Financial Negotiations Communicate with Confidence

“The real winners in life are the people who look at every situation with an expectation that they can make it work or make it better.”
- Barbara Pletcher
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©Microfinance Opportunities. 2014.

Online Orientation
This online Financial Negotiations Overview guides users in the use of the Financial Negotiations: Communicate with Confidence Module of the Financial Education Core Curriculum (FECC).
It is recommended that you participate in the online Orientation prior to viewing this Overview so that you are familiar with the tools and background of the FECC.
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Navigating this Overview
In this Overview, you will access and open the training tools of the Financial Negotiations Module to explore the curriculum and its content.
The tools referenced in the presentation can be found to the right under “Workbook & Toolkit” and “Trainer’s Guide Components.”
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Objectives
By the end of this overview on the Financial Negotiations Module, you will have:
•Explored the importance of financial negotiations
•Reviewed current and desired behaviors of consumers regarding financial negotiations
•Examined the attitudes, knowledge, skills, and self- efficacy consumers will acquire through participating in financial negotiations learning sessions
•Considered the unique perspective in your community and target population to most successfully deploy the module
•Reviewed important methodological considerations for delivery of the Financial Negotiations Module
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Reflect
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Do you consider financial negotiations to be a “core” or fundamental money management topic? Why or why not?

Financial Negotiations: Communicate with Confidence – Introduction

Financial Negotiations: Communicate with Confidence – Introduction
Financial Negotiations are an important part of good money management. Consumers may need to negotiate business deals, interest rates, and a host of terms relating to financial services.
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Consumer Behavior & Behavior Change

Financial Negotiations and Financial Education
MFO’s definition of financial education aims to change consumers’ behavior through addressing attitudes, knowledge, skills, and self-efficacy. In this section, you will use each tool from the Financial Negotiations Module. This will allow you to see how each of these aspects is addressed during a participant’s learning journey.
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Behavior Change Model
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Reflect
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What are common financial behaviors in relation to financial negotiations that you see in the communities where you work?

Market Research and Consumer Behavior
The Financial Negotiations Module is developed based on the market research findings conducted with low- income consumers in our seven partner countries.
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What differences or similarities do you see between these behaviors and the behaviors in your community that you identified?
Activity: Open the Financial Negotiations TOT manual to page 44 to review market research findings on some common consumer behaviors around financial negotiations.

Financial Negotiations: Changing Consumer Behavior
The Financial Negotiations Module will help consumers move away from current financial negotiations behaviors that may not be working well for them to new behaviors that will help them save their money more effectively.
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What desired behaviors around financial negotiations would you like to see in your target community?

Attitudes
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What must the participants’ thoughts, feelings, and opinions be to adopt the behavior?

Attitudes
Attitudes about money are based on what we have seen, heard, and experienced in the past. We build our behaviors on them. However, some common beliefs about money are not accurate and they hold us back unnecessarily. For example, many of us believe that we cannot manage money well because we are not good at math.
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What attitude does the woman buying the dress have towards financial negotiations?
Activity: Each module of the FECC is accompanied by a video. The Financial Negotiations Video was produced in the Uganda. It shows a real-life situation in which a woman deals with a financial negotiation challenge.
Click here to watch.

Attitudes
She may feel:
•Uncomfortable asking for less
•Afraid that the man will say no
•Self-conscious about not having enough to pay the full price
These attitudes may have prevented her from attempting to negotiate the first time she visited the market.
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What are some of your personal attitudes about financial negotiations?

Attitudes
Low-income consumers are vulnerable to high pressure sales tactics and may not be familiar with which products and services are negotiable or how to effectively approach a negotiation.
It is important to encourage participants to feel empowered to ask questions and request better terms on products they are interested in.
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Knowledge
What information does the participant require to adopt the behavior?
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Knowledge
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What knowledge would you expect a participant to acquire by participating in the Financial Negotiations Module learning sessions?
Activity: What key ideas or knowledge do you think your participants will need related to Financial Negotiations? Jot down a few sentences.
Take a look at the Learning Sessions at a Glance document. Compare the session titles and purposes with the list you made.
Knowledge is the basic information participants need to know in order to effectively manage their money. In addition, they need the skills to be able to put that knowledge into practice, such as recording income and expenses in two columns to help track money, or keeping a marked envelope where they save money for a particular purpose. A more narrow definition of financial education focuses on just knowledge and skills, while MFO’s definition includes these but emphasizes the need for all four components to change behavior.

Skills
What must the participant be able to do to adopt the behavior?
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Skills
The Financial Negotiations Module helps clients learn how to:
•Practice preparing to negotiate
•Analyze both sides in a financial negotiation
•Identify what they will do differently in future negotiations
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What would you expect your target population would be able to do after participating in these learning sessions?
What skills seem like the most difficult to acquire?
Activity: Look at the Learning Sessions at a Glance document and scan the session titles and purposes of the learning sessions contained in the Financial Negotiations Module.

Self-Efficacy
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Self-efficacy “is the measure of the belief in one's own ability to complete tasks and reach goals.”*
*See Ormrod, J. E. (2006). Educational psychology: Developing learners (5th ed.). Upper Saddle River, N.J.: Pearson/Merrill Prentice Hall.

Self-Efficacy
An important component of changing behavior is improving self-efficacy. The Financial Negotiations Module simulates real-life situations in the classroom environment so that participants can practice the new skills they are learning. This gives them confidence in their ability to attempt using the skills and knowledge outside of the classroom environment.
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Activity: Look at the Learning Sessions at a Glance document again and identify 2-3 sessions that will provide the participants with the opportunity to practice new financial negotiations skills in a supported environment.

Delivery of the Financial Negotiations Module

Methodology: ALPPs
Open up the Trainer’s Guide to the Table of Contents on page VII. Choose a session that interests you and read through it.
The curriculum was designed based on Adult Learning Principles and Practices (ALPPs). What ALPPs do you see integrated in the learning session you selected?
•Respect
•Affirmation
•Relevance
•Dialogue
•Engagement
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Methodology: Activities
The Core Curriculum was designed to be engaging and interactive. In the learning session you selected, what types of activities do you see?
•Paired activity
•Group discussion
•Game
•Story
•Presentation
•Role-play
•Skit
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How to Use the Video
Videos are a great way to spark a group discussion. Some questions you can ask participants related to this video are:
•What challenge is the shopper in this video facing?
•How did the shopper get more information about financial negotiations?
•What negotiation techniques did she use?
•What would you advise her about negotiating?
More guidance about how to incorporate videos into learning sessions is available in the Orientation Module.
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Objectives Revisited
Through the Financial Negotiations Overview, you have:
Explored the importance of financial negotiations
Reviewed current and desired behaviors of consumers regarding financial negotiations
Examined the attitudes, knowledge, skills, and self-efficacy consumers will acquire through participating in financial negotiations learning sessions
Considered the unique perspective in your community and target population to most successfully deploy the module
Reviewed important methodological considerations for delivery of the Financial Negotiations Module
What other questions do you have about the content or use of the Financial Negotiations Module?
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Wrap-Up
Now that you’re ready to use the training tools of the Financial Negotiations Module, be sure to stay connected with our global network of providers. Let us know how you’re doing so we can add your program and numbers to our roster! Click on the impact reporting document to report back on how many clients you’re reaching.
We can be reached at info@mfopps.org.
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Microfinance Opportunities:
E: info@mfopps.org
T: 202-721-0050
F: 202-721-0010
W: microfinanceopportunities.org

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