Financial literacy is an indispensable area that assists us to oversee our day to day or monthly finances. From keeping a simple household budget to supervise all the monthly, yearly expenses. This is the topic that we don’t find in school text books. Oftentimes both academics and universities fail to teach us the subject. However, thanks to financial educating platforms one can avail the knowledge around financial literacy. But what about indigent people, especially simple women? Those are totally unaware of financial and digital literacy.
An educated woman can access the financial education tools but it is difficult for uneducated women to use these platforms since they are unfamiliar with digital literacy. Here, the role of NGOs in promoting financial literacy among women has become important. Non Government Organizations work to provide earning opportunities to people from poor backgrounds. They also address societal challenges to build a society where no women and children leave behind. Through this blog you’ll get to know the important role of NGOs in promoting financial literacy among women. But take a look at what are NGOs?
The full form of NGO is non government organization. As the name itself says non government so it is apparent that NGOs are individual, separate organizations that work for the welfare of the society. They are registered foundations that are established for serving different purposes. Although NGOs are independent associations, they receive particular funds from government and private sectors. Big business giants and multinational companies also give them some amount as donation.
There are three pillars of NGOs these include donors who donate, employees or volunteers who support in running the organization and government bodies who make the policies. These three pillars are important for the organization, in the absence of any of the pillars the prime mote of the association can't succeed.
In simple terms NGO is an organisation run by a group to improve and bring change in lives of vulnerable communities. One such NGO is a Delhi-based SShrishti trust organization that runs different welfare programmes including, remedial activities for slow learners, kaarini, digital literacy etc. And bringing change in thousands of lives.
How NGOs Promote Financial Literacy Among Women
There is a big part of NGOs in building educated women especially those women who come from poor backgrounds. They work to empower women and children who belong from impoverished communities who could not even afford basic everyday necessities. Here, NGOs play a crucial role by offering them a space where they do not have to pay for acquiring knowledge. At NGOs these people explore an environment to discuss their lives financial problems.
For the growth of indigent people who lack the basic necessities of life whether it is food, water, clothes and education. NGOs act like volunteers that spread awareness and talk about critical life saving subjects to improve conditions of poor people. Here are the five significant roles of NGOs run for women’s betterment, without these financial literacy is impossible to imagine.
From time to time NGOs keep organizing financial education programmes for women in vulnerable and rural communities. So, they can learn the basics of money management topics along with saving money, making a budget, using bank accounts, and understanding loan terms and conditions. These programmes remain beneficial for women to learn and manage their income and expenses.
Volunteers of NGOs teach women the importance of saving money and adjusting monthly expenses. They break down the complex financial topics in an easy way so women can understand the topic and take more benefits from the insights.
Women also taught how to create their personal future financial goals. These may include education savings and emergency funds to deal with unexpected expenses that can arise any time. NGOs also push women and men to save money. Because everyday small savings can matter and compound your amount in big numbers. Thus, an illiterate woman can gradually become financially independent through following simple but effective steps.
3. Providing Skill and Employment Training
Many NGOs provide women skills with practical training which help seeking employability and earn an income. These skills and training are tailoring, handicrafts, cooking, computer skills, beauty services, small business management etc. Along with these skills, women can comprehend how to calculate costs, set prices, manage profits, and keep basic financial records. Such training assists women to attract employment and eventually put money in their pockets.
NGOs assist women to understand how bank operations are done and how to avail banking services. Volunteers explain how to open a new bank account and access related services from deposit money to money withdrawal, and digital payment services use. Women also are taught about savings accounts, insurance, EMIs, loans, and other financial products like credit card, debit etc. This knowledge eases the pressure on women to use formal financial services. This also reduces their dependence on unsafe or informal sources of money.
To promote financial literacy among women NGOs often run different programmes so that they can learn about available government skill development courses and income support programmes . Before applying for any scheme they explain to women the basic eligibility, benefits, and application process in an easy way. Some NGOs also guide women how to fill and complete the forms. In this way they become aware of how to access benefits related to savings, education, employment, entrepreneurship, and social security.
Not only community development or financial literacy NGOs contribution is also important for helping achieve the United Nations’ Sustainable Development Goals (SDGs). There are 17 major goals of the United Nations that focus on addressing major problems. These include, zero hunger, sensitization, quality education, poverty, equality, climate change etc. Different goal and projects of NGOs seem like a support to these goals. Through volunteer programs and everyday efforts, they help make communities and the world better.
Non-profit organizations often share documents that show their annual report. In the reports you may find information about their work and growth. Funders and donors can use these documents to analyse an NGO performance and decide whether its work matches their goals before offering support to the trust.
Becoming aware about finances is very important not only for an educated woman who operates big brands, it is also indispensable for common household women. Knowing, budget, savings, life and health insurances, banking related service from bank apps to ATM access, all are essential to become financially literate.
When you are aware about financial terms you can easily identify the suspicious activities or inappropriate notification that may lead to financial troubles. Since women are the CEO’s of their small homes it is crucial for them to become financially literate. When a woman is financially literate she can guide her generation to follow the path and remain free from financial challenges and even can beat her poor circumstances.
