Money Managers: The Poor and Their Savings

This Briefing Note addresses the main money management problem of the poor: assembling large lump sums of money. Rutherford examines the different ways that the poor are able to convert savings into lump sums (i.e., saving up, down and through) and the means by which they are able to do so (i.e., RoSCAs, ASCAs, savings clubs, indigenous insurance schemes, money guards, deposit collectors and pawnbrokers).

Rutherford suggests that “Quality Financial Services” for the poor help the poor turn savings into lump sums by providing differentiated products and terms, as many different time periods as possible and to provide these products and services in a convenient, quick, appropriate, flexible and affordable manner.

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