Women Spend More of Their Income

Women Spend More of Their Income on Their Families

Women have been shown to spend more of their income on their households; therefore, when women are helped to increase their incomes, the welfare of the whole family is improved. Women’s success benefits more than one person. Several case studies confirmed the well-documented fact that women are more likely than men to spend their profits on household and family needs. Assisting women therefore generates a multiplier effect that enlarges the impact on the economic conditions of society.  Women’s increased income benefits their children, particularly in education, diet, health care, and clothing

Women with Major Family-Responsibilities

Most of female borrowers are middle aged and married. This shows that the micro-finance services are going in the right direction to help the female help their families, because these age groups can be marked as having higher responsibilities to support their families.  It is difficult for a single person earning to make the both ends meet, so if the other family member also gets involved in some economic activity, it can make the life easier. In middle-aged groups of females, generally, the children are of school-going age, and mostly only the father is the earning member. In such a case, if the women have access to such smaller loans for starting or expanding business activities, it can increase the income of the family.

Data from case studies shows that a large number of women generally claim that education of children is a high priority for them and that they borrow and save for children’s education. Women are usually the primary or sole family caretakers in many developing countries. Helping them gain additional daily income improves the condition of their entire household. Putting extra income in women’s hands is often the most efficient way to affect an entire family, as women typically put their children’s needs before their own. Children are more likely to complete their education and escape the poverty trap than their parents are. Giving women access to microfinance loans therefore generates a multiplier effect that increases the impact of a microfinance institution’s activities, benefiting multiple generations.