08.20.2012

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JOYCE

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How Children Can Benefit From Microfinance

There are over 850 million people who do not have access to basic education. 344 million are youths and children who are not in school (this is equivalent to 40%). Instead of going to school, children work at least 14 hours a day and earn 10-20 cents an hour. Some of the kinds of work they do include, working as a servant, delivering tea to day labourers and hustling tourists. Read more about this from Why Microfinance and Education: Because It Works.

The goal of PLAN, a microfinance organisation, is to establish basic financial services. These include credit and saving services to the poor with an emphasis on helping children and women. PLAN helps them by enhancing their economic security and helping them to reduce financial risks. PLAN adapts their services to youths by enabling them to learn from a young age how to save and the importance of saving as well as providing them with access to entrepreneurial and life-skills training, which would become valuable when they reach adulthood. You can read more about PLAN by going to Planusa. You will also get information on how microfinance helps women on this website.

One of the ways that children can get help for a better future is through child sponsoring. Child sponsoring is when an individual chooses a child in a developing country to sponsor until the child becomes self-sufficient. The money that individuals provide goes towards the child’s education, security or health. Sometimes the sponsor can go towards all of these. Sometimes individuals meet the child they are sponsoring and other times they only receive pictures and updates of how the child is doing from the organisation they signed up with to start sponsoring. If you have the interest to sponsor a child in Africa, or you would like to read more about microfinance and sponsoring, you can go to Develop Africa, an organisation that specifically caters to supporting low income people in Africa.

Kwabena Darko is an example of someone who started off with really nothing, and with the help of microfinance, he grew up to be a successful entrepreneur, helping people who are in the situation he used to be in, achieve their goals. Mr Darko first started when he received a small loan as a poor boy, he was able to buy a hen, he sold eggs from the hen and after that, he gradually got to where he is now. You can read more about him at One Hen: Microfinance for Kids, which is a dedicated website to his success story.