Summary of Daryl Collins, Jonathan Morduch, Stuart Rutherford & Orlanda Ruthven's Portfolios of the Poor

By IRB Media

Please note: This is a companion version & not the original book. Book Preview:

#1 The world’s poor are defined as those who live on less than two dollars a day. It is difficult to imagine what it is like to live on such a low income, and it is even harder to imagine how you would prosper if your income was just two dollars a day.

#2 Existing data sources are limited in their ability to answer these questions. However, after conducting several studies on how the poor manage their money, we found that they rarely spend every penny of their income right away. They instead save money, and borrow when they need to.

#3 The importance of reliable financial tools for the poor cannot be understated. If you're poor, managing your money well is central to your life.

#4 We developed a research technique called financial diaries, in which we interviewed poor households and collected their data. We learned how and when income flowed in and how and when it was spent.

• Language: English
• Publisher: IRB Media
• Release date: May 11, 2022
• ISBN: 9798822514553

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Insights on Daryl Collins, Jonathan Morduch and Stuart Rutherford & Orlanda Ruthven's Portfolios of the Poor

Contents

Insights from Chapter 1

Insights from Chapter 2

Insights from Chapter 3

Insights from Chapter 4

Insights from Chapter 5

Insights from Chapter 6

Insights from Chapter 7

Insights from Chapter 1

#1

The world’s poor are defined as those who live on less than two dollars a day. It is difficult to imagine what it is like to live on such a low income, and it is even harder to imagine how you would prosper if your income was just two dollars a day.

#2

Existing data sources are limited in their ability to answer these questions. However, after conducting several studies on how the poor manage their money, we found that they rarely spend every penny of their income right away. They instead save money, and borrow when they need to.

#3

The importance of reliable financial tools for the poor cannot be understated. If you're poor, managing your money well is central to your life.

#4

We developed a research technique called financial diaries, in which we interviewed poor households and collected their data. We learned how and when income flowed in and how and when it was spent.

#5

The cost of living varies between countries, and so does the purchasing power of the dollar. To account for that, the Millennium Development Goals were adjusted using a set of conversion factors called purchasing power parity exchange rates.

#6

The financial diaries reveal how households are able to afford certain items. For example, when we discuss $1 held by Bangladeshi households, that $1 could actually buy what it would take $2. 88 to buy in the United States.

#7

The poor couple lived on $70 a month, all of which was earned by Hamid. They had built up reserves in six different instruments, ranging from $2 kept