Published on August 1, 2016

The intrinsic and instrumental value of money and resource management for people’s well-being in rural Kenya


This research sets out to identify people’s valued wellbeing goals and how different money and resource management strategies contribute to these goals.

To date, there has been little evidence that increasing financial inclusion actually leads to an improvement in money management strategies and ultimately to wellbeing improvements for poor people. This research adopts the main concepts of the capability approach to shift the focus from the services to people and their wellbeing.

By using the capability approach, this research is putting
forward the following three methodological choices to explore financial
capability by:
1. Adopting an emic view of people’s financial practices, thus paying attention
to how people develop their financial strategies as well as their deeper
meanings and values.
2. Exploring the choice process, rather than only the outcome. This will bring
to light both the instrumental and intrinsic value of people’s financial
3. Considering human heterogeneity and conversion factors which
influence how people translate assets into wellbeing. By taking these into
consideration, it is acknowledged that financial capability sets are individual
and dependent on personal and contextual factors.

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