One family's journey to financial stability
Updated Sep 06, 2018
Written by World Vision Mongolia; Edited by Kaija Hutteri and Katie Hackett
Jargaltuya and her husband Davaadorj moved their family to Khan Uul after losing their livestock during a harsh winter. Like many other families, they hoped for better opportunities in Mongolia’s capital city of Ulaanbaatar but struggled to find employment.
Khan Uul is one of the poorest areas in the capital, with an unemployment rate of 45 per cent. With her husband unable to find work, Jargaltuya began sewing traditional clothing. Her income did not meet the needs of their four sons.
Jargaltuya gets involved in a savings group
In 2014, Jargaltuya joined a savings group in her community. The savings group model helps vulnerable families work toward financial stability and escape the cycle of poverty. Sponsors have made it possible for us to improve the lives of many families in Khan Uul through this model.
Jargaltuya and her husband learned how to budget for their expenses and save a portion of their income. Savings group members pool their savings together and take turns borrowing funds at a low interest rate to expand their business or cover emergency expenses. The interest collected from each loan is periodically divided between group members.
Jargaltuya has been able to put her dividends from the savings group to good use for her family. After the first savings cycle, she opened an account at a bank so she could save additional money. After the second cycle, she purchased an electric sewing machine that saves her a great deal of time and allows her to work more efficiently.
New opportunities for Khan Uul’s boys and girls
With her dividends from the third cycle, Jargaltuya covered the travel expenses for an international youth sports competition in Russia for her son Ochirbat, who is a sponsored child. Ochirbat, a high school student, competed in wrestling, judo and basketball, bringing home a bronze medal. He appreciates the positive impact of the savings group on his family.
Through the savings group, Jargaltuya and other parents like her receive training opportunities. Jargaltuya has learned how to sew various items of clothing, as well as improve the quality and design of her products. Armed with new knowledge and skills, she made her business more profitable. With a higher income, she was able to send her eldest son to college.
Jargaltuya is one of many hardworking mothers and fathers that have improved their family’s financial stability through savings groups and skills training. Child sponsorship brings lasting change to vulnerable families and builds brighter futures for many girls and boys in Khan Uul.