Financial Education TRAINEE's GUIDE

E E ’ S G U ID E
TRAIN ation c
Fin a n c i a l e d u
o r k e r s i nrica
Af
fo r w
G E Y O U R
MA N A !
S M A RT LY
M O N E Y
TRAINEE’S GUIDE
Financial education for workers in Africa
MANAGE YOUR
MONEY SMARTLY!
International Labour Organization

Copyright © International Labour Organization [2014]
First published [2014]
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Financial education for workers in Africa – Trainee’s Guide
ISBN 978-92-2-127584-8 (print)

ISBN 978-92-2-127585-5 (web)
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Printed in South Africa
Illustrations by Cissé Samba. Lay-out by Michel de Jésus. Adaptation and editing by Valérie Breda
TRAINEE’S GUIDE
2
TABLE OF CONTENTS
SOMMAIRE
A) Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
1. Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2. Presentation of the trainee’s guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
3. Questionnaire « How do I manage my money? How do I behave financially? » . . . . . . . . . . . . . . . . . 7
4. Introduction to the characters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Comics of Mary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
B) Set goals and communicate with your family . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

1. Set your goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
2. Talk to your family about your goals! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
3. Assess the costs of your goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
4. Make a savings plan to achieve your goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Comics of Peter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
C) Manage your money smartly . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

1. Be a smart spender! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
2. Understand your work contract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
3. Read your payslip! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
4. Create your budget! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
5. Keep track of and stay within your budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
6. Keep your financial records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Comics of Myriam . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
D) Products and financial services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

1. Choose a savings method! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
2. Select your savings products wisely . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
3. Compare the different methods to finance your projects! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
4. Select your credit wisely! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
5. Think about your housing investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
6. Watch out! Do not get over-indebted! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
7. Use payment methods with confidence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
Comics of Jack . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
E) Financial institutions and money transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

1. Understand your SACCO’s governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
2. Get to know financial institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
3. Use financial institutions with confidence! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
4. Get to know the money transfer service providers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
5. Send money smartly! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
F) Risk management and insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80

1. Protect yourself against life risks! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
2. Understand insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
3. Use your insurance policy! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
4. What you need to know about health insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
Annexes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92
Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
FINANCIAL EDUCATION FOR WORKERS IN AFRICA

3
INTRODUCTION
A
TRAINEE’S GUIDE
4
A
A
INTRODUCTION
INTRODUCTION
1. BACKGROUND
The document you have in your hands is the Trainee’s Guide on financial education for workers in Africa. It targets all
workers in Africa and in particular those who wish to improve their money management.
This Trainee’s Guide introduces basic knowledge, skills and tools related to earning, spending, budgeting and using
financial services such as savings, credit, money transfers and insurance.
It is part of a training package entitled “Financial education for workers in Africa” aimed at teaching workers and trade
union members to better manage their finance by i) equipping them with adequate financial knowledge and management
skills, ii) strengthening their behaviours that lead to increased saving, and more productive and responsible spending
and borrowing, iii) promoting equality between men and women and strengthening women’s role in family decision
making on money matters.
The training package was developed by the International Labour Organization (ILO) on the basis of various ILO financial
education tools created for different target groups and for use in Asia and Africa, and adapted to the workers’ context
in Africa.
This Trainee’s Guide is intended for use as a workbook during the financial education training and as a quick reference
guide thereafter.

5
INTRODUCTION
2. PRESENTATION OF THE TRAINEE’S GUIDE

Financial education, what is it about?
Financial education is knowledge, skills and tools that enable us to better IDE
manage your money. The training you are going to attend will enable you TRAINEE’S GUat io n
Fi na nc ia l edAf uc
rk er s in ric a
to plan and prepare for your projects in the future. It offers the opportunity fo r wo
to learn skills related to earning, spending, budgeting, saving, borrowing and

A
ways to make the most of your resources.
It will also give you the opportunity to think about communicating better
on money matters with your family, or your employer and to sort out some
challenges when they arise.
You will learn or review some tools to manage well your money. YO U R
M A N A G E RT LY!
MA
Financial services such as credit, savings, money transfers or insurance won’t M ON E Y S
have any secret for you.
How to use this Trainee’s Guide?
You should use this Trainee’s Guide during the training on financial education. The order of the chapter follows the
modules and sessions of the training. However feel free to read any chapters as you please!
This Guide includes many exercises and worksheets that you can fill for yourself.
TRAINEE’S GUIDE
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3. QUESTIONNAIRE
A
« How do I manage my money? How do I behave financially? »
INTRODUCTION
Read the questions below and answer with Yes or No.
SESSION QUESTION
NUMBER
Have you set any deadline to implement your project? (Please choose the
B.1 most important project for you to respond to these questions). Yes No
B.2 Do you easily talk about money with your family? Yes No
B.3 Do you know the cost of your project? (the most important one) Yes No
Do you regularly differentiate between necessary expenses (food, electricity,
C.1 Yes No
water...) and the other expenses (leisure, cinema, cigarettes…)
C.2 Do you know and understand all the clauses of your work contract? Yes No
C.3 Do you understand your payslip? Yes No
C.4 Do you prepare a written budget on a regular basis? Yes No
C.5 Do you record your expenses in writing and as you spend? Yes No
Do you know the purpose of keeping documents (invoices, budgets, pay
C.6 slips…)?
Yes No
D.1 Do you know all the saving methods available? Yes No
D.2 Do you know how to select a savings product? Yes No
D.3 Do you know all the ways to secure funding for your project? Yes No
D.4 Do you know all the criteria for comparing credit products? Yes No
D.5 Do you understand housing loans? Yes No

If you have secured a loan (from a financial institution or a person), were
D.6 you able to repay easily? Yes No
D.7 Have you ever used payment methods different from cash (check, bank card...)? Yes No
E.1 Do you understand the governance system of your SACCO? Yes No

Have you already compared several banks, SACCOs or MFIs to select the
E.2 most suitable one?
Yes No
E.3 Have you heard of the key principles of client protection? Yes No
E.4 Do you know all the options to transfer money (remittance)? Yes No
Have you even sent/received money in a formal way (bank, money transfer
E.5 operators...)?
Yes No
F.1 Do you know how to protect yourself against risks (illness, unemployment...)? Yes No
F.2 Do you know how insurance operates? Yes No
F.3 Have you ever received compensation (money) from an insurance company? Yes No
F.4 Do you know how to use your health insurance? Yes No

If you have answered NO to some questions, pay attention to the corresponding training session (left column).

7
4. INTRODUCTION TO THE CHARACTERS
INTRODUCTION
Name: Peter
A
Age: 21
Family situation: Single
Job type and activity sector: Welder in a steel

factory (East Africa Steel Company) located in an
industrial zone
Trade union membership status: Member of the metal workers’ trade union
Financial personality: Careful with his money
Financial situation: Is a member of a Savings and Credit Cooperative and has a bank
account
Goals
Peter: Study to get a better job

His sister Karen: Help her to set up a daycare centre
Other characters:
• His work colleague: Paul
• His cousin: George
TRAINEE’S GUIDE
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A
INTRODUCTION
Name: Mary
Age: 42
Family situation: Married to Joseph - 3 children
Job type and activity sector: Middle manager in

a tea farm (East Africa Tea Factory)
Trade union membership status: Member of the agricultural workers’ union
Financial personality: Careful with her money
Financial situation: Is a member of a merry-go-round, a Savings and Credit

Cooperative; has an account in a bank and a microfinance institution
Goals
Mary: Buy a small laptop
Her husband Joseph: Expand his construction business
Mary and her husband: Buy land and build a house
The children: Pay for their school fees
Other characters:
• Her colleagues at the tea farm: John, Mohammed and Emily
• Her brother and sister: Tom and Eva
• Her cousin: Susan who works in a porridge factory
• Her friend from her home village: Cecilia

9
INTRODUCTION
A
Name: Jack
Age: 38
Family situation: Married to Sophie - 2 children
Job type and activity sector: Teacher in a

secondary school (civil servant)
Trade union membership status: Member of the teachers’ union
Financial personality: Compulsive spender
Financial situation: Is a member of a Savings and Credit Cooperative and has a bank
account
Goals
Jack and his wife: Expand her beauty salon business
His brother: Set up a business
His parents: Renovate the house
Other characters:
• His work colleague: Rose
• His friend: Alfred
TRAINEE’S GUIDE
10
A
INTRODUCTION
Name: Myriam
Age: 22
Family situation: Separated - One daughter
Job type and activity sector: Domestic worker

in a residential suburb
Trade union membership status: Member of the domestic workers’ union
Financial personality: Careful with her money
Financial situation: Is a member of a merry-go-round and a Savings and Credit

Cooperative and has an account in a microfinance institution
Goals
Myriam: Start a cake shop business
Her daughter: Save to pay for her daughter’s medical expenses
Other characters:
• Her sister: Kate (accountant)
• Her work colleague: Grace
• Her friends and neighbours: Esther and Janet (both with a small doughnut
production business)

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INTRODUCTION
A
TRAINEE’S GUIDE
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A
INTRODUCTION

13
INTRODUCTION
A
TRAINEE’S GUIDE
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A
INTRODUCTION

15
B
SET GOALS AND COMMUNICATE WITH YOUR FAMILY
SET GOALS
AND COMMUNICATE WITH
YOUR FAMILY
A N C
I N
F
IA
QUIZ
L
B1. What does the following proverb mean? “If a man does not know to
which port he’s steering, no wind is favourable to him.”
E D
N
U
a. You need to have wind to be able to sail. C
A T I O
b. It is easier to realize your life projects if you know where you go and if you set
concrete goals.
c. It is easy to steer one’s boat when there is wind.
B2. Do you have projects for the future?

a. Yes I have short-term and long-term projects and I save regularly to be able to achieve them.
b. Yes I have projects but there is no need to think about it as I will never have enough money to achieve them.
c. I am too young to have projects for the future.
B3. Your parents call you to ask for money again for a ceremony in the village.
B
a. I send them money right away as I always do what my parents ask.

b. I disagree strongly and refuse to send any money.
c. I discuss with them to better understand their needs and see how I can help them keeping in mind my
goals and my savings plan.
Answers: B1: b; B2: a; B3: c
TRAINEE’S GUIDE
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B
1. SET YOUR GOALS

DEFINITION
A goal is something you want to do. Setting goals helps you
to define what you want to do in life and hence to know what
you need to do to make it come true.
EXERCISE
Look at the profile of our four characters, Mary, Myriam, Peter and Jack. What are
the goals of Mary and her husband Joseph? Write them here!
And Peter’s goals? Write them here too! !
Have you ever thought about your goals? If so, write or draw them here!

17
2. TALK TO YOUR FAMILY ABOUT YOUR GOALS!
ADVICE TO DISCUSS YOUR

GOALS WITH YOUR FAMILY
• Think well about what you want (and the reasons why you want it) before you talk to your family.
• Don’t be afraid to talk about your goals. All men and women – young or old – have a right to set their
own goals.
• Find allies in your family: Persons to whom you would have talked before and who could support you,
persons who are respected in the family.
• Choose the right time to talk to your spouse and/or other family members about your goals, set a time
when they are available.
• Be confident when you talk about your goals and listen to the opinions of the other people without
interruption.
• Be respectful to your family members and flexible on your position.
• If there is a disagreement, examine the issue and look for compromise solutions that will benefit everyone
in the family.
3. ASSESS THE COSTS OF YOUR GOALS

Do you know the costs of your goals? If you do, write the costs beside the goals you have written or drawn
B
above. If you don’t, it is very important that you find out. It is the only way to know how much money you
need to achieve your goals. Meanwhile you can indicate an approximate cost that you can correct later.
Then, prioritize your goals indicating 1 for the most important,

2 for the second most important and so on.
For example, in the case of Mary, the most important goal EXERC ISE
Look at the
profile of ou
the goals of r four chara
is to pay for the school fees of her children the coming month
th Mary and he
r husband
cters, Mary,
Joseph? Wr
Myriam, Pe
ter and Jac
ite them he k. What are
of January. So next to school fees, she would write 1. re!
Now, it is your turn!

And Peter’s
goals? Write
them here
too! !
Have you ev
er thought
about your
goals? If so
, write or dra
w them here!
TRAINEE’S GUIDE
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4. MAKE A SAVINGS PLAN TO ACHIEVE YOUR GOALS
B
Now let’s summarize and fill the table below with all the information you have thought of: Goals,
priority, costs, date when you want to achieve your goal(s), and other sources of financing.
NUMBER OF MONTHS HOW MUCH I NEED

DATE WHEN I OTHER SOURCES
COSTS OF MY BEFORE THE DATE TO SAVE EACH
GOALS WANT TO ACHIEVE OF FINANCING
GOAL OF ACHIEVEMENT MONTH TO ACHIEVE
MY GOAL (IF RELEVANT)
OF MY GOAL MY GOAL
My short-term
personal goals are:
My long-term
personal goals are:
Transfer from
Example of Mary 30 USD / child my sister
January 90 USD in total (30 USD) 10 USD
and Joseph: 6 months
To pay school fees 60 / 6 months = 10
for the children 30 x 3 = 90 Remaining amount
to pay:
60 USD
My short-term
family goals:
My long-term
family goals:
TOTAL AMOUNT I NEED TO SAVE EVERY MONTH

TO ACHIEVE ALL MY GOALS (TOTAL OF RIGHT COLUMN):

19
YOUR TURN!
I need to save
you prioritized the goals: for
. . . . . . . . . . . . . .USD
example you won’t change your
per month to achieve all
goals 1 and 2 but you may
my goals.
need to change your goals 3
and 4.
Attention! If it is not possible
for you to save so much every
e: 1,000
month, you need to review your My monthly incom
month
goals: by reducing their costs, Goal 1: 200 /
month
or by cancelling some of the Goal 2: 100 /
month
goals now, or by postponing Goal 3: 350 /
month
the date when you wanted to Goal 4: 450 /
achieve some of your goals. saved
300 to bre month
You can do that looking at how pe
B
KEY MESSAGES
• It is easier to achieve your life goals if you know
where you want to go and if you set concrete
steps to reach them.
• Some goals can be achieved quickly, other goals

will require several years or even decades.
• Your goals can change in the course of your

life and can be different with the goals of your
family members (spouse, parents, relatives), in
particular for a family that has relatives living
in another region or country. It is important
to make your goals compatible with those of
your family.
TRAINEE’S GUIDE
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B

21
B SET GOALS AND COMMUNICATE WITH YOUR FAMILY
22
TRAINEE’S GUIDE
B

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B SET GOALS AND COMMUNICATE WITH YOUR FAMILY
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TRAINEE’S GUIDE
B

25
C
MA NAGE YOUR MONE Y SMARTLY
MANAGE YOUR
M O N E Y S M A R T LY
A N C
IN I
A
F
QUIZ
L
E D
U
N
C A T I O
C1. It is the end of the month, I’ve just received my salary:
a. I rush to the market to buy this nice jacket I saw the other day.
b. I set aside a part of my salary to achieve my goals.
C
c. I buy a big present for my best friend’s birthday.
C2. A budget is:

a. A tool to decide, plan and use your money to achieve your goals.
b. A sheet to record expenditures.
c. A table.
C3. What are the three main parts of a budget?
a. The date, the income and the expenditures.

b. The income, the expenditures and savings.
c. The expenditures, the income and the signature.
C4. How shall I do to follow my budget?
a. I have so many obligations that it is impossible to follow my budget.

b. I don’t do any budget because I believe in fate.
c. I use tracking sheets to record my expenditures and income.
Answers: C1: b; C2: a; C3: b; C4: c
TRAINEE’S GUIDE
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1. BE A SMART SPENDER!
C
MANAGE YOUR MONE Y SMARTLY
QUESTIONS
• Are you someone who likes spending or someone who likes saving?
• For example, do you often give up on things that you want?
DEFINITION
Saving, itt means not spending all your money and setting aside a
part for a specific goal in the future. It means setting aside small
or large sums of money, regularly or from time to time.
EXERCISE
Help Peter to choose between necessary expenses (we call them needs) and optional
expenses (we call them wants)! Circle the images that correspond to needs for Peter
to distinguish them from the wants.
Food Motorbike Condom

27
Cash withdrawal Accomodation School
Water SIM Card Healthcare

C
Electricity Make-up Shoes
Smart phone Soda Cigarettes
Lottery ticket Ice-cream Sound system
TV MP3 Player Camera
TRAINEE’S GUIDE
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YOUR TURN!
C
I would like to buy:

My needs How much does it cost?
Total needs:
My wants How much does it cost?
N!
ATTENTIO
Be careful! Sometimes, something can
be a need for someone and a want for
someone else.
For example, the mobile phone, Joseph
needs one for his business, while
Peter uses his mobile phone to call his
friends and family.
Total wants:
Do I have enough money to buy

all the things I listed?
Yes No

29
9
60
30
If I don’t have enough money, I decide to give up the following wants:
15
10
45
20
25
TIPS TO SAVE
5
• Set aside a bit of money every day or every week.
• Do not buy a new item if yours still works or if it can be repaired.
• Buy less presents for your family. Talk to them first and agree with them on your support.
C
• If possible, spend less on religious or social ceremonies.

• Keep less cash in your wallet (and leave it in a safe place: at home, on a bank account…).
• If you send money to your parents or other family members, do not send all your money to them and keep
part of it for your own needs and emergencies.
• Always keep in mind your long-term goals to remind you why you save!
KEY MESSAGES
• You need to differentiate the various expenses:
essential expenditures (needs, such as food,
water…) and optional expenditures (wants, such
as cosmetics, cigarettes…).
• Take good care of the money that was earned

by others.
• Saving, it is giving up on an immediate want to

achieve a goal in the future.
• Savings is a need; saving is a security for the

future.
TRAINEE’S GUIDE
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2. UNDERSTAND YOUR WORK CONTRACT
C
Understanding your work contract is very important. If you understand it, it can protect

you. But if you sign a contract without reading it or knowing what it means you can end in
a bad situation.
DEFINITION
Work contract: A (legal) agreement between employer and
worker that specifies the duties and responsibilities and benefits
for both parties.
PLOYER
QUESTIONS YOU SHOULD ASK YOUR EM
BEFORE YOUR SIGN A CONTRACT
YOUR WORK
• What are my daily duties?
• Who is my boss?
• For how long is my contract?
• How many hours a day will I work?
• What time do I start and end each day?
• When is my day off?
• How many days of holiday will I be given each year?
YOUR PAY
• How often will I be paid?
• Will I be paid at the same time each week or month?
• Will I get a written record of each payment?
• Will I be paid cash or will my salary be deposited in a bank account?
• If I work overtime, how much more will I get paid?
• Am I expected to pay anything to my employer? For what? How much does it cost?
KEEPING HEALTHY
• Will I receive training on how to do the job and proper equipment for safe work?
• What should I do if I have an accident?
• Will my employer offer health and accident insurance?
What benefits does it offer me?
• If I become pregnant will my employer let me continue
working and provide maternity protection benefits?
EMPLOYER
• What is the name of my employer?
• What is my employer/company’s address?
• What is my employer/company’s phone number?
YOUR ATTENTION!
Remember that you can always seek advice from your trade union! Before signing the contract, your trade
union can help you understand the terms and conditions of the contract. Later, if you face a problem with
your employer, your trade union representative can assist you to resolve it.

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3. READ YOUR PAYSLIP!
DEFINITION
A payslip is a note given to employeess
when they have been paid, detailing
the amount of pay and other
allowances given and the amounts off
deductions (tax, insurance, salary
advance…).
Let’s look at Rose (Jack’s work colleague)’s payslip:
Company’s name:
Saint Mary Secondary School
C
Date National
Employee’s number Employee’s name
(period covered) Insurance number
34689 Rose January 2013 1357935
Payment Unit Rate Amount (USD) Deduction Amount (USD)
Basic salary 1 500 500 Social insurance 20
Overtime 3 20 60 Health insurance 15
Bonus 20 Income tax 100
Allowances Loan repayment 50
Transport 1 10 10 Salary advance 100
Food 1 15 15 Union contribution 5
Housing 1 20 20
GROSS PAY (USD) 625 Total deductions 290
Employees’ address
NET PAY (USD) 335
New hospital road 45
Payment method Bank transfer
YOUR ATTENTION!
Payslips are important documents that need to be kept in a safe place. The payslip shows that you have
a regular income. You may be asked to show them when you apply for a loan, when you want to rent an
apartment or house, or when you apply for a visa.
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4. CREATE YOUR BUDGET!
C
QUESTIONS
• Have you ever created a budget? Yes No
• If you have, have you written it down or only kept it in mind?
DEFINITION
A budget is a tool to decide, to plan and to use your
money to achieve your goals.
EXERCISE
You have seen during the training how Mary and
Joseph create their budget. Now it is your turn!
Create your own budget!
Be careful! The line « Income – expenditures » at
the bottom of the table must be positive. If it is not,
it means that you don’t have enough income and not
enough money for all your expenses. It also means that
you don’t have any money to save to achieve your
goals.

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MY BUDGET
Income Amount (USD)

Salary
Over-time
Bonus and tips
Sub-total
Total income
Expenses
Expenses on household needs (needs)
Utilities (gas, electricity, water)
Food
C
Transport
Rent
Health/medicines
Communication (telephone)
School fees
Money transfer
Sub-total (needs)
Optional expenses (wants)
Sub-total (wants)
Total expenses
Income – expenses
Savings for my goals
Savings for emergencies
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KEY MESSAGES
C
• There is a tool used to better manage your money – a budget.

• To create your budget, you need to calculate your income and expenses. With this
calculation, you can define your savings capacity, meaning how much you can set aside
each month.
• In case of emergencies or changes in your financial situation, you will have to adjust your
budget to be able to cover all your expenses and save for your goals.
• A budget can help you to decide how to spend your money and save to reach your goals.
5. KEEP TRACK OF AND STAY WITHIN YOUR BUDGET
The story of Janet

Janet, Myriam’s neighbour, had many expenses during the holiday season.
She planned for this in her budget. During the season, she purchased gifts
for family and friends and special food. From time to time, she added up her
expenses to find out how much was left in her budget. She realized that she
spent more on gifts and offerings than expected, so she looked carefully at her
budget. She had put an amount in to buy mobile phone accessories. She decides
to spend less on the mobile phone accessories to make up for overspending
on gifts and food.
QUESTION
• What did Janet do to stay within her budget?
TIPS TO STAY WITHIN YOUR BUDGET

• Remind yourself often what you planned to spend.
• Put in the budget something for unexpected spending needs.
• Keep savings out of reach so you do not spend them.
• Keep track of what you spend.
• Make sure you do not spend more than is budgeted.
• If you spend more on one item, spend less on something else.
• Make a list of ways to cut planned expenses.
• Get the family to participate in developing and sticking to the budget.

35
EXERCISE
Look at the income and expense tracking sheets of Peter.
MY INCOME TRACKING SHEET
Name: Peter
Month: January
Year: 2013
DATE INCOME AMOUNT (USD)

1/1/2013 Salary 300
1/1/2013 New Year bonus 150
17/1/2013 Part-time job 20
T O T A L I N C O M E 470
C
MY EXPENSE TRACKING SHEET
Name: Peter
Month: January
Year: 2013
DATE EXPENSE AMOUNT (USD) PLANNED
++
YES NO
1/01/13 Rent 50
1/01/13 Electricity 10
++ +
1/05/13 New tee-shirt 4
1/07/13 Weekly lunches 5
+++
1/10/13 Money transfer to mother 50
1/10/13 Bank charge 1
1/20/13
1/21/13
Telephone scratch card
Weekly lunches
5
5
++ +
10
++
1/26/13 Friend’s wedding present
TOTA L 150
TOTAL INCOME - EXPENSES 320
SAVINGS 320
TRAINEE’S GUIDE
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C
Now it is your turn! You can use the two following sheets to monitor your

income and expenses and hence stay within your budget and ultimately reach
your goals!
MY INCOME TRACKING SHEET
Name:
Month:
Year:
DATE INCOME AMOUNT
T O T A L I N C O M E

37
M Y EXPENSE TRACKING SHEET
Name:
Month:
Year:
DATE EXPENSES AMOUNT PLANNED

YES NO
C
TOTA L E X P E N S E S
T O T A L I N C O M E
SAVINGS (= INCOME – EXPENSES)
TRAINEE’S GUIDE
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KEY MESSAGES
C
• Remind yourself often what you planned to spend.

• Include in your budget something for unexpected spending needs.
• Get your family to participate in developing and sticking to the budget.
• You need to know your total income. Knowing how much you earn is an important step
to take control of your money and allow you to plan ahead for expenses. You also need to
know the amount of your total expenses. It is important to control your budget. You can
adjust your expenses when you see that you spent more than expected.
• Attention! If you have irregular income, meaning that every month you earn a different
amount, you can create your budget using an average income and in saving when you
earn more to balance the times when you earn less.

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6. KEEP YOUR FINANCIAL RECORDS
QUESTIONS
• What happened to Peter?
C
• What could Peter have done to avoid this problem?
EXERCISE
Match the following important documents with the information that they provide:
Financial documents
EMPLOYMENT LOAN MONTHLY

BUDGET TRACKING
CONTRACT AGREEMENTS
SHEETS
SAVINGS BANK INSURANCE

PASSBOOK STATEMENT AGREEMENT PAYSLIPS
TRAINEE’S GUIDE
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C
Information provided

Deposits, Projected income Insurance Weekly and/or
withdrawals, interest and allocation premiums, terms monthly income and
earnings, fees on to different and conditions. expense records.
bank accounts. expenditures.
Amount of wages Employee’s and Amount and date of Amount of loan,

earned and date. employer’s rights and savings withdrawals repayment schedule,
responsibilities. and deposits. time period.
KEY MESSAGES
• Good records help you manage your income and expenses. The budget form, income and
expense tracking sheets are records.
• Good records provide the specific amounts of past expenses that will help you develop a
budget for the future.
• Documents like your contract and loan agreement are important in case you have a
conflict with your employer.
• A copy of your insurance card is important because it will show proof that you are covered,
if you have insurance.
• A copy of your passport or ID card is important if you misplace your passport or ID card. It
will help you get a replacement.

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C MA NAGE YOUR MONE Y SMARTLY
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TRAINEE’S GUIDE
D
D
PRODUCTS AND
P RODUCTS AND FI NANCI AL SERVICES

FINANCIAL SERVICES
A N C
I N
F
IA
QUIZ
L
E D
D1. What is in your view the best way to save?
N
U
C
A T I O
a. I keep my money home as it is more convenient.
b. I deposit my money at the bank as it is safer.
c. I put my money in the merry-go-round as I have many friends there.
d. Each method has advantages and disadvantages. I review them carefully before choosing the method that is
the most appropriate for my needs.
D2. You would like to set up your business in a few years, what savings account is the most
appropriate for you?
a. A passbook savings account.

b. A contractual savings account.
c. A time deposit account.
D3. What is in your view the best way to fund a project?

a. Borrow money.
b. Use your savings.
c. Borrow money and use your savings.
d. Assess your financial needs and your own resources and choose the best option.
D4. What is the most important criteria to select a credit product?

a. The interest rate.
b. The repayment conditions.
c. There is no criteria more important than the others, you need to review them all and choose the credit product
and the lender that correspond the best to your needs and your personal situation.
d. The geographic proximity of the lender.
D5. What is the term that does not belong to credit terms?
a. Interest rate.
b. Collateral.
c. Budget.
d. Penalties.
Answers: D1: d; D2: b; D3: d; D4: c; D5: c

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1. CHOOSE A SAVINGS METHOD!
PRODUCTS AND FI NANCI AL SE RVI CE S
Now that you have created your personal budget (or your family budget), you know how much you can save
every month and how much you must save for each of your goals.
QUESTION
• What are the savings methods used by the characters above?
D
›› Each method has its advantages and

disadvantages.
Fill the columns “Advantages” and

“Disadvantages” of the table below
to better know them.
In the last column on the right

side, you will indicate how safe this
ADVANTAGES method is for you. Use a scale of
DISADVANTAGES
1,2,3 to rate each service. “1” is low
safety. “2” is average safety—“sort
of” safe. “3” is very safe.
To fill the table, think about:
• The safety of your money there,

• The possibility to withdraw your money when you want,
• The possible delays to withdraw your money,
• The possibility to save a lot or a just a little bit of money,
• The possibility to avail a credit against your savings,
ests).
• The possibility that your savings generate some money (interests).
TRAINEE’S GUIDE
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SAVINGS METHODS ADVANTAGES DISADVANTAGES RISK RATING
D
Formal
• Bank.
• Post Office.
• Savings and credit cooperative.
• Regulated microfinance
institution (MFI).
• Mobile banking.
Semi-formal
• Women’s savings group.
• Village bank.
• Savings and credit association.
• Self-help group.
• Non-regulated microfinance
institution.
• Non-regulated savings and
credit cooperative.
Informal
• At home (in cash.)
• In kind (gold, jewelry, cattle,
land, house, etc.)
• Keep money with a friend/
relative or trader.
KEY MESSAGE
There are different savings methods. You
YO U R T U R N ! need to know them so that you can choose
ges and
I know the advanta
the one that is most adapted to your needs
veral savings and your goals.
disadvantages of se y goals and
tm
methods. Looking a
y bu d ge t a ga in , I think the best
m
my projects
savings method for .............
....
is: .................... .............
....
........................

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2. SELECT YOUR SAVINGS PRODUCTS WISELY
A savings product, is for example, a passbook account that generates 3% interest or a contractual account for
education purpose for five years.
DEFINITION
A savings product is a savings method for which we know the

characteristics, such as:
- Interest rate
- Access to savings / flexibility of withdrawal
- Convenience and ease of use
- Requirements for opening a savings account
- Safety
- Cost of savings (fees to open, manage
or close an account, to do transactions)
D
- Liquidity
Here are the three main savings products offered

by financial institutions:
• The regular or passbook savings account is

adapted for when you want to make deposits or
access your money any time.
• The contractual savings account is adapted

when you want to save a set amount each
month for a specified period of time to reach
a specific goal (housing, education, marriage,
business…). Remember that early withdrawals
are either prohibited or penalized.
• The time deposit account is adapted if you

want to make your money grow for longer-term
goals (you deposit a lump sum which you promise
not to touch for a specific period of time).
Each type of product has advantages and disadvantages

(for example, the different interest rates).
TRAINEE’S GUIDE
50
FINANCIAL
TIPS AND ADVICE: WHAT QUESTIONS TO ASK A
PRODUCT?
INSTITUTION BEFORE SELECTING YOUR SAVINGS
D
• Can I make withdrawals when I want?

• What is the interest rate?
• May I take out loans against my savings?
• Is the savings schedule flexible? (In other words do you have to deposit certain amounts at a fixed date?)
• Is there a minimum deposit when I open the savings account or a minimum amount that should always be on
the account?
• Will I be charged for making anticipated withdrawals? If yes, how much?
• How would people normally use this type of account?
3. COMPARE THE DIFFERENT METHODS

TO FINANCE YOUR PROJECTS!
THE BUSINESS OF ESTHER

You are Esther and you work part-time in a shoe factory. On the side, you run a small doughnut
production business. Today you are going to visit your sister, Janet, who also makes doughnuts
but in another village.
During the visit you will ask your sister lots of questions on how she finances her business. Your
sister also wants to find out how you finance your business.
Here is how you proceeded to start and expand your business:
You started your business with USD 300 taken from your savings (accumulated from your previous
wages at the shoe factory) and USD 50 that your husband gave you. Your business is very small, but
you plan to expand it little by little.
Every week you put aside USD 10 on your savings account, opened in a microfinance institution nearby.
This discipline allows you to gather every three or four months enough money to improve and expand
your business (purchase of materials, improving working conditions...).
Now you can purchase ingredients in bulk to get better price and use better quality ingredients (better
quality flour, sugar, honey…). You were also able to buy a few tables and chairs for clients who want
to eat the doughnuts on the spot. You also started to offer soft drinks.
The more you earn, the more you can save and the bigger the investments you make for your business.

51
THE BUSINESS OF JANET

Your are Janet and you work as a teacher in the primary school of your village. On the side,
you have a small doughnut production business. Your sister Esther also makes doughnuts but in
another village. She is going to visit you today. You want to find out how your sister finances
and expands her business.
Your sister also wants to find out how you finance your business.
Here is how you proceeded to start and expand your business:
D
You started your business with USD 150 taken from your savings (accumulated from your previous
wages at the dairy cooperative) and USD 200 borrowed from a microfinance institution (MFI).
The loan allowed you to buy a small freezer that enables you to stock doughnuts when the demand is
high. You pay all your weekly expenses, including your loan repayment to the MFI, on time every week.
However, you can only save USD 5 per week at best.
One day a small shop was for rent at the market. You saw it as a golden business opportunity. You
asked your employer for a salary advance of USD 200 and a loan of USD 800. In addition, you borrowed
USD 1,000 from your brother-in-law. You used the USD 2,000 to cover the six-month-advance rent
payment requested by the owner.
QUESTIONS
• How did Janet and Esther expand their business?
• Which of the two businesswomen is more likely to succeed? Why?

Why?
• Which person takes most risks?
• What advice would you give to Janet and Esther?
• If you were Janet or Esther, what would you do differently?
TRAINEE’S GUIDE
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D
ADVANTAGES AND DISADVANTAGES OF BORROWING OR USING YOUR OWN MONEY
ADVANTAGES DISADVANTAGES
Borrowing • Access to a larger amount of money. • Costs of borrowing (interest...).

• Quick access. • Obligation to pay off the debt and facing
the penalties if one does not comply
with the planned repayment schedule.
• If one borrows through a group, the
obligation to respond to the conditions
of group membership and to respect the
group's regulations.
Using your own money • Avoiding the costs of borrowing (interest...). • Access to a limited amount of money.
(savings)
• The freedom to use your money as you want. • Your project is developing more slowly.
• The investment risks are lower if you • Impossibility to respond to business
finance them with your own money as you opportunities.
will probably have less money available.
• Risk: You should not use your emergency
• Avoid having to make loan repayments in fund, even if you’re using your own
the future. money to finance your project.
KEY MESSAGES
• There are several options to finance your goals.
• Each option has pros and cons. It is important

YO UR TU RN ! to understand and review them carefully to
select the option that matches the best your
needs and your personal situations.
Looking at my goals and
budget, I think the best option • You can also combine several financing
to fin an ce my goals is: ....... options (borrowing and savings).
..................................... • Talk about the financing options to your

..................................... family, in particular the members of your
family who are involved in your goals (spouse,
parents, children, siblings…).

53
4. SELECT YOUR CREDIT WISELY!
QUESTIONS
• Peter has a clear goal. He’s gathering information to find the credit that is the most
adapted to his situation. Have you ever done the same thing? How did it go?
D
DEFINITIONS
Loan: The act of giving money to a another party in exchange

for future repayment of the principal amount along with interest
or other finance charges.
Interest: It is the price for the use of the money of the lender
over a certain period.
TRAINEE’S GUIDE
54
D
EXERCISE

Match each term credit with its definition.
An item of value that the borrower will have

to give to the lender in case the borrower is
INTEREST unable to repay the loan (could be land, vehicle,
savings, etc.).
The period of time that the

C O L L AT E R A L borrower has to use the loan
money and repay it.
The original amount of the

loan, without interest.
LOAN TERM
Cancellation of the credit contract. In some countries the loan

agreement is not legally binding until several days or weeks after
P R I N C I PA L signing. During this period no payment can be made from the lender to
the borrower. It ensures an efficient protection against impulse buying.
The borrower is always fre

e to repay
all or part of his/her deb
t before the
expiration of the loan agr
G U A R A N TO R that without incurring pen
eement, and
alties.
The amount of money that the borrower

pays to the lender, in addition to the
GRACE PERIOD loan amount, for use of the money of
the lender.
case
A person who will repay your loan in
this person may be required
you cannot pay;
loan agre eme nt with the
RETHINK to co-s ign your
lender.
ing a
E A R LY Period after receiv
th e first
loan and before
R E PA Y M E N T payment is du e.

55
QUESTION
• In your opinion, what do you need to analyze

when selecting a lender?
Important features to consider when selecting a lender

• Interest rate (fixed or variable).
• Effective interest rate (EIR), in other words, the true cost of taking the loan (including administrative
charges, compulsory insurance…).
• Loan amount.
• Ease of access to credit (for example the savings amount required for such credit amount, collateral
value).
• Penalties in case of late repayments.
• Distance from my home.
• Methods of recovery in case of delays (legal, intimidation, threats…)
• Compulsory use of credit for a particular asset (house/land, productive investment…)
• Option of grace period before making the first repayment.

D
• Access to other financial services: current account, money transfer, bank card, mobile or internet
services.
KEY MESSAGES
YO UR TU RN !
• In order to use well a credit product, you
should understand well all the credit terms.
Looking at my goals and my
budget, I think I need a loan: • Borrowing comes with the responsibility to
repay, and to repay on time.
Yes No
In case I need a loan, I think
• Borrowing is a serious business. Do not take it
lightly!
the best lender for me is: ......
..................................... • In order to select your credit product, you
....................................
need to know the different products, gathering
information on the characteristics of each of
them. With the information, you will be able
to select the credit product that is the most
adapted to your needs!
TRAINEE’S GUIDE
56
5. THINK ABOUT YOUR HOUSING INVESTMENT
D
QUESTION
• What do you understand by housing investment? What does it refer to?
MARY AND JOSEPH’S HOUSING PROJECT

Mary and Joseph would like to buy land and build their own house. They have set this goal
some years ago now, they have saved regularly and with discipline and they have already identified
a few interesting plots for sale. They are getting very excited.
Mary feels it would really be a security for her family to have their own shelter and she could
even welcome her parents when they get older. Joseph already thinks he could use part of the house
to stock some of his construction material.
He also knows that the value of all
the plots in this neighbourhood
appreciates a lot over time.
Finally both of them are tired
of spending a lot of money
on house rental, when they
have this new house they’ll
be able to save money and
allocate the savings to their
other goals.
QUESTIONS
• Why do Mary and Joseph want to invest in housing?
• What are the various options for financing housing investment?
Features and requirements to consider when choosing a housing loan

• Loan amount
• Interest rate MAKE YOUR
E
DREAM HOUS PLAAN YOUR
• Effective interest rate (including all the fees) COME TRUE! FAAMMIILY
LY’S FUTURE
CO
WIITH YOURBANK OPERAT
TH
’S IV
H
HOOMME LOAN L YOUR H E BANK
• Loan insurance OAN O
TO A ME
YOU C
R DR HIEVE
EAM
!
• Repayment period
• Home loan ratio / down payment (personal contribution)
• Proven ability to repay
SAVINGS
THE UNION OFOPERATI
BUYVES ’ LOT, CO
A PLO
PL
CO NSTRUCT
AND CREDIT AN TAIA
LOHO
REME
D, OR PUR
PURCHASE A
• Specific requirements for construction financing HO ME LO BUIIL
S WHO WISH
LD
LD HO
READY
P ME HOUS URC
HAS E IMPRO
FOR INDIVIDUAL Loans from
STRUCT THE
IR USD
3,000
3,00 CON E OF LAN VEMENT
TO BUY OR CON FlexCHA SE yme STRU D OR S,
HOM ES OR PUR ible repa ent
n
ntt p
perio
e d
CTIO
ON O PROPE
DREAM • Loof
an up to: F HO R
• Charges on lump sum payment and early loan redemption A PIECE OF LAN
•D25 years for plot
• 25 years for hom
purc ase andam
t purch
e cons
• Com
co truct
ount:
cons
pe
Be
iontitonly
tructtw
ive an
USE TY,
ioneen
USSD 1,
000 to
• 25 years
y ars
ye ars purch
purchas d affo 5,000
ase of •ready
ase Maxim rdable
D
built home e inte

• 5 years plot purch is allo um repaym rest ra
ase yeonly wed en t pe t : 15
te
ars toch rio %
t
• Penalties and methods or recovery in case of late repayments pay andepending oose a te d is 20 ye
d natu
re
on
e off re their retir
qu
queesstt.. rem
m rang ars,
rm s and
i men ing fro
tire f
t age, m 1-20
one
ability
to
• Ease of access to credit (collateral value, savings amount)

• Option of grace period
• Distance from my home
KEY MESSAGES
• Investing in housing enables workers to have a shelter for personal safety and health,
create wealth, generate income when use for business, and to save on house rentals.
• They are several options to finance housing investment:

Use of savings, housing loans, in-kind contribution
(materials, labour…).
• Encourage your trade union leaders to expand the

services to their members with accessible housing
loans (in partnership with financial institution)
and affordable construction assistance.
TRAINEE’S GUIDE
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6. WATCH OUT! DO NOT GET OVER-INDEBTED!
D
QUESTIONS
• What did Susan do?
• In your opinion, what is it going to happen to Susan?
DEFINITION
Over-indebtedness is the inability for a person to cope with his

or her personal debts.
TEDNESS
TIPS TO STAY AWAY FROM OVER-INDEB
• Only borrow the amount of money that you can manage to pay back.
• Calculate your debt-to-income ratio. Calculate your total monthly income and the monthly payments
you have to make to pay back your loans (monthly debt obligations). Compare these two figures
and calculate the ratio. Usually, if your repayments reach 30 per cent of your monthly income, you
should not take an additional loan.
• If you can’t make the loan repayment on time, be honest with your lender and explain the reasons
for such challenge.
• Listen to the advice of your lender, friends and family on how to pay back your loan.
• Reduce some of your daily life expenses in order to pay off the debt.
• Always keep some emergency savings so that you can cope with emergencies without affecting your
loan repayments.
• Take action! Go and see your account manager at the financial institution. Do not wait until it is
too late to ask for assistance.

59
YOUR TURN!
« Are you over-indebted? »
Are your monthly debt obligations over
30 per cent of our monthly income? If you answered YES to at least one of
Yes No these questions, you must pay attention!
Do you often take revolving credits You may be over-indebted or at risk of
(renewable credit)? becoming over-indebted. Take action
Yes No right away by making a budget and
Do you use your loans more and more talking to your lenders to repay your
to cover your daily living expenses? debts as soon as possible and avoid
Yes No falling into a vicious circle.
Do you ask more and more frequently
for a delay to pay for recurrent ex-
penses (rent, electricity bills...).
Yes No
D
KEY MESSAGES
• Repa
Repayi
Repaying
ying
ng iiss a decision
deci
decisi
sion
on that
tha
hatt shall
sh be taken when you decide to
borrow.
borr
borrow
ow..
• Av
Avoid
Avoi
oid borrowing
d bo
borr
rrowin to repay a loan!
owin
Money
• Moneyy from a credit is not yours!
Mone
60
7. USE PAYMENT METHODS WITH CONFIDENCE
D
QUESTIONS
• If you want to pay for something, what are the available methods of payment?
ADVANTAGES AND DISADVANTAGES OF DIFFERENT METHODS OF PAYMENT
MEANS OF PAYMENT ADVANTAGES DISADVANTAGES USE

61
The first card of Jack
On the way home from visiting a friend, Jack spots a nice pair of leather shoes
on sale through a shop window. He needs a new nice pair of shoes to replace
his old shoes that are worn out. He does not have enough cash with him to
buy the shoes. But then, he remembers that he has his bank card with him
and can pay for the shoes using the card. When he tries to buy the shoes with
his bank card, the clerk tells him that the card has been rejected. Jack does
not have enough money in his bank account to purchase the shoes. Jack goes
home disappointed.
QUESTIONS
• What type of card does Jack have?
• What did he use the card to do?
ADVANTAGES AND DISADVANTAGES OF DIFFERENT METHODS OF PAYMENT
MEANS OF PAYMENT ADVANTAGES DISADVANTAGES USE
Where can you use it?

D
What can you use it for?
Do you have to pay fees?
What is required to use it?
Can this card be used abroad?
Is the debit instant or delayed?
What are the costs of using the

services of this bank card?
KEY MESSAGES
• There are different payment methods: Cash, checks, bank cards, bank transfer, standing
order, Internet payment, mobile payment...
• Each payment method is different: Like all financial products, each method has its costs,
advantages and disadvantages. The choice of a method often depends on the expense you
want to make.
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D

63
D PRODUCTS AND FI NANCI AL SE RVI CE S
64
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65
66
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68
TRAINEE’S GUIDE
E
E
FI NANCI AL I NSTI TUTI ONS AND MONEY TRANSFERS
A N C IA L IN S T IT U T IO NS
FIN
N D M O N E Y T R A N S F E RS
A A N C
I N
F
IA
QUIZ
L
E D
N
U
C
A T I O
E1. A financial institution is a public or
private service that deals with financial
operations such as savings, credit and
payments. True False
E2. I’ve noted that there is more and more banks in this region:
a. I should go and ask information, they may have attractive savings or credit products for workers.
b. What is the use, these banks are only interested in rich people and large companies.
c. I would like to go and check but I’m afraid they tell me off as I don’t have a lot of money.
E3. What is the sentence that is not a principle of client protection that financial
institutions are required to respect?
a. Prevention of over-indebtedness.
b. Fair and respectful treatment of clients.
c. Transparency.
d. Offering presents to the customers.
e. Responsible pricing.
f. Mechanisms of complaint resolution.
E4. What is the safest method to send money?

a. Ask a taxi or a minibus driver.
b. Ask a formal money transfer operator.
c. Ask a relative.
Answers: E.1: a; E.2: a; E.3: d; E.4: b

69
1. UNDERSTAND YOUR SACCO’S GOVERNANCE
FINANCIAL INSTITUTI ONS AND MONE Y TRANSFE RS
QUESTION
• What happened to Alfred, Jack’s
work colleague?
DEFINITION
A Savings and Credit Cooperative is a members-owned

organization that strives to meet the financial needs of its
members. A SACCO is governed and managed by its members.
HOW IS MY SACCO GOVERNED?

I’m elected
by the members and hire General Assembly I’m composed
the management team. of he Members (GA) of the members and
Who am I? constitute the supreme
power of the SACCO.
Controling committee Who am I?
I check I handle the routine

E
Board
if the SACCO is operating tasks of the SACCO and
according to its rules develop the plans for the
and regulations. SACCO and the budget.
Who am I?
General Manager Who am I ?
Accountant Saving and Credit officers
KEY MESSAGES
• Members have the right to vote, to call a General Assembly meeting, to replace board members,
to pass resolutions to change standards like the interest rate and how it is calculated…
• Feel confident to demand adequate services from the SACCO’s Board and management, this
is your right as a member.
TRAINEE’S GUIDE
70
2. GET TO KNOW FINANCIAL INSTITUTIONS
E
QUESTION
• What did Myriam do before opening an account in a financial institution?
DEFINITION
Financial institution: Public or private service that deals with

financial operations such as savings, credit and payments.

71
EXERCISE
Think about questions to ask to financial institution before making your choice:
C H A R A C TER ISTIC S TO THINK ABOUT WHEN

QUESTIONS TO ASK
C HOOSING A FINA NC IA L INST IT UT ION
CHARACTERISTICS OF THE FINANCIAL INSTITUTION
• Proximity
• Reputation and trust in financial institution
• Availability and quality of non-financial services (training…)
• Access to mobile banking (internet, mobile phone…)
• Quality of services (waiting time, customer care…)
• If needed, requirements for joining the institution

(membership fee, frequency of meetings, decision-
making power of members…)
• Transparency of price and conditions of financial services

and quality of information provided
• Availability of specific products adapted to my status

(student, wage-employed, self-employed, retired…)
• Corporate social responsibility (philanthropic actions…)

E
FEATURES OF FINANCIAL INSTITUTION’S PRODUCTS

(SUCH AS SAVINGS)
• Access to savings, flexibility of withdrawals
• Convenience and ease of use
• Requirements for opening a savings account
• Safety
• Interest rate
• Access to other products and services
• Costs of saving (fees, penalties)
• Liquidity
• Ethical values of product (socially and environmentally

responsible finance, Islamic finance…)
TRAINEE’S GUIDE
72
KEY MESSAGES
E
• To select a financial institution, you need to review its characteristics and products and

choose those which best suit your needs.
• You can find the information on brochures of financial institutions and you can also ask
questions to the institutions’ employees.
• When you choose savings or credit products, keep in mind that the interest rate is only one
aspect to take into account among many others.
3. USE FINANCIAL INSTITUTIONS WITH CONFIDENCE!
EXERCISE
Match the terms with the corresponding items/persons on the image:
Accounts
Manager Teller
Where am I?
Branch Security
Application Manager Guard
form
Information Deposit
Withdrawal
board form
form
ATM
Document Cheque machine
table

73
EXERCISE
You must know that as a customer of a financial institution, you have responsibilities
but you also have rights! Let’s learn about these rights!
Find a solution or give an answer to each of the following cards.
C A R D N ° 1 C A R D N ° 2
C A R D
business.
N ° 3
I have a small pig raising
al loan at
???
I just took an agricu ltur I already have two bank credits: Onee
titu tion nea rby . The for a house and another for the costss
the financial ins
wa s gre at and sui ts my related to a religious ceremony att
amount I am a client of
home. a financial institu
needs. tion.
I have tried to
the pigs understand the
In four months time I’ll sell I would now like to purchase a smallll terms and cond rates,
mo ney . Ho we ver now motorbike to get around more easily.. itions of a savi
and get a lot of product but the ngs
ma ke mo nth ly rep ayment brochure.
I have to My bank refuses to give me a thirdd
in trouble,
to the institution and I’m credit facility.
I was given to
read is written
inc om e fro m the print and I do no in tiny
as I don’t have any t understand al
business yet. terms used in th l the
Is this normal? What can I do? e brochure.
t was not
Now I feel the credit produc What needs to
be done?
well designed for my nee ds.
N F I N A N C I A L
L E D U C A T I O E D U C A T I O N
F I N A N C I A
F I N A N
C I A L E D U C A
T I O N
C A R D N ° 4 C A R D N ° 5
E
? ?
I have a current account and a savings I am in a situation of over-indebtedn
ess
account in a financial institution. and I am no longer able to repa
y my
credit because I have just lost my
job.
I’m quite unhappy because I have to
pay very high management fees for I am afraid of what the bank mig
ht do
my current account and at the same to me if I do not repay.
time my savings account gives me a Can they come to my house, take
very low interest rate. my
belongings or those of my fam
ily or
I feel it is not fair. Is it normal? worse?
F I N A N C I A L
F I N A N C I A L E D U C A T I O N E D U C A T I O N
TRAINEE’S GUIDE
74
E
C A R D N ° 6 C A R D

N ° 7
??
The member of staff who is responsible I profoundly disagree with my
bank
for my personal current account knows about an incident that occurre
d.
that I received a large sum of money
Who can I turn to?
during the course of last month.
Is there anyone at the bank who
Is he allowed to speak to someone in can
help me?
my family without my authorization?
F I N A N C I A L E D U C A T I O N F I N A N C I A L
E D U C A T I O N
These cards present the seven main principles * of client

lilien
entt
protection that financial institutions have agreed to
o rerespect:
resp
spec
ect:
t:
• Appropriate product design and delivery.
• Prevention of over-indebtedness.
• Transparency.
• Responsible pricing.
• Fair and respectful treatment of clients.
• Mechanisms for complaint resolution.
• Privacy of client data.
* These seven principles were published by the Smart Campaign (www.smartcampaign.org).

75
KEY MESSAGES
• In order to select a financial institution, you need to review its characteristics and its
products and choose the ones that are the most adapted to your needs.
• To review the characteristics and the products of a financial institution, it is important to

review the brochures, leaflets as well as ask the right questions to the staff: Feel free, it is
their job to answer your questions!
• Enter a bank, a SACCO or a microfinance institution does not mean you have to commit to
open an account; you can start by gathering information.
• Everyone can, in theory, access services from financial institutions (if you can provide the
required documentations!): You need to find the institution that best meets your needs.
• As a customer of a financial institution, you have rights!

E
TRAINEE’S GUIDE
76
E
4. GET TO KNOW THE MONEY

TRANSFER SERVICE PROVIDERS
RS
›› Indicate in the table below the

advantages and disadvantages
ADVANTAGES
DISADVANTAGES
of the methods used to send
money by the characters.
ADVAN TAGES AND DISADVANTAGES OF MONEY TRANSFER SERVICES PROVIDERS
MONEY TRANSFER SERVICE ADVANTAGES D I S A D V A N TA G E S

PROVIDERS
Formal
Informal
77
DEFINITIONS
Formal money transfer service providers are organizations that are

regulated or supervised by the government. This type of provider includes
money transfer operators (MTOs), banks, microfinance institutions,
savings and credit cooperatives, and mobile phone providers.
Informal money transfer service providers are organizations that are
not regulated or supervised by the government. This type of provider
includes retail shops, friends and couriers.
MONEY TRANSFER
E
Before choosing a provider to transfer money, be it formal or informal, you need to review
a series of criteria:
• Costs of sending money (paid by the sender).
• Costs to receive money (paid by the receiver).
• Geographic proximity (for the sender and the receiver).
• Safety.
• Speed.
• Money exchange commission (if relevant).
TRAINEE’S GUIDE
78
5. SEND MONEY SMARTLY!
E
EXERCISE
Questions to ask a formal money transfer service provider
• How do I send money to my family member?
• What forms do I need to fill in to send money?
• What forms does the receiver need to fill in to receive money?
• What ID is needed to send money?
• What ID is needed to receive money?
• What operations do I need to complete to transfer money (mobile money transfers)?
• What operations does the person I want to send money to need to do?
• Do I need a bank account with the bank of the person I want to send money to?
• How long does it take for the receiver to get the money?
• How much does it cost to transfer?
• Will the receiver get the full amount or will they be charged a fee?
• How can I check if the receiver gets the funds?
• Can I cancel or change my transfer?
• What is your policy to guarantee that the transfer is safe?
• Do I need to come in person to the bank, or is there a service at distance for transferring my
money (internet, couriers…)?
• Do you have branch or sales agents located _____________(location of the person to whom I
want to send money)?
• How do I make a complaint if the money does not arrive?
• If I send money in USD, in which currency will the receiver get the money?
KEY MESSAGES
• It is important to know the procedure to send money (documents to provide, costs, network
of the providers…).
• There are four different modalities to send money using formal channels such as banks,
savings and credit cooperatives, money transfer operators, mobile money providers: Account
to account, cash to cash, account to cash, cash to account.
• Choose the transfer modality that meets your situation and the situation of the receiver.
Get information on the money transfer conditions (transfer costs, geographic proximity,
exchange fees…) in order to choose the one that is the most adapted to your needs.
• Secure your money transfer by choosing formal channels!

79
F
RISK M ANAGE ME NT AND I NSURANCE
I S K M A N A G E M E N T
R
AND INSURANCE
A N C
I N
F
IA
QUIZ
L
E D
N
U
C
A T I O
F1. Which of the following sentences is not related to a risk?
a. Run into bankruptcy.
b. Be sad.
c. Have a work accident.
d. Be victim of a fire.
F
F2. The list below shows protection measures against risks, except one, which one?
a. Have savings.
b. Subscribe to an insurance.
c. Send money.
d. Use a mosquito net.
F3. (True or False) Insurance offers a protection against

the possibility of a loss. True False
F4. What is an exclusion?

a. Document given to the policyholder by the insurance company that states the terms and conditions of the
insurance contract.
b. Specific condition, circumstance, or situation usually listed in a contract as being not covered.
c. A request for payment for a loss that is covered by the policy.
Answers: F.1: b; F.2: c; F.3: a; F.4: b
TRAINEE’S GUIDE
80
1. PROTECT YOURSELF AGAINST LIFE RISKS!
F
RI SK MANAGE ME NT AND I NSURANCE
QUESTIONS
• In what ways did the illness affected Jack? Why?
• What do you think Jack could have done to make sure this situation does not happen?
• What other types of risks can happen in life?*
DEFINITION
A risk is a danger that can have damaging impact on our person
or on our family.
Risks have different probabilities to happen and their consequences are different, from minor to very
serious.
(*Answers: Theft, illness, death, unemployment, disability, natural disasters…).

81
EXERCISE
Write the risks in the boxes according to their frequency (probably to happen)
and their costs. As an example, death is something that happens very rarely
(once!) but it has very high costs for the family.
COSTS
LOW MEDIUM HIGH
Frequent
FREQUENCY Medium
Rare
F
EXERCISE
Choose one risk and identify the measures you can take to protect yourself and
your family against this risk? Write these measures under the umbrella!
TRAINEE’S GUIDE
82
F
YOUR TURN!

How much should I put aside This is the amount you should have
for emergencies? put aside for emergencies.
To be prepared when emergencies
strike, it is recommended to set Attention! It may seem to be a large
aside three times your average sum but do not worry, you can save
monthly income! little by little to reach this amount.
Complete Do not forget that the amount needs

the exercise below: to be available; so do not deposit
Amount for it in time deposit or contractual
emergency savings = ............. savings accounts.
x 3
...............
KEY MESSAGES
• Risks are inherent to life.
• Certain risks can be foreseen and

nd you
you need
need to
eed
take protection measures so that
hat the
the impact
imp actt will
mpac will
be lesser.
• It is essential to have an emergency

ncyy fund
genc
ge fund so so that
that
minor emergencies do not affectectt you
ec you too
too much;
much
mu ch;;
saving is key to reducing your vvulnerability.
ulne
ul nera
rabi
bilility
ty..
ÉDUCATION FINANCIÈRE ÉDUCATION FINANCIÈRE

83 83
2. UNDERSTAND INSURANCE
Peter cut his hand

A few months ago Peter injured his hand with his welding tool at the steel
factory. He did his best to stop the bleeding, he put a bandage on the cut, and
ignoring the pain, he kept on working. He was afraid to tell his supervisor, as
he did not want to lose his job. His supervisor does not like workers who take
leave because there is a lot of work. He is also afraid that the hospital bill will
be very high and won’t be able to pay for the bandages and other medicines.
He did think of having insurance but he could not remember if he could use it
for small injuries. He was worried. What would happen if he needed expensive
medicines or to visit a doctor? What was he going to do? Fortunatly his co-worker
lent him some money and he could get treated. He would like to find a solution
to avoid borrowing money for such things.
Mary has a severe burn on her arm

Mary had an accident yesterday at the teafarm. She got a severe burn on her
F
arm while monitoring her team in the room where tealeaves are dried off. At
first the burn only hurt a little. But when she got home her arm started to
swell a lot. When she signed her employment contract, my employer and the
trade union representative explained me that I had to contribute to a health
insurance that would cover the expenses related to accidents or illnesses, such
as medicines, consultations, and hospitalization. She called the trade union
representative to be sure she was covered. She went to the hospital and got
treatment. She feels relieved, as she didn’t even have to pay the bills.
INSURANCE: What is the idea?

The principle of insurance is to plan in advance that we may face a risk (accident, illness, theft…) and to set
aside some money to receive compensation the day the event will occur.
DEFINITION
Insurance is a form of protection, for anyone who has subscribed to
an insurance contract, in the form of monetary compensation as a
result of accidents or any event covered by the insurance.
Example: When we buy a car, we can buy insurance so that in case of accident, the insurance will pay for the
repairs.
TRAINEE’S GUIDE
84
MUTUAL BENEFIT ASSOCIATION
A mutual benefit association is a

non-for profit mutual organization,
which provides insurance to its
members.
INSURANCE COMPANY
An insurance company is a
business that provides
insurance services.
F
RISK MANAGEM ENT AND INSURANCE
E A S U R E P OT
THE TR You never know when or how much you will have to
pay for your health. Sometimes the health expenses
are so large that they go beyond our financial capacity. This is the reason why it is
important to pool risks through a subscription to insurance.
The secret of risk pooling lies on the fact that we all contribute with a T R E
A S U
part of our resources to a common pot. We do not need to draw from m R E
P O T
G A M
E
this pot all at the same time. However insurance works only if all 7 Tokens
contribute together. E
G A M
P O T T R E A S U R E P O T G A M E
R E
A S U
T R E
You need to pay in advance to be
sure to have access to healthcare 4 Tokens 3 Tokens
services, those covered by the
insurance. The extent of the healthcaree T R E A S
U R E P O T
services you can access depends on thee G A M E
level of you contribution. The more HOSPITA

L
F I N A
you contribute, the more services N C I
A L E D U
C A T
I O N
you have access to.
DOCTOR MEDICINES
ED
DICINES
I O N
C A T
E D U Good health
I A L F I N A N C I A L E D U C A T I O N
A N C
F I N
GOOD HEALTH
F I N A N
C I A L E D U C A
T I O N
F I N A N C I A L E ÉDDUUCCAAT TI O
I ONN F FOI RN AWNOCRI KÈ R
E RE S I N A F R I C A
85
KEY MESSAGES
• In some cases, savings may not be adequate to protect yourself against risks and you need
to rely on insurance.
• Insurance is a tool for securing your income and for social protection.
• Insurance is a risk pooling mechanim.
• Ask your employer or your trade unions whether you have insurance and how it works.
• Knowledge is power. You should know what your insurance is about (event covered,
payment, claim process). Always keep a copy of your insurance card.
3. USE YOUR INSURANCE POLICY!
›› People face many different risks in the course

of their life and each period of their lives come
with a number of different risks.
F
Some risks are general and may happen to

anyone.
›› Other risks may be specific to categories of

people.
Let’s look at the specific risks faced by

workers in Africa!
GENERAL RISKS RISKS SPECIFIC TO WORKERS
• Risk of death • Risk of unemployment

• Risk of illness • Risk of accidental death during work hours
• Risk of accident • Risk of accident during work hours
• Risk of theft • Risk of occupational disease
• Risk of termination of contract
• Risk of legal problems
• Risk of unpaid wages
• Risk of physical, psychological and/or
sexual abuse/harassment
TRAINEE’S GUIDE
86
QUESTIONS
F
• Do you have an insurance policy? If you don’t, would you like to have one?

• Do you know the key insurance terms?
EXERCISE
Match the insurance term with the right definition:
A request for payment for

a loss that is covered by the
POLICY policy.
Document given to the policyholder by the insurance

PREMIUM company that states the terms and conditions of the
insurance contract.
The person who receives the

insurance money when an
BENEFITS insured event occurs.
The money a policyholder pays to the insurance

BENEFICIARY company to activate the insurance policy and
keep it valid.
Card issued by the insura

nce provider as
proof that the policyhol
CLAIM premium.
der has paid a
INSURANCE The money that the insurance company pays to

either the person who submits the claim or to his
CARD or her beneficiary.
87
KEY MESSAGES
• In order to find the insurance product that best meets your needs, you first need to identify
the risks you and the persons you want to insure face.
• Insurance uses specific terms - You should learn them well in order to understand the
available insurance products and make informed choice.
• Each insured risk may require different documentation when making a claim.
4. WHAT YOU NEED TO KNOW ABOUT HEALTH INSURANCE
QUESTIONS
• Do you have a health insurance policy?
• Is it
it provided
prov
provid
ided
ed by
by your
your employer
emp
mplo
loye
yerr and
and included
incl
includ
uded
ed in
in your
your eemployment
mplo
mploym
ymen
entt co
cont
contract?
ntra
ract
ct??
• Wh
Who
o is usually
usu
sual
ally
ly the
the benefi
ben
enefi
eficcciary
iary
iary ffor
or a h
health
ealt
ealth
h in
insu
insurance
sura
ranc
ncee policy?
poli
policy
cy??
F
• Wha
W hatt ki
What kind
nd ooff th
thin
ings
gs might
things mig
ight
ht be
be excluded
excl
exclud
uded
ed from
fro
rom
m
a he
heal
alth
th iinsurance
health nsur
ns uran
ance
ce policy?
pol
olic
icy?
y?
TRAINEE’S GUIDE
88
88
F
EXERCISE

Myriam fears she won’t be able to pay the premiums
for the new health insurance policy the agent just
recommended her. But she also knows that her daugther
will have to undergo a small surgery next year.
The insurance premium covers one year of health care,

however Myriam wants to buy the health insurance for
three months only; so that it can start just one month
Myriam before her daughter’s surgery, and end two months
after the surgery.
MINI-CASE Can Myriam buy the health insurance for three

months only? Why or why not?
NO.1
Alfred and his wife are discussing on the type of

health insurance they should buy: An insurance that
covers hospitalization in case of serious accidents, or
an insurance that cover family daily healthcare?
Alfred is a teacher and he has also a small carpentry

business. He works there on the week-ends and the
school holidays. He loves the carpentry work even if
he feels the tools he uses are a bit dangerous. Alfred
and his wife have three children and they always have
troubles to pay for the medical bills when their children
are ill.
Alfred Their 19-years-old son sometimes helps out his father
at the carpentry workshop. When a child falls ill, Alfred
MINI-CASE and his wife generally borrow from a moneylender,
who charges high interest rates.. But the couple feels
NO.2 thay they cannot afford to pay for two kinds of insurance.
What kind of insurance should Alfred and his wife

buy?
89
Mary has a health insurance that is provided by her

company. The insurance covers Mary, her husband
Joseph and their children. During the school holidays,
Mary’s nephew stays with the family. A bad case of
malaria sends their nephew to the hospital.
Mary Would Mary’s insurance cover her nephew’s health

expenses?
MINI-CASE
NO.3
Peter has signed a health insurance contract when

F
he got his job at the steel factory. The premiums

are deducted from his salary every month. The past
year, Peter has never been ill. Peter thinks he should
be refunded at least partially, as he has not used the
insurance for any medical care at all.
Peter Does Peter have a right to a refund? Why or
why not?
MINI-CASE
NO.4
KEY MESSAGES
• If you want to purchase a health insurance policy, you will have to decide which family
members to include in the policy. Some policies charge extra premiums for each family
member you add to the policy. Some offer a basic package for a family of four, and charge
extra for any more family members.
• It is very important to learn the rules that each policy uses to calculate the premiums for
insuring your family.
• Insurance policies are not all the same. It is important to understand the policy and its
conditions before subscribing to it. Be confident to talk to an insurance agent, your employer
or your trade union representative if you have any doubts.
TRAINEE’S GUIDE
90
Three things that I learned during this training:
1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
..........................................................................
2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
...................................................... ..........
3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .........
................................................. ..........
E
KEE P IN MIN D THR EE PIE CES OF AD VIC
FOR GO OD MO NEY MA NA GEM ENT :
• SPEND SMARTLY,
• SAVE REGULARLY,
• BORROW WISELY.
True,
but let’s try,
It is easier said
it is important!
than done!
Time is our ally!
91
ANNEXES
ANNE XE S
Suggestions of questions to ask a lender before choosing a credit product
• What types of loans are available to finance my projects (housing, business, studies, car…)?
• What is the interest rate?
• What fees are charged?
• What is the effective interest rate?
• What are the collateral requirements?
• Is there a minimum personal contribution required? How much?
• How often must the loan principal and interest be paid?
• What is the amount of each installment?
• What penalties are charged for late payments?
• Where are loan payments made?
• How long does it take to get a loan?
• How many times do you have to actually go to the loan office to complete the application?
• What documents do you have to provide to the lender to get a loan?
Suggestions of questions to ask at a financial institution before making your

choice
CHARACTERISTICS TO THINK
ABOUT WHEN CHOOSING A QUESTIONS TO ASK
FINANCIAL INSTITUTION
Proximity • Is there a branch nearby (My home, my workplace or another convenient

location)?
• If I have a bank card is there an ATM nearby (My home, my workplace or
another convenient location)?
Reputation and trust in • What is the reputation of the institution?

financial institution To ask to yourself:
• Have I heard any problems related to this financial institution in the papers
or on the radios?
• Do I know anyone who has had a problem with the financial institution?
What kind? How was it solved?
TRAINEE’S GUIDE
92
ANNE XE S
Availability and quality of • Do you provide non-financial services to your clients, such as training
non-financial services services?
(training…) • Do you offer investment advisory services to your clients?
Access to mobile banking • Is it possible to do transactions from a distance (Internet, mobile phone)?
(internet, mobile phone…) • Which transactions?
• How much does it costs?
Quality of services (waiting • How long does a staff member spend with a client on average?
time, customer care…) • What is your customer care policy?
If needed, requirements for For some MFIs and SACCOs:

joining the institution • Are there any requirements to access your services? If so which ones?
(membership fee, frequency
• Is there a subscription fee? If so, how much is it and is it to be paid weekly,
of meetings, decision-making
monthly or yearly?
power of members…)
• As a member/client, do I have to attend any meetings? Are they compulsory?
How often are they held? Any sanction in the case of absence?
• How do the members/clients participate in the decisions made with regards
to the institution’s structure, governance, and operations?
Transparency of price and • Are the price and conditions of financial services clearly made available to
conditions of financial services the clients?
and quality of information • Does the financial institution have communication materials for their
provided products and services (Brochures, websites…). If yes, do they provide the
required information?
• Is the information easy to understand?
Availability of specific products • Are there any specific products or financial services for me? (Youth, student,
adapted to my status (student, retired, wage-employed, self-employed, women)
wage-employed, self-employed,
retired…)
Corporate social responsibility • Does the financial institution support any philanthropic actions? If so, what
(philanthropic actions…) kind of actions?
FEATURES OF FINANCIAL INSTITUTION’S PRODUCTS (SUCH AS SAVINGS)
Access to savings, flexibility of • How often can I make withdrawals?

withdrawals • Is there a minimum amount I must withdraw?
• What withdrawal penalties do your savings account have?
• Do you have a national network of ATMs?

93
ANNE XE S
FEATURES OF FINANCIAL INSTITUTION’S PRODUCTS (SUCH AS SAVINGS)
Convenience and ease of use • What are your opening hours?

• How long is the wait to be served?
• Do clients receive account statements? How often?
• Are there any fees if I use an ATM in another region or abroad, or of
another financial institution?
• Can I do transactions on my account using my phone or the internet?
(Checking balance, transferring money…)
Requirements for opening a • What is the minimum deposit for opening an account?
savings account • What documentation do I need to provide?
Safety • What insurance or guarantees safeguard clients’ funds?
Interest rate • What is the interest rate on savings?

• How does it compare to other institutions?
• How often is interest paid?
• How is the interest rate calculated? For example, is it a compound rate?
(Is interest paid on both principal and accrued interest?
Access to other products and • If I get a financial product, do I get access to other financial services? If
services yes, which ones? At a preferential rate?
Costs of saving (fees, penalties) • What fees are charged? (Transfers, ATM withdrawal fee, mobile banking fee)
• What administrative fees are charged on the (savings) accounts?
Liquidity • How easy is it to withdraw funds from the account?

• Will the full amount be available?
• Are fees charged if the funds are withdrawn before a specified date?
Ethical values of product • Do your financial product live up to ethical standards? Which ones?
(socially and environmentally
responsible finance, Islamic
finance…)
TRAINEE’S GUIDE
94
DEFINITIONS
ANNE XE S
TOPICS DEFINITIONS
GOAL
A goal is something you want to do in the future.
FORMAL/INFORMAL
In general, something that is formal respects the forms, meaning that it fits into a framework, a structure,
or a law. It is also something that is legitimate and recognized by an authority.
Unlikely, something that is informal will not be subject to strict and official rules or framework. For
example the informal sector gathers businesses that are not registered and do not pay taxes.
BUDGET
GENERAL
A budget is a tool to decide, to plan and to use your money to achieve your goals.
EMPLOYMENT CONTRACT
A (legal) agreement between employer and worker that specifies the duties and responsibilities and
benefits for both parties.
A contract should include a description of duties, responsibilities and rights. It specifies employment
and working conditions, such as pay, hours of work.
A contract is an agreement between two parties that both parties sign of their own free will. An
employment contract should preferably be in written form, in a language understandable to both
parties, signed by both parties and a copy given to each party.
A financial institution is a public or private service that deals with financial operations such as savings,
credit and payments.
SAVINGS AND CREDIT COOPERATIVE
A Savings and Credit Cooperative is a democratic, unique member driven, self-help cooperative that
strive to meet the financial needs of its members. It is owned, governed and managed by its members.
PASSBOOK SAVINGS ACCOUNT

A regular or passbook savings account (also known as demand deposit account) in a financial institution
allows the account holder to make deposits or withdrawals at any time. The amount and timing are
not set in advance. The savings are remunerated according to an interest rate (usually annual). This
savings account usually cannot be used to make direct payments.
CONTRACTUAL SAVINGS ACCOUNT
A contractual savings account in a financial institution allows the account holder to link his/her deposits
SAVINGS ACCOUNTS with the achievement of specific goals. The account holder deposits a set amount on a regular basis
for a specified period of time. After the maturity date the client can withdraw the entire amount plus
interest (interest rate is set in advance). Early withdrawal is either prohibited or penalized.
TIME DEPOSIT ACCOUNT
A time deposit account in a financial institution allows the account holder to deposit a lump sum,
which he/she promises not to touch for a specific period of time. The client can choose from a range
of possible terms. Since this type of account presents constraints (duration and amount blocked) for
the client, it usually pays the highest interest of any savings product.
INTEREST RATE
The amount of money that the borrower pays to the lender, in addition to the loan amount, for use of
the money of the lender.
CREDIT PRINCIPAL
The original amount of the loan, without interest.
LOAN TERM
The period of time that the borrower has to use the loan money and repay it.

95
ANNE XE S
TOPICS DEFINITIONS
COLLATERAL
An item of value that the borrower will have to give to the lender in case the borrower is unable to repay
the loan (could be land, vehicle, savings, etc.).
GRACE PERIOD
Period after receiving a loan and before the first payment is due.
RETHINK
Cancellation of the credit contract. In some countries the loan agreement is not legally binding until
CREDIT several days or weeks after signing. During this period no payment can be made from the lender to the
borrower. It ensures an efficient protection against impulse buying.
EARLY REPAYMENT
The borrower is always free to repay all or part of his/her debt before the expiration of the loan
agreement, and that without incurring penalties.
GUARANTOR
A person who will repay your loan in case you cannot pay; this person may be required to co-sign your
loan agreement with the lender.
OVER-INDEBTEDNESS
The inability for a person to cope with his or her personal debts.
CASH CARD
A cash card is given to you by your bank and allows you to get cash from your account using a special
machine called an Automated Teller Machine (ATM) or cash dispenser. In addition to withdrawing
cash from your account, you can use an ATM to find out your account balance, transfer money from
one account to another, and make deposits into your account. Some ATMs also sell postage stamps
or airtime credits or allow you to pay some invoices (electricity…). Each bank has its own network of
ATMs but often you can use your bank card to withdraw from any ATM whether the ATM belongs to
your bank or not. However, your bank may charge you a fee each time you use an ATM that is part of
another bank’s network.
PAYMENT DEBIT CARD
METHODS A debit card is another way to make banking transactions electronically. In addition to using it to
withdraw money from ATMs, you can use a debit card to pay for goods you purchase in many stores.
You must have the money in your account at the time of purchase. The amount of your purchase is
deducted immediately from your account. You will regularly receive a regular statement from the
bank, showing the total amount deducted from your account and your remaining balance.
CREDIT CARD
In general, a credit card allows you to carry out the same transactions as a cash and a debit cards.
The major difference is that it also enables you to access instant credit. In other words, if you do
not have money in your account, you can still make the purchase by taking out a loan from the
institution that sold you the credit card (financial institutions but also supermarkets, department
stores, others).
Depending on the features of your credit card contract, the amount of your purchase will be deducted
from your account (in one or more installments, at an interest rate that is often much higher that
standard credit products...).
You will receive a regular statement from the institution that issued the credit card, showing the total
amount to be repaid, the amount already paid off and the interest rate.
TRAINEE’S GUIDE
96
ANNE XE S
TOPICS DEFINITIONS
INFORMAL MONEY TRANSFER SERVICE PROVIDERS

These organizations are not regulated or supervised by the government. This type of provider includes
MONEY retail shops, friends and couriers.
TRANSFERS FORMAL MONEY TRANSFER SERVICE PROVIDERS
These organizations are regulated or supervised by the government. This type of provider includes
money transfer operators (MTOs), banks, microfinance institutions, savings and credit cooperatives,
and mobile phone providers.
RISK
A risk is the possibility of a loss or injury.
INSURANCE
Insurance is a form of protection, for anyone who has subscribed to an insurance contract, in the form
of monetary compensation as a result of accidents or any event covered by the insurance.
ASSURANCE
Assurance refers to protection against an event that must happen (such death), as compared to
insurance that refers to protection against an event that might happen.
INSURANCE COMPANY
An insurance company is a business (profit oriented) that provides insurance services.
MUTUAL BENEFIT ASSOCIATION
A mutual benefit association is a non-for profit mutual organization, which provides insurance to its
members.
RISK AND POLICY

INSURANCE Document given to the policyholder by the insurance company that states the terms and conditions
of the insurance contract.
PREMIUM
The money a policyholder pays to the insurance company to activate the insurance policy and keep
it valid.
BENEFITS
The money that the insurance company pays to either the person who submits the claim or to his or
her beneficiary.
BENEFICIARY
The person who receives the insurance money when an insured event occurs.
CLAIM
A request for payment for a loss that is covered by the policy.
INSURANCE CARD
Card issued by the insurance provider as proof that the policyholder has paid a premium.
EXCLUSION
Specific condition, circumstance, or situation usually listed in a contract as being not covered.

97
ANNE XE S
NOTES
TRAINEE’S GUIDE
98
ANNE XE S
NOTES

99
ANNE XE S
NOTES
TRAINEE’S GUIDE
100
TRAINEE’S GUIDE
The document you have in your hands is the Trainee’s Guide on financial education for workers
in Africa. It targets all workers in Africa and in particular those who wish to improve their money
management.
Financial education, what is it about?
Financial education is knowledge, skills and tools that enable us to better manage your money.
The training you are going to attend will enable you to plan and prepare for your projects in the
future. It offers the opportunity to learn skills related to earning, spending, budgeting, saving,
borrowing and ways to make the most of your resources.
It will also give you the opportunity to think about communicating better on money matters with
your family, your relatives or your employer and to sort out some challenges when they arise.
rise.
You will learn or review some tools to manage well your money.
Financial services such as credit, savings, money transfers or insurance won’t have any secret
ret
for you.
How to use this Trainee’s Guide?
You should use this Trainee’s Guide during the training on financial education. The order
of the chapter follows the modules and sessions of the training. However feel free to read
any chapters as you please!
This Guide includes many

exercises and worksheets
tha t yo u ca n fill for
yo urself.
Contacts :
International
Labour Organ
ization: www
ISBN # 978-92
-2-127584-8 .ilo.org/socialfi
ISBN# 978-92
-2-127585-5
(print) nance
(web)

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E E ’ S G U ID E

International Labour Organization

Financial education for workers in Africa – Trainee’s Guide

ISBN 978-92-2-127584-8 (print)

Printed in South Africa

B) Set goals and communicate with your family . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

C) Manage your money smartly . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

D) Products and financial services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

E) Financial institutions and money transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

F) Risk management and insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80

FINANCIAL EDUCATION FOR WORKERS IN AFRICA

FINANCIAL EDUCATION FOR WORKERS IN AFRICA

2. PRESENTATION OF THE TRAINEE’S GUIDE

to learn skills related to earning, spending, budgeting, saving, borrowing and

ways to make the most of your resources.

How to use this Trainee’s Guide?

C.3 Do you understand your payslip? Yes No

C.4 Do you prepare a written budget on a regular basis? Yes No

D.1 Do you know all the saving methods available? Yes No

D.2 Do you know how to select a savings product? Yes No

D.5 Do you understand housing loans? Yes No

E.1 Do you understand the governance system of your SACCO? Yes No

F.2 Do you know how insurance operates? Yes No

F.4 Do you know how to use your health insurance? Yes No

FINANCIAL EDUCATION FOR WORKERS IN AFRICA

Family situation: Single

Job type and activity sector: Welder in a steel

Financial personality: Careful with his money

Peter: Study to get a better job

Family situation: Married to Joseph - 3 children

Job type and activity sector: Middle manager in

Trade union membership status: Member of the agricultural workers’ union

Financial personality: Careful with her money

Financial situation: Is a member of a merry-go-round, a Savings and Credit

FINANCIAL EDUCATION FOR WORKERS IN AFRICA

Family situation: Married to Sophie - 2 children

Job type and activity sector: Teacher in a

Trade union membership status: Member of the teachers’ union

Financial personality: Compulsive spender

Family situation: Separated - One daughter

Job type and activity sector: Domestic worker

Trade union membership status: Member of the domestic workers’ union

Financial personality: Careful with her money

Financial situation: Is a member of a merry-go-round and a Savings and Credit

FINANCIAL EDUCATION FOR WORKERS IN AFRICA

FINANCIAL EDUCATION FOR WORKERS IN AFRICA

FINANCIAL EDUCATION FOR WORKERS IN AFRICA

B2. Do you have projects for the future?

a. I send them money right away as I always do what my parents ask.

Answers: B1: b; B2: a; B3: c

SET GOALS AND COMMUNICATE WITH YOUR FAMILY

And Peter’s goals? Write them here too! !

FINANCIAL EDUCATION FOR WORKERS IN AFRICA

ADVICE TO DISCUSS YOUR

3. ASSESS THE COSTS OF YOUR GOALS

Then, prioritize your goals indicating 1 for the most important,

Now, it is your turn!

NUMBER OF MONTHS HOW MUCH I NEED