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Implications: Different Financial Products for Different Ages and Life Stages
FSPs may choose to offer different financial products to different age segments. For example, YouthStart Partner FINCA Democratic Republic of the Congo (DRC) offers a current account for younger youth (below the age of 15) and a term deposit account for older youth. How FSPs or NGOs segment ages for financial or education support products may depend on the legal age in each country for independently opening and managing an acount. For example, in Mongolia and the Dominican Republic, FINCA segments the financial product and corresponding financial education curriculum by the ages of 14 and 16 respectively; the legal ages in Mongolia and the Dominican Republic to independently open and manage an account.
Savings may be more appropriate for younger and in-school youth, while credit may be more appropriate for out-of-school youth. Most UNCDF-YouthStart Partners have developed savings accounts that target youth between 12 and 17 years old and credit services that target youth between 18 and 24 years old. UNCDF YouthStart Partner PEACE Ethiopia plans to reach young married or divorced girls though groups already established by the Population Council.
Some FSPs require a higher opening deposit and minimum balance in savings accounts for older youth. In the Dominican Republic, for example, ADOPEM requires an opening deposit of US $3 for 7-13 year olds and US $6 for for youth 14 and older. AIM Ecuador partner Cooperative San Jose requires a US $2 minimum opening deposit for youth aged 13-17, who are considered clients, and US $11 for youth aged 18-24, who are considered cooperative members. Finance Trust in Uganda also requires higher opening and minimum balance for older youth (18-24 years of age).
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