The document discusses microfinance and financial inclusion efforts in Nicaragua. It describes how the Sister Maura Clarke Center established a revolving loan fund in 1992 to empower female microentrepreneurs. In 2010, the fund had 595 participants and $434,941.26. To help the women build budgets and savings habits, the Center interviewed 27 entrepreneurs. It found that most tracked earnings but few expenses or budgets. The Center then provided training to help the women systematically track finances, create budgets, and open savings accounts. While most began tracking expenses, few opened savings accounts due to prioritizing business growth over stability and doubts about saving. The Center aims to increase long-term access to microcredit and microsavings.

1. Microfinance and Financial Inclusion in Nicaragua Empowering female microentrepreneurs to create a budget and open a savings account

2. Nicaragua Population: 5.9 million 2nd least developed in Western Hemisphere GDP per capita: $3,000 Development Issues Poverty Underemployment Child Labor Underdeveloped Infrastructure

3. Sister Maura Clarke Center for Comprehensive Education and Empowerment Est. 1992 Revolving Fund Est. 1996: 30 participants and U$ 20,000.00 As of 2010: 595 participants and U$ 434,941.26 78 % women 2 % illiterate 81 % urban

4. Sustainable Development

5. Reality Check Goal: Learn about the accounting and saving habits of 27 female microentrepreneurs Method: One-on-one interviews

6. Reality Check Lessons Learned Most calculate earnings Few calculate expenses Very few make budgets Obstacles to saving Distrust of banks Uncertain of requirements Prefer to have money on hand Belief that any saving is currently impossible

7. Capacitaciones (Empowerment) Goal 1 - Increase organization and prepare to make a budget by systematically calculating earnings and expenses Instructional material: Basic accounting spreadsheet

8. Capacitaciones (Empowerment) Goal 2 - Increase capacity for long-term planning, establish priorities and begin to think about saving by creating a detailed budget Instructional material: Locally relevant budget template based on interviews

9. Capacitaciones (Empowerment) Goal 3 - Increase financial security by opening and maintaining a savings account Instructional material: Step-by-step guide to saving including Opening an account Managing a debit card Avoiding fees and fines

10. Capacitaciones (Empowerment) Goal 4: The participants continue to meet after an initial follow up meeting, forming a sustainable support network

11. Capacitaciones (Empowerment) Results Most began systematically calculating their expenses Many planned to create a budget for the month of August Very few created a savings plan Almost no one opened a savings account The women decided not to continue meeting

12. Capacitaciones (Empowerment) Conclusions Saving habits did not change due to Prioritization of growth over stability Belief that saving is impossible in economic tough times

13. Future Vision Long term: End financial exclusion by ensuring that Central Americans currently living on less than $2 a day have access to microcredit and microsavings Summer 2012: Research or field work in the area of developmental economics