Giving Compass' Take:

• The Human Development Cash Transfer program in Madagascar helps women who are the main providers in the household to better manage and prioritize their family's finances.

• What are the benefits to creating this type of support system for women new to budgeting their finances?

•  Read more about the benefits of using behavioral insights to improve cash transfer programs.

For the last two years, Dorothee, who works in a rice field and makes handicrafts in Madagascar, has been the main provider for her family.

The Government of Madagascar started the Human Development Cash Transfer program in 2016 to help families with children up to 12 years old cover necessities like school fees and healthy food. The program provides cash to more than 100,000 female heads of household like Dorothee on the condition that their children enroll in and attend primary school.

Cash transfer programs like the one in Madagascar have been proven to reduce intergenerational poverty by helping children get more years of education, supporting their health and nutrition, and promoting productive family activities. Before receiving these cash transfers, Dorothee only had enough money to send her son to school—now, two of her daughters attend as well.

The cash relieves some financial strain from Dorothee’s family and thousands of others. However, as with anyone managing money, it is difficult to plan how to use it in the short and long term—not because she doesn’t know what’s best for her family, but because living in poverty can hinder a person’s ability to take the very actions needed to plan effectively, such as assessing risks and avoiding tempting purchases.

Read the full article about cash transfer programs by Tina Razafinimanana at ideas42.