Poor people, with access to savings, credit, insurance, and other financial services, are more resilient and better able to cope with the everyday crises they face. With access to micro-insurance, poor people can cope with sudden increased expenses associated with death, serious illness, and loss of assets.
Access to credit, however small, allows poor people to take advantage of economic opportunities. By reducing vulnerability and increasing earnings and savings, financial services allow poor households to make the transformation from "every-day survival" to "planning for the future." Microfinance contributes to improved living conditions, better nutrition, better housing, more children going to school, more self esteem and self respect and less domestic violence.