Why Community Buy-In and Support for Youth Savings in Kenya (And Everywhere Else!) is Important

Role models, mentors, coaches, teachers, cheerleaders, and influencers are a few of the ways to describe the role adults play in the development of young people. Findings resulting from the three-month, nation-wide market research that was successfully completed[1] early this year, revealed as much. The over 700 respondents, of whom 80% were youth between 12-18 years, provided important insights that indicated the need for adult involvement in a youth savings product, which is currently being pilot tested.

Developing the youth savings product was both inspiring and challenging. Inspiring because it was clear that young people are saving and want a safe place to (a) keep their money and (b) help them develop savings discipline. On the other hand the process was challenging in that it required a careful balance between offering what young people want whilst integrating the minimum regulatory and bank policy requirements that do not entirely favour the youth. For instance, it is a requirement for a trusted adult to participate in account transactions in order to comply with the regulatory requirements that limits the age for operating a bank account to 18 years and above. Unlike some child savings accounts that are targeted exclusively to parents purposely to encourage them to save for their child’s education, the goal of YouthSave-sponsored accounts is high youth involvement where young people are given a chance to inculcate a savings culture that helps them meet their own stated savings goals. It was therefore critical that the adult community that interacts daily with these young people understood and supported this initiative prior to launching it.

Efforts to engage adult gatekeepers were thus initiated in six pilot areas across the country. Over 270 leaders ranging from local high ranking government officials; religious, youth, and women leaders; heads of schools; and community-based organizations, attended event luncheons.

Aside from creating awareness of the new youth savings product among this important adult constituency, the events served to achieve several other objectives. First, the gatherings gave participants a chance to ask questions and clarify misconceptions about youth savings. One question that the adults repeatedly asked was regarding the source of money for youth to save. Contrary to their perceptions, participants were surprised to learn that youth get money mostly from their parents and guardians. That youth also save part of this money to meet personal and sometimes household financial needs was eye opening to the attendees. This information helped allay negative views about youth and money: as one woman participant attending one of the Nairobi based luncheons observed “…this (information) is a challenge to us parents…we need to build trust with our children.”

The community events included a Q&A session that further allowed the bank staff to answer and address issues raised on the product. For example, some leaders expressed fear that the youth savings account would lead young people to engage in illicit activities so as to get money to save. Government and school administrators were particularly concerned about youth dropping out of school for the same reason.

Also because this product strongly advocates for youth participation, a new idea to many, participants requested greater clarity on how the account would operate. Demand on the adult’s time to operate this account, and access to account information and funds were a few examples calling for detailed explanation. In response, staff using information from the developed FAQs making reference to the bank’s product policies and marketing strategies, pointed out measures the bank has put in place to address many of these concerns. Examples included (a) the need for youth to declare their source of income at account opening, (b) the assurance that product marketing and communications promoted most young people’s stated aspirations of completing school and (c) the guarantee that deposits would not require the presence of an adult.

Additionally, this session provided an opportunity for the bank to explain the measures it was putting in place to mitigate risks such as fraud and infringement on children’s rights. One such measure was the week-long intensive on-site training of branch staff conducted prior to the luncheons. The trainings included sessions on Child Safeguarding Protocols where staff members were made aware of the problems and risks of child abuse and sexual exploitation for children they would interact with. Staff also learned how to look out for, report and respond to these issues. Information from the Q&A sessions also helped revise the product FAQs.

Based on comments received during the luncheons, these events also seemed to have reinforced the bank’s corporate image. Presentations on the bank’s profile were warmly welcomed with participants encouraging the staff to share this information widely in similar forums. This recommendation was well received by the staff members who saw the value of using such gatherings to prospect for new and repeat business for the bank.

Many attendees also remarked that the product could instill positive money habits to an emerging generation. As one Child Welfare Social Services Officer in Kisumu said, “We applaud Postbank for the new youth savings account. As parents we have been saving for our children but have not involved them. You [Postbank] are inculcating a savings culture where tomorrow our children will become better citizens”.

Over all, one lesson stands out in introducing a youth savings product: involve the adult community! When this is successfully done, the likelihood of creating positive attitudes towards youth – their money and savings – is high. One leader from Nairobi demonstrated this when she good naturedly admonished, “… where have you [Postbank] been all these years! We have needed an account like this one for so long! As a parent I am challenged because when I reward my child for work done I give a gift like a dress yet I should instead give some small change for them to save…they can buy what they want from what they save.”

[1] Market Research was conducted by Postbank – YouthSave’s implementing partner in Kenya, MicroSave and Save the Children.