Financial Capability & Inclusion ‘Prevention is better than cure’

Financial Capability & Inclusion

‘Prevention is better than cure’

• The ability to understand finance

• More specifically, an individual’s ability to make informed judgements about the use of and management of their income

What is Financial Capability?

What key skills help a person become ‘financially capable?’

• Being able to make ends meet and keep track of finances

• To be able to plan ahead• To be able to choose appropriate financial

products • Having the ability to stay informed of financial

matters

Why is Financial Capability important?

Research has shown that:• Many people are failing to plan ahead• Many people are taking financial risks without

realising it• The under 40’s are, on average, less

financially capable than their elders

(FSA Survey)

Those at highest risk of financial exclusion include:

• People who are unemployed• People claiming means-tested benefits• People unable to work through sickness or

disability• Single pensioners• Lone parents

(FSA research)

Where does this lead?

• CAB England & Wales deal with 8,652 new debt problems every working day

• CAB clients owe on average £16,971• Take an average of 93 years to pay off at a

rate they can afford!

What are we doing at CAB?• Actively promoting Financial Capability,

education and inclusion• A programme of activity which aims to be

proactive and preventative• Giving people the skills, knowledge and

confidence to help them make the right financial choices and help them avoid crisis

• One to one Money Advice Service sessions• Working in partnership with other organisations

What sessions do we deliver?

• Money management – budgeting• Understanding credit• Banking – which account is best for me?• Saving & planning ahead – OFT Saves Xmas• How to deal with debt• Getting the best deal from your energy

provider – Energy Best Deal• One to one Money Advice Service

The help we can offer is two-fold

1. Training for front-line workers– what to look out for– what financial worries your clients may be facing– clients rights & responsibilities– help with signposting– Debt workshop

2. Workshops with service users– Budgeting– The real cost of credit– Saving and affordability– Money Advice Service

Who do we work with?

Since the launch of our project July 2010....

• 2,096 people have taken part in one of our FC activities

• Held over 123 sessions• Worked with over 30 organisations• Held sessions with 56 frontline workers• Reach of FLW 1,221 people

Client feedback

• 89% of participants who completed a feedback questionnaire reported an increase in confidence and new skills in dealing with money matters and improved budgeting skills

Client feedback

• 31% would set up a budget to help manage their money

• 24% would change the way they would save money

• 17% would change the way they borrow money in future

• 15% would change how they plan for future spending

• 11% would look for debt advice

Testimonials from clients....

‘I didn’t realise how much doorstep lenders charge and I didn’t know what Credit Unions do. I will never borrow

from a doorstep lender again!’ Service User, Goval Cymru

‘The frontline workers sessions I attended has helped me to guide new tenants, help with budgeting, to tell them about

credit unions if they need to borrow money and show them how much interest doorstep lenders charge’

Housing Officer, Caerphilly County Borough Council

‘I would like to thank your organisation for the valuable contribution made by Lynne and Dawn towards our Year 9 Motivate Week. The week was highly successful, with pupils gaining useful skills and knowledge. Credit must be given to Lynne and Dawn who facilitated activities within an atmosphere of enthusiasm and enjoyment. Pupils clearly benefited from the experience’

Liz Axenderrie Assistant Headteacher,

Tredegar Comprehensive School

‘Thanks to the lessons with the Citizens Advice Bureau we have had in PSE, I have learnt a lot about finance. I have also learnt about where I can go if I ever have any money problems....... I now know more about

budgeting, getting paid, loans and finance in general, which I know will help me in later life’

Winning entry, Year 10 pupil, Lewis Girls School

‘The ‘Where does my money go?’ session was perfect for our service users, especially in the run up to Christmas when doorstep loans are

a tempting option for quick cash to buy presents.’

Support worker, Hafen Cymru

‘That session was far better than the last session we did in PSE on breast

feeding!’ Year 11 student, Lewis Girls School, Ystrad Mynach

‘I didn’t realise that I was paying that much for my Provident loan, I only looked at the weekly

repayment. I won’t be borrowing from them again and will definitely find out more about

the credit union’ Young mum, Childcare Group, Bargoed

‘I haven’t touched my last benefits and they were paid to me nearly two weeks ago,

because I’ve been budgeting’. Young mum from local family centre who attended a ‘Where does

my money go?’ session.

The difference we make• Independent evaluation of financial education by

bureaux show that our work makes a direct and positive difference to people’s lives– better equipped to head off potential debt

problems– more aware of government entitlements and

sources of help– more willing to try new financial services

(ECOTEC Research & Consulting)

Benefits are long-term and cumulative

• Changed patterns of behaviour– stick to budgeting plans– increased savings– feel empowered to avoid exploitative lending

practices• Pass on what they’ve learned to family and

friends• 71% of those attending one of our ‘Save Xmas’

sessions more confident in savings choices

Accessing further advice• Set up Rent Clinics at 3 outreaches

• Welsh Water Assist referrals

• Christmas comes early event – referral to the IMLU

• Action for Children – referrals for debt advice, benefit checks

• Referrals from other agencies on a regular basis, mainly for DROs

• Ty-Croeso Homeless Unit – fortnightly debt clinics & MAS appointments

• Energy Best Deal – council cascade reaching over 200 council tenants

• ‘Workwise’ referrals from agencies trying to get people back into work

Caerphilly County Borough Council• Strong relationship where Caerphilly County CAB are

considered for the majority of financial/money related events • Deliver sessions as part of the Community Cohesion project

throughout the borough to young mums attending childcare groups

• Support community events like ‘One Stop Money Shops’ and ‘Over 50’s Information Days’, playing a central role in delivering information about money related issues and referring for further advice

• Front Line Worker sessions to council staff (across numerous departments), our FLW course now forms part of the official list of courses available to council workers

Our work in schools• Recognise the need to start at grass roots level

• Budgeting, Credit & WorkWise sessions

• Lewis Girls school – this is our 2nd year providing money sessions during PSE lessons

• Heolddu Comprehensive – our 1st year working with this school

• Tredegar Comprehensive – supported a one-off money related event

• Working on delivering bi-lingual sessions

Some of our amazing volunteers in action...

Over 50’s information day, Rhymney Fire Station

Lewis Girls School with Jeff Cuthbert AM

In the classroom delivering a session......

Adult Learners Week event for NEETS, Ebbw Vale Learning ActionCentre

Helping to pull together a budget sheet

A big wave fromTeddy Cyngor!