WEEK 8 FEEDBACK OF CHAPTER 8

Chapter 8 talks about savings and the poor. According to the chapter, the poor tend to save less due to some factors beyond their control. The reasons for the low rate of saving among the poor is due to lack of finances, the poor do not have a regular income which will sustain them to the point they will have excess to save. Also, they lack access to saving accounts in financial institutions. In addition, the fact that the poor tend to pay very high interest rates to their money lenders, thus leaving them with little or nothing to save. Again, discouragement and loss of hope equally play down on the poor’s ability to save.

  The psychology of saving and the poor suggest that the poor are willing to save but the fact that they keep the money at home makes it possible for them to spend it easily on some “tempting goods” such as alcohol. Also, saving is less attractive tom the poor because the goal is far away (discouragement) as well as the fact that the poor live with a lot of stress which hinders their ability to take good financial decisions.

A way out for the poor is to motivate them and give them the assistance (morally, materially and financially) which will pilot them out this poverty trap.

TED TALKS.

Rafaello D'endrea provides us with an astonishing way of projecting human creativity and Innovations that will better our lives. He does this by using the techniques of the quadcopters which can perform things we even thought were impossible to do, to the point of going against the known physics laws. For a better understanding, it may be worthwhile watching this video;

https://www.youtube.com/watch?v=w2itwFJCgFQ