Intro

This paper examines the potential of youth living in poverty 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. The significance of this approach became evident as Freedom from Hunger set out to test and learn from three different models of financial services integrated with financial education as part of its Advancing Integrated Microfinance for Youth (AIM Youth) initiative developed in partnership with The MasterCard Foundation.