Expanding Savings Groups in Colombia

 
Promoting the formation of savings groups among low-income adults and families in Colombia
 
The objective of the Groups for Entrepreneurship and Maximzing Savings (GEMS) is to build assets of individuals through the establishment of low-cost, self-managed systems allowing individuals to save on a weekly basis. This program provides a safety cushion during difficult times and allow for planning of economic needs over time including improvements in cash fhow, housing, and educational improvements.  The project will focus on education in the area of personal finance and promoting a “savings culture” with the participants
 
Impacts:
  • Establish 50 GEMS groups with a total participant group of around 700 individuals
  • Train 200 individuals to lead the weekly accounting and reporting process for their respective groups
  • Save approximately $4,200000 Colombian pesos per group (approx. $1214 CAD) for a total of approximately 300,000,000 Colombia pesos (approx. $87,000 total) over 2 years
  • Target a lending rate of approximately 18% of their savings to members of the groups or communities
  • Conduct a minimum of 50 trainigns in formation of the groups and offer an additional two training themes per year to the groups on topics including: the difference between savings and investment, generating a budget, and controlling costs
This project will involve partnership with the Investing Hope Foundation who will work with local Colombian nonprofits, churches, local Rotary Clubs, and other grassroots organizations to identify target groups for this program.