By Reema Shrestha, Director, Girls’ Education and Gender Equality Program at BEC member Room to Read
Teaching foundational reading skills continues to be one of the most significant goals of early-grade teachers and reading intervention teachers. Reading proficiently is essential for all students, as reading well allows them to access content across subject areas and learn about subjects outside their environment. The ability to read and write are crucial skills for youth to develop. Proficient reading and writing abilities improve youths’ communication skills and having advance reading and writing skills can lead to more opportunities in school and professionally. However, as Literacy Day approaches on September 8th, we’ve been reflecting on foundational literacy skills, and the fact that they are not the only skills that are critical for youth to learn to succeed in life. While it may not be considered foundational literacy, financial literacy and understanding the basics of money management at a young age is critical for youth to understand essential money management skills. Financial literacy teaches youth how to have a good relationship with money, an invaluable lifelong skill. These skills are even more valuable when accessible to marginalized youth, such as girls or gender minorities.
Students in Tanzania during an FEI Club Session
A Persistent Gender Gap in Financial Education
Around the world, gender and societal barriers, norms, and practices limit women and girls’ economic participation and independence. Over a lifetime, women and girls are challenged by unequal earnings, unpaid home labor, early marriage, employment interruptions due to child-rearing, and laws that prohibit them from inheritance or owning property—all of which make them particularly vulnerable to risk and poverty. In addition, unequal access to financial information and resources positions women and girls significantly behind their male counterparts regarding financial knowledge and security.
Unfortunately, even with this persistent gender gap in financial literacy and its implications for girls’ future economic security, financial literacy is often overlooked when countries develop educational strategies for sustainable development and the elimination of gender and wealth disparities. Global investments towards Sustainable Development Goal 4, which aims at ensuring inclusive and equitable quality education and promoting lifelong learning opportunities for all, must prioritize financial education to ensure young people have access to knowledge and skills that empower and allow them to actively participate in and contribute to their societies in the 21st century. This is especially true for girls, and other marginalized populations for whom greater financial literacy and education can help overcome gender barriers to economic gains in adulthood.
How Room to Read Incorporates Financial Literacy into Programming
Room to Read launched its Financial Education Initiative (FEI) in Sri Lanka and Tanzania in 2018. The project aims to increase girls' financial capability and awareness of their social and economic rights to empower the next generation of women to achieve better futures for themselves and their communities. Room to Read believes that financial education and life skills for girls are essential to achieving gender equality and creating an equitable world with holistic approaches to girls' economic empowerment and security.
The FEI clubs are voluntary after-school clubs that allow girls to build and practice financial literacy skills. Designed to supplement Room to Read’s robust life skills curriculum, FEI clubs expand upon existing financial concepts and basic money management skills so that girls are better equipped to make informed financial decisions. The objectives of the FEI club are:
Participants increase their knowledge of financial concepts
Participants feel confident about managing and making decisions about their finances
Participants share the financial information they’ve learned with their peers, families, and others in the community
The curriculum of the FEI clubs is implemented over two years. The curriculum focuses on money, savings, and managing money in the future. Each year of the curriculum has 11 sessions, each 90 minutes long.
FEI clubs have led to positive outcomes for participants. The 2022 endline findings showed that primary school girls showed positive gains across all measured domains and statistically significant gains in terms of gender attitudes, financial knowledge, and savings behaviors. Primary school girls report saving more money between the baseline and endline, and most secondary girls feel that FEI has increased their ability to earn an income and save money. This progress was recognized by parents, the school community, and other stakeholders, reflecting the success of FEI club’s goals.
Financial Literacy in Action
Sabrina from Tanzania set an example by saving money and resources. She has inspired many of her school friends and community by recycling waste materials and making door mats, rope, and pillows. With her knowledge and skills from the FEI clubs, she could market and motivate people to buy her products, as well as manage the money she made to continue her small business. In addition, students at several secondary schools in Sri Lanka organized a food fair. To execute the project, they prepared a detailed business plan – understanding the local market, customers, planning, and advertising for the fair. With their profit, they contributed to the school by paying to put concrete at the school entrance and buying first aid kits.
Financial literacy promotes regular savings, wise spending habits, and ways to maximize resources. These skills serve as a foundation for girls, young women, and gender minorities who are or will be transitioning from dependent to independent roles when it comes to financial responsibility. Financial education can support youth to handle their day-to-day expenses better, increase their ability to manage money, and build confidence and readiness for the future. As we continue to focus on foundational literacy skills, the importance of financial literacy cannot be overlooked.