RURAL INVESTMENT STRATEGIES: Making lump sums useful

The promise of financial inclusion is that it provides the tools clients need to not only manage their personal finances but also take advantage of market opportunities to produce more and earn higher incomes.

In reality, however, most rural economic actors face complex choices when deciding how to best use the financial resources they are able to accumulate. Should it be saved (and, if so, in cash, in a deposit, or in-kind)? Lent to a family member? Used to purchase inputs for the farm or enterprise? Invested in new equipment or starting a new income-generating activity? If so, which equipment or activity?

Lacking awareness of all the possible options for their savings, and unable to compare returns and risks for the few options they are aware of, many rural economic actors either play it safe, putting savings into familiar but low-margin activities, or gamble, sometimes with disastrous results.

An advanced version of its “Dreams to Reality” financial education program, ACCESS’s rural investment strategy program works with rural economic actors to compare a defined set of savings and investment options, weigh the risks, and set goals and milestones toward making the best use of their money.