In many instances, it is not possible to foresee if and when a health shock hits a household. A road accident and the immediate consequences afterwards, for instance, are hardly predictable. However, certain challenges do allow individuals to take preparatory steps in order to cushion their ramifications. In case of child delivery, the first physiological changes during the previous pregna....( read more )

New insights into the economic lives of the poor has revealed that basic money management rather than accumulating wealth is the primary financial concern of low-income households. Unpredictable and irregular cash inflows make it difficult for them to meet their daily needs. This problem is further exacerbated by the prevalence of inconvenient, unreliable and erratic financial ....( read more )

Given the long crop cycles, many farmers lack the financial resources to satisfy consumption and investment needs during the course of their crop production. This hinders many farmers from adopting an otherwise lucrative crop. Furthermore, farmers growing long gestation crops frequently end up diverting financing intended for productive purposes to satisfy their consumption needs. Less efficien....( read more )

Recent studies of how the poor manage their financial resources provide evidence of the latter’s difficulties to build up large sums over a longer period. This is only partly due to the low income of poor households. Saving requires discipline in order to forgo immediate gratification for the sake of future consumption. Otherwise little will be saved over time. Most frequently, households....( read more )