Put participants into 6 groups, and give each group one of the topic cards. Ask each group to consider the main learning needs of their VSLA members in this topic. Give the groups 5 minutes to work together and be sure to circulate during the session. When 5 minutes have passed, ask each group to write their priorities on separate cards. Review them together as a large group. Ask: Why did you choose these learning needs? What would anyone from the rest of the group add? Subtract? Explain: When we designed the financial education curriculum for CARE VSLA members, we prioritized the learning needs through a needs assessment. We also had information from prior work with CARE Burundi. We will continue to talk together about needs and priorities, but let’s now look at the learning sessions that resulted from our exercise. *Note: Take a photo or keep the priorities that participants express for the report. Step 2: Review the contents of the curriculum – 30 minutes Say: First let’s take a look at how the Trainer’s Guide is structured. Ask participants to work in pairs. Give each participant a copy of the handout ‘Where Can I Find…?’ (see the following page). Say: In pairs, take 10 minutes to look through the Trainer’s Guide. Using the clues at the bottom of the handout “Where Can I Find…?” find the sections of the Trainer’s Guide that each clue refers to. Right now, focus on the structure of each different section within the guide. Where Can I Find? Question SECTION of the GUIDE
Say: Keep your note card for one moment. At the end of this activity, we will use the cards. Step 2: Compare experience with “experts” list – 15 minutes Post the flip chart Key Learning Principles and Practices. Distribute Handout Principles and Practices of Adult Learning. Summarize the key points in this flip chart: Key Principles and Practices Principle Description Respect Learners feel respected and feel like equals. Affirmation Learners need to receive praise for even small attempts. Relevance Learners learn best by drawing on their own knowledge and experience and when training meets real-life needs—jobs, family, etc. Dialogue Learning must be two-way to allow the learner to enter into a dialogue with the trainer. Engagement Learners must get involved through discussion, small groups and learning from peers. Immediacy Learners must be able to apply the new learning immediately. 20/40/80 Rule Learners remember more when visuals are used to support the verbal presentation and best when they practice the new skill. We remember 20 percent of what we hear, 40 percent of what we hear and see, and 80 percent of what we hear, see and do. Thinking, Feeling, Acting Learning should involve thinking and emotions as well as doing. Safety Learners need to feel that their ideas and contributions will be valued—that they will not be ridiculed or belittled. Accountability Trainers need to be accountable to learners that their learning needs are met, and that the exercise will be useful to them. Instruct participants to come to the front of the room with their note card, and tape their factor next to the principle it best resembles. If it does not resemble one of the principles on the “experts” list, place it above or next to the flip chart. Ask: What is different about your responses compared to what the “experts” say?
VSLA At Home In a Financial Institution Safety Usually very safe if there is group trust Money is safe from thieves – banks are guarded Banks sometimes have insurance to protect your money in case of natural disaster or theft Private Can be stolen Cost No cost – unless your money is lost or stolen! Usually there is a cost to save (treasurer, tea) Sometimes fees for depositing, withdrawing, and maintaining your account. Cost of photos, ID, etc. Access Very close Very close Available when you need it Depends on the bank – if there is a branch or agent near you If the bank has many branches, you can access your money in more than one place - You can only access your money according to the meeting schedule Sometimes only located in a town or urban center Return Earn interest on your savings when it is lent Depends on the bank – if there is interest, your savings will earn money - Return depends on how much is lent - No return Use the following stories to help participants practice their new knowledge about how to choose a place to save. CASE 1 Mrs. Hasty Mrs. Hasty lives on a farm, far away from town. She would like to save money from her day labor making bricks to buy a new hoe. Home CASE 2 Mr. Blessings Mr. Blessings has been saving in a VSLA for 2 years. He has met a number of goals, and now would like to save to build a small shop. Financial Institution CASE 3 Mrs. Blessings Mrs. Blessings lives in a very rural area. She makes very little money, but knows that savings is important. She would like to begin saving a very small amount on a regular basis to meet her goal of buying a mattress. VSLA Finish the session by reviewing the Savings Trainer’s Guide with participants, and pointing out the Rules of Thumb as a review at the end.
Note participants’ ideas on a flip chart. Make sure the following are mentioned: Costs of Borrowing Principal (not exactly a cost, but must be calculated in the final price of the loan) Interest Commission Insurance Collateral (not exactly a cost) Upfront savings/Transactions Transportation Passport, picture, ID Communication costs Time/ Labor lost Penalties or fees Say: When you borrow from a bank, SACCO or MFI, you also have to consider interest and fees or penalties for late payments. However, there are other considerations to make. Banks, SACCOs and MFIs are businesses, and they need to make money to continue to run. So, when a bank has money from deposits – like your group or individual savings accounts – it does not just sit in the bank. The bank, SACCO or MFI gives loans or invests the money, for a profit. This is like the money in your box. However – unlike your VSLA – the bank or MFI will often charge fees for their services. Also, the interest that the bank, SACCO or MFI charges you on your loan is kept in the bank – it is not shared out at the end of a cycle. Because you receive a service, and the opportunity to borrow a greater amount of money, you will have more responsibility. Let’s talk more about the costs of borrowing with a bank, SACCO or MFI. Start by explaining the Borrowing Grid: In this chart, the bag of money represents the LOAN CAPITAL, or the total amount of money that someone borrows.
How much will he pay in fees? (Count out 1 counter1 to represent 10 dollars.) Finally, he must also pay to take a taxi to Credit MFI’s agent each month. The cost of each return trip is 5 dollars. How much will he pay in total for transport over the 6 months? [30 dollars] (Count out 3 counters to represent 30 dollars.) Explain the difference between direct and indirect costs: Costs of a Loan Direct Payments on the loan itself. (Called principal) Interest Fees for service Insurance Any late penalties Indirect Transport to and from the financial institution’s office or agency Wages paid to a worker to keep a business open while you travel to repay the loan Income lost when closing a business or not working because of traveling to repay the loan Ask: What is the total cost of Mr. Blessings’ loan – not counting the initial capital? [110 dollars] Say: It is important to emphasize to VSLA members – who are new to using financial services – that these costs are not there because banks want to steal their money. The important thing is to understand all of the costs and to make an informed decision before borrowing. Step 3: Good loan or bad loan? – 20 minutes
Review the principle of dialogue from the Key Principles and Practices of Adult Learning flip chart. Post the following (shortened) definitions of monologue and dialogue. Invite a volunteer to read each definition. Monologue and Dialogue Monologue: to “speak alone,” a long speech. Dialogue: to “speak across or between,” a conversation. Participants will have the following handout as part of their handout booklet. It contains the full definitions of monologue and dialogue. Definition of Monologue and Dialogue Monologue literally means “speak alone.” It also refers to a long speech that monopolizes the conversation. Dialogue literally means to “speak across or between” or “a word between”—implying 2 or more speakers. It refers to a conversation between 2 or more persons. Ask trainees: What questions about these definitions do you have? STEP 2: Small-group work to draw an analogy for dialogue – 15 minutes Set a glass and a bottle of water in front of you. Explain: Let’s say this glass is a student, and the water bottle a teacher. Pour water from the glass into the cup. Ask: What do you think I am saying about training with this little demonstration? [The bottle of water represents the teacher who has all of the knowledge and fills up the empty glass or the student with knowledge.] Allow 3-4 participants to give their own ideas, and probe for their opinions on this analogy. That is, based on the ALPPs and what we have discussed so far, is this the type of learning experience we want to create? Pass out blank sheets of paper. Ask the trainees to form a group with 2 or 3 other people. Say the following: