4.1.4. Provide General Financial Literacy Training to Households and SMEs


The Center for Strategic and International Studies defines financial literacy as “the ability to understand and execute matters of personal finance, including basic numeracy, interest compounding, inflation, and risk diversification” (Source: Financial Literacy: Challenges and Opportunities). Financial literacy training, therefore, involves education in practical financial issues such as saving, investing, borrowing, and also evaluating the cost of personal financial services such as insurance, credit for major purchases, and electronic cards (Source: Financial Literacy Course Report). Financial literacy is frequently lacking in developing economies, which may have undergone major changes in financial infrastructure and enabling conditions in recent years, rendering institutional knowledge inadequate to address present challenges and opportunities. USAID has offered a variety of educational programs aimed at youth, entrepreneurs, and small and medium-sized enterprises (SMEs) to increase financial literacy across communities.


  1. Ability of borrowers to provide the details/documentation needed to get a loan
  2. Appropriate capital to meet borrower needs
  3. Cash flow uncertainty
  4. Off-take risks associated with target sector/region
  5. Production costs associated with target sector/region
  6. Rate of return on lending in target sector/region


Greater financial literacy among finance seekers and providers encourages more active and informed participation in the formal economy


Coming soon.


Much research has been conducted on the success of financial literacy interventions (See:The World Bank’s Financial Education:What Works and What Doesn’t?).When designing a financial literacy training program, USAID should be careful to consider characteristics including the delivery channel (e.g. instructor-led versus digital) and the timeframe of the training.



Kunci, meaning ‘key’ in Indonesian, is a suite of interlocking activities designed to create greater opportunity for young people while meeting the demands of Indonesia’s growing local economies. Its holistic approach to workforce development advances quality training and learning for job-readiness and increased ownership among and connectivity between key players in workforce development.


USAID partners with stakeholder and partner organizations to address seven main goals: 1) Technical assistance to increase youth participation; 2) Improve work-readiness and economic decision making; 3) Cultivate entrepreneurship; 4) Enhance the capacity and quality of training and learning centers; 5) Establish a coordination model to connect vulnerable youth to relevant job skills; 6) Strengthen capacity of young journalists to address workforce development issues; 7) Improve youth access to employment information through a library network


Through the Kunci initiative, USAID partners with the Government of Indonesia and the private sector to equip 200,000 poor and vulnerable youth aged 18-34 with the skills and resources needed to compete in Indonesia’s job market.With support from Kunci, more young people from five provinces will be able to reach their full potential and contribute to Indonesia’s economy.

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