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Train cash recipients on digital and financial literacy

What are the potential risks?

The concerns of affected people are not taken into consideration in the design of cash-based transfers, and this leads to imbalance of power at different stages of the user journey.

What standard do we want to achive?

When identifying risks of abuse of power in cash assistance, participation, inclusion and consultation are fundamental principles. Humanitarian agencies need to ensure that the views of cash recipients in their diversity are taken into consideration.

Key actions

Tools to train cash recipients on digital and financial literacy

What are the potential risks?

  • Cash recipients might not be familiar with the payment solutions selected by humanitarian agencies to assist them. Some may not trust them or cannot use them independently.
  • Additional factors may compound this situation. For example, some cash recipients may have trouble remembering their PIN codes, their SIM card may be blocked or expired, or bank cards may be kept as collaterals by agents.
  • Cash recipients might lack the knowledge to make basic financial decisions to maximise the purchasing power derived from their cash assistance.

 

What do we want to achieve?

  • Cash recipients should be trained on how to confidently use payment instruments independently
  • Humanitarian agencies should actively seek to enable cash recipients to correctly use their payment instruments, such as ATM cards to access personal bank accounts or sim cards with accompanying phone to access mobile money accounts, in order to benefit from their transfer (whilst respecting local regulations). While exposure to a diversity of payment instruments builds awareness, the more financial transactions cash recipients can carry out with the same instrument, the more they build their formal financial capabilities and their awareness of their rights.
  • Cash recipients should be able to make basic financial decisions to maximise the benefit they get out of their cash assistance and have an  awareness of other financial services available to them. Developing financial capabilities amongst women can be particularly impactful in attaining better outcomes for the entire household.

Tips to design digital or financial literacy trainings

Before transferring cash assistance, evaluate the training needs of your future cash recipients in relation to the payment instruments selected and their ability to make basic financial decisions, in order to develop training curricula that meet the needs of cash recipients in their diversity.

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Training on how to use bank cards

Carry out trainings for cash recipients on how to use their digital payment instrument:

  • Bank cards
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Training on how to use e-Vouchers

Carry out trainings for cash recipients on how to use their digital payment instrument:

  • e-Vouchers¬†
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Training on how to use Mobile phone and mobile money

Carry out trainings for cash recipients on how to use their digital payment instrument:

  • Mobile money
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Training on budgeting

Support cash recipients in developing specific knowledge, skills and attitudes to make diverse basic financial decisions. Ideally, cash recipients should build capabilities on 4 basic themes:

  • Budgeting
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Training on savings

Support cash recipients in developing specific knowledge, skills and attitudes to make diverse basic financial decisions. Ideally, cash recipients should build capabilities on 4 basic themes:

  • Savings
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Training on debt management

Support cash recipients in developing specific knowledge, skills and attitudes to make diverse basic financial decisions. Ideally, cash recipients should build capabilities on 4 basic themes:

  • Debt Management
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Training on formal financial services

Support cash recipients in developing specific knowledge, skills and attitudes to make diverse basic financial decisions. Ideally, cash recipients should build capabilities on 4 basic themes:

  • Formal financial services
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WFP UNCDF five weeks financial literacy toolkit

You can engage your cash recipients on a five weeks training programme using the WFP/UNCDF financial literacy toolkit.

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