Money Mentors
The Money Mentors team are pleased with another year spent helping whānau in our community move into a place of financial security. This has been achieved during a time when debt is growing and creditors and housing providers are less flexible, leaving little leeway for people in financial hardship.
Inflation and changes in the economy over the past year have meant we’ve seen a change in the level and complexity of debt experienced by many of our new clients. This has seen a 7.7% increase in service numbers accompanied by the need to work with clients for longer periods of time. We’ve also noted an increase in waged clients and a 29% increase of New Zealand European / Pakeha clients engaging with service.
Across the board, we’ve noted a significant escalation in debt including increases in Layby debt (60%), Work & Income debt (40%), debt to other government departments, e.g. hospital debt (245%), local government debt, e.g. rates, water (450%), electricity provider debt (108%), telecos company debt (70%), rent to private landlords (30%), heath service debt (222%), and debts sent to collection agencies (110%).
This has led many clients to precarious and complex financial situations.
There have been solid rewards, however, seeing the burden of financial stress lift off whānau shoulders and a smile cross their faces as they slowly take back control of their finances is heartwarming and a huge motivation to keep going.
The Money Mentors Team
Our team now comprises three FTE in BFC (Building Financial Capability) Core and three FTE in BFC Plus. We also have a 0.5 FTE working directly supporting whānau within our Community Housing by building a financial literacy programme to educate some of our rangatahi (youth). The programme begins with group sessions before breaking off into one-on-one meetings to enable more personalised support.
Client debt retired through working with a financial mentor
Our new financial literacy programme aims to educate some of the rangatahi (youth) who are part of our Community Housing.
The average amount of debt carried by each client is up 13% on last year.