Child and Youth Financein Post-2015 Development Agenda

Michael SherradenChild and Youth Finance International

United Nations, New YorkMay 23, 2014

Global Context

• Rising inequality in incomes and wealth

• Increased financialization

Challenge

Achieve greater financial capability and asset building for the entire population, starting very early in life.

. . . Important for households, and for the larger economy and society.

Financial Capability

Financial Capability =

Financial Literacy + Financial Inclusion

Financial Action:More Than Human Behavior

Humans (most of us) are not very good at financial matters.

Most financial action should be structured, like delivery of clean water through plumbing (e.g., finance in schools, automatic enrollment).

A long way to go on this. . . Should be the major agenda.

Financial Education and Holding Assets: Efficient and Productive Finance

• Access to range of financial products and services (manage money).

• Access to more efficient finance and transactions (save money).

• Potential for investment returns (make money).

Why Assets Matter:Development Outcomes

• Outlooks and attitudes are more positive (e.g., parental expectations for children, mental health of parents).

• Child development is improved (e.g., social-emotional development of children).

Why Assets Matter:Development Outcomes (cont).

• Behaviors and practices of children and youth are more positive (e.g., school attendance, health behaviors, social behavior).

• Well-being of children and youth is enhanced (e.g., education and health).

Why Assets Matter:Development Outcomes (cont).

Increased education and health are “human capital”.

Over time, very likely that child and youth finance improves the macro economy and society.