The document discusses microfinance and financial inclusion efforts in Nicaragua. It describes how the Sister Maura Clarke Center works to empower female microentrepreneurs through a revolving loan fund and educational programs. Interviews with 27 women found that most track earnings but few expenses or create budgets. They also face obstacles to saving like distrust of banks. The Center then provided training to help the women calculate finances, create budgets, and open savings accounts, but saving habits did not significantly change due to priorities and beliefs. The long term goal is to expand access to microcredit and savings.

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