1. April 6, 2011 World Bank and IFC Keeping it simple: The results of rule of thumb based financial literacy training on business outcomes and savings

2. How well do financial literacy programs work? What is the impact of financial literacy training for SMEs in emerging markets? What type of training works better?

3. Study conducted with clients of ADOPEM in DR Average loan US$ 800 Average weekly sales US$200 –Range $110 to $245 Approximately 50% do not separate business and home accounts They claim to keep “records” (66%)

4. Rules-of-Thumb Training Keep business cash physically separate from personal cash Pay yourself a salary –Also acts as commitment device to not over-consume How to estimate business profit using changes in business cash-on-hand Distinguishing business and personal expenses

6. Rules of Thumb training improves financial practices Rules of Thumb training improves revenue in bad weeks All values are deviations from control group

7. Next steps Replication More performance data measurement Scaling up