In Northwest Cambodia, villagers are forming community savings groups to build financial security, reduce debt, and invest in small businesses and household needs. Text & Images: Panhaleak Chay, Chariya Korn, Lita Mom, Pherom Song, Caitlin Finlayson, Van Touch & Brian Cook
Financial precarity and constrained livelihood choices
The rural communities of Battambang and Pailin rely heavily on smallholder farming, seasonal labour, and migration remittances for income. Irregular earnings, limited access to formal banking services, climate-related livelihood uncertainty, and reliance on high-interest moneylenders constrain households’ ability to save, invest, and manage risk. When emergencies arise – such as illness, crop failure or flooding – many households are forced into debt that can take years to repay. These pressures are intensifying as climate change and price volatility affect farming and traditional livelihood patterns.
Since 2025, the Next-Gen Project, together with Partners for Rural Development, has been working with local authorities and community leaders in Battambang and Pailin provinces to establish and strengthen village savings groups. The initiative, which involves training and group formation, aims to help families build savings, access small loans on fair terms, and reduce dependence on moneylenders as a means of strengthening household financial security and capacity to manage shocks.
“For me, it is very difficult to meet all the needs and pay all the debt, which causes stress and uncertainty.”
-Mrs Cheb Dina, a fruit tree farmer from Battambang
Collective savings as a locally managed safety net
The initiative is based on collective saving and locally managed access to small loans. Each group sets its own rules for contributions, loan sizes, and repayment, making the model flexible and locally owned. Although still in their first few months, many groups have grown their collective savings to over USD $1,000, giving members access to capital that previously did not exist in the village.
Before joining the savings group, Mrs Heng Kimhun, a vegetable farmer from Pailin, struggled to cope with unexpected expenses.
“Once my children got sick, I had no money to cure them. Sometimes I did not have enough money to invest during the cultivation season,” she said.
Another member, Mrs Cheb Dina, a fruit tree farmer from Battambang, said: “For me, it is very difficult to meet all the needs and pay all the debt, which causes stress and uncertainty.”
After joining the group, Mrs Heng and Mrs Cheb began contributing small regular amounts each month. After only a few months of saving, both women see the benefits of changing their savings and expenditure habits. Mrs Cheb plans to purchase livestock at the end of the year, while Mrs Heng hopes to buy a motorbike for her children to ride to school.
Members described plans to use loans for a range of purposes – from buying seeds and fertiliser to purchasing motorbikes, investing in livestock, or covering education and health costs. Access to locally managed loans may help households avoid high-interest debt and reduce the need for collateral.
Some groups have also established social funds to support members during health or household emergencies.
As Ms Dina Cheb explained: “I save money in the community to prepare for unexpected emergencies, such as when a family member becomes sick.”
These collective practices help households manage financial risk collectively while strengthening trust and cooperation within the village.
Supporting household planning and risk management
Savings groups were supported through training in financial literacy, record-keeping, and group governance, helping members develop locally managed systems for savings, lending, and financial planning. Community meetings, role-play exercises, and practical demonstrations help members understand how contributions, loans, and interest work.
A savings coach certified by World Vision, together with two experienced local savings group chairpersons, facilitated the training and supported groups through their initial savings cycles. As members gain confidence, facilitators are gradually stepping back from day-to-day support. This approach has helped establish four savings groups in 2025, with a combined membership of 86 villagers.
The savings groups rely on simple tools: a lockable cash box with three separate keys held by different committee members, and a shared ledger. Meetings are held monthly at a committee member’s house or the village pagoda, where contributions are counted openly in front of everyone. This transparent, low-tech system builds trust and ensures that even members with limited literacy can follow the process and hold leaders accountable.
Women’s participation in household financial decision-making
Women comprise 65% of members across the four active savings groups in Battambang and Pailin and hold leadership positions such as chairperson and treasurer. Members reported greater involvement in household financial planning and increased confidence participating in community discussions.
“I now have a clear idea of how to allocate and manage my spending,” said Mrs Luom Channry, a savings group member from Battambang.
Some households have also begun adopting new saving practices, including reducing unnecessary spending and encouraging children to save money.
Incremental pathways toward financial resilience
Mrs Heng Kimhun spoke of the impact of the training on her household’s financial situation:
“After the training, I better understand saving and financial management, and my household expenses have reduced. I also encouraged my children to start saving money in a piggy bank. Now, if there is an emergency, I can rely on the savings group instead of borrowing from moneylenders at high interest rates.”
In contexts shaped by climate variability, income instability, and limited access to formal financial services, village savings groups offer a practical mechanism for managing risk and building financial resilience. By enabling households to save regularly and access low-interest loans, the groups support incremental but meaningful changes in livelihood security, financial planning, and adaptive capacity.
By saving together and lending to one another, villagers strengthen social ties and develop habits of saving, planning, and collective financial management. Over time, these practices may strengthen households’ capacity to manage shocks, reduce reliance on informal debt, and support more stable livelihood planning.