FINANCIAL LITERACY FOR

SMALLHOLDER FARMERS

SUPPORTED BY

Implemented by

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ACKNOWLEDGEMENTS
This publication has been adapted from the Microfinance Opportunities Global Finance
Education (GFE) Curriculums facilitators manual. We would like to thank Microfinance
Opportunities for allowing us to use and adapt their materials.

We would like to thank the following people for their technical and editorial contributions:
James Ivan Ssettimba, Tilda Nabbanja T, Zainab Asiimwe, Annette Juma Boliba, Julian Kiwuwa,
Anna Karolina Lamik, Lucas Menke, Patrick Muhumuza, Joseph Mutuugu, Esther Nanjovu, and
Heike Nesner.

AUTHORS / EDITORS
Julia Kirya, Anika Schmidt, Doreen Akech Otedo, Rachel Nakasiita
(GIZ AGRUFIN Programme, Uganda)

Contact: julia.kirya@giz.de / anika.schmidt@giz.de

All photos used in the manual were provided by the GIZ AGRUFIN Programme.

Kampala, March, 2016

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ABOUT FINANCIAL LITERACY IN UGANDA: SIMPLIFY MONEY. MAGNIFY LIFE.

The Strategy for Financial Literacy in Uganda was launched in 2013. The Strategy was devel-
oped as a framework to provide a comprehensive, sustainable and effective range of financial
literacy programmes at national level. The vision guiding the implementation of the strategy
is that Ugandans have the knowledge, skills and confidence to manage their personal and
familys finances well. Bank of Uganda led the development of the strategy and is leading the
implementation.

The strategy focuses on five strands:

Schools
Youth
Rural Outreach
Media
Workplace

ABOUT AGRICULTURE AND FARMING IN UGANDA

More than 85% of Ugandans and as many as 95% of the countrys poor live in rural areas.
Despite this, agriculture contributes only 20% to Ugandas GDP as at June 2015.
Demand-oriented financial services could make a significant contribution to help rural areas
and the agricultural sector tap their full potential. However, only about 16% of rural people
so far have access to formal financial products (rural finance). The rural population possesses
only a low level of basic financial literacy, and is generally unable to demand financial services
to suit their needs or to take proper advantage of those that already exist.

ABOUT GIZ

GIZ is implementing the Agricultural and Rural Finance Programme (AGRUFIN) on behalf of the
German Ministry for Economic Cooperation and Development. The programmes political partner
is the Ministry of Finance, Planning and Economic Development, Bank of Uganda (BoU) as the
lead implementing partner. Activities in three areas address:
(i) the legal framework for financial intermediaries in rural areas,
(ii) the capacities of financial institutions in rural and agricultural finance with
related product development, and
(iii) the financial literacy of the rural population.
.

1 http://data.worldbank.org/indicator/SP.RUR.TOTL.ZS
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FINANCIAL LITERACY FOR
SMALLHOLDER FARMERS

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Contents
Overview of the toolkit ......................................................................................... 1
How to use this manual ........................................................................................ 2
Content of the manual ......................................................................................... 3
1. BASICS OF FINANCIAL LITERACY .................................................................. 5
Session 1/1: Understanding Financial Literacy ..................................................... 6
2. PERSONAL FINANCIAL MANAGEMENT ........................................................ 11
Session 1/4: Basics of Personal Financial Management ........................................ 12
Session 2/4: Making a Budget .............................................................................. 18
Session 3/4: Preparing a Budget ........................................................................... 25
Session 4/4: Making Wise Financial Decisions ...................................................... 29
3. RECORD KEEPING ........................................................................................ 35
Session 1/1: Record Keeping for Small-Holder Farmers ........................................ 36
4. SAVINGS ..................................................................................................... 43
Session 1/2: Places and Ways to Save.................................................................... 44
Session 2/2: Preparing for the Future ................................................................... 50
5. INVESTMENTS ............................................................................................ 57
Session 1/2: Making Wise Investment Decisions .................................................. 58
Session 2/3: Planning for your investment ........................................................... 63
Session 3/3: Investment Costs and Returns .......................................................... 69
6. LOANS ........................................................................................................ 75
Session 1/4: Understanding Loans ....................................................................... 76
Session 2/4: Costs Related to Borrowing .............................................................. 83
Session 3/4: Loan Cycle and Cash Flow Management ........................................... 91
Session 4/4: Managing a Loan .............................................................................. 97
7. FINANCIAL SERVICE PROVIDERS .................................................................. 103
Session 1/3: Types of Financial Service Providers ................................................. 104
Session 2/3: Choosing the Right Product .............................................................. 110
Session 3/3: Understanding Rights and Responsibilities as a Financial Customer . 115
8. MOBILE MONEY .......................................................................................... 121
Session 1/1: Using Mobile Money ........................................................................ 122
9. PROTECTING AGAINST RISK ......................................................................... 129
Session 1/1: Risk Mitigation and Insurance .......................................................... 130

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OVERVIEW OF THE TOOLKIT

This manual is intended to be a guide for financial literacy trainers and is specifically targeted
at the rural population, in particular small-holder farmers.

It forms part of a toolkit, which has been developed to facilitate financial literacy trainings in
rural areas, where other training materials may not be available. It uses two tools which have
been developed specifically for this purpose:
A durable PVC picture flipchart with all relevant illustrations shall be used for the
different training sessions
A PVC picture pocket chart with sets of laminated cards of A5 size for different activities

Together, these materials shall facilitate the trainer to deliver training sessions on the different
topics of financial literacy in an engaging and interactive way.

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HOW TO USE THIS MANUAL

This training manual is intended to be a guide for those who want to deliver financial literacy
trainings in rural settings. It makes an effort to use illustrations, activities and examples which
the rural population can easily relate to and understand.

The manual consists of 20 sessions around 9 key topics (modules) of financial literacy. Each
session has been designed for the duration of approximately 1 hour. It consists of different
steps, which provide detailed training instructions for the suggested content.

Information for the trainer boxes provide relevant

Information for the trainer: background knowledge and in-depth information on
specific aspects. As a trainer, you may read these to be
able to answer questions, or to share this additional
information with the group.

The manual uses different types of methodologies for delivering the training content to the
target group. Icons on the left side of the page indicate the different types of activities.
QUESTIONS: The trainer asks a question to the group and encourages participants to share
their knowledge, opinions, views or experiences.

DISCUSSION: The trainer initiates a discussion by asking a question. Participants then continue
the discussion among themselves. The trainer may guide the discussion.

PICTURE FLIPCHART: These activities involve the flipchart. The trainer displays a picture from
the chart to explain, generate discussion or introduce a topic.

READ / STORY / CASE STUDY: The trainer reads a case study or a story to the participants.

EXERCISE: Participants practice what they have learned and apply it to their own lives. For
sessions with this type of exercises, ask participants to bring pen and paper.

GROUP WORK: These activities require the participants to form groups. They may have group
discussions or group exercises.

PICTURE POCKET CHART ACTIVITY: TThese activities make use of the picture pocket chart
(see page 1 on illustrations). They are always followed by an illustration which shows which
pictures should be placed where in the chart.
ACTIVITY: Interactive activities or games in which participants apply what they have learned
before.

It is impossible to design a training manual that equally suits every setting and target group.
Therefore, trainers are encouraged to look at this manual, the teaching instructions and the
allocated time slots as a guide. Feel free to extend or reduce the amount of time allocated to
a session or activity, if you feel that it requires more/less time. Adjust the content where need-
ed, incorporate your own ideas and knowledge where appropriate, and adapt the teaching to
the needs, interests, and knowledge of your target group.

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Module: Basics of
Financial Literacy
Objectives:
Participants understand the concept of financial literacy
Participants appreciate the importance of good personal
financial management
Participants have an overview of the course content and
all different modules
Participants agree on a training plan

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Module: Basics of Financial Literacy

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Module: Basics of Financial Literacy

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Module: Basics of Financial Literacy

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Module: Basics of Financial Literacy

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Module: Basics of Financial Literacy

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 Module: Personal
Financial Management
Objectives:
Participants understand the importance of managing
their personal finances
Participants demonstrate improved prudence and
improve the management of their personal finances
Participants know about the importance of budgeting
and use budgets for their personal financial planning

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Module: Personal Financial Management

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Module: Personal Financial Management

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Module: Personal Financial Management

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Module: Personal Financial Management

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Module: Personal Financial Management

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Module: Personal Financial Management

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Module: Personal Financial Management

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Module: Personal Financial Management

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Module: Personal Financial Management

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Module: Personal Financial Management

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Module: Personal Financial Management

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Module: Personal Financial Management

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Module: Personal Financial Management

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Module: Personal Financial Management

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Module: Personal Financial Management

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Module: Personal Financial Management

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Module: Personal Financial Management

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Module: Personal Financial Management

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Module: Personal Financial Management

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 Module: Record
Keeping for Agriculture
Objectives:
Participants get a better understanding of how to keep
business records
Participants know how to keep their basic records
Participants demonstrate improved record keeping prac
tices in their day to day activities

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Module: Record keeping for Agriculture

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Module: Record keeping for Agriculture

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Module: Record keeping for Agriculture

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Module: Record keeping for Agriculture

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Module: Record keeping for Agriculture

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Module: Record keeping for Agriculture

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Module: Record keeping for Agriculture

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 Module: Record keeping for Agriculture

Module: Savings
Objectives:
Participants understand the concept of saving
Participants are able to identify safe places to save
Participants understand the importance of saving
Participants plan for the future

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Module: Savings

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Module: Savings

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Module: Savings

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Module: Savings

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Module: Savings

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 Savings

Module: Investments
Objectives:
Participants understand the importance and advantages
of investing money
Participants know how to plan for an investment and
make wise investment decisions
Participants understand the difference of short term,
medium term and long term investments

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Module: investment

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Module: Investments

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 Module: Investments

Module: Loans
Objectives:
Participants have improved loan management practices
Participants understand the difference between own
money and loan money
Participants understand the costs involved in taking a
loan

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Module: Loans

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Module: Loans

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Module: Loans

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 Module: Loans

Module: Financial
Service Providers
Objectives:
Participants understand the characteristics, advantages,
and disadvatages of different financial service providers
Participants know about their rights as financial
consumers
Participants increasingly utilize formal financial services

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Module: Financial Service Providers

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 Financial Service Provider

Module: Mobile
Money
Objectives:
Participants get a better understanding of the concept
of mobile money and the benefits of using it

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Module: Mobile Money

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Module: Mobile Money

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Module: Mobile Money

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Module: Mobile Money

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Module: Mobile Money

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Module: Mobile Money

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Module: Mobile Money

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Module: Protecting
against risks
Objectives:
Participants know several options to protect against risks
Participants have improved their understanding of
insurance services

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Module: Protecting against risks

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2016

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