Comprehensive research on microfinance and subsidy shows that virtually all microfinance institutions are subsidized, but these subsidies are small. There are two clear paths for increasing microcredit’s impact through continued investment: » Lowering the cost of microcredit by lowering...

One of the core findings of the US Financial Diaries is the prevalence of income volatility. On average, our households experience six months when income is 20% above or below their typical monthly income. In theory, households should react to volatile incomes by building up savings in months where...

In this issue brief, we explain what informal finance is and how informal savings and borrowing tools are used; some reasons why people use such informal tools; the benefits, costs and limits of informal finance; and the implications of these findings for financial services providers and...

This is a household profile of a participant in the U.S. Financial Diaries project. Sandra Young, 52, is an African American woman living in Brooklyn with her grown children: Tyler, 25, and Kayla, 24. Sandra manages several branches of a tax preparation agency, which means that she earns most of...

This is a household profile of a participant in the U.S. Financial Diaries project. Lauren Walker, 29, is a single mother living with her four-year-old son Riley in a rented townhome in a small town in eastern Mississippi. Lauren works full time as an administrative assistant for a local...

This is a household profile of a participant in the U.S. Financial Diaries project. Mike Smith, a single man in his mid-50s, lives in a two-bedroom, one-bathroom house in Kentucky, in a small town near the Ohio River. Even though his resources are limited, he manages to save by strictly controlling...

This is a household profile of a participant in the U.S. Financial Diaries project. Mateo Valencia, 31, and Lucia Benitez, 30, are an unmarried couple living in Queens with their four year- old son Pablo. Mateo and Lucia are undocumented immigrants, and the realities and dangers of living in the...