A first-of-its-kind workshop in Cotacachi, Ecuador, enhances the knowledge and skills of rural women and young people, empowering them to make sound financial decisions for their families and organizations and build a brighter future.

The smiling faces of the 29 participants tell their own story: it feels good to learn new skills and build understanding – especially in something as important as finance, which can to many feel overwhelming and inaccessible.

“Financial education is essential for the well-being of families and organizations. It allows us to make informed decisions about finances and helps us access better credit opportunities and investment. It allows us to strengthen bioenterprises and improve our quality of life,” says Magdalena Fueres, President of the Comité Central de Mujeres (CCMU), the organization behind the workshop.

According to evaluations carried out by the Organization for Economic Cooperation and Development (OECD), the level of financial education in Ecuador is low – especially among women and young people in rural areas, who generally lack access to conventional finance systems.

The fundamentals of financial education

To build capacity in this area and enhance skills, CCMU created a financial education guide, with support from the Forest and Farm Facility, covering the following six topics:    

1. Family Finances and Budget
2. Creating Savings Habits
3. Responsible Credit Management
4. Electronic Payment Methods
5. Production Costs
6. Tools for the Financial and Commercial Management of Small Rural Businesses

These fundamental topics, which are vital to prosperity, formed the basis of the workshop. Step by step, the facilitator, Nelson Guzmán – manager of the Union of Savings and Credit Cooperatives of the North – took participants through each topic using a variety of engaging and interactive exercises, and making the training relevant to people’s everyday lives.

Empowering women and young people

Participants came from 16 different forest and farm producer organizations which together make up the newly formed national Alliance of Forestry and Agricultural Producer Organizations in Ecuador (ROPAFE). The majority were women and Indigenous Peoples (Andean Kichwa), and a third were young people, strengthening their leadership in this space. It is the first financial education workshop in Ecuador to be held for this demographic.

As María Piñan from UNORCAC Women's Committee, Imbabura province, explains, “The conventional financial system limits and excludes rural and indigenous women, so savings accounts are presented as an accessible, fast-response and efficient alternative. This training helps us to improve the management of our savings accounts.”

Most of the women who took part were heads of households, possessing vast knowledge of the agri-food systems in their areas. Through participatory training processes, like this workshop, they are well placed to make an impact on their organizations.

As well as helping to empower women, it’s hoped the workshop will help reduce rural to urban migration of young people by increasing their sense of belonging to forest and farm producer organizations and by strengthening their responsibilities within them.

Cascading knowledge

Across the busy three-day workshop, participants received intensive and practical training, not only building their own financial knowledge, but crucially equipping them with the skills to replicate the training in each of their organizations in ways that would achieve significant learning. By the end of the third day, participants had notably improved their facilitation skills.

By training these women and young people in financial leadership and empowering them with the skills to cascade their knowledge, the workshop has a ripple effect so everyone in the organization becomes aware of how to use financial resources efficiently.

“I really enjoyed this training. I feel confident going back to my organization and talking about savings accounts, managing credit and production costs. It has taught me we need to cultivate our finances in the same way we cultivate our chakras,” said Nelly Monar from Tsatsayaku association, Napo province.

The fundamental financial principles set out in the workshop and in the guide represent an invaluable opportunity to build a more equitable and inclusive future for rural communities – in Ecuador and further afield. As the guide says: start today to build tomorrow.