Microsavings 101

Our microsavings program is designed to help motivated individuals with limited financial resources acquire tools to invest in the future—while avoiding the pitfalls of conventional microcredit loans. Instead of borrowing money, our participants save a small amount each month toward a specific investment goal intended to improve their long-term wellbeing. They might be saving to start a small business, pay school fees for a child, or purchase building materials for a home. What they save is theirs to keep and invest how they choose. They never take on debt or pay interest on a loan.

Matching Funds

To help our participants reach their goals, we pair savers in Haiti with donors in the United States who want to save with them. By providing 1:1 matching funds, our donors substantially increase the savings that participants in Haiti can generate on their own, creating added value and incentive to save.

On average, our participants save approximately $10 to $12 per month. That sum is doubled through our 1:1 matching program, generating nearly $250-$300 of investment capital over the course of 12 months program. This may not seem like a lot, but for folks earning less than $2 a day, it is significant. And the scale of the program allows participants and donors to form a true partnership—as equal contributors in the savings process.

Financial Education

To ensure that our participants are equipped to manage their finances and invest their savings effectively, we offer a series of educational workshops on basic financial literacy, budgeting and saving, entrepreneurship and business development. The sessions are organized by Haitian professionals with academic training and practical experience in business and finance. As part of the curriculum, participants develop personal budgets and savings strategies, conduct a community assessment to identify business opportunities in their neighborhood, and generate draft business and investment plans—so when their savings mature, they are prepared to make the most of the opportunity.

Banking

Like many Haitians, our participants have limited access to conventional banking or financial services. That makes it difficult to save and plan ahead. Without a secure way to store and transmit funds, the safest thing to do with a small amount of cash is to spend it quickly—before it can be lost or stolen. Known by economists as the “unbanked,” they lack the basic financial tools to invest in the future, prepare for an emergency, or even navigate daily fluctuations in income and expenses.

In the past, our program participants in the Port-au-Prince area utilized a mobile banking system called Mon Cash. With a simple mobile phone, users can deposit savings and make banking transactions electronically, offering a convenient, secure and low-cost way to save money. However, in more rural communities like Camp Perrin, mobile phone service can be unreliable. So our partners have opted to save with a local credit union, ACODEC (Action Communautaire d'Epargne et de Crédit de Camp-Perrin), a trusted entity in the community which provides basic savings and credit accounts to our participants.

Advancing Together

We call our program Avanse Ansanm, Haitian Kreyol for "Advancing Together." Smarter than a loan, and more empowering than a grant or a gift, our microsavings program is an investment partnership between savers and donors with the potential to make a lasting impact.