It is the second year in a row now that Sparkassenstiftung supports the implementation of the “My Money Month” in Armenia. With the aim to strengthen the trust of the Armenian population in local financial institutions, Sparkassenstiftung and the Central Bank of Armenia have developed measures to inform the population about existing safety systems in the financial sector, to illustrate the risks inherent in taking loans and to show ways how to generate financial assets with the help of simple budget planning tools.
After this financial literacy initiative was successfully launched in 2013, this year sees the first ever introduction of “My Finance Truck” in Armenia. As of October, the truck will tour through all regions of Armenia and particularly supply the rural population with budget planners, information about the deposit protection fund and other financial literacy material. Wherever the truck stops, little competitions and brief trainings on topics such as budget planning or how to take on a loan and many other interactive activities are organised for interested persons of all age groups.
The initiative “My Finance Truck” complements the activities of the project <link http: www.sparkassenstiftung.de en projects projekt staerkung-der-ersparnismobilisierung-ueber-die-foerderung-der-finanziellen-bildung-und-des-schutzes _blank>“Strengthening savings mobilisation through promoting financial literacy and protecting consumers of financial services”, which is financially supported by the German Federal Ministry for Economic Cooperation and Development (BMZ).
Integration of the World Savings Day in My Money Month
On 31 October, many local banks and financial institutions will support Armenia’s “My Money Month” by offering an “open day”. Opening their branches to the public on this special day, the banks invite their visitors to look behind the scenes and offer special activities such as soccer tournaments or little competitions. Various giveaways and short videos shown at the ATMs are geared towards promoting financial literacy in the different institutions.
Combatting traditional distrust with financial literacy and adequate products
Armenia’s population is thrifty – savings are in many cases the only option to provide for the future or emergencies. In the wake of the breakdown of the Soviet Union at the beginning of the 1990s, many Armenians lost all their savings. This bad experience is still pouring its influence with the result that many people do not want to deposit their money at a bank, although Armenia meanwhile has a functioning deposit protection fund. This holds particularly true for Armenia’s rural population. Especially potential low-income customers often save their money under the mattress, as they do not have any access to financial services or lack adequate products, giving them the opportunity to save their small deposits profitably.
All this has culminated in the effect that Armenia’s population is only insufficiently providing for the future and has to draw on expensive consumer loans in the case of an emergency.
Implementing the “My Money Month” and organising the World Savings Day as a part of it, Sparkassenstiftung and the Central Bank of Armenia pursue the goal to strengthen the mobilisation of savings in Armenia and to enhance the consumers’ ability to generate savings and recognise as well as make use of products, which are adequate for them. In addition to that, the Armenian banks are to be enabled to accept small savings on a cost-efficient basis.
Contact Partners:
Dr. Ilonka Rühle / Christina Heuft
Savings Banks Foundation fr International Cooperation
Simrockstraße 4
53113 Bonn / Germany
Phone: +49 228 970-624 / -618
Fax: +49 228 9703-613