Creating financial resilience and social capital through cross-sector partnerships: The case of Saver Plus, Australia Associate Professor Roslyn Russell, RMIT University, Melbourne Australia Mr Gerard Brody, the Brotherhood of St Laurence, Melbourne Australia Ms Lauren Wall, RMIT University, Melbourne Australia
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Creating financial resilience and social capital through cross-sector partnerships: The case of Saver Plus, Australia Associate Professor Roslyn Russell,
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Creating financial resilience and social capital through cross-sector partnerships: The case of Saver Plus, Australia
Associate Professor Roslyn Russell, RMIT University, Melbourne Australia
Mr Gerard Brody, the Brotherhood of St Laurence, Melbourne Australia
Ms Lauren Wall, RMIT University, Melbourne Australia
1. Financial capability and inclusion in Australia
• Financial capability, inclusion and asset-building initiatives in Australia have largely been driven through community activities, and through community-corporate partnerships
– matched savings programs
– small loans programs (no interest and low interest)
– financial capability and education initiatives
• Government has traditionally provided income support, emergency relief (material aid), financial counselling and legal assistance
– crisis driven responses not aimed at encouraging development of assets as key to improving wellbeing
• Matched saving and financial education program helping low-income people establish a long term savings habit
• Assists families on low incomes save for their children’s or their own vocational education by providing:
– Assistance with the development of personal financial skills– Personal support to implement a savings plan– Dollar for dollar matching incentive (up to $500)
• Increased self-esteem and confidence• Reduced stress• Increased positive education • Greater propensity to plan for the future• Feelings of greater control• Positive intergenerational effects• Increased social networks
3. Saver Plus – participant experiences
‘For the first time, I feel like I’m providing for my son instead of limiting him. I had a total change in attitude and just started to plan my life because it is my life and nobody else is going to.’
‘We have been able to continue saving $50 per fortnight which gives us plenty for our daughter’s education expenses with some left over for the following year. This year we have $1000 to go towards next year when she starts VCE. Without Saver Plus, we would never have been in this position. God bless Saver Plus”
‘Saver Plus has given me increased motivation. Enabled me to improve computer skills and access to job search sites, which leads to increased employment.’
“Doing Saver Plus was a life-changing experience. I now do so many things that I learnt with this program. Like actually saving and I can now pay my bills on time. My family are happier. And we even saved and had a little holiday. FANTASTIC’
• From 2003 to 2008, Saver Plus grew from an initial 3 pilot sites to approximately 20 sites throughout Eastern Australia with support from ANZ and some state governments
• In February 2009, as part of economic stimulus, the Federal Government announced $50m to be made available for “programs that build financial resilience and capability”
• Saver Plus partnership obtained $13.5m to fund expansion of Saver Plus across Australia.
• Partnership, through its advocacy, can help Government articulate a strategy for financial assistance and support
– Link up Government’s activities in emergency relief, financial counselling, financial capability initiatives and programs that build longer-term financial resilience
– Link to Government agenda around “social inclusion”
• The Brotherhood has also taken a role in highlighting inequities of policies that support the development of assets
– asset-building support has focused on wealthy, through superannuation and tax incentives for home ownership and property investment
• Saver Plus has demonstrated its ability to promote long-term savings habits among low-income earners– particularly able to transform non-savers to instrumental, goal-
oriented savers; and from prior instrumental savers to dedicated savers.
• Broader social benefits have also been demonstrated– for example participants are sharing their experiences with their
children who in many cases have adopted saving habits too.
• The cross-sector partnership delivery model is a crucial factor in the success of Saver Plus and is also responsible for facilitating the development of social capital in the communities where it is delivered.