YouthSavers in Nepalgunj, Nepal Share Their Thoughts

Two weeks ago I had the pleasure of visiting with a few of the over 5,000 young Nepalis who are currently saving in CYBY accounts at YouthSave’s partner, Bank of Kathmandu. These particular young people attend school in and around Nepalgunj, located in Nepal’s Mid-Western region, where I had the opportunity to observe focus groups at a secondary school, a higher secondary school (which includes grades 11-12), and a girls’ madrassa or Islamic school. Though the ages and situations of these youth were diverse, a few consistent themes emerged across our conversations.

First, echoing YouthSave’s market research, the students confirmed that parents and family are their main source of income. In addition to getting money to take to school for food and other expenses, children in Nepal may receive money during festivals or relatives’ weddings. Whereas before they might have spent these windfalls, most youth said that they are now saving at least a part.

Interestingly, account holders also seem to have discovered a few new sources of income since opening their accounts. One student mentioned that she now saves the change left over from shopping errands, and that she and her friends keep a sharp eye out for money lying in the street. And because, during the financial education workshop she took, she learned that the amount you save matters less than the fact that you save, she said, “Now when we find even a rupee or two, we save it!”

This comment was indicative of a broader change commonly described by the youth I talked to. Participating youth seem to be shifting the way they think about spending and saving. In addition to saving small amounts that would otherwise have been spent, many youth talked about being more conscious of spending on needs instead of wants, in order to save. According to one project participant, “Now when we go to the market with friends, we consider expenses very carefully. Before, we had a culture of buying.” Another even suggested to her parents that they increase the quantity of vegetables they raise themselves in order to spend less on groceries. With her help, the family was able to do so."

Indeed, a number of the changes described by project participants pertained to their relationships with their parents. Several mentioned that they no longer spent all the money they received from their parents, but saved some instead. One young man said that this enables him to no longer ask his parents to fund small financial needs, but rather to take that money from his piggy bank. Another added that, as a result, “Our parents worry less.”

In fact, perhaps the most heartening changes reported were in the way parents appear to be treating account holders. In our initial market research, some youth voiced concerns that if their parents found out they were saving, they would withdraw financial support. However, these conversations revealed just the opposite: parents are becoming more generous because their kids are saving. In the words of one youth, “Now our parents give more money because they know we are saving and spending responsibly, so they are very happy.” Another said, “Before saving we spent all our money so they were reluctant to give. But now they know, ‘My child only spends in necessary things,’ so they easily give.”

In many cases, the youth I spoke with said that this attitude shift extended beyond their financial habits to how their parents perceived them more broadly. As one student told me, “Before, my mother said, ‘My daughter is very careless,” and she always told me, ‘Do this, don’t do this.’ But now she is very happy and says her daughter has become very responsible and will do something in the future.” At another school, I heard, “Before this account, my father and mother didn’t believe in me so much. But now they think I’m doing good work.” And a third recalled, “My parents advised me, ‘Do not waste your money here and there. Save money for your future, you can easily shape your career. This is very good work you are doing.’”

Given the importance of parents’ expectations in shaping their children’s future realities, these are encouraging reports indeed.