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Financial instruments of the poor: Initial findings from the financial diaries study

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  • Daryl Collins

Abstract

A new data set called the Financial Diaries has been produced, based on a sample of 166 households, drawn from three different areas (Langa, Lugangeni and Diepsloot), from a range of dwelling types and wealth categories. A unique methodology was used to create a year-long daily data set of every income, expense and financial transaction used by these households. Within this sample, households used, on average, 17 different financial instruments over the course of the study year. A composite household portfolio, based on all 166 households, has an average of 4 savings instruments, 2 insurance instruments and 11 credit instruments. Of these financial instruments, for the same composite household portfolio, 30% are formal and 70% are informal. Interestingly, it was found that rural households use as many financial instruments as urban households.

Suggested Citation

  • Daryl Collins, 2005. "Financial instruments of the poor: Initial findings from the financial diaries study," SALDRU/CSSR Working Papers 130, Southern Africa Labour and Development Research Unit, University of Cape Town.
    • Handle: RePEc:ldr:cssrwp:130
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    File URL: https://www.opensaldru.uct.ac.za/handle/11090/659
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    1. Orlanda Ruthven, 2002. "Money mosaics: financial choice and strategy in a West Delhi squatter settlement," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(2), pages 249-271.
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    Cited by:

    1. Roth, J. & Rusconi, R. & Shand, N., 2007. "The poor and voluntary long term contractual savings : lessons from South Africa," ILO Working Papers 994106323402676, International Labour Organization.
    2. Ströh de Martínez, Christiane, 2011. "Finance for the poor in demand: Who uses microfinance and why?," IPE Working Papers 10/2011, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    3. Dorothee Crayen & Christa Hainz & Christiane St�h de Mart�nez, 2013. "Remittances, Banking Status and the Usage of Insurance Schemes," Journal of Development Studies, Taylor & Francis Journals, vol. 49(6), pages 861-875, June.
    4. Saxena, Raman & Mokashi Punekar, Ravi, 2020. "Designing pro-poor mobile financial services: Learning from the financial diaries of urban poor in India," World Development Perspectives, Elsevier, vol. 20(C).
    5. Alison Stenning & Adrian Smith & Alena Rochovská & Dariusz Świątek, 2010. "Credit, Debt, and Everyday Financial Practices: Low‐Income Households in Two Postsocialist Cities," Economic Geography, Clark University, vol. 86(2), pages 119-145, April.
    6. Larissa Jennings Mayo-Wilson & Summer K. Peterson & Joshua Kiyingi & Proscovia Nabunya & Ozge Sensoy Bahar & Lyla S. Yang & Susan S. Witte & Fred M. Ssewamala, 2023. "Examining Cash Expenditures and Associated HIV-Related Behaviors Using Financial Diaries in Women Employed by Sex Work in Rural Uganda: Findings from the Kyaterekera Study," IJERPH, MDPI, vol. 20(9), pages 1-14, April.

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