FLA7127 A5 Brochure v11-247ctca2fz6ha46w1l826tujxm5k-wpengine.netdna-ssl.com/wp... · 2018-05-21 · Overview of Financial Literacy Australia 6 Grants Program 9 Financial Literacy

Making financial literacy a priority

Highlights Report

2017

COLLABORATE.

INNOVATE.

COMMUNICATE.

FLA7127_A5 Brochure_v11.indd 1 4/4/18 1:35 pm


Contents

Message from the Chairman and CEO 2

About us 4

Why financial literacy is important 5

Overview of Financial Literacy Australia 6

Grants Program 9

Financial Literacy Grants Program 10

Outcomes of key grant projects 13

10thousandgirl 14

Wesley Mission 18

The Wyatt Trust 20

The Smith Family 22

Girl Guides Australia 24

Women’s Legal Service Queensland – Penda app 26

Macquarie University 28

Strategic projects 31

Research Projects 32

Aged care 35

Aged Care Activities 36

Awards night 39

Awards Night Report 40

Outlook for 2018 43

Our priorities 44

Appendix I 45

Appendix II 47

Highlights Report 2017 1


COLLABORATE. COMMUNICATE. INNOVATE.

Making financial literacy a priority

Welcome to our first Highlights Report.

On behalf of the Board of directors, we are pleased to present this report outlining how Financial Literacy Australia (FLA) has contributed to improving the financial literacy of Australians over the past five years.

Financial literacy is central to everyone’s lives. Making good decisions about money is a basic life skill, yet surveys repeatedly show levels of financial literacy below where they should be.

Improving how Australians navigate the world of money and equipping them to make sound financial decisions is a great cause.

FLA’s mission is to support and fund suitable financial literacy projects that help a wide range of people in all parts of society. Our vision is to be more than a benefactor. We also want to understand what makes financial literacy programs more effective so we can learn, improve, and build capacity.

To do this, we are refining our current evaluation techniques so we can apply them to every project we fund. We aspire to be a leader by systematically fostering an

evaluation culture in the non-government organisation (NGO) sector. We will become a knowledge hub, guiding NGOs to build and increase their capabilities in delivering financial literacy initiatives that make a difference.

In short, we want to ensure that all our funded projects have a real and sustainable impact on targeted communities and that we use our scarce funds with maximum impact.

We have made significant steps on this journey in the past few years. To date, we have funded 47 projects through our open grants program, many of which have targeted vulnerable groups, such as women, students and Aboriginal and Torres Strait Islander peoples. Thirty of these projects had an evaluation component, and 12 evaluations have been completed.

There have been four grant rounds so far – 2014 to 2017 – and the number of applications and the passion of the applicants has been overwhelming. FLA assessed 750 applications during this time and committed $5.7 million in funding.

Message from the Chairman and CEO

Highlights Report 20172


In addition to increasing financial literacy in the general population, over the next few years, we are also moving into the world of aged care, an area where the financial challenges are complex. Our objective is to help individuals and their families understand their financial options and the services available to them. We have received a $5 million donation specifically for this purpose.

None of our activities would have been possible without the funding via Community Benefit Payments approved by ASIC, and the time and resources invested by NGOs, schools, local councils, universities and research organisations.

We are very grateful and sincerely thank you for your support and encouragement.

Paul Clitheroe AM Chairman, Financial Literacy Australia

Claudia Weisenberger CEO, Financial Literacy Australia

Collaborate We build strong relationships with NGOs, universities and major financial institutions to deliver great financial literacy outcomes in the community.

Communicate We communicate both the successful outcomes and areas where there is room for improvement. We are not afraid of mistakes. We want to learn and continuously improve our approach to financial literacy.

Innovate We want to embolden NGOs to be courageous and innovative in their approach to delivering financial literacy projects.



About us

Financial Literacy Australia (FLA) promotes financial literacy nationally, primarily through its grants program to non-profit organisations.

FLA is committed to improving financial literacy across all sectors of Australian society by raising awareness and demonstrating the benefits of financial knowledge. We aim to create opportunities for people of all ages and backgrounds to increase their understanding of their financial issues and make the most of their money.

Improving financial literacy is a long-term behavioural change initiative. It requires a multifaceted approach and sustained action to bring about gradual improvement.

FLA is funded through Community Benefit Payments, made by financial service companies when resolving regulatory issues with ASIC.

FLA is a major funder of financial literacy initiatives and is the only philanthropic body focused purely on financial literacy.

What is financial literacy?Financial literacy is an essential life skill. It entails being able to understand and negotiate the financial landscape, manage money and financial risks effectively and responsibly, and pursue and attain financial and lifestyle goals. The National Financial Literacy Strategy defines it as “a combination of knowledge, skills, attitudes and behaviour necessary to make sound financial decisions, based on personal circumstances, to improve a person’s financial wellbeing”.

Every Australian should be able to confidently navigate the financial landscape and make good decisions about money. Improved financial literacy can benefit everyone, regardless of age or income. Being able to make the most of money, manage financial risks and avoid financial pitfalls can have a positive impact on the financial wellbeing of individuals, their families, and in their community.



Why financial literacy is important

An Australian Psychological Society survey of stress and wellbeing released in 2015 shows that in the five years from 2011–15, on average, 35% of Australians had experienced distress, 36% had experienced depression and 26% had experienced anxiety. Money worries were the leading cause of stress.1

Key reasons for financial stress include:

• dealing with day-to-day money management

• having an inadequate plan for the future. Despite compulsory superannuation, many people do not plan ahead or are not building wealth

• being uncertain about where to go for help or support when facing unexpected events, and

• finding financial products too complex and difficult to understand.

Over the past decade, and particularly since the global financial crisis, financial literacy has gained prominence on policy agendas around the world. Many governments are now identifying it as an important complement to financial market regulation, and policies on consumer protection and financial inclusion.

Based on research, the Organisation for Economic Co-operation and Development2 says factors for the increase of financial literacy include:

• the growing variety and complexity of financial products and rapid evolution of financial markets

• the increasing transfer of a broad range of financial risks to consumers and investors

• the rising number of active consumers and investors in the financial sphere

• the limited ability of regulation alone to protect consumers and investors.

Authorities in about 50 economies are considering, designing, or have implemented national strategies on financial education.

Australia is regarded as a leading player in the financial literacy field and actively contributes to relevant international financial literacy forums.

Improving financial literacy can benefit anyone regardless of age, income or background. It helps people make informed choices daily and throughout their lives.

1 www.psychology.org.au/inpsych/2015/dec/PW2015/2 www.oecd.org/finance/financial education



Overview of Financial Literacy Australia

FLA is Australia’s leading NGO dedicated to advancing financial literacy and was established in 2012. Its primary mission is to identify and fund financial literacy projects that promote financial literacy in Australia.

Our work supports the National Financial Literacy strategy (Figure 1). The National Financial Literacy Strategy is coordinated

by ASIC and provides a framework to guide policies, programs and activities that strengthen financial literacy and capability.

Figure 1: National Financial Literacy Strategy and FLA’s support

National Financial Literacy Strategy How FLA supports the National Financial Literacy Strategy

A commitment to achieving a better understanding of the barriers to building financial capability and behavioural change.

FLA funds research and evaluation to better understand and influence behavioural change. It shares these insights with the NGOs and the financial community.

Collaborative approaches enhance the reach and impact of programs and activities.

FLA works extensively with NGO to ensure the programs it funds have long-lasting effects.

Targeted approaches are effective for specific audiences.

FLA focuses on the key needs of specific audiences.

Research is deepening the understanding of how financial literacy contributes to financial wellbeing, the interplay of attitudes and behaviours, and the role of financial resilience.

FLA has funded a range of research projects, through universities and NGOs.



National Financial Literacy Strategy How FLA supports the National Financial Literacy Strategy

Financially inclusive products and services to increase the capability of consumers.

FLA is working with NGOs to increase consumer knowledge of what products are available and the major issues with some products, such as payday lending.

Evaluation of financial literacy initiatives to identify success factors and articulate outcomes.

A core objective is to identify key components of projects that work and share these with NGOs.

Figure 1: National Financial Literacy Strategy and FLA’s support (continued)

How Financial Literacy Australia is fundedFLA’s funding to date has mainly been through Community Benefit Payments, made by financial services companies as part of resolving regulatory issues with ASIC. Some of these were within enforceable undertakings which the companies gave to ASIC. An Enforceable Undertaking is an administrative settlement as an alternative to civil court action. The regulatory issues included breaches of compliance standards on foreign exchange markets and wholesale interest rate markets. Other donations were made by companies who owed refunds to consumers but could not distribute all the money owing. The balance of that money was also given to FLA. To date, FLA has received 13 payments totalling $17.7 million.

Financial Literacy Australia principles FLA works with ASIC to support the National Literacy Strategy, which is built around five priorities:

1. to educate the next generation, particularly through formal education

2. to increase the use of free, impartial information, tools and resources

3. to provide quality and targeted guidance and support

4. to strengthen coordination and effective partnerships, and

5. to improve research, measurement and evaluation.



FLA seeks innovative ways to increase financial literacy and build sustainable programs:

• by using our expertise to improve the effectiveness of financial literacy programs, and

• by identifying the best opportunities, building partnerships, fostering evaluation and building knowledge of ‘what works’.

FLA is uniquely placed to help develop financial literacy

One of FLA’s core mandates is to fund projects that are both scalable and measurable. It has built strong relationships with NGOs, universities and major financial institutions over the past five years to deliver these projects.

FLA has robust governance processes:

• to ensure it complies with the specified purposes of each Community Benefit Payment

• including a strong board that is actively involved in how and where the Community Benefit Payments are committed

• to ensure it works closely with all key stakeholders on opportunities and key challenges, such as measuring outcomes from sponsored projects, and

• to ensure FLA continues to be a lean, efficient and highly effective organisation.

Financial Literacy Australia’s key activities cover four major areas

1. Grants program – FLA gives funds to promising projects in the NGO sector.

2. Strategic program – FLA identifies areas in which there is a gap in financial literacy and invites proposals from organisations to fulfil that need.

3. Aged care – FLA is embarking on advancing financial transparency for consumers in the aged-care sector.

4. Awards night – FLA recognises projects, resources and research that have advanced financial literacy. Unlike the above activities, this program is not funded through Community Benefit Payments but through key sponsors.



“We are grateful for the FLA grant which enabled us to

identify ways to make a greater impact on Financial Literacy among the disadvantaged.”

– Crossway Life Care

Grants Program



Financial Literacy Grants Program

FLA awards grants to projects that show clear potential to improve people’s financial literacy, expand the body of knowledge in this area and improve future financial literacy programs.

47 projects (out of 750 expressions of interest) have been funded in the four years since the grants program began (Figure 2).

In allocating grants to broaden the reach of financial literacy education, we aim to:

• target vulnerable groups, workers, investors and women across a range of age groups

• cover a range of sectors and program areas, such as in the community and workplaces, through research and education

• have a wide geographic spread, including projects with a national focus, without compromising project quality, and

• support the priorities in the National Financial Literacy Strategy 2014–17.

Figure 2: FLA’s focus to date (number of projects)

Indigenous

Disability

General Population

Students

Women

Vulnerable Groups 12

11

10

7

4

3



Grants Program

Our priority areas vary slightly from year to year. In 2017, the priority was to support projects in:

• investing and/or superannuation

• developing practical money management skills

• helping women

• helping vulnerable communities, and

• helping small businesses.

Funding approachWe only distribute funds to not-for-profit organisations with programs that offer:

• innovation – their pilot programs have the potential to be scaled-up after evaluation

• evaluation – their programs produce positive outcomes and can be evaluated for improvements

• expansion – their programs can be scaled-up after evaluation to reach a larger audience

• product development – their programs show how learning content can be created, and

• research – how financial literacy programs can be improved, such as through behavioural change and effective communication.

Proposals that meet these hurdles are shortlisted for the grants committee (Figure 3), which recommends which ones should receive funding. The grants committee is made up of a smaller group of Board members who meet several times a year, through the grant cycle.

Most funded projects fall into one of three areas:

1. improving the financial literacy and money skills of Australians

2. providing practical materials to advance financial literacy, and

3. conducting research to expand the financial literacy knowledge base.

A key focus for FLA is to fund projects that include robust evaluation. This is an integral part of the overall program as it helps FLA and the community understand what works, increasing confidence in replication and funding.

Selection criteria

FLA reviews the applications at each stage, suggests improvements and selects the best:

• Does the program fill an important need?

• Is the program innovative, strategic or high impact?

• Can the organisation deliver the program

• Will the outcomes be evaluated?



Figure 3: FLA’s robust selection process

Open invitation for expressions of interest

750+expressions of interest

Invite detailed applications from best prospects

82full applications

Funded programs actively managed by FLA

47funded projects

EvaluationFLA is a leader in fostering evaluation. We have a systematic program to build an evaluation culture in the NGO sector. FLA has funded 30 projects that include an evaluation, and 12 have been completed.

We encourage applicants to be clear about the outcomes for program participants, not just program activities. The key question of any program should be: “What are we really trying to achieve, and how will we know if we are succeeding?”.

Currently, and in the future, we will only fund pilot projects that have an evaluation component, to ensure we generate an evidence base for future decisions. FLA takes into account that experimental projects may not succeed. Even if a plausible approach does not work, it yields important lessons for the future.

FLA runs a one-day workshop and coaching program each year to build evaluation capability in the NGO sector. These workshops give participants the confidence and skills to commission an independent evaluation.

Feedback from these evaluation workshops indicates that NGOs find them extremely useful. They allow the principals to improve the program design, achieve more reliable outcomes and ultimately a better idea of what works.

FLA also shares the lessons learned from our evaluations. All evaluation reports are on our website (www.finlit.org.au/resources/evaluation), and are discussed at financial literacy forums.



Grants Program

Outcomes of key grant projects

FLA is delighted to share some highlights from recent projects with evaluations, it has funded:

1. 10thousandgirl 14

2. Wesley Mission 18

3. The Wyatt Trust 20

4. The Smith Family 22

5. Girl Guides Australia 24

6. Women’s Legal Service Queensland 26

7. Macquarie University 28

Grant sizePast grants have ranged from $20,000 to $380,000. FLA allocated approximately $1.8 million in 2017 through the open grants process. You can read more about our project criteria at http://finlit.org.au/grants/eligibility-selection-criteria/

‘ By giving people the skills they need, these programs are having a big impact at both tangible and intangible levels. Some of the more disadvantaged people are now able to contribute to the broader community in ways they previously weren’t through their new-found confidence with money. ’– Project principal.



10thousandgirl

This very successful program was directed at women in regional areas, motivating 91% of participants to achieve their financial goals.

ActivitiesThe Regional Women’s Financial Literacy Roadshow was developed and delivered by community organisation 10thousandgirl. The program aimed to improve the financial wellbeing of women aged 18–45 in regional Australia through education programs, information and resources.

10thousandgirl conducted 19 one-day regional workshops, 10 one-hour webinars and four six-week online courses between March 2015 and October 2016. A total of 2,452 women participated in at least one of the regional roadshow events.

The workshops covered goal-setting, planning for the future, reducing risk and investing.

Figure 3: FLA’s robust selection process

Source: 10thousandgirl

Legend:

Regional workshop registrants’ postcode

Locations of regional events



Grants Program

OutcomesProfessor Roslyn Russell of RMIT University evaluated the program to check its impact three months after the workshops.

Her evaluation showed:

Financial knowledge

91% of participants felt more motivated to achieve their financial goals

46% of participants reported that they found it easier to initiate a financial conversation with their partners after the program

Financial attitudes

83% of participants felt better about planning ahead

61% of participants had greater confidence in other aspects of their lives

52% of participants felt less stressed about their futures

Financial motivation

75% of participants felt more in control of their money

74% revised their insurance policies

61% reduced their spending so they could save more

57% took action towards achieving a dream

43% took some action on their superannuation



Most participants said they were more able to absorb financial shocks and work towards their goals because of their participation in the program. They also felt more confident about their money management abilities.

‘ This program gave me confidence to manage

money. Previously I had placed it in the too

hard basket and never really worried about

money or the future. ’– Program participant

Communication also improved. 46% of women reported finding it easier to initiate a financial conversation with their partner.

‘ For someone who had very little knowledge

about financial planning, I am looking forward

to discussing [today’s workshop] with my

partner and making some goals. I will now be

able to discuss finance with my partner and

understand what he’s talking about! ’– Program participant

‘ The program gave me a big kick up the butt.

[It] really changed my life on various levels.

It gave me confidence that I can take control

of many things in my life and influence the

direction I go. ’– Program participant

LessonsHalf the participants were aged over 45, but women in the 18–30 age range benefited most as it gave them ways to plan for financial independence.

The evaluation report indicated the enthusiasm and experience of the facilitator was a key factor in the program’s success.



Grants Program



Wesley Mission

Wesley Mission’s In Charge of My Money program typically targeted people on very low incomes. An evaluation of the program found it had led to a sustained improvement in people’s financial behaviour.

ActivitiesWesley Mission runs a broad range of programs for vulnerable people. It launched the In Charge of My Money financial education program in 2011 and FLA funded an expansion and evaluation of the program.

The theme of the three workshops was ‘Know it, Do it, Review it’, focusing on active money management and goal-setting. Sessions were held once a week over three or four weeks. Wesley Mission also provided information on where to get help on money problems.

The participants from 11 not-for-profit services in the Sydney region were either receiving support for homelessness or family stress issues, or were living in a residential rehabilitation unit for drug, alcohol or gambling addictions. Participants typically had very low incomes, with 85% relying on government support.

As an experiment, half the people in the program received SMS messages to test whether ‘nudges’ helped them keep up their good financial behaviour after the workshops ended.



Grants Program

OutcomesThe program delivered 491 sessions to 3,200 people over 13 months to January 2017, its busiest period. Participants rated In Charge of My Money highly, saying it was easy to understand, relevant and helpful.

“ The program got me thinking about

money and how I used it. Before I just used

it without thinking, but now I think about

what I need the money for. I never took

that into account before. Now I’m holding

onto my money more. It used to all be gone

in 2–3 days, but now my unemployment

benefit lasts a week and a half. “– From the evaluation report

The evaluation found the program led to sustained improvement in people’s financial behaviour, including saving, planning ahead, monitoring expenses and comparing prices to get the best deal. This was particularly impressive given the difficult circumstances of the participants.

LessonsThe SMS reminders lead to a significant improvement in participants’ financial behaviour. People who received nudges showed stronger money management, more savings, closer monitoring of expenses and less emotional spending. This behavioural change was obvious even if the participant said the reminders were not useful.

“ I’m saving every fortnight now, and

have saved $2,000. I’m very happy with

that. And I still have my bills paid. I’m not

short, as I have direct debit coming out of

the bank. I don’t waste money on things I

don’t need any more. “– From the evaluation report



The Wyatt Trust

A pilot program was delivered to students with intellectual disabilities, giving them the confidence to deal with money.

ActivitiesThe Wyatt Trust is a community organisation and South Australia’s largest employer and trainer of people with intellectual and physical disabilities. It piloted the Work Pay$ program for young people with intellectual disabilities. Students spent one day a week at Bedford’s School to Work Transition Program, and Work Pay$ was added to this program.

The pilot program involved three schools and 23 students, who attended 14 one-hour sessions. It focused on saving, confidence and behaviour rather than money handling and counting. It taught students to be savvy about money so they could be more independent after school and potentially, in the workforce. The end of semester class party was used as a practical exercise in budgeting.

TOPIC 1: INTRODUCTION & BASELINE EVALUATION

TOPIC 2: RECOGNISING MONEY

TOPIC 3: WHERE DOES MONEY COME FROM?

TOPIC 4: NEEDS VS WANTS

TOPIC 5: CONFIDENCE

TOPIC 6: PROTECTING YOUR MONEY

TOPIC 7: MONEY AT WORK

TOPIC 8: SMART SPENDING

TOPIC 9: HOW DO I BUDGET?

TOPIC 10: HELP!

TOPIC 11: DIFFERENT WAYS OF BUYING THINGS

TOPIC 12: VALUE FOR MONEY

TOPIC 13: PARTY PLANNING ON A BUDGET

TOPIC 14: SAVINGS IN ACTION & ASSESSMENT

Figure 6: The Wyatt Trust – Work Pay$: Everyday Money Skills for Young People with Disabilities



Grants Program

OutcomesMost students gained something from the program, showing the biggest improvements in:

• knowing the difference between needs and wants

• taking care of money

• saving for a particular item, and

• being more confident with simple transactions.

“ When Annette started the program, she

was unable to recognise most Australian

notes and coins. By graduation, Annette

was able to stand in front of the class and

confidently identify each Australian note for

the class. You could see the pride beaming

from her face as the class applauded. “– Program participant

“ Bryan was in the habit of buying a can of

soft drink every week at work experience.

The Work Pay$ program’s concepts of value

for money and saving resonated with him

and over time, Bryan reduced his spending

at the vending machine. If he wanted a

can of soft drink, he would buy it at the

supermarket before work to save money. “– Program participant

LessonsThe pilot revealed several improvements that are needed if the program is scaled up and used in other schools, including:

• adding more time to practise in real-life settings, such as shops and banks, and

• engaging parents so they can reinforce the lessons.

Figure 7: An illustration developed for the program



The Smith Family

The Smith Family is a national children’s charity that helps disadvantaged young people succeed at school, to help them avoid a lifetime of poverty.

Activities The Smith Family delivers its Certificate 1 Financial Services program in more than 60 schools in disadvantaged communities across Australia. The program reaches about 1,000 young people annually in years 9–11, and FLA is one of a number of funders.

Certificate 1 in Financial Services is a short course that focuses on the essentials of money management and developing skills to achieve financial goals.

The course was created with the leadership and support of ANZ. It is based on modules in the bank’s award-winning MoneyMinded program, which consists of five 2½-hour sessions delivered by an accredited trainer.

The FNS10110 – Certificate 1 in Financial Services is awarded when a participant has finished all five elements and passed an assessment.

The Smith Family offers the Certificate in communities in NSW, Victoria, the ACT and Queensland.

81% of enrolled students achieved a Certificate 1 in Financial Services, and three months after completing the program reported they:

• had gained knowledge – 79% understood how superannuation works

• understood their rights – 86% knew more about their financial rights

• had improved confidence – 91% reported that they were confident about making financial decisions, and

• had changed their behaviour – 79% were using a savings plan.

The program has been evaluated annually since 2013 and has shown excellent results. Students are surveyed before the program, immediately after the program and three months later.

“ I learned a lot by knowing what my rights

are and [about] superannuation. “– Program participant



Grants Program

OutcomesMore than 80% of enrolled students complete the certificate. The biggest increase in knowledge is about the basics of superannuation – from about 30% of students to 96%. Students also vastly improve their knowledge of consumer credit, consumer rights and where to get help with financial decisions.

Students said the course had changed their behaviour. Most said they were now more likely to shop around and use a budget. Many students also reported feeling more confident about making financial decisions.

FLA is providing $300,000 over three years to enable The Smith Family to reach more students.

“ I have begun to use my debit card to

store money rather than keep it in cash.

I find it easier to save that way as I am

less tempted to spend it. “– Program participant

LessonsThe Smith Family added rich information about what works and what doesn’t for a particular population. Overall, The Smith Family identified key outcomes as:

• measuring attitudinal change in the cohort to understand what resonates with particular audiences, and

• reinforcing programs to achieve success.



Girl Guides Australia

Girl Guides Australia offers practical lessons on personal finance to enable girls and young women to make better decisions, enabling them to have an independent and secure financial future.

ActivitiesGirl Guides Australia’s Guide Your Money program builds life skills through ‘learning by doing’ with other girls.

The program is aimed at two age groups:

• the Foundations program for girls aged 7–12, and

• the Independence program for young women aged 18–30.

The Guide Your Money program aims to encourage girls and women to build life skills in financial literacy and develop an understanding of how financial literacy contributes to having an independent and secure financial future. The course was developed with assistance from FLA.

“Women’s economic empowerment starts with girls,” says Helen Reid, National Program Manager.

According to Helen Reid, young Australian women are being given little or no education around financial literacy and yet they’re signing mobile phone contracts, trying to save for a car and making career decisions.

“Women get to the workforce and a superannuation form is put on their desk to fill out, and that’s often the last time they think about how much they’ll have saved when they reach retirement age.

“We want to build their confidence and skills in financial matters and ultimately help girls be financially self-sufficient so they can take charge of their lives,” she says.

The Guide Your Money Foundations program, for 7–12 year-old girls, offers fun learning and skills building in financial literacy. It covers topics such as budgeting, saving and goal setting and is available as a hard copy resource for Guide leaders.

Figure 8: Girl Guides program – ‘Guide Your Money’



Grants Program

Guide Your Money Independence, for women aged 18–30, is an online program empowering them to take control of their financial future. They build skills together and individually by accessing online content.

Topics include comparison shopping, saving, investing, car and home loans, and planning your financial future. The program is available at www.guideyourmoney.org.au.

OutcomesBoth Guide Your Money programs were launched in early 2017 and initial responses have been enthusiastic. About 1,300 copies of the Foundations program booklet have been distributed to state Girl Guide offices and other Guiding organisations around the world.

“ The program is easy to use and the girls

really enjoyed doing it. “– Guide leader for girls aged 7–12

Web statistics indicate that more than 500 people accessed the Independence program online.

“ The needs and wants exercise really

stimulated some thoughtful responses.

It has been one of the best programs that

we have done. “– Guide leader for girls aged 18–23

“ The program was easy to deliver and it

really appealed to the Guides. Thank you so

much for enabling us to deliver such a fantastic

program. It was amazing how quickly the guides

cottoned onto the idea of financial risk when

we used M&Ms to deliver the message. “– Guide leader for girls aged 14–17



Women’s Legal Service Queensland – Penda app

Penda is Australia’s first financial empowerment app for women affected by domestic and family violence.

ActivitiesPenda is a free, simple-to-use app that provides information on safety, finances and legal issues, and includes links to referral services and further support.

The Women’s Legal Service Queensland developed the app for victims of domestic and family violence. It was launched in September 2017.

Economic abuse is a common form of domestic and family violence and the app has a strong emphasis on helping women secure financial independence. It is estimated that 16% of women have experienced economic abuse in their lifetimes3.

Figure 9: The Penda app

3 http://theconversation.com/revealed-the-hidden-problem-of-economic-abuse-in-australia-73764

Penda is Australia’s first national financial

empowerment app for women who have

experienced domestic and family violence.



Grants Program

OutcomesThe most important financial advice for anyone leaving a violent relationship is to talk to a financial counsellor, and the app includes information on where to go.

“ Penda asks the important questions that

would have made a difference when I was

escaping domestic violence and homelessness.

It helps women to see there is help and

hope. It opens a new door of information and

support, leading to choices and informed

decision-making. “– Rachel

Some women don’t have a choice about when to leave an abusive situation, but others can plan their escape so they have some financial resources and independence as soon as they walk out the door. FLA supplied core funding for the project and Credit Union Australia supported a national washroom advertising campaign.

“ I didn’t know there was all those services

available that are mentioned in Penda.

That would have made a massive difference

for me. “– Hana



Macquarie University

Macquarie University launched its retirement village calculator in August 2017, the first of its kind in Australia. There are at least 184,000 seniors living in retirement villages nationwide. The average age of new residents is 75.

ActivitiesThe free calculator takes the complex range of entry, monthly and exit fees, and calculates a simple ‘equivalent monthly rent’. This means people can easily compare the cost of different retirement villages.

Dr Tim Kyng from Macquarie University developed the calculator after a frustrating experience trying to help his own mother choose between retirement village options.

Information on costs is not presented clearly, and some retirement villages either withhold key information or bury it in complex documents. The ‘deferred management fees’ are particularly tricky.

Many people misunderstand the process of living in a retirement home, thinking it is like buying their own apartment. But residents only have the right to live in a unit until they become too sick, voluntarily relocate or die.

Generally, contracts are difficult and time-consuming to understand and even harder to compare with others. Some operators are reluctant to supply a copy of the contract, which inhibits comparison shopping.

ExampleA user of the calculator inputs the retirement village’s entry, ongoing and exit fees, as well as information about sharing profits or losses on the resale of their apartment. The calculator then provides a comparison rent per month.

When comparing two retirement villages in Sydney – one with a $775,000 entry fee (village A) and another with a $750,000 entry fee (village B) – the one with the lower entry fee and monthly fee (village B) appears cheaper. However, when all things are considered, the calculator shows village B will cost an extra $3,500 a month over seven years (Figure 10).



Grants Program

Figure 10: Example of how the calculator works

Monthly fee

Exit fee Share capital gain/loss

Equivalent monthly rent (over seven years)

Village A $850 No Yes $1,800

Village B $450 Up to 35% No $3,500

The calculator is available at www.rvcalculator.org

OutcomesThere have been more than 22,000 visits to the website to date.

“ This is really bad news. Grim actually.

I love it because it does a whole lot of

calculation I couldn’t do. And then what

happens when you need aged care? This is

something that needs regulation. And I am

not overly enthusiastic about regulation

normally. If you have transparency it becomes

self-regulation. “– Consumer feedback

“ What? You’re kidding! You’re kidding? Wow.

And that excludes all food and other care?

That’s a huge amount. I don’t think any of us

have ever calculated it out this way before. “– Consumer feedback

“ The main costs should be in big print on

page one of the contract: the exit fee, entrance

and maintenance fee. It would be horrible to be

at the end of your life and having to deal with

all these fees when you leave. Especially if

you go into a nursing home. “– Consumer feedback

“ I’m glad I have a legal brain for looking

at the contract but it’s gobbledygook for an

average person. I knew to look at the schedule

for details but most people wouldn’t. As a

lawyer I used to get extremely bored when

asked to read contracts in detail too. Looking at

this Retirement Village contract, I think they’ve

done it on purpose. It should be in plain English

and have a summary document with all the

important information. The calculator certainly

helps get to the bottom of it all. “– Consumer feedback





“Man cannot discover new oceans unless they have the courage to lose sight

of the shore” – Andre Gide

Strategic projects



In addition to the grants program, FLA actively identifies one or two areas in which we have identified a gap and funds research projects that further advance understanding in financial literacy. Here are the preliminary findings of the first strategic project we have sponsored.

Financial wellbeingIn 2016, FLA commissioned the University of New South Wales to explore the issue of ‘financial wellbeing in the Australian context’.

The report provides a framework to guide practitioners in improving and measuring the financial wellbeing of all Australians.

The framework identifies three interrelated dimensions that make up financial wellbeing. They are:

• meeting expenses and having some money left over

• being in control of finances, and

• feeling financially secure.

There is also an important time dimension. Financial wellbeing is also determined by how people feel about their future and how they prepare for it.

“ We know that over two-thirds of Australians

feel some level of financial stress and around

one in eight experience high levels of financial

vulnerability. A better understanding of financial

wellbeing could help to better tailor appropriate

products, services and supports to improve

outcomes for Australians, and the economy. “– Professor Kristy Muir, CEO of the Centre for Social Impact and lead author of the report

The report also explores what things influence a sense of financial wellbeing. The strongest were financial capability, personal health, financial inclusion, social capital, and income. Life events, the ability to respond to financial shocks, and household, community, and societal contexts also all play crucial roles.

The findings are helping FLA guide financial service organisations as they develop offerings that promote and improve the financial wellbeing of all Australians.

The report also gives FLA a unique insight into what constitutes financial wellbeing, and importantly shows us what we can do to help people.

The report is available at http://finlit.org.au/funded-projects/funded-projects-2016/financial-wellbeing-research/

Research Projects



Strategic projects

Figure 11: The factors that influence financial wellbeing

Personalhealth

Household,community, and society conditions

Life events (eg.

financial shock)

FINANCIAL WELLBEING

Able to

manage

debts

Feeling

satisfied with

the financial

situation

Setting & pursuing

long-term

goals

Able to meet

expenses

Savings

buffer

Having

control over

your financial

situation Able to afford

“little extras”

Financialinclusion

Social capital

Economicresources

Financial capability

(knowledge, skills,attitude & behaviour)

Today & in the future

Limited

worry

FEELING FINANCIALLY

SECURE

MEETING EXPENSES

WITH SOME LEFT OVER

BEING IN

CONTROL

(Influences)

(Influences)

Financial ResilienceFinancial Resilience





“Inside every older person is a young person wondering

what happened.”

Aged care



FLA has received a considerable sum in Community Benefit Payments specifically for aged care. We have been entrusted to support and fund suitable projects to improve financial literacy in this sector, covering two types of services – home care and residential care.

Financial literacy is generally low among the elderly and their family members, particularly when they face the complexity of residential aged care. Often decisions about location and how to pay for accommodation must be made quickly and under extreme emotional strain. Currently, there are limited sources of clear and timely financial advice for consumers in this sector.

Home care The Australian Government’s Home Care Packages Program is designed to help older Australians live independently in their own homes. The program provides a subsidy – depending on an individual’s financial status and needs – to help pay for care and services.

It has four levels of support:

• basic

• low level

• intermediate, and

• high care.

Residential care Residential aged care includes a range of options and accommodation for older people who are unable to live independently in their own home. This can range from personal care to assistance with daily living and 24-hour nursing care.

FundingThe overarching goal in both services is to replace a large amount of government regulation with market mechanisms, providing more consumer information and making pricing more transparent.

In home care services, this is called Consumer Directed Care and aims to offer individuals more choice and flexibility about:

• types of care and services

• how care and services are delivered

• who delivers the care and services, and

• when care and services are delivered.

Aged Care Activities



Aged care

In residential care, the Australian Government has made significant reforms over the past five years. There are now refundable accommodation deposits, daily accommodation payments or a combination of both.

The different payment mechanisms and consequences for the aged pension, family home and other assets is both confusing and highly stressful for consumers.

Our approachOur objective in this important and complex sector is to provide individuals and their families with the skills to understand their financial options and, ultimately, the services available to them.

To date, we have performed desktop research and consulted experts and major stakeholders in this area. Using the knowledge and experience gathered, FLA has scoped two high-level initiatives that may have the greatest consumer impact and add maximum value:

• Managing the financial aspects of the home care package – this pilot project may involve a consortium of community-based organisations and disseminate the information to the target audience of older people, carers and families.

• Real-time web-based calculator for residential care – this exploratory project will investigate whether a web-based calculator can work, given the complex financial permutations and implications. It will also examine whether the calculator can provide adequate information to enable people to make informed decisions on financial positions.

The FLA Board is reviewing these two opportunities and assessing a shortlist of candidates to deliver the projects within set timelines and budgets.

An update on the progress of these initiatives will be available in our next Highlights Report.





We want people to know about the fantastic work being performed to

improve financial literacy.

Awards night



FLA’s annual awards night encourages the organisations and individuals we have funded to share their successes. Our objectives are for practitioners, supporters and educators to learn from these inspiring initiatives.

We received more than 45 applications for the 2017 awards and 18 were shortlisted.

Applications were invited from organisations and individuals that performed or were undertaking programs in six categories:

• large scale

• small scale

• to meet the needs of a specific audience – for example, women, Aboriginal and Torres Strait Islanders, retirees

• to create a resource to help people make better financial decisions – for example, an app, game or booklet

• research to help people understand the issues better, and

• substantial contributor to advancing financial literacy, such as a long-term volunteer, educator or communicator.

The judging panel comprising of Robert Brown and Elaine Henry (FLA Board members), Miles Larby (Senior Manager, ASIC) Delia Rickard (Deputy Chair ACCC), Carolyn Bond (Consumer Representative) Andrew Robertson (Senior Reporter ABC – The Business) and Hugh Harley (Partner at PWC) volunteered their time and expertise to review and assess the shortlisted applications. Nine winners were selected and announced.

The panel used a rigorous filtering system to assess each project.

• Was there a need for the program?

• How relevant was the program to its designated audience in terms of quality and reach?

• Was there a plan to measure outcomes or was a program already embedded in the project to assess its impact?

• Was there an innovative component?

The 2017 winners were:

• Large program: ANZ’s MoneyBusiness. MoneyBusiness is a series of workshops developed by ANZ and the Australian Government to build the money management skills and confidence of Indigenous people and develop a stronger savings culture, particularly in remote communities.

• Small program: Student Services Griffith University. The Budgeting 101 Workshops program is primarily aimed at improving students’ financial management skills.

Awards Night Report



Awards night

• Small program: Alesco Senior College (ASC). The ASC Financial Literacy program is a program that focuses on increasing the financial literacy skills of students at Alesco Senior College. The majority of students that attend ASC come from lower socioeconomic backgrounds. The program runs throughout all of the campuses and gives each student practical exposure to the running of ‘real’ businesses, as well as improving their financial literacy and money management skills.

• Targeted program: The Smith Family’s Certificate 1 Financial Services Program. The Certificate I Financial Services program is a short course, developed using content from ANZ’s MoneyMinded financial education program that is delivered to young people aged 15–17 in disadvantaged schools. The approach is interactive and aims to empower students to take charge of their finances. Qualified

facilitators help students identify positive saving and planning principles. They also provide age-relevant understanding of credit, superannuation and financial planning concepts using appropriate language and suitable vignettes.

• Targeted program: Good Shepherd Microfinance. This is a training module to help microfinance workers across Australia improve the conversation with applicants for a No Interest Loan Scheme (NILS) loan.

• Research and evaluation: Good Shepherd Australia/New Zealand’s Firmer Foundations. This is a comprehensive program with a suite of holistic program components including group work, developing social capital, providing individual financial capability coaching and conducting workshops. The Firmer Foundations Program has successfully supported more than 300 Victorian women and over 250 children to improve their financial independence and wellbeing.



• Resource and communications: Wingate Avenue Community. Adults with low literacy levels were provided a resource kit to improve their financial knowledge and skills (namely banking, budgeting, loans and financial options); both native English speakers and also migrants and asylum seekers.

• Resource and communications: Women’s Information and Referral Exchange’s (WIRE) Women Talk Money. The Women Talk Money is a website based on WIRE’s extensive research into women’s relationship with money, financial capability and financial security. The Women Talk Money website provides easy to digest information including suggested financial conversation strategies, quizzes and videos. It also guides women on how to have structured conversations around finances with their partner.

• Contribution: Zoe Lamont: Zoe won the award for her Regional Women’s Financial Literacy program – 10Thousand Girls. The 10thousandgirl educational program aims to create a safe, comfortable learning environment for women to talk about money. The program design and interactive nature works to shift women’s knowledge, attitude and behaviours so participants feel empowered to take practical steps to improve their financial future.

The awards night was generously sponsored by five major financial institutions (Australian Super, ANZ, Colonial First State, CBA and IPAC) that are committed to improving financial literacy.



Outlook for 2018

“Improving the ability of Australians to navigate the world of money

and equipping them to make sound money decisions is a great cause.”

– Paul Clitheroe



In the coming year, we will maintain our commitment to our financial literacy grants program for those projects that have scale and can demonstrate clear outcomes.

In addition, each year we will identify one or two strategic areas of national significance in general financial literacy where we see a gap. Organisations will be invited to submit proposals to undertake a project to fill that void. For 2018, we are in the planning phase to fund research on day-to-day and week-to-week money management. A better

understanding of these dynamics will help in providing more effective advice about money management strategies.

Another key priority will be on improving financial transparency in the aged care sector. We are currently in the consultation and feasibility phase. We anticipate starting the aged care program in 2018 (Figure 12).

Figure 12: FLA’s future priorities

FLA current portfolio Proposed allocation of New Funds over

the next 2 years

FLA past portfolio

40%

20%

40%

Aged Care Projects

Strategic projectsincl. building capability/evaluation

Open Grant Projects

Open Grant Projects

2014–2017

Our priorities



Appendix I

Completed projects

Organisation Project Grant

10thousandgirl Regional women’s financial literacy roadshow $150,000

CHOICE Research on how to engage people on superannuation

$120,000

Council of Education Associations of SA

How parents can help their children be money savvy

$50,000

Crossway LifeCare B-Empowered financial coaching program $80,000

Financial Counselling Australia

Website on credit and debt issues – National Debt Helpline

$207,400

Financial Counselling Australia

Prisoner financial literacy / self-help on debts $58,000

Financial Rights Legal Centre / CALC

Stage 1 – Research on payday loan borrowers $47,590

Girl Guides Australia Peer learning through Girl Guides $229,460

Good Shepherd Microfinance

Stage 1 – Research on the impact of the initial interview with StepUP applicants

$95,000

Stage 2 - Creating capability in microfinance workers on financial literacy

$48,500

Mission Australia Delivering Wesley Mission’s In Charge of My Money

$48,738

Noosa Library Service

Literacy and money skills tutoring $26,225

Participate Australia (previously FRANS)

Financial literacy for young adults with an intellectual disability

$57,700

Salvation Army (NSW)

Evaluation of ‘You’re the Boss’ program $38,150




St Michael’s Collegiate School

Program for students with disabilities $12,500

University of South Australia

Developing new survey questions to better link financial knowledge to outcomes

$120,000

University of Technology Sydney

Research on interactive financial literacy at point of sale for superannuation

$49,675

University of Western Australia

Comparison of university financial literacy courses $38,021

University of Western Sydney

Financial literacy to increase student interest in maths

$80,000

Wesley Community Services

Stage 1 – NSW-wide delivery of the Wesley financial literacy program

$165,372

Stage 2 – Evaluation of the ‘In charge of my money’ program

$61,000

Wingate Avenue Community Centre

Financial literacy in English classes for migrants $100,000

WIRE Stage 1 – Research on women as financial equals in relationships

$24,892

Stage 2 – Online material to help women grow as financial equals in relationships

$151,600

Woodville Primary School

Play supermarket $17,500

Wyatt Trust Everyday money skills for young people with disabilities

$48,500



Appendix II

Projects under way


Aust Shareholders’ Assoc

Women and investing $110,186

Brisbane Indigenous Media Association

Experiment with money stories on indigenous radio

$86,400

Brotherhood of St Laurence

Home ownership education $80,000

Stepping Stones program on small business for migrant women

$194,672

CHOICE Stage 2 – Online experiment to boost engagement with superannuation

$180,000

Consumer Action Law Centre / FRLC

Stage 2 – Payday loans public education program $380,000

First Nations Foundation

My Moola program for indigenous trainees with AFL SportsReady

$158,000

Foundation for Young Australians

$20 Boss – Entrepreneur program for schools $600,000

Good Shepherd ANZ Firmer Foundations – For women who are vulnerable or experiencing family violence

$265,669

Good Shepherd Microfinance

Stage 3 – Boosting financial literacy for NILS clients

$220,000

Indigenous Consumer Assistance Network

Yarnin’ Money financial literacy program in Far North Queensland

$273,918

Macquarie University Retirement village calculator $128,154




Mypolonga Primary School

Student lead businesses at Mypolonga Primary School

$25,000

Participate Australia Money made easy $153,120

Small Business Mentoring Service

Women in small business $172,500

The Smith Family Expansion of financial services course for disadvantaged youth in high schools

$300,000

University of Melbourne

Measuring efficacy of ‘Street Finance’ program in high schools

$46,368

University of South Australia

Research on financial literacy of older people $50,000

Women’s Health in the North

Let’s Talk Money – Evaluation $50,000

WIRE Stage 3 – Research on financial literacy for women experiencing family violence

$181,690

Women’s Legal Service Queensland

Penda app for women experiencing family violence

$229,810

More details are at http://finlit.org.au/funded-projects/



While considerable progress has already been

made, bringing about a significant change

in Australians’ financial literacy levels is

a long-term journey – one that will take at

least a generation.



Financial Literacy Studio 4.1 105 Kippax Street Surry Hills NSW 2010

Enquiries to Financial Literacy Australia: 02 8197 9932 [email protected]

www.finlit.org.au


Documents

FLA7127 A5 Brochure v11-247ctca2fz6ha46w1l826tujxm5k-wpengine.netdna-ssl.com/wp... · 2018-05-21 · Overview of Financial Literacy Australia 6 Grants Program 9 Financial Literacy