Women heads of household, the ones who save the most in Latin America

In Latin America, men continue to have more savings capacities than women, but when women empower themselves and take charge of the household's financial resources, their management is usually more efficient, according to the report Determinantes Socioeconómicos de la Educación Financiera (Socio-Economic Determinants of Financial Education), developed by CAF, Development Bank of Latin America, and focused on the cases of Bolivia, Colombia, Ecuador, and Peru.

The publication also points out that people with a low educational level, residents of rural areas, youths, and senior citizens, are the groups with the lowest financial capacities and therefore, they save the least. 

 Diana Mejía, CAF's expert on financial inclusion and co-author of the report explains, "Women in Latin America continue having lower levels of financial education than men, but when they take charge of the household finances, they are usually less risk averse, they personally supervise their finances, and tend to plan based on long term financial goals". 

Among the countries analyzed, Bolivians stand out as the ones that save the most, with 71 percent of the population stating that they do save, although 38 percent do it informally (in a money box or "under the mattress") 

The report points out that governments should develop differentiated strategies for each segment of the population, especially those with fewer financial capacities, in order to improve the financial decisions of individuals. This would have a significant impact on poverty and the strengthening of the middle class. 

Mejía explains, "Savings are essential for the economic growth of countries and the wellbeing of families. Both at a national or individual level, savings may be used during adverse economic times, which is important in Latin America, where close to 40 percent of the population is at risk of falling into poverty". 

The study is based on surveys carried out in Bolivia, Ecuador, Colombia, and Peru. Following are the main conclusions for each country: 

• Bolivia: A smaller gender gap may be observed compared to the other three countries. Women get better results than men in the daily management of the household money. This has a positive effect for the women who participate in their family's financial decision making. This is the only country of those that were evaluated, in which single mothers have a better comprehension of financial concepts. 
• Ecuador: Ecuadoreans who formally save have better financial attitudes and behaviors. At the same time, single men have worse financial attitudes than the average. 
• Colombia: Those who formally save and inhabitants of rural areas, reveal better financial attitudes.  
• Peru: Women who receive conditional monetary transfers in Peru obtain better results in the daily management of the household money, which contrasts with the results of the other countries where, on average, those who receive government transfers or subsidies have worse results in the concepts and knowledge index, and show attitudes that are contrary to savings. This finding indicates that in Peru, financial education programs have accompanied this type of social program aimed at women. 

The research indicates that the use of formal mechanisms, such as savings accounts, improves the financial capacities of individuals, so financial inclusion and education programs should focus not only on the transfer of knowledge but also on disseminating the importance of savings for families. 

Financial education may have a significant impact on the wellbeing of families, as well as on social inclusion, as it facilitates the effective use of financial products and helps people develop the capacities to compare and select what best adapts to their needs.