7. Can poor people save?

Worldwide people save. Poor people even have more reasons to save to create reserves because they are never sure of a future income. In some case they only save very small amounts, such as 25 cents a week. Mostly people save in informal ways: they invest in assets such as gold, livestock, building materials and other things that can be easily exchanged for cash. Or part of a harvest is put aside and sold in case of a need for cash. People also save money at home or burry cash in the garden. But all these saving methods have their limitations: cash at home can be stolen, eaten by mice or insects, burned or claimed by relatives or friends who are difficult to refuse. It is not possible to cut a leg off a goat and sell it in case of a need for a small amount of cash. Money saved with a Microfinance Institution is safe and often also generates a (small) interest.