Women are Lower-Risk Borrowers and Allocate Money Better

Proven to be lower-risk borrowers, women also choose sensible and development-promoting investments for themselves, their children and their country. Recent data in both sociology and economic reports displays the, “greater probability that money in the hands of women is spent on children’s health and education relative to money in the hands of their husbands” (Armendáriz and Morduch, 143). Focusing on women to allocate borrowed money works as a more productive method to increase the living standards in a country. Addressing children’s health lengthens the life span of a child and decreases the likelihood of future problems if proper habits are developed early. Education, often a luxury for those in underdeveloped countries, can become a reality with micro-loans, improving not only the child’s future, but also the future of the country.
With a healthier, more educated population, the growth of aggregate supply continues.