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Helping youth build a tangible stake in their future


  • and Rani Deshpande
May 13, 2010 |

For low-income young people in developing countries, savings can be the springboard to a better future. Recent research has shown that giving young people the tools to accumulate savings not only opens up economic opportunities, but also affects their attitudes and behaviors in positive ways. Savings can help young people fund future education or start small businesses. They can also improve young people’s self-esteem and future orientation, which may, in turn, help them make positive choices like staying in school and avoiding health risks. Such choices affect young people’s lives for years to come.

How can the potential of youth savings be maximized? A growing number of initiatives around the world are demonstrating that, contrary to conventional wisdom, even poor and vulnerable youth can accumulate savings and assets – when the right tools and institutions are available. However, many financial institutions have not developed cost-effective products and delivery systems to serve low-income youth. There is also a lack of knowledge about youth savings preferences in different markets, and about how best to educate and motivate them to save. Financial institutions – as well as the governments, donors, and NGOs that could assist them in serving this market – need better information on the development and commercial impacts of youth savings in order to increase and optimize their investment.
From 2010 through 2014, YouthSave will be working to fill these knowledge gaps and make quality savings services available to more low-income youth. Supported by The MasterCard Foundation, YouthSave is a consortium project led by Save the Children in partnership with the Center for Social Development at Washington University in St. Louis (CSD), the New America Foundation (NAF), and CGAP (Consultative Group to Assist the Poor). Working with local financial institutions and researchers, the YouthSave Consortium will develop and roll out savings products accessible to low-income youth in Colombia, Ghana, Kenya, and Nepal, and study their uptake and usage. In one country, YouthSave will use an experimental impact study design to produce robust data on the economic, psychological, social, and health related effects of youth savings on young people and their households.
YouthSave looks forward to sharing the lessons from its work with interested stakeholders including financial institutions, NGOs, researchers, donors, and policy makers. For more information or to receive quarterly project updates, please email youthsave@savechildren.org.

You can download the pdf here or by clicking the link on the right.


In partnership with local financial institutions and researchers, YouthSave will develop and roll out a savings product accessible to low-income youth in Colombia, Ghana, Kenya, and Nepal, and studying its uptake and usage.