Financial Literacy and Matched Savings

SolKomYo developed an integrated “Financial Literacy” course, on how to apply basic financial practices for workers at factories at CODEVI. The course aims to increase the workers’ understanding of key financial topics, and encourages savings and better allocation of household expenses.

The program is now in its second round and  CODEVI adopted it as an ongoing program. Currently the program is being accessible to the supervisors, administrative staff and quality control workers and in the next phase is going to be available to the entire factory on rolling basis. This proves once again the value it brings to the factory had been recognized both by management and workers. Based on an external evaluation it was determined that  91% of the course participants said their opinion about CODEVI as their employer improved as a result of the course. 

The goal of this Financial Literacy course is to equip the workers with the knowledge and tools necessary to make educated financial decisions. By analyzing how they are spending their money they can therefore learn to prioritize their spending. The second training session focus is on learning and applying saving strategies and debt management strategies.  Each training session is followed up by post training actions and support.

fin-lit-2ndFor every learning module and practice activity, workers receive a voucher, which they can either deposit into their savings account or cash it. If they deposit it in their savings account, it is matched up to a certain limit. Until now, 97% of workers have chosen to deposit their vouchers in their savings accounts.

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Impact

  • 2 training sessions one for operational workers and another one for  supervisors
  • 450 workers graduated
  • 1,000 attended at least one training session
  • US$15,000 direct savings generated with the voucher
  • 79% of workers who participated in the financial literacy program believed they could save more money in the next six months compared to 44% of workers who did not participate in the program.
  • 84% of workers who participated in the financial literacy program keep a personal budget compared to 47% of non-participants.
  • Course participants believe they have mechanisms to save money and a more stable financial situation

 

 

 

 

 

 

 

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