“They found the poor are in some ways even more sophisticated with their finances than wealthier people, partly because it is so important that they get things right. The extreme poor personally manage loans to family and neighbors; they evaluate credit offers without the support of financial institutions; they manage their day-to-day cash flow in the context of very inconsistent income patterns. All of this helps explain why giving cash to the poor, rather than allocating capital on their behalf, has proven particularly effective.”

This Startup Gives Poor People A Year’s Income, No Strings Attached
http://www.huffingtonpost.com/2015/06/04/givedirectly-cash-transfers_n_7339040.html
via Instapaper

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