Learning to Earn in Rural Cambodia: "When the cash flows in, I save it"

In Australia (where I'm from), we start learning about money early. From lessons about compound interest in mathematics to budgeting for a meal in home economics, financial "know-how" is considered a survival skill.

The hope, it seems, is that when we start earning money we’ll be able to spend it wisely, save it and even invest it.

Some of us are more successful than others.

The point is that handling personal finances is not intuitive. It’s a skill that we learn.

In rural Cambodia, the stakes couldn't be higher when it comes to managing your money.

Approximately 20% of the Cambodian population lives on or below the national poverty line ($1.25US per day) and 90% of these people reside in rural areas (source World Bank 2014). Unfortunately, lack of access to education, health care and amenities often define the experience of rural poverty in Cambodia.

Saving money for a rainy day is a luxury that most people just can’t afford.

In 2008, KREDIT Microfinance and its international partners decided to do something about the situation. When they spoke to the people, it was clear what they wanted. Rural Cambodians did not just need access to money and financial services. They needed the tools and knowledge to leverage money effectively.

Enter, the Vulnerable Service Unit (VSU), a microloan with education attached.