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Promoting financial inclusion for savings groups: A financial education programme in rural Rwanda

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  • Schoofs, Annekathrin

Abstract

This study evaluates CARE Canada’s financial education programme for members of savings groups in rural Rwanda two years after the intervention. The programme was designed to help group members gain better financial understanding and to encourage the usage of formal financial services. My difference-in-differences estimation only allows me to rule out an effect larger than 0.33 points of a financial literacy score measuring participants’ ability to calculate financial trade-offs. This is large considering an average score of 1.7 at baseline. Among the final impacts, I find no evidence that the intervention impacts formal savings, assets, or subjective resilience, with the possible exception of a change from informal borrowing to formal borrowing. Overall, my findings suggest a mixed picture for usage of formal financial services.

Suggested Citation

  • Schoofs, Annekathrin, 2022. "Promoting financial inclusion for savings groups: A financial education programme in rural Rwanda," Journal of Behavioral and Experimental Finance, Elsevier, vol. 34(C).
    • Handle: RePEc:eee:beexfi:v:34:y:2022:i:c:s2214635022000235
    DOI: 10.1016/j.jbef.2022.100662
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    More about this item

    Keywords

    Financial education; Financial literacy; Financial behaviour; Savings; Borrowings; Rwanda;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G53 - Financial Economics - - Household Finance - - - Financial Literacy
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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