How the Poor Manage their Money

How do the poor manage their money? Here are four behaviors that commonly underpin their money management practices.

How are poor people able to create some financial predictability, when they face low and unpredictable income as well as unexpected expenses? They seem to rely heavily on rules of thumb, conventional wisdom, and habitual practices. This CGAP video explains four behaviors that commonly underpin people's money management practices, which are drawn from a CGAP working paper, Money Resolutions, a Sketchbook. By understanding how poor people manage their money, financial service providers can create solutions that will be taken up more broadly.

Produced by Baker & Hill, 2015