Promoting Inclusive Markets and Financial Systems
The MasterCard Foundation works with visionary organizations to provide greater access to education, skills training and financial services for people living in poverty, primarily in Africa. As one of the largest private foundations its work is guided by its mission to advance learning and promote financial inclusion to create an inclusive and equitable world. Based in Toronto, Canada, its independence was established by Mastercard when the Foundation was created in 2006. For more information and to sign up for the Foundation’s newsletter, please visit www.mastercardfdn.org. Follow the Foundation at @MastercardFdn on Twitter.
This paper examines the potential of poor youth to harness the power of groups to develop positive savings behaviors and long-term savings habits. Because youth are at a stage in their lives when they are particularly susceptible to peer influence, groups can positively impact their financial behaviors through a group structure, integrated financial education and the dynamics of social pressure and social capital. When young people start saving early, they increase their potential to develop a savings habit that can carry into their adult lives, strengthening their financial capabilities as they begin to face increased financial and social responsibilities.