Intervention brainstorming

Saving instrument
- Formal bank account or credit card usually not useful for poor people
- Provide physical piggy bank and/or formal bank account
o Group 1: piggy bank
o Group 2: formal bank account
o Group 3: piggy bank and formal bank account
- We provide different compartments for piggy bank account differing by their
difficulty of withdrawing money
o Open compartment: daily expenditure
o Semi-locked compartment with a key: slightly cumbersome to open but still
can be opened
o Locked compartment: Only for self-commitment purpose. We keep the key
and open it at the endline survey date
o

Financial coaching
- We randomize the contents of the education: theory part and action part
- Or we can randomize the topic: budgeting, saving, borrowing, insurance…
- Financial literacy is not really essential in daily lives.
- Budgeting and more actionable plans could be much more helpful in poor people’s
lives
- Education program from ASKI
(Theory part is in red and action part is in blue)
o Setting financial goals
 Different financial goals
 Priority setting
 Increasing the financial literacy
o Budgeting and planning
 Budgeting tips and exercise: how to stick to your budget
 Remittances and its usages
 Household based and business based budgeting
 Introduction of the financial education notebook
o Saving
 Why save?
 Power of compounding
 Saving tips and exercise
o Investing in an enterprise
 Different types of investment in an enterprise
 Objectives in setting up a business
  Sole proprietorship vs franchise
 Sources of funds
 Risk management
 How to invest in stocks and bonds
 Risk and return in the investment of stocks and bonds
o Credit management
 Sources of credit
 Acceptable purposes vs avoidable purposes of credit
 Procedures for getting loans from microcredit
 Success stories from microcredit (how to get out of poverty with
microcredit)
o Insurance
 Definition of insurance
 Type of insurance (life, home, property, automobile, medical, accident,
education, retirement)
 How to purchase insurance; payment scheme and policy
o Financial freedom and failure
 Common reasons for financial failure
 Essential personal finance skills
o Personal commitment
 Ask the family members to write their personal commitments and how
they could help other family members achieve financial freedom
 Achieving financial freedom is a collective effort
Intervention options

Saving instrument
1. BPI savings account
o Used in Dean Yang’s paper
o Phone banking is possible for 2G phones
o Not desirable due if there is frequent change of numbers
2. Physical piggy bank
o https://www.lazada.com.ph/products/riya-fashion-key-lock-safe-vault-book-
safe-money-bank-small-size-1811555cm-home-safe-box-metal-steel-safe-
cash-coin-jewelry-storage-box-secret-piggy-bank-english-dictionary-security-
safe-blue-black-red-i415228010-s1225132065.html?
spm=a2o4l.searchlist.list.85.5c346828dn9644&search=1
o

Financial coaching

List of microfinancie organizations

: https://microfinancecouncil.org/regular-members/

- Alalay sa Kaunlaran Inc. Global Ltd (ASKI)

o Used in Dean Yang’s paper
o Microfinancie institution based in Cabanatuan City
o http://aski.com.ph/

- Ahon Sa Hirap Inc.(ASHI)

o Based in Cubao, Quezon City near OIDCI
o Provide financial literacy and business management training
o Main target is women in rural area
o Established by an economics professor from the UP
o Main target area is Laguna, Rizal, Quezon, southern part of Metro Manila, anc
Cavite
o Customer: 74000 households.
o Repayment rate: 99%
o https://www.ashi.org.ph
o https://www.ashi.org.ph/post/end-hunger-raises-5000-dollars-for-families-
affected-by-hurricane-mila

- Central Bank of the Philippines (BSP)

 o Economic and Financial Learning Program (EFLP)
 Role of BSP in the economy
 Financial education expo
 Financial Learning Campaign for overseas Filipino (FLC)
 The importance of using remittance to build up savings and
investing the money
o Many publications and brochure
o We can at least ask for recommendation of good institutions for financial
education targeting tricycle drivers
o http://www.bsp.gov.ph/about/advocacies_eflp.asp
o http://www.bsp.gov.ph/about/advocacies_fin_flp2.asp

- Pesosense
o Online interactive learning material
o Executed by UNDP and CFO (Commission on Filipino Overseas)