This report examines the financial competence of low income households in Samoa. The financial competencies measured by the study, were determined by asking rural and urban low income households in Samoa to describe the financial activities they needed to be able to undertake, to manage their cash-flows effectively. These competencies were reviewed by a panel of in-country subject matter experts.
Overall, the study has found that adults who are responsible for financial management in low income households, demonstrate generally low or low-moderate levels of financial competence across most aspects of household financial management. This means these households are not able to competently undertake the financial activities they need to undertake, to manage their finances effectively. This lack of competence may be due to several factors: Access to financial services, knowledge of how to use financial services and manage money, or attitude to money and financial services generally. If low income households in Samoa can increase their level of financial competence, then the household’s ability to increase the wellbeing of its members through better management of household cash-flows, will also increase.