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However, in many cases, the changes as part of a divorce are even more significant, and the number of steps you have to take is greater. One of the most difficult parts of divorce from a legal standpoint is untangling your finances from those of your former spouse.

Divorce Affects Men and Women Differently

While both men and women tend to suffer financial difficulty after a divorce, the burden upon women is often much higher. This discrepancy is more prevalent when the divorcing couple has children and is often a result of the ways in which families are more commonly run and how the courts rule more often in custody cases.

Due to the gender wage gap, men generally earn more money than women. Because of this, even in a marriage between a man and a woman who have no children, the man is more likely to account for the larger share of their income.

When there are children involved in a heterosexual relationship, the woman is more likely to stay home with the kids than the man. There has been a shift in this structure over the past few decades, with more two-income households and a rising number of women working while their husbands stay home with the kids. However, it is still far more common for the mother to stay home with the children than the father to do so.

Women

Because of these dynamics and the way that divorce laws work, women tend to suffer more financially than men after a divorce. The consequences of divorce for women are often quite severe.

About 20% of women fall into poverty after a divorce, while approximately 25% temporarily lose their health insurance.

While both men and women tend to suffer financial difficulty after a divorce, the burden upon women is often much higher.

Mothers who either didn't work before the divorce or are forced to scale back their hours at work after a divorce in order to care for their children are likely to require public assistance to help pay their bills. Unfortunately, even with public assistance, they often are not able to afford to pay all of their bills, and over 30% of mothers lose their homes following a divorce.

Matters are made worse by the fact that an incredible 75% of divorced mothers who are supposed to receive child support payments from their ex do not receive the full amount owed.

Men

Generally, men take a much smaller financial hit after a divorce. However, it can still be significant. The majority of men will experience a drop in their standard of living from 10-40%.

The percentage of the household income that a man makes up prior to divorce plays a large role in determining how mild or severe his financial hit will be. Men who contribute at least 80% to the household income tend to suffer far less than those whose income makes up less than that.

In fact, in some cases, if a man's income made up over 80% of the total household income, he could even see his financial situation slightly improve.

Men are hurt the worst when the state garnishes their wages to pay child support. When the amount of the child support payments is more than the man can afford and he can not get the amount amended by the court to reflect his situation, he could end up not being able to afford to pay the full amount owed to child support as well as his bills. The garnishing of his wages could leave him in a very difficult position.

[ymal]

Talk to a Lawyer

In order to protect your financial interests in a divorce, you will likely want to consult with a lawyer. A qualified divorce lawyer can go over all of the specific laws that will affect your divorce and what steps you can take to assure yourself of the best possible outcome.

Talk to Your Former Partner

Your divorce itself can be a huge expense. The best way to minimise that expense is by talking with your former partner civilly and attempting to negotiate the divorce in a non-contentious manner. This will not only be best for your financial situation but also for your mental health. If you are going to be sharing custody of your children, it will be the first step towards negotiating that process in a way that is best for your children as well.

This issue has been picked up by many campaigners who are pushing to eradicate the financial barriers between girls and menstruation. So, let’s talk about exactly why young girls need to be growing up in a world free of period poverty.

What Exactly is Period Poverty?

Tampon tax refers to the profits from the VAT charge of 5% applied to sanitary products and while this might be significantly less than the standard 20% VAT which applies to a whole host of other products, there is still dispute over whether we should be paying tax duties on these products at all.

A couple of retailers have swallowed the tax and a Tampon Tax Fund has been set up to support certain women's charities, but that hasn’t changed the fact that many girls are growing up in a climate where they can’t afford these essential items.

This ties in with period poverty and the inability to afford sanitary products such as tampons, but it can also relate to a lack of understanding of menstruation. Governments have come under fire for matters such as the tampon tax, which is thought to contribute to period poverty.

What Effect Does Period Poverty Have on Young Women?

On average, girls get the signs of their first period at around twelve years old, but periods can start for girls as young as eight. Not all young girls are fortunate enough to be able to add sanitary products onto their parents’ weekly shop and this has left many without access to sanitary items. Experiencing symptoms and having no access to period products means that many girls could be going through period poverty during the peak years of their education and development.

The average schoolgirl is found to take three days off each term due to period related issues and 1,000 girls said that period poverty affected their academic performance. There needs to be a solution to remedy this, allowing girls to focus on their education.

How Are Authorities Addressing Period Poverty?

In April 2019, the UK Government’s Department for Education announced its commitment to providing free sanitary products across England’s primary schools by early 2020. The Children and Families Minister Zadhim Zahawi covered some of the key concerns for period poverty campaigners, outlining the move as a step towards enabling girls to meet their full potential, while also leading happy, healthy lives. The classroom is one of the key places to tackle period poverty and in February the UK government announced that it intends to implement classes on menstrual health by 2020, which is certainly a step in the right direction when it comes to educating young girls about their periods.

Period Poverty in the Classroom

There’s often a lot of pressure placed on parents to teach their daughters about periods but if they don’t know, they can’t share so we should be more proactive in talking about menstruation in the classroom. As we’ve already mentioned, the government is taking the right steps towards bringing periods into the classroom and by educating girls at a young age, the school system can help to tackle period poverty at its very origin. There’s certainly a stigma around menstruation and by leveling the playing field early on, we can inform young girls about what to expect and that it is totally natural. Plan International UK found that some of the most reoccurring reasons cited by girls missing school lessons, due to period related issues, were embarrassment and anxiety about the situation. This demonstrates the need for period education and schools should be striving to tackle this and make classrooms a safe space for all youngsters.

As women, we have a duty to share and support each other through an experience that we all have in common, so let’s tackle period poverty and raise a generation of girls who have ready access to essential sanitary products and are empowered by their bodies, not held back by them.

Thanks to various widespread social media movements, there is already a growing understanding of period poverty amongst teenagers and young girls. PHS Group carried out a survey in which a third of participants said that either they or someone they knew had been affected by period poverty. Teen activist Amika George began the #FreePeriods movement, and the nineteen-year-old is amplifying the message that no young girl should have to miss out on learning because they can’t afford sanitary products. She has joined forces with various other campaigns such as the Pink Protest and the Red Box Project to reiterate the importance of achieving period equality for all girls.

Sources:

https://www.globalcitizen.org/en/content/period-poverty-everything-you-need-to-know/

https://www.nhs.uk/conditions/periods/starting-periods/                      

https://schoolsweek.co.uk/dont-hide-periods-in-schools-urges-charity-at-head-of-government-taskforce/

https://www.globalcitizen.org/en/content/amika-george-period-poverty-uk/

https://www.theguardian.com/commentisfree/2019/jan/08/girls-school-period-poverty-scotland-free-menstrual-products-england-campaign

https://www.independent.co.uk/news/uk/home-news/period-poverty-girls-school-absent-phs-group-menstrual-a8922246.html

https://plan-uk.org/media-centre/plan-international-uks-research-on-period-poverty-and-stigma

https://www.gov.uk/government/news/free-sanitary-products-in-all-primary-schools

http://redboxproject.org/

https://www.bbc.co.uk/news/newsbeat-47350835

Financial education is a crucial part of any child’s development. However, with research revealing that the UK’s debt levels rising year on year, it’s beginning to look as though not enough is being done to ensure a future of smart spenders.

Financial Literacy

The concept of ‘financial literacy’ has once more become a cause for widespread debate in the UK, with millennials and those following them now being labelled ‘generation debt’.

While there are services and support in place to help Brits better understand how to manage their money, a culture of easy-access finance and convoluted contract leasing terms has left many people in a position where it’s unlikely they’ll ever be totally debt-free.

To put the situation in perspective, research conducted by credit reporting experts Credit Angel has found the following eye-opening personal finance stats:

Is the UK Financially Illiterate?

Looking at these findings, it’s clear that something is missing from people’s understanding of financial management. This is a skill that should be taught from an early age and, as of 2014, the UK government introduced lessons on this very concept into the school curriculum.

While there is a lot of emphasis placed on the practical applications of students’ knowledge, 65% of UK teachers believe the current approach is ineffective.

As the way in which we interact with goods, services and the concept of money change rapidly – it’s leaving schools to play catch up. With this in mind, it’s not really surprising that during the first six months of 2017, 64% of calls to debt management charity StepChange were from people aged under 40.

Generation Debt

Education is inextricably tied to an understanding of personal finance, with a lot of peoples’ first experiences of debt coming from their time in university. For instance, many students from the poorest backgrounds, who often need more support in the form of loans, will graduate owing over £57,000.

As interest charges start as soon as the course begins, students will accrue, on average, £5,800 of additional debt by the time they have graduated. This is one of the many financial realities younger people are often not fully warned about when taking their first steps into adulthood.

From student debt to credit cards, the total UK credit card debt hit £70.1bn as of the end of 2017. That equates to £2,579 per household. For a card with average interest rates it would take a staggering 26 years and 3 months to pay off each household’s debt with minimum monthly repayments.

While it’s not an exclusively millennial problem, there is an undoubted trend towards people in that age range suffering the most in terms of financial issues. It’s clear that something needs to be done to practically educate children in the implications of financial products and the issues that can be caused by debt.

However, we may have to wait a while longer for a real solution. As of the start of 2018, net lending to individuals in the UK increased daily by £126.8m and the total amount owed out by Brits was £1.57bn. According to the Citizens Advice Bureau, they are dealing with almost 3,000 new debt problems each day.

As this trend towards the UK as a nation of debtors continues, it’s clear that steps must be taken to better educate Brits on money management from a young age to avoid a cycle of personal debt that will continue for generations.

You wouldn’t think that poverty stricken lands in the huge continent of Africa are actually rich with communications technologies, and in particular mobile phones. Below, Michael Brown at Credit Angel sheds a light on what this looks like, and how in fact, the proliferation of mobile technology is helping eradicate poverty in some areas.

The mobile market has thrived for some two decades now, and all signs point to further expansion. The industry will continue to grow globally, as consumers seek further convenience in their day-to-day lives.

It’s also a lucrative market financially, for banks, monetary institutions and innovators. Alongside mobile growth, financial technology (FinTech) is thriving alongside it as a natural consequence of increasing users and use. And payment systems that prove both convenient to the consumer and profitable for the providers will only expand until the next big innovation comes along.

However, alongside the global appeal of profit and convenience, the mobile market is thriving as an enabling tool in parts of the world where profit does not come first.

Background

It may surprise people to learn that mobile phones are thriving in parts of rural Africa. In villages distant from major towns and cities, where most people do not have bank accounts or secure ways of storing their money, it’s here where perhaps the biggest benefit of mobile use can be found. In fact, whilst the West has been dipping its toe into the combination of mobile and FinTech, rural African communities have been miles ahead in their acceptance of the new technology.

The lack of a bank account is clearly a security concern for all individuals. Any income made by those in rural settings once had to be carried or guarded by the individual. Cash, as we know, is perhaps the least secure of currency forms worldwide. It’s easy to steal, and virtually impossible to claim back once lost. Such a rural economy makes life incredibly difficult for everyone. Not only is there little money to go around in the first place, but any amount lost or stolen can quickly mean extreme poverty for individuals.

The Contactless Revolution

Whilst the West has been debating the safety of contactless cards in recent times, the United Bank of Africa (UBA) had already mobilised the facility across much of Nigeria. Most of us have reaped the benefits of contactless payments when we’ve found ourselves short of cash and far from a bank. But the UBA extended the benefits to include the likes of public transport and even taxis, and all this whilst Western buses remained cash-only, and Uber was nothing more than a German word meaning ‘above’. The gradual shift from contactless cards to mobile payments is simple common sense – why carry two devices when one will do?

The African economy as a whole is reaping the benefits of making its citizens mobile. In a society without landline telecommunications, it’s estimated that the continent gains a 0.5% rise in gross domestic profit, every time it enables a further 10% of its population to access mobile technology.

Beyond FinTech

The mobile market is thriving in rural Africa, and not just for directly-financial reasons. As farmers the world over know, the weather plays a huge part in their success. Instead of having to play a guessing game and potentially losing one’s whole crop and income, rural African farmers are using their mobiles for weather reports via the internet.

With such information at their fingertips, farmers know the best times to plant crops, sow seeds and harvest. The situation of families having no products to sell and thus no food for themselves has been greatly reduced as a result. Judge this against a rural economy in which around half the people are small-scale farmers and the difference mobile phones have made in fighting poverty is clear to see.

The introduction of mobile devices to the region have also helped with healthcare. Many people are too distant from hospitals and surgeries in emergency situations, meaning a high mortality rate, particularly amongst the young. Infections and diseases that are easily-treatable often claim lives in rural Africa, and it’s often for reasons of accessibility and remoteness. Many can now contact healthcare professionals for diagnoses and advice thanks to their handheld companions.

It’s a similar situation regarding education. There are now apps set up allowing teacher-pupil communication online, as well as online course, not dissimilar to the Open University. The economic opportunities for those living in rural economies have been increased tenfold, and the figures say it all. Mobile payment app M-Pesa is one company that has invested in rural Africa, and its innovations have brought nearly 200,000 Kenyans alone out of poverty over the last decade.

The Future

The relationship between FinTech and mobile tech is inexplicably linked, and the two are set to continue to grow together. Given that the number of mobile users will increase as time ticks on, this naturally means an increase in app-users and all other mobile mod-cons.

It’s estimated that 90% of smartphone users will have made a mobile payment by 2020. The world as a whole is moving away from cash-based transactions towards more convenient, secure and profitable ways of paying.

FinTech in Africa shows how a cashless society can work, as well as the untold benefits and freedoms such a set-up can provide for the individual. As it stands, the introduction of mobile phones to rural Africa ranks highly amongst factors credited with reducing poverty in the region, and it may well prove to be the number one factor in years to come. Discover more about mobile innovations and the future of spending.

Despite its significant economic growth and vast oil riches, Nigeria has struggled to fight poverty in the past three decades. Finance Monthly had the privilege to speak to Godwin Ehigiamusoe, a man who’s devoted his career to helping the poor and the vulnerable people of Nigeria.

 

LAPO (Lift Above Poverty Organization) is a non-profit community development organization committed to the social, health and economic empowerment of the poor and vulnerable. Please tell us about the company’s beginnings.

Lift Above Poverty Organization (LAPO) was initiated to address the challenges that the poor and the vulnerable are facing. I established the company in Ogwashi-Uku, Delta State in late 1980s in response to the increasing level of poverty arising from the implementation of the central components of the Structural Adjustment Programme (SAP). These components of SAP were the first devaluation of the national currency - the Naira; and rationalization of workforce in the public sector. The impact of programme implementation on poverty was enormous. For example, the number of Nigerians living below the poverty line rose from 18 million in 1980 to 67 million in 1996[1].

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In mid-2010, we established LAPO Microfinance Bank- a premium Microfinance Bank. LAPO has also capitalized LAPO Microfinance Company in Sierra-Leone. The bank’s superior performance has been powered by flexible institutional structures and processes which effectively engage members of low-income households; owners of micro and small enterprises.

 

What are LAPO Microfinance Bank’s key priorities towards its clients? How has this evolved over the years?

LAPO Microfinance Bank prioritizes access to a range of responsive financial services particularly, micro loans. It has also committed enormous investments in client support activities and clean energy lending. LAPO Microfinance Bank provides basic micro-business management services to clients who are owners of micro and small scale enterprise. It facilitates access to insurance policies for poor clients. Its credit plus approach to service delivery is informed by the fact that low income people, particularly women contend with challenges beside lack of access to finance. Over the years, LAPO has expanded its loan portfolio from few products to a basket of responsive products. They range from farming to affordable housing and education loans.

 

How have the LAPO Microfinance Bank’s service offerings evolved?

Like most microfinance institutions, LAPO at inception started with mono-product which was a working capital loan for micro and small businesses. In its 5-year plan (2013-2017), LAPO Microfinance Bank prioritised product diversification. As a result, a number of credit and deposit products have been developed and offered to meet the varied financial needs of low-income people, micro and small businesses. LAPO Microfinance Bank is currently deploying alternative financial delivery channels to expand its outreach.

 

As CEO, how do you advise your team to make the correct decisions for the company alongside clients?

I emphasize client engagement which consists of regular interaction and assessment of their current and emerging needs. Other steps include efficient service delivery and effective performance management. I also prioritize innovations with the creation of Innovation Lab. Staff members are empowered with various training and capacity development programmes. They are encouraged and indeed involved in goal setting and a periodic performance review.

 

What are your plans for the company for the rest of 2017 and beyond?

LAPO Microfinance Bank shall seek to extend its range of services to actors in the rural economy. This is understandable; Microfinance should be made relevant to agriculture in Africa, given the fact that a large number of Africans engage in agriculture and allied activities. A range of products will be offered to meet the financial needs of the various segments in the agriculture value chain. We plan to deepen our cleaning energy lending in the coming years.

 

Your job must be very rewarding. Is this the motivation that drives you?

 Indeed – the past three decades of engagement with poverty lending have been full of excitement. There is certainly a sense of fulfillment.

I am driven largely by the desire to address the scourge of poverty. This informed my decision to set up the organization in the first place, and has continued to propel my desire to scale up to reach a large number of low-income people and offer them a range of empowering products and services.

 

Website: http://www.lapo-nigeria.org/

[1] In Poverty and Microfinance in Nigeria (2000) by Godwin Ehigiamusoe

Somalia faces numerous challenges on its quest for peace, stability, and economic prosperity. The recent drought and famine will test the country's resilience to provide humanitarian assistance and will require help from the international community. The government's recent policies demonstrate its strong commitment to improving the state of the country and Somalis' livelihoods.

Here are five things to know about Somalia's economy since the country resumed relations with the international community five years ago.

The drought is severely affecting vulnerable populations. The harsh impact of the ongoing drought on the agricultural sector has put about 6.2 million people (about half the Somali population) in need of assistance and at risk of food insecurity, prompting an urgent need for humanitarian and financial assistance from the government and the international community. The government will also need to better coordinate and monitor humanitarian aid distribution amid security challenges across some regions with a focus on the most affected regions.

Somalia is a fragile state, located in the horn of Africa, that has emerged from a two-decade-long civil war that caused significant damage to the country's economic and social infrastructures. In 2012, the Federal Government of Somalia was elected and recognized by the international community. Postwar conditions continue to be difficult, however, with poverty widespread and weak institutional capacity.

Donors' support is key. The Somali economy is sustained by donors' grants, remittances, and foreign direct investment mostly by the Somali diaspora. Since 2013, the donor community has given over $4.5 billion in humanitarian and developmental grants, which is essential in contributing to finance Somalia's trade deficit of nearly 55 percent of GDP (average during 2013-16). The current drought is expected to slow economic activity and raise inflation this year, thereby making donor support all the more critical to sustain growth.

Tackling unemployment is crucial for political stability. The unemployed youth population (about 67 percent) contributes significantly to irregular migration and participation in extremist activities, including Al-Shabaab—the militant jihadist group—which is viewed as another form of employment. With very high youth unemployment and low overall labor force participation (particularly by women), the Somali authorities established the National Development Plan that focuses on the following key areas: how to achieve higher economic growth, create jobs, and absorb the Somali refugees returning from Kenya; remittances flows; and prioritizing social safety nets and pressing humanitarian conditions.

Preparations for currency reform are under way to help strengthen governance . As part of a wider Somali reform initiative, the Central Bank of Somalia and the Federal Government of Somalia are preparing to reissue new Somali shilling banknotes—for the first time in 26 years—to combat the existing massive counterfeiting in the country, restore confidence in the national currency, and to allow the central bank to start implementing monetary policy. The IMF is helping the authorities to implement the measures that need to be in place for the launch of the new currency.

The IMF is working closely with Somalia. Since resuming its relationship with the country in 2013, the IMF has concluded two annual economic assessments—the first in 2015—marking the first IMF consultation with the country since 1989. Because Somalia is in arrears with the IMF it cannot benefit from IMF loans; however, the authorities have engaged with the IMF in the context of a 12-month staff-monitored program. This has helped create a framework to support Somalia's economic reconstruction efforts, rebuild institutional capacity, and establish a track record of policy and reform implementation. The first review of this program was completed in February 2017.

Technical assistance is helping. Somalia is among the largest beneficiaries of IMF technical assistance—which helps build institutional capacity—receiving over 70 technical assistance and training missions since 2014. Tangible progress is being made in budget preparation and fiscal reporting, currency reform, and financial sector reporting and licensing. For example, the authorities have been able to prepare a national budget for 2014-2017 and since January 2015, the government produced its first monthly fiscal reporting data. Starting from a very low capacity and a mix of Islamic and western accounting systems, central bank staff have developed a bank licensing framework, methods for periodic reporting by commercial banks, a system for bank financial analysis, and a supervisory scoring system that monitors the overall health of a bank. As Somalia continues to engage more with the international financial institutions, the IMF will deepen and scale up its capacity-building efforts as necessary.

(Source: International Monetary Fund)

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