Psychology of Scarcity: Providing Financial Education Under the Poverty Lines
-
Upload
cristina-carrillo -
Category
Economy & Finance
-
view
130 -
download
0
description
Transcript of Psychology of Scarcity: Providing Financial Education Under the Poverty Lines
![Page 1: Psychology of Scarcity: Providing Financial Education Under the Poverty Lines](https://reader038.fdocuments.in/reader038/viewer/2022110302/5498fa2db4795926148b45db/html5/thumbnails/1.jpg)
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
![Page 2: Psychology of Scarcity: Providing Financial Education Under the Poverty Lines](https://reader038.fdocuments.in/reader038/viewer/2022110302/5498fa2db4795926148b45db/html5/thumbnails/2.jpg)
Mr. Doer
Mr. Planner
Financial Education:Irrational people trying todesign rational programs for other irrational people
![Page 3: Psychology of Scarcity: Providing Financial Education Under the Poverty Lines](https://reader038.fdocuments.in/reader038/viewer/2022110302/5498fa2db4795926148b45db/html5/thumbnails/3.jpg)
Hard to put ourselves in others’ shoes?
What about living under the poverty line?
![Page 4: Psychology of Scarcity: Providing Financial Education Under the Poverty Lines](https://reader038.fdocuments.in/reader038/viewer/2022110302/5498fa2db4795926148b45db/html5/thumbnails/4.jpg)
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)
![Page 5: Psychology of Scarcity: Providing Financial Education Under the Poverty Lines](https://reader038.fdocuments.in/reader038/viewer/2022110302/5498fa2db4795926148b45db/html5/thumbnails/5.jpg)
…and a poverty simulatorplayspent.org
![Page 6: Psychology of Scarcity: Providing Financial Education Under the Poverty Lines](https://reader038.fdocuments.in/reader038/viewer/2022110302/5498fa2db4795926148b45db/html5/thumbnails/6.jpg)
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
![Page 7: Psychology of Scarcity: Providing Financial Education Under the Poverty Lines](https://reader038.fdocuments.in/reader038/viewer/2022110302/5498fa2db4795926148b45db/html5/thumbnails/7.jpg)
Two experiences of financial education in context
Access to banking services for public benefits recipients
(ascending savings)
Entrepreneurship
program for microcredit borrowers
(descending savings)
![Page 8: Psychology of Scarcity: Providing Financial Education Under the Poverty Lines](https://reader038.fdocuments.in/reader038/viewer/2022110302/5498fa2db4795926148b45db/html5/thumbnails/8.jpg)
… and suggested applications
Key points collected…
Mistrust of strangers
Community leaders
as trainers
1
![Page 9: Psychology of Scarcity: Providing Financial Education Under the Poverty Lines](https://reader038.fdocuments.in/reader038/viewer/2022110302/5498fa2db4795926148b45db/html5/thumbnails/9.jpg)
… and suggested applications
Key points collected…
Lack of motivation to follow the
program
Used of incentives to encourage participation
2
![Page 10: Psychology of Scarcity: Providing Financial Education Under the Poverty Lines](https://reader038.fdocuments.in/reader038/viewer/2022110302/5498fa2db4795926148b45db/html5/thumbnails/10.jpg)
… and suggested applications
Key points collected…
Wide range of unmet social and educational needs
Practical and context-bound
approach
3
![Page 11: Psychology of Scarcity: Providing Financial Education Under the Poverty Lines](https://reader038.fdocuments.in/reader038/viewer/2022110302/5498fa2db4795926148b45db/html5/thumbnails/11.jpg)
… and suggested applications
Key points collected…
Higher effectiveness
of individualized interventions
Supporting peer groups
4
![Page 12: Psychology of Scarcity: Providing Financial Education Under the Poverty Lines](https://reader038.fdocuments.in/reader038/viewer/2022110302/5498fa2db4795926148b45db/html5/thumbnails/12.jpg)
Our obsession with quantitative objectives:
What and how to scale?
![Page 13: Psychology of Scarcity: Providing Financial Education Under the Poverty Lines](https://reader038.fdocuments.in/reader038/viewer/2022110302/5498fa2db4795926148b45db/html5/thumbnails/13.jpg)
Financial education
is a long-term investment…
… but in the meantime,
we can nudge!
![Page 14: Psychology of Scarcity: Providing Financial Education Under the Poverty Lines](https://reader038.fdocuments.in/reader038/viewer/2022110302/5498fa2db4795926148b45db/html5/thumbnails/14.jpg)
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!