Youth Savings in Developing Countries

This paper explores the potential of youth savings accounts (YSAs) as an intervention for youth development and financial inclusion.

Research suggests that savings accounts for low-income youth may be a high-leverage tool to achieve youth development and financial inclusion objectives. A variety of stakeholders have, therefore, invested in youth savings products, programs and policies around the world. The paper reviews:

• Current evidence on potential effects of YSAs on youth development and inclusion;
• Current trends in the practice of YSAs in developing countries, and their implications;
• Additional information needed to understand the potential of YSAs.

The paper states that little is known about the types of youth savings products and services that would best contribute to both goals, or how these contributions might differ with context. To fully understand their potential, their performance must be observed in a wide variety of institutional, cultural and economic conditions.