understanding how youth spend their time and money: lessons from useful research tools

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Understanding How Youth Spend Their Time and Money: Lessons from Useful Research Tools

Megan Gash of Freedom from Hunger

AIM YouthAdvancing Integrated Microfinance for YouthAgendaFinancial DiariesData analysis activitySample data from savings groups in Mali

IntroductionFreedom from Hunger InitiativeAdvancing Integrated Microfinance for Youth (AIM Youth)Provide 37,000 young people (22,000 in Mali and 15,000 in Ecuador) with financial services integrated with youth learner-centered financial educationYouth are ages 13-24 yearsMali NGOs: savings group program; MFIs: group savings accounts. Ecuador - cooperatives and credit unions: individual savings accounts.

What are financial diaries?Frequent surveys on financial topicsHow differ from other research methods?More accurate because learn the real storyMore detail about lives of youthStrengths: can identify seasons of low and high income, cash flow, when would need more loans, how use different financial services, fluctuations in migration

Mention Portfolios of the Poor5Financial Diaries in the Youth ContextHuman subjects protection protocol: university, national statistics office; parental and youth consentBudget; frequencyYouth like speaking to youth (enumerators); building trustIncentives to participate: small gifts relevant to youth (300 FCFA value: soap, tea, sugar, trinkets), Availability: nights and weekends; call day before to confirmReplacements for migrationHawthorne effect: learn about money managementAttitude questions work well

Study DesignStudy design72 respondents: 36 treatment, 36 control (matching demographics)2 areas; 3 villages per area; 6 respondents per village (18 per area)Purposeful yet random selection; represent geography, age, genderSurvey design: Surveys filled with data from last survey; use same enumeratorsEvery 3 weeks for 3 months; then once a monthData analysis: Systematization, periodic receiptAnalyst Lessons LearnedLabor intensiveCut costs: less frequent surveys, smaller sampleFlexibility, gifts are important to parents Follow migrating youth? Control villages could learn about interventionSame enumerators, ICT data collection if possibleCheck data early and oftenConsider qualitative follow-up: extra insight, case studies

At the three month intervals, we added questions about educational outcomes, financial attitudes, PPI/wealth data and food security data8Data Analysis Activity

Data Analysis ActivityInstructions:Form groups of 2-3 peopleReview data tables on handout and discuss the following questions (10 minutes total):

How do the outcomes change over time?What is helpful about knowing how the data changes over time?

Plenary discussion of conclusions (5 mins) 10Key Results Results for July 2011 January 2012Mixture of descriptive and impact analysisPreliminary analysis; some questions unanswered

Key Results: DemographicsSavings Group Participant Outcomes (treatment)84% are 13-17 years old; 16% are 18-2486% unmarried; 55% in schoolFood Security and Poverty Level Outcomes:

JulyOctoberJanuaryPercentage of respondents who are food insecure44%67%20%Percentage of respondents who fall below the National Poverty Line63%67%71% Savings: LocationWhere savings group members are saving money: Savings groupLivestock3. With guardian at home

If you had the choice, where would you prefer to save your money? July: 1) bank, 2) with a guardian, 3) savings groupJanuary: 1) savings group, 2) bank, 3) with a guardian 79% saved at home72% with a guardian63% have saved with livestock62% with a group3% with other assets13Savings: Amount Savings group participants are saving more & building moreassets than control group

Financial KnowledgeImprovements in knowledge:identifying safe places to save moneyidentifying strategies to protect long-term strategies differentiating between good and bad borrowing decisions

Financial AttitudesImprovements across all of these 6 indicators no improvements: paying unexpected expenses, speaking up at homeIndicator (% disagree with statement)July October JanuarySaving for longer than one month is too hard39%67%71%My money is not safe enough70%75%94%I often regret purchase I make47%58%72%It is difficult to save money because friends and family ask for it28%72%77%I worry about using money from long-term savings for unexpected expenses-47%57%I have difficulty paying my own daily expenses17%25%48% Summary of Findings: MaliYouth earn significant amounts of their own moneyYouth are using several tools for savingYouth need access to loans: risk management; support for familyYouth savings groups have been able to increase savings for youth in rural and remote areasSeveral positive knowledge & attitude changes! 17Questions?

Thank you!