psychology of scarcity: providing financial education under the poverty lines
DESCRIPTION
Presentation given in Rio de Janeiro (December 11th) at the Investor Education and Financial Behavior Conference, organized by the CVM and ANBIMA.TRANSCRIPT
Psychology of Scarcity: Providing Financial
Education Under the Poverty Lines
Cristina Carrillo RiveroAddkeen ConsultingInvestor Education and
Financial Behavior ConferenceRio de Janeiro, 10-11 December,
2013
Mr. Doer
Mr. Planner
Financial Education:Irrational people trying todesign rational programs for other irrational people
Hard to put ourselves in others’ shoes?
What about living under the poverty line?
ResearchFrom Poor Economics (Duflo and
Banerjee) to Scarcity: Why Having Too Little Means So Much
(Shafir and Mullainathan)
Some help to understand the scarcity mindset…
Field experiences Pro-Savings projects and cases
(MIF)Innovations for Poverty Action
(IPA)
…and a poverty simulatorplayspent.org
The here and now… and its consequences
for our financial education initiatives
No planning for
tomorrow No sustained
interest in learning
Labor informality. Reliance on public
benefits
Two experiences of financial education in context
Access to banking services for public benefits recipients
(ascending savings)
Entrepreneurship
program for microcredit borrowers
(descending savings)
… and suggested applications
Key points collected…
Mistrust of strangers
Community leaders
as trainers
1
… and suggested applications
Key points collected…
Lack of motivation to follow the
program
Used of incentives to encourage participation
2
… and suggested applications
Key points collected…
Wide range of unmet social and educational needs
Practical and context-bound
approach
3
… and suggested applications
Key points collected…
Higher effectiveness
of individualized interventions
Supporting peer groups
4
Our obsession with quantitative objectives:
What and how to scale?
Financial education
is a long-term investment…
… but in the meantime,
we can nudge!
Understanding the real environment… and the
decision-making process
As a conclusion…
Effective partnership: the role of the influencial
members of the group
Encouraging participation: incentives, context-bound approach… and nudging!
