Tuesday, August 31, 2010

Savings in La Union: Part II

So, last time I talked about savings in La Unión. Recap: nobody does it and it is vitally important since incomes vary drastically at different times of the year. So what can be done to remedy this problem? The two things that need to be addressed are the lack of knowledge and the lack of a good savings facility.

Enter INFOP, the National Institute for Professional Formation in Honduras. This organization provides business training and development to a variety of small businesses, including small agricultural producers, in just this area. INFOP, much like IHCAFE, has professionals ready to teach, and UMF is now coordinating business training sessions for the near future.

Now, when I say, “business training”, this may not be the same thing that most people think about in the United States. The first training that we are looking to coordinate will be on savings. How much do people make during the harvest? How much could they save? What could they do with this money? How will they save it? The next session will be the planning of investment, essentially, planning beforehand how much producers will need to invest in their fields, versus how much they will make during the harvest, in order to decide the right amount of land to plant, how to budget the money they have saved in order to purchase necessary inputs, and how much money to expect to keep after all of their expenses. This will be complemented with several other topics tailored to agricultural business, but these first to sessions – which will teach both how to save and then what can be done with those savings – will serve as the building blocks for anything that will be taught in the future.

As for the lack of facilities to save money, the easiest solution to the lack of savings facilities would be for UMF to take savings ourselves. Unfortunately, as a non-profit rather than a formal bank, we are not legally able to do this. Additionally, we have heard stories of distrust from people in towns who have deposited savings with organizations before, only to find their money gone when they went to withdraw it at a later date. As such, UMF has been looking into other options. So far we have come across two.

One – form community banks based upon the common Caja Rural form. These would allow members to manage savings themselves and would be located in each individual town. However, these come with problems of trust and the potential for mismanagement mentioned in my previous post.

Two – set up bank accounts at a formal bank. To me, this seems the better option, especially with the recent opening of an ATM in La Unión (which consists of a card scanner at a pulperia or small store; the store owners then take money out of the drawer in the amount withdrawn). While basic, this ATM allows bank members to make deposits and withdrawals 7 days per week here in La Unión, thereby fixing the transportation problem previously faced. Taking advantage of this, UMF could coordinate the opening of personal savings accounts with the training sessions in towns so that people could, in a short period of time, learn about the advantages of saving and gain access to a viable savings mechanism.

So where does that leave us? I think that, by coordinating proper training and facilities for savings, UMF can help to implement an effective savings program which will help the people of La Unión save money to be used for emergencies or otherwise productive uses during times when money has not traditionally been available. My hope is that we can at least make first steps to move away from the attitude of “dinero ganado es dinero gastado.”

Until next time, adios.

Patrick

11 comments:

  1. You will then need to track your costs to verify you are staying inside of that sum. When you have set your financial plan, you can choose where your auto title credit installment fits in. You may need to trim different classes like "diversion", "eating out" or "fun". Frequently these are needs not needs and can hence continue lessenings.online car title loans in fresno

    ReplyDelete
  2. Each one of those individuals who are with awful record as a consumer and need a terrible credit auto advance are into a bad situation. The main thing any money related establishment will watch for affirming any car advance is the record as a consumer and FICO assessment. Payday Loans

    ReplyDelete
  3. Contrasting credit quotes and arranging and loan specialists is your arbitrator's occupation. They will help in improving the credit terms on the grounds that there is a decent risk that the terms and conditions will differ considerably from one moneylender to the other. check cashing

    ReplyDelete
  4. What's more, your lawful group will offer you prompt and recommendations before you acquire the car credit. Since your group has your best monetary enthusiasm for brain, it is a shrewd decision to listen to their recommendation. Payday Loans Costa-mesa

    ReplyDelete
  5. So in the event that you need to get the best automobile advance rates, you have to give careful consideration surprisingly history and gatekeeper it deliberately. In the event that you survey your present record as a consumer at regular intervals or so you ought to have the capacity to stay up on any progressions that should be made and can keep blunders to a base. cash advance

    ReplyDelete
  6. Value arrangement, car credit application, and printed material routine are the last strides of a vehicle buy. Everything goes easily in the event that you have stellar credit. On the off chance that you don't, all the energy of auto shopping may transform into dissatisfaction, brought about by credit disavowal. check cashing san-diego

    ReplyDelete
  7. this kind of credit auto advance is likewise accessible straightforwardly from the merchant. Similarly as with contract buy you would pay the cash owed on the auto back month to month. The distinction is that the installments additionally incorporate a last "inflatable" sum toward the end of the assention. check cashing

    ReplyDelete
  8. John Hickenlooper and governors of Pennsylvania, Wyoming and Oklahoma marked a Memorandum of Understanding to add characteristic gas vehicles to their transportation armadas. They have commonly vow to supplant some of their old fuel armadas with those running on compacted characteristic gas. Payday Loans Corona

    ReplyDelete
  9. For one thing, Pixar's film "Autos". This motion picture takes after Lightening McQueen (played by Owen Wilson) while he tries to make it once again starting from the run town of Radiator Spring in would like to win the Piston Cup. Check Cashing

    ReplyDelete
  10. Since you have all your credit change shapes sorted out, you are currently prepared to contact banks for advance adjustment. Your telephone call won't be as terrible as you think; your bank needs to know why you can't pay your home loan and genuineness wants to attempt and work something out with you. payday loans san-diego

    ReplyDelete
  11. Manufactured home proprietors know the pride and delight of home possession. There is additionally a specific unique sort of opportunity in owning a manufactured house that you may not discover through responsibility for customary home. With a versatile - or particular - home, you can migrate your home at whatever time you like. Cash Advance

    ReplyDelete