1. Money
transfers
and
financial
education
Migration in ACP Countries :
Promoting Development and Enhancing Protection

2. Objectives
 Overview of the main aspects of the phenomenon of
money transfers, the latest trends and challenges with
respect to development
 Reflection on possible actions that could be taken to
improve the management of transfers and their impact on
economic and social development
 Specific focus on financial education as an area of
possible action to be developed concerning migrants and
their families
Migration in ACP Countries :
Promoting Development and Enhancing Protection

3. Financial education
Why?
What is it?
What to do and how?
Migration in ACP Countries :
Promoting Development and Enhancing Protection

4. Why does it matter?
• Individuals increasingly have to assume full responsibility
for making complex savings decisions as well as about
the resulting risks, operations which previously had been
at least shared with the State or employees, such as
investing for their retirement or the higher education of
their children.
• Moreover, they are asked to be able to weigh up the risks
and make responsible choices in a financial market that is
becoming increasingly sophisticated.
Risks of over-indebtedness…
Migration in ACP Countries :
Promoting Development and Enhancing Protection

5. Financial education… What is it?
Financial education is intended to:
• Make “enlightened” choices on long-term objectives and their
financial implications, particularly linked to the migration experience
• Allow women, like men, to manage their money using budgetary
planning
• Improve the ability to save by using a budget
• Use financial products and services more confidently
• Develop risk management strategies
This covers the aspects of knowledge, skills and behaviour
Migration in ACP Countries :
Promoting Development and Enhancing Protection

6. The ILO’s experience with the issue
As part of various technical cooperation projects, the ILO
has developed tools for financial education training for
migrants and their families:
Migration in ACP Countries :
Promoting Development and Enhancing Protection

7. Tools to be adapted according to:
Target groups:
• For youth: Nepal, Indonesia
• For women: Cambodia, Mongolia, Indonesia
• For migrants and their families: Senegal, Moldova, Indonesia and
Cambodia
• For MFI clients: Vietnam, Honduras, Cambodia
• For insurance company clients: Kenya, Brazil, Colombia
Communication methods:
• By financial institutions– MFI, banks, but also insurance
companies
• By NGOs, service providers to the company
• By public bodies
• By the mass media
Migration in ACP Countries :
Promoting Development and Enhancing Protection

8. Financial education of migrants and
their families
Why?
Entry point: money transfers and their crucial place in
migration (both as a reason to migrate as well as an
expression of migration and the impact of migration on the
communities of origin).
Migrants often come from countries with low financial inclusion and are
unfamiliar with financial products and services and the variety of
financial institutions and thus face a significant challenge in managing
their income and expenses
Migration in ACP Countries :
Promoting Development and Enhancing Protection

9. The following are the objectives of a financial education
tool for migrants and their families:
• Preparing migrant workers and their families to deal with financial
responsibilities, particularly those linked to the migrant experience
and to give them tools to make better financial decisions
• Reinforcing attitudes that lead to greater savings, as well as more
responsible spending and credit use behaviour
• Promoting equality between men and women and strengthening the
role of women in the family’s decision-making process linked to
budgeting and migration
Migration in ACP Countries :
Promoting Development and Enhancing Protection

10. Presentation of the model structure of
a financial education tool
Module structure:
• Module A: Methodological introduction
• Module B: Setting objectives and communicating them within the
family
• Module C: Managing its budget intelligently and efficiently
• Module D: Financial products and services
• Module E: Financial institutions and money transfers
• Module F: Risk management and insurance
Migration in ACP Countries :
Promoting Development and Enhancing Protection

11. Thank you for listening
Migration in ACP Countries :
Promoting Development and Enhancing Protection