How Does Financial Illiteracy Impact People Who Are Already Living In Extreme Poverty?
Financial illiteracy significantly impacts people living in extreme poverty. Until a person understands numbers and basic math, it is difficult to budget and dig one’s way out of a pit of debt. That is why financial literacy classes are essential.
“Equipped with mathematical skills, a parent can wisely make choices on purchases, contracts and family budgets. And in any business, an increased understanding of finances and mathematics helps guard business owners against being taken advantage of.”1
Dayita was only 17 years old when she had the dream of starting a tailoring business to help meet the needs of her family.2 Her family was in severe poverty, and her parents didn’t have the knowledge to increase their income potential. Dayita enrolled in a tailoring course and gradually improved her skills. The only problem was, she didn’t have a sewing machine. Starting a tailoring business without a sewing machine is impossible!
The startup costs of such a dream brought her plan to a grinding halt. It takes money to make money, and money was hard to come by. Her family often didn’t have enough food to feed everyone, so there was nothing to put aside for her dream. Her mother began to pray for God to provide.
Dayita recalls,
“Even though I knew how to stitch the clothes. I did not have a machine because there was not enough money with us.”
Occasionally, Dayita would borrow a sewing machine, and the results were outstanding. Her neighbors encouraged her to fulfill her dream and open a shop. Her pastor, a GFA World missionary, heard about Dayita’s need and reached out to GFA for help. Soon, Dayita was taking home a brand new sewing machine. Thanks to a generous donor, Dayita was able to fulfill her dream of owning her own business.
Her income grew! She was only working part time while also finishing school and still brought in about 1000 rupees per month, which is the equivalent of $16 USD. That may seem like a small amount, but to a family living on less than $1.90 per day, that $16 was a huge help!
The church is active in this family’s life. They are always available for wise counsel and to help provide wisdom on Dayita’s new business.
GFA’s income-generating gifts often come with training in business skills and budgeting. Once students understand the basic principles, they are skilled to begin meeting a need and making money to meet their family’s needs.
Join us by donating a gift to a destitute family today! Your gift may change their life and bring them out of poverty.
Learn more about numeracy definition
1 Psarris, Emily. “Fighting global poverty with ideas. GFA Special Report. 14 October 2020. https://www.gfa.org/special-report/solutions-extreme-poverty-line-poor-impoverished/.
2 “A Miracle for an Ambitious Daughter.” GFA World. Accessed 16 February 2022. https://www.gfa.org/news/articles/a-miracle-for-an-ambitious-daughter-wfr20-06/.