentations and samples from each presentation should still be on the wall. Step 1: Link learning sessions to adult learning principles – 25 minutes Post the “Key Principles and Practices” flip chart from Activity 4 on the wall, with the principles covered. (See following page.)Depending on the number of participants, separate everyone into groups of 2-3. Give each group a card with a principle written on it. Say:Your task has 2 parts:First, decide which description fits the principle on your card. Do not look at your handout from Activity 4!Then, look at the feedback flip charts and samples from our presentations. Where did you see this principle reflected in the presentations? Give a specific example. Key Principles and Practices PrincipleDescriptionRespectLearners feel respected and feel like equals.AffirmationLearners need to receive praise for even small attempts.RelevanceLearners learn best by drawing on their own knowledge and experience and when training meets real-life needs—jobs, family, etc.DialogueLearning must be two-way to allow the learner to enter into a dialogue with the trainer.EngagementLearners must get involved through discussion, small groups and learning from peers.ImmediacyLearners must be able to apply the new learning immediately.20/40/80 RuleLearners remember more when visuals are used to support the verbal presentation and best when they practice the new skill. We remember 20 percent of what we hear, 40 percent of what we hear and see, and 80 percent of what we hear, see and do.Thinking, Feeling, ActingLearning should involve thinking and emotions as well as doing.SafetyLearners need to feel that their ideas and contributions will be valued—that they will not be ridiculed or belittled.AccountabilityTrainers need to be accountable to learners that their learning needs are met, and that the exercise will be useful to them. When groups have had about 5 minutes to discuss, bring everyone back together. Give each group 1-2 minutes to present their principle and give specific examples. Uncover each covered principle as groups correctly match their card to the description.Step 2: Review key issues identified in giving and receiving feedback – 25 minutes Instruct participants to take a gallery walk and look at their feedback. Say:We have spent 2 days practicing the facilitation of learning sessions. We have also have had an opportunity to both give and receive feedback. Now, we invite you to take a gallery walk and review some of the key points that were highlighted. Remember we highlighted points that worked well and provided some tips on how we can all improve the next time we deliver this module. You have 10 minutes.After 10 minutes, ask the participants the following questions:What were the most important pieces of feedback you received?What were some common areas of suggested improvement?What are your reactions to this module and your experience training with it?Conclude with the question:What will you do differently next time you deliver a learning session from this module or another training session in general?Thank everyone for their hard work in this session.Activity 21: Post-Test and EvaluationObjectivesBy the end of the activity, participants will have:Reviewed workshop mapCompleted the evaluation Taken the post-testMaterialsEvaluations (one per participant)PensTapeFlip ChartsWorkshop Map (from Activity 2)HandoutsEvaluationsPost-test (one per participant)Time40 minutesStepsPresent and review workshop map – 5 minutes Complete workshop evaluation – 15 minutesComplete the post-test – 10 minutesStep 1: Present and review workshop map – 5 minutesPost and review the Workshop Map. Ask participants to tell you which “stops” we completed from that original map and to give a specific example. Check off the “stops” as they are listed and described:Opening and Overview Training Techniques Technical Content Presentation Ask:How were your expectations for this workshop fulfilled? What was missing?As the group reviews each expectation and determines that it has been met during the workshop, place a check mark next to that expectation.Step 2: Complete workshop evaluation – 15 minutesDistribute 1 copy of the Workshop Evaluation to each participant. Give participants 15 minutes to individually complete the questionnaire. Assure them that the questionnaire is anonymous and thank them for their input.Step 3: Complete the post-test – 10 minutesDistribute 1 copy of the post-test to each participant. Give participants 10 minutes to individually complete the test. Make sure they write a phone number or ID number on the post-test, just as they did for the pre-test.Explain that this evening, you will correct and compare the pre- and post-tests. You will present them with results at a later date, and it will help to understand whether or not there was a change in knowledge over the course of the TOT. It is not a pass or fail test.Close the workshop, give thanks to everyone involved, and give yourself a big pat on the back for a job well done!135565079286You are superstars!00You are superstars!Activity 22 (OPTIONAL IF TIME PERMITS): Lavish AffirmationObjectivesBy the end of the activity, participants will have:Practiced giving and receiving praiseRelated their feelings about receiving praise to what praise can mean to participants in groups or meetingsListed appropriate ways to give praise during group learning sessionsMaterialsBlank sheets of paperPens or pencils (NOT MARKERS!)TapeFlip ChartsNoneHandoutsNoneTime30 minutesStepsPractice giving and receiving praise – 20 minutes Discuss how to provide praise in learning sessions – 10 minutesStep 1: Practice giving and receiving praise – 20 minutesThe activity in step one supposes that a strong relationship has been built among participants. DO NOT use permanent markers for this activity, as they will soak through the paper onto clothing.Say:We want to take a few minutes to consider the importance of praising people for the contributions they make in learning events. Praise is one way of showing respect and motivating the adult learner to be a more active participant. We all like to receive praise and feel that our contributions are important to the trainer and others.Instruct participants:Take one piece of paper and fold it in quarters. Everyone stand in the middle of the room. Help each other tape the papers to your backs.Move about the room; find someone else and write one thing that you appreciate about the person or the person’s contributions either during this learning event or during the time you have worked together. Be as specific as possible.Write on four different people’s papers and allow four different people to write on yours. No person can have more than four things on his/her paper and everyone should have four by the end of the activity.DO NOT USE MARKERS. Use a ballpoint pen or pencil.All words should be written anonymously. You can start with any square on the paper to maintain that anonymity.What questions do you have about this activity?After 5 minutes, ask participants to form a circle and remove their papers from their backs and read what others have written. Ask for a volunteer to share a comment they received. After they have read one comment they should choose someone else to read a comment. This should continue until everyone has had a chance to read a comment.Step 2: Discuss how to provide praise in learning sessions – 10 minutesAsk participants to consider the trainers and end users they will train:Thinking about how you feel when you receive praise, how do you think participants in your groups will feel when they receive praise? Ask for some volunteers to share their thoughts on this question, then ask:What are some appropriate ways and times that you can praise the members during a group meeting or learning session?Conclude by saying:I encourage you to apply these ideas when you are facilitating the learning sessions to trainers as well as to VSLA members.Activity 23(OPTIONAL IF TIME PERMITS): Offering Financial Services in a Clear and Transparent WayObjectivesBy the end of the activity, participants will have:Practiced giving and receiving praiseRelated their feelings about receiving praise to what praise can mean to participants in groups or meetingsListed appropriate ways to give praise during group learning sessionsMaterialsBlank sheets of paperPens or pencils (NOT MARKERS!)TapeFlip ChartsNoneHandoutsNoneTime120 minutes (2 hours)StepsDiscuss consumer protection at your institution – 20 minutes Review the concept of transparency – 20 minutes*Note: This session can function in 2 ways:As a stand-alone for Financial Service Providers, especially in the case of new linkage projectsAs part of a TOT which representatives from Financial Service Providers will attend Prior to the session, you can consider having someone at the Financial Service Provider complete the Smart Campaign’s Client Protection Principles Questionnaire and score it to help you understand what to emphasize here. Step 1: Discuss consumer protection at your institution – 20 minutesAsk:What do you think of when you hear the term “consumer protection”?Allow several participants to offer their ideas. Then, say:Consumer Protection is a much-discussed topic nowadays. However, there is often more talk than action when it comes to protecting consumers. As a financial institution partnering with CARE, it is important to us that we go through 2 ideas before we begin to work together.These ideas are consumer rights and responsibilities. These are 2 sides of the same coin. In order for consumers to make best, safest use of your products and services, they must be aware of their responsibilities and know their rights. Show the flip chart “Summary Chart of Consumer Protection Principles” and explain:You see that the Smart Campaign has identified 7 major areas of consumer protection, some which overlap with your ideas of consumer protection. I will summarize the definitions from the Smart Campaign here:Appropriate product design and delivery: This means that an FSP designs products and delivery channels taking into account client wants and needs. Products and services should do no harm, and should be designed with client characteristics in mind. Prevention of over-indebtedness: FSPs must have systems that support the prevention of client over-indebtedness and foster efforts to improve risk management. FSPs must lend only to clients within their capacity to repay without becoming over-indebted.Transparency: FSPs should communicate clear, sufficient and timely information in a manner and language clients can understand so that clients can make informed decisions. The need for transparent information on pricing, terms and conditions of products is especially important.Responsible pricing: Pricing terms and conditions should be determined in a way that products and services are affordable to clients AND the institution can be sustainable.Fair and respectful treatment of clients: FSPs should not discriminate, and should ensure adequate safeguards to detect and correct corruption as well as unprofessional treatment of clients by staff.Privacy of client data: Client data must only be used as permitted by law or as agreed upon with the client. Mechanisms for complaint resolution: FSPs should have in place timely and responsive mechanisms for complaints and problem resolution for their clients and use these mechanisms to resolve individual problems and to improve their products and services.? Smart Campaign 2012Continue with a short discussion to elicit ideas and feedback from participants.What questions do you have about these principles?What challenges do you face in putting principles like these into practice?How does the competition you face in your local market affect your strategies and decisions?What do clients appreciate most about your institution?What would clients change about your institution if they could?Be sure to acknowledge and give value to participants’ ideas. Take notes so that you can refer to these as you take steps forward to offer the FSP’s services and products to your VSLA members.Explain that you will focus on transparency as a principle in the next steps.Step 2: Review the concept of transparency – 20 minutesReview the definition of transparency (from the Smart Campaign). “FSPs will communicate clear, sufficient and timely information in a manner and language clients can understand so that clients can make informed decisions. The need for transparent information on pricing, terms and conditions of products is highlighted.”Ask:Why are FSPs sometimes incentivized towards NOT being transparent? [These may include:Fear – sometimes well-founded – that clients will not take up products if they know the true costs, terms and conditions of productsCompetitors in the local market are not transparent, and being transparent would make our institution look expensiveBelief that clients cannot understand costs, terms and conditions, so there is no reason to explain themFear that clients will lie to take advantage of the institution if they have all of the information to do soField officers and Loan Officers do not understand all terms and conditions and costs well themselves, etc.]Be sure to acknowledge and give positive feedback to those that offer their ideas, as this is often a sensitive topic. Then ask:What are some appropriate ways and times that you can praise the members during a group meeting or learning session?Conclude by saying:I encourage you to apply these ideas when you are facilitating the learning sessions to trainers as well as to VSLA members.Step 3: Examine the effects of lack of transparency – 40 minutesAsk:How might lack of transparency affect a financial institution? How might lack of transparency affect a client?Conclude by showing the Effects of Lack of Transparency flip chart:Effects of Lack of TransparencyIssue…Effect on clientEffect on financial institutionClient does not understand the maintenance fees charged on her savings account.…sees the decrease in savings balance and thinks that the bank has robbed her. …loses business when client tells others about her experience.Client is not aware that she receives only three free ATM withdrawals before incurring fees.…is demoralized and does not trust ATM transactions or thinks they are too expensive. …loses the benefit of investment in new technologies and the ease on the institution.Client believes that if he does not file an insurance claim, the premium will be returned to him at the end of the cycle.…concludes that insurance is a scam when he “loses” his money.…finds that products intended to add value and attract clients have the opposite effect.Client expects to receive Smart Card with several weeks of signing up for a savings account, but instead does not receive the card for 6 months.…loses interest in using the Smart Card system and believes that the financial institution is not truthful.…loses the trust of the client and loses business when the client tells others about his experience. *From The Smart Campaign Training on Principle 3: Transparency. . Others from author’s experience.Distribute the handout “Savings 4U MFI Terms and Conditions”. Give participants 5-10 minutes to review the handout and then ask:How easy or difficult is it for you to understand the terms and conditions of this product? [Participants should recognize that this somewhat ridiculously exaggerated flyer is difficult to understand, especially for clients like VSLA members.]What information is provided? [Minimum balance, procedure for account opening, interest rate, fees and charges]What information is missing? [Details on the above]Would YOU be interested in this account based on this information? [Participants should recognize that there is not enough information to make a good decision in this flyer.]This is a great exaggeration of a product brochure, but: Have you ever seen a similar flyer or brochure describing a product? What was your reaction?Allow several participants to answer each question before moving on to the next step.Step 4: Look at ways to become more transparent – 40 minutesExplain:Before we look at the good practices that will help you to be more transparent and communicate well with clients in a way that they can understand and access, let’s talk about what NOT to do. Keep in mind that we are sensitive to the particularities of competition and the market. At the same time, we have an interest in strengthening the financial sector here in our country and making it better for clients like our VSLA members. It is our first priority to be sure they are protected, and that our FSP partners also prioritize their protection. Put participants into groups of 3 and explain that you will play a game. Say:In your groups, you will have 10 minutes to come up with a list of DO’s and DON’Ts for transparent institutions to follow. The group that comes up with the most DO’s and DON’Ts - and these are judged to be separate and logical - will win a special prize!DOs AND DON’Ts OF TRANSPARENCYDO or DON’TWhat it means…DO disclose ALL important informationDisclose the prices, terms, and conditions of all products, including fees and information on the recovery process, and whether these can change over time.DO train staff to communicate effectively with clientsThis includes communicating effectively with clients who have literacy limitations.DO provide training to new clients at teachable momentsThis does NOT mean you must provide time consuming and expensive financial education programs, simply that you train the clients to use a product beneficially. DO provide the total cost of the productFollow truth-in-lending laws and required APR or EIR formulae. If no requirements, show at least the total cost the client pays.DO use multiple channels to deliver informationUse multiple channels for disclosing information, such as brochures, meetings, orientation sessions, posters, etc.DO allow time for clients to ask questionsAllow adequate time for clients to review information and ask questions prior to signing contracts.DO provide account informationRegularly provide accurate account information, such as savings account balances and receipts for all transactions.DON’T use small “invisible” text Use text that is clear and readable to clients and explain terms and conditions orally whenever possible. *The Smart Campaign Training on Client Protection Principle #3: Transparency. Look at a clock or your watch to time 10 minutes. When time is finished, call everyone back together and ask each group how many DO’s and DON’Ts they have. Go through the group with the longest list and be sure that some or all of the above are reflected. Don’t forget to award a prize to the group with the longest acceptable list. Congratulate everyone on a job well done, and be sure to keep the conversation about Consumer Protection and Transparency open.For more information on Consumer Protection, you or the FSP can contact the following institutions and review their webpages:The Smart Campaign – The Center for Financial Inclusion – MicroFinance Transparency – REFERENCESThe Global Financial Education Program. (2004). Remittances: Make the Most of Them (Training of Trainers Manual). Washington DC: Microfinance Opportunities.Microfinance Opportunities & The Population Council, Kenya. (2010). Young Women: Your Future, Your Money (Training of Trainers Manual). Washington, DC: Microfinance Opportunities.Microfinance Opportunities. (2010). Financial Education for Equity Bank (Training of Trainers Manual). Washington, DC: Microfinance Opportunities.Reach Global (2013 forthcoming). Integrating Financial and Non-financial Services for Youth. Dakar, Senegal: UNCDF YouthStart Program.Rim, Ji-Yeune & John Rouse. (2002). The Group Savings Resource Book: A Practical Guide to Help Groups Mobilize and Manage Their Savings. Rome, Italy: The Food and Agricultural Organization of the United Nations (FAO).The Smart Campaign Website (2013). . ................
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