Purpose: Increasing access to formal financial services among youth and young adults is currently being explored as a large scale economic inclusion strategy in lower income countries (UNCDF, 2011). Youth developing countries are able to save and accumulate financial assets if they have access to formal savings products and encouragement and support (Chowa & Ansong, 2010; Mason et al., 2010; Ssewamala & Ismayilova, 2009). Youth with higher financial capability have positive impacts on adulthood transitions (Johnson & Sherraden, 2007; Lusardi, Mitchell & Curto, 2010) and future planning (Scanlon & Adams, 2009). However, youth from many developing countries have low levels of financial literacy (Lusardi, Mitchell & Curto, 2010), and have less opportunities to access and use of formal financial services (UNCDF, 2011). Nevertheless, research has not been conducted to test the effects of large scale financial inclusion interventions in SSA to help inform policies targeting youth and young adults. To address this need, this study will examine the effects of financial inclusion in YouthSave a research study in Colombia, Ghana, Kenya, and Nepal.

Method: Net savings amounts, total deposits of youth in each country will be reported. Pre-post differences in the financial capability of youth in a cluster randomized experiment in Ghana will be reported. It is measured using a 12-item scale (α=.72) with money management (α=.69), financial services awareness (α=.76), and financial services actions (α=.82) subscales, as well as various savings behaviors. Of particular interest are financial capability differences among youth who were exposed to in-school banking compared to community-based marketing.

Results: 85,000 youth opened savings accounts in Colombia, Ghana, Kenya, and Nepal . A total of 19,953 accounts were opened over 12 months. For most youth, the YouthSave account is their first experience with formal savings. In less than one year, youth have saved USD 519,127 across all four countries, with average savings balances of USD 248 in Colombia, USD 91 in Nepal, USD 26 in Ghana, and USD 10 in Kenya. In Kenya, youth who heard about the account through mass media saved significantly more than those who heard about the accounts in other ways. In Ghana, youth who learned about the account through mass media deposit more frequently. Emerging results suggest the importance of taking the bank to the youth.

Conclusions and Implications: Results from this study will help determine whether providing access to savings accounts helps youth develop important financial skills that can help ease transitions to adulthood. Higher account uptake rates and more savings may necessitate taking the bank to the youth. This might involve providing banking services in market places, in partnership with apprenticeships, through technology, or in schools, ideally at grade levels when school is mandatory, before dropout begins.  These results may inform the development and implementation of policies aimed at promoting the economic empowerment of youth that may include financial inclusion as an adjunct to education and workforce development policies.