Limited knowledge of financial concepts is associated with suboptimal financial behavior such as low rate of formal savings, poor usage of bank accounts, amongst others. Well-designed financial education programs have the potential to improve financial knowledge and behavior, leading to improvements in wellbeing.
Many farmers in developing countries lack the capital necessary to invest in potentially profitable inputs, as these investments must be made months after the harvest when households lack cash. Commitment savings accounts, which have features to discourage withdrawals, have been shown to help the poor save, and could help farmers put aside money to invest in their farms. However, demand for these products is low.