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Respondents in formal

Respondents in formal employment were the only livelihood group to report conducting a majority of their loan transactions with family and friends. The remaining groups preferred to use informal FSPs. The formally employed also used formal savings tools for a quarter of all of their savings transactions, five times as often as the other livelihood groups. Dependents were more likely than the other groups were to use informal savings tools. Figure 48: Financial Network Use by Financial Tool and Livelihood In looking at financial tool and network use by the segments, we see slight differences in how the segments used saving and loan tools. Respondents in the high-income categories were more likely to take out loans from friends and family than their low-income counterparts were. These segments instead relied on informal FSPs in order to receive loans. Additionally, high-income segments were much more likely than the low-income segments were to use formal savings tools. All groups still greatly preferred to conduct their savings transactions at home, however. Go To Menu 65

Figure 49: Financial Network Use by Financial Tool and Income Segment CASH FLOW MANAGEMENT In Chapter 4, we discussed the correlation coefficients between income and spending between men and women as well as across the four segments. Building off this discussion, we also reviewed the correlation coefficients across the four provinces. We found few differences across the provinces, though Lusaka Province has a much lower coefficient than the other three provinces. Table 38: Correlation between Income and Household Spending by Province Province Number of Observations Correlation Coefficient Copperbelt 2,308 0.27 Eastern 5,553 0.29 Lusaka 4,306 0.05 Western 4,343 0.21 Total 16,510 0.12 66 Go To Menu