[x] Close

Download Link

Keep up with SEEP!

Sign up for our email list and you'll be the first to know about latest news, blog posts, events & new worldwide initiatives from SEEP and its members

Promoting Inclusive Markets and Financial Systems

The Impact of Savings Groups on Children's Wellbeing: A review of the Literature

Summary

The Impact of Savings Groups on Children's Wellbeing: A review of the Literature

This review presents a comprehensive overview of the literature on the impact of community-based Savings Group (SG) interventions on children’s wellbeing in resource-poor environments. This topic is of particular interest to FHI 360 as it relates to the organization’s USAID (United States Agency for International Development)-funded project, STRIVE, and is of interest to the greater international development community as savings interventions are increasingly used to reach the world’s rural poor.

Savings Groups (SGs) are self-governed groups that combine regular savings deposits into a fund from which loans are issued to group members. The SG’s distinguishing features include interest-bearing loans and each member’s ability to determine a personal contribution amount. An SG is a low-risk, informal form of microfinance and is recognized for its ability to reach those who lack access to formal financial services and microfinance programs – typically those considered "very poor".

Literature on the impacts of economic strengthening interventions on children’s wellbeing is lacking. Many of the findings reflected in the review were extracted from sections of longer reports. The works included in this review are primarily from the past decade. One of the main gaps in the literature is the lack of evidence of a direct impact of SGs on children. Most indicators measure outcomes on mediating factors, from which assumptions are made that connect those outcomes to child-level impacts. Some reports are also criticized for drawing conclusions from anecdotal or highly subjective evaluation methods. Overall, and with few recent exceptions, the evaluation methods used in the literature collected were not rigorous, which is to say they often did not compare against a control group, utilize both qualitative and quantitative research, or track change over time.

Often, SGs are used as a platform for additional development interventions such as education in health, literacy, business skills, or financial management. The impacts are expected to be greater when SGs are coupled with these complementary development strategies.



Get our e-newsletter The Monthly Networker & you'll be the first to know about latest news, blog posts, events & new worldwide initiatives.
Like Us on Facebook Follow Us on Twitter RSS Feed
© Copyright 2016 SEEP Network. All Rights Reserved