Presentation on theme: "Financial mentoring for women experiencing financial abuse"— Presentation transcript:
1Financial mentoring for women experiencing financial abuse Tools for ChangeFinancial mentoring for womenexperiencing financial abuse
2Tools for Change Module 1: Understanding gender, power and money Introductions, expectations and module overviewFinancial mentoringWomen and financial disadvantageFinancial security and family violenceFinance – health, self-esteem and relationshipsModule 2: Money management toolsMoney management toolsBudgetingModule 3: Pathways forwardManaging debtPlanning for the futureMaking referralsEvaluation and celebration.
3Financial mentoring resources Activities for the moduleSupporting informationReflective JournalLiterature reviewRecognition of Prior Learning.
4Group agreementWhat rules do we need to ensure our sessions are safe and non-judgemental spaces for learning and sharing ideas?
5Learning stylesthe learning styles questionnaire helps to identify individual learning stylescan assist mentors to present information in a way that best meets the needs of each mentee.
6Learning styles Everyone has different learning styles: activist pragmatisttheoristreflector.
10The financial mentoring process Application and selection completed Complete the Tools for Change modulesPolice check successfully completedMatched with a menteeIntroductory meeting between mentor, mentee and project coordinator where goal agreements establishedMentor and mentee meet weekly (on average)Mentor provides regular feedback to project coordinator via agreed methodsMentor regularly enters comments in their Reflective JournalMentor attends group training and debriefing sessions as required
11Financial mentees … are ordinary women from all walks of life have low financial confidenceexperience many barriers to changing their financial circumstancesmay have experienced family violencemay experience health and emotional effects related to their financial insecurity.
12Mentor/mentee relationship A financial mentor must:practice patience and compassionfocus on sharing new perspectives, ideas, options and finding exceptions to a negative money storybe curious about experiences, values and life storiesEnsure they are not behaving like a case worker, counsellor or personal bank.
13Strengths-based mentoring a strengths-based approach focuses on mentees strengths, not their deficitsit places the mentee as the expert on her own lifeempowers the menteeensures conversations don’t get stuck in negative retelling.
14Strengths-based mentoring The underlying beliefs of strengths-based mentoring include:all women have strengths and capabilitieswomen change and grow because of their strengths, not their weaknesseswomen are the experts on their own situationwhen women recognise their strengths they can learn and growstrengths include interpersonal, intellectual and physical skills and women’s hopes, aspirations and interests.
15Burnout Some examples: losing sleep or having disturbed sleep being exhaustedfeeling negative or unable to shift a negative feelingexperiencing erratic or changed eating habitstalking about the mentee all the timehaving erratic mood swings and changesbeing unable to turn off from the mentee’s storywanting to loan the mentee moneycontacting the mentee outside meeting arrangements.
16Self-care examples contact the project coordinator use group support through phone or contactcreate a small supportive group to check on each others’ wellbeingcreate a closed blog.
17Comfort zones and safety establish boundariesthink about the conversations you are prepared to have and those you are notidentify your own comfort zones and maintain emotional safetyremember that it is difficult, but important, to say no at times.
18Disclosure believe don’t judge take her fears seriously acknowledge her strengthsremember that safety is a priorityrecognise that the perpetrator of the violence is responsible for the violence.
19Disclosureacknowledge that each woman’s experience of violence is differentbe clear about confidentialityprovide accurate information about referrals and resources.The way a woman is treated can make an enormous difference to outcomes and safety for her and her children.
21Financial disadvantage On average Australian women earn 17% less than men.Women are more likely than men to work part-time or on a casual basis.Women comprise 70% of the part-time labour force and 35% of the full-time labour force.Women are more likely to take time away from work to raise children, therefore spending less time in the workforce resulting in reduced opportunities for training and career advancement.
22Financial disadvantage Women in the workforce are more likely to work in sectors with lower pay rates such as aged care, childcare, cleaning and retail.Women have less opportunity to contribute to superannuation because they spend less time in the workplace and earn lower pay rates. However, women live longer than men and consequently need more superannuation.
23Financial disadvantage In 2008, women held 34% of superannuation assets compared to men’s 66%.Centrelink Single Parent payments are reduced to Newstart once the youngest child is 8 years old.Newstart peaks at $243/week or $34.70/day (2012).In 2006, 87% of one parent families with children under 15 years old receiving the Single Parent payment were headed by women.
25Legal definition Family violence is defined as: behaviour by a person towards a family member of that person if that behaviour –is physically or sexually abusive; oris emotionally or psychologically abusive; oris economically abusive; oris threatening; oris coercive; orin any other way controls or dominates the family member and causes that family member to feel fear for the safety or wellbeing of that family member or another person.Source: Family Violence Protection Act 2008.
26Family violenceincludes behaviour that is repeated, controlling, threatening and manipulativeis an abuse of power perpetrated mostly by men against women in a relationship or after separationis gendered violenceis used by the perpetrator to have power and control over the victim.
27Family violenceis a fundamental violation of a person’s human rights no matter what their race or religioncan include criminal behaviourharms children on many levels as witnesses and victimsis unacceptable in any community.
28Family violence in rural areas easier access to weaponsmore isolatedless anonymity.
29Staying, leaving and returning Women with economic resources are more able to end an abusive relationship, less likely to return and less likely to enter an abusive relationship.Income is the strongest predictor of leaving or staying.Financial dependency is the primary reason women do not leave and the primary reason they return.Escaping family violence often leads to poverty.
30The impact of financial abuse Financial and other forms of abuse often leave women without the confidence, knowledge or even paperwork required to be financially literate and financially included in our society.
31Statistics40% of battered women reported family violence had made them late for work more than three times in the previous month34% reported missing whole days of work23% reported difficulties advancing their careers20% reported difficulties keeping their jobs.Source: Chronister et al. 2004
32More statisticsViolence to women and children cost the Australian economy approximately $13.6 billion dollars in 2009(In 2002−2003 the cost was $8.1 billion).Source: Federal Government Initiative, Time for Action – the National Council’s Plan for Australia to Reduce Violence against women and their children,
33Domestic violence is the leading contributor to death, disability and illness in Victorian women aged between 15−45 years old.Source: The Health Costs of Violence: Measuring the Burden of Disease caused by Intimate Partner Violence, Vic Health 2004.
34Women are …three times more likely to be injured as a result of violencefive times more likely to require medical attention or hospitalisationfive times more likely to report fearing for their lives.
35Indigenous women are …35 times more likely to suffer family violence and sustain serious injury requiring hospitalisation than non-Indigenous women10 times more likely to die due to family violence than non- Indigenous women.
36Childrenbetween 50−70% of children who witness violence at home also suffer physical abuse themselveswitnessing parental domestic violence is the strongest predictor of perpetration and victimisation of violence in young people’s own intimate relationships.Source: Attorney Generals Department, 2000, National Research on Young People’s Experience of Domestic Violence Fact Sheet, Canberra.
37Key areas of concern for women SafetyLegal issuesHousingEmploymentSocial securityEducationChild supportBill payments and debtsHealth careFinancial literacy
38Financial abuseFinancial abuse occurs between two adults where there is financialco-dependency.Financial abuse can take many forms, from denying all access to funds, to making [the woman] solely responsible for all finances while handling money irresponsibly himself. Money becomes a tool by which the abuser can further control the victim, ensuring either her financial dependence on him, or shifting the responsibility of keeping a roof over the family’s head onto the victim while simultaneously denying [her] ability to do so or obstructing [her].Financial abuse can have serious and long-term effects on women and children experiencing it. Women and children can become trapped in a cycle of poverty, they can experience physical and psychological ill health, isolation and feeling that they can’t escape from the abusive relationship.Source: Welsh Women’s Aid, <www.welshwomensaid.org.uk>.
39Consequences of financial abuse reduced financial confidence, knowledge and skills due to limited experiencelong-term financial insecurity resulting from erosion of financial resources and loss of opportunities to increase income through education and employmenthomelessness due to lack of financial reserves and having to leave the family home.Source: Commonwealth of Australia, Sanders et al., 2007
40Positive responses to whether they were or had … Before meeting the abuserWhilst with the abuserAfter leaving the abuserUndertaking education37%18%30%In paid employment47%16%Receiving benefits51%84%Savings20%Loan/credit card/ overdraft12%39%Rent arrears33%55%Other debts8%41%Source: Refuge, 2008, Sharp, Nicola, What’s yours is mine The different forms of economic abuse and its impact on women and children experiencing domestic violence, <www.refuge.org.uk>.40
42Financial dependencePerson A is financially dependent on person B if A relies on B for regular financial support.A does not have to be totally financially dependent on B, but the financial dependence does have to be significant.Source: Superannuation Complaints Tribunal, <www.sct.gov.au>.
43Financial security means different things to different people. Financial security is one of the most significant factors in long-term healing and moving on for victims of domestic violence.Financial security means different things to different people.Financial security is having enough to get by and a means of empowerment to regain a sense of self and agency.Source:
44Finance − health, self-esteem and relationships to money
45Finance − health, self-esteem and relationships to money Worrying about money:is the main source of stress for most peopleaffects people’s health.
46Finance − health, self-esteem and relationships to money increased stress and potential risk of heart attacklow self-esteemrelationship tensionspoor sleeping habitspoor general healthdepression and anxiety.
47Relationships to money Relationships to money and how people use money are individual, complex and influenced by factors such as values, socio-economic position, mood and culture.
51Types of debt contractual government debt loans from family and friendsrelationship debt.
52Relationship debtA result of pressure from a partner or friend and where the person signing the contract derives no benefit from the debt. It is basically an unjust debt where the person acquiring the debt may act through emotions such as affection, intimidation, or fear of the other person.Examples:a boyfriend pressuring his girlfriend to buy him a slab of beer/a new phone/new computer or new TV, If you really love me you will buy me this, or her going guarantor for his car loanmale secretly gambling away couples combined incomewoman being coerced into or unwittingly defrauding Centrelink and then being held responsible for that debt when the relationship breaks up.
53Signs of unmanageable debt using cash advances on a credit card or taking payday loanspaying minimum payments on billsborrowing money to pay household billsbeing behind on rent or mortgage paymentsgetting new credit cards to pay old debtchanging utility companies to avoid getting services cut off.
54Prioritising debts highest interest consumer debt short repayment periods.
55Goals Setting goals helps women to: become financially secure save for the futurereduce debttake control of their future.
56Setting achievable goals W When? I Is it feasible? S Specifics e.g. cost? H How can it be achieved?
57Getting assistance working with a financial mentor going to a financial counsellor or financial counselling servicepaying a financial advisor.
58Financial counsellors provide a free, confidential and independent serviceassist people to:organise finances and do a budgetfind ways to improve their financial situation see if they are eligible for government assistance negotiate repayment arrangements with creditorsapply for a hardship variationexplain options and their consequences, including debt recovery procedures, bankruptcy and other alternatives refer people to other services e.g. a gambling helpline, family support, personal counselling or community legal aid.
59Financial counsellors Assist with advice about:debt managementthreatening letters or harassment from debt collectorsdebt recovery actions through the courts house eviction, disconnection of utilities such as gas, electricity, phone uninsured car accidentstaxation debtsunpaid fines.
61Financial advisors investment advice pension planning Provide financial services to individuals, businesses and governments including:investment advicepension planninginsurances i.e. life, income protection, critical illnessmortgage advice.
62Short-term and long-term financial goals saving for a major purchase e.g. own home, holidaysproviding for children’s education e.g. school excursionssaving for later in life e.g. old agemeeting monthly bill payments e.g. energy billsreducing debt e.g. making credit card repayments.
63Prioritising goals and strategies prioritising helps with focussing on the main issuestimelines can change but the goal can remain e.g. illnessgoals and strategies should be reviewed.
66Spending leaksDid anyone find that they only spent what they anticipated they would spend for the week?Did anyone find that they spent money on extra things they hadn’t expected?Did anyone buy a cup of coffee?
67Buy one coffee five days/week @ $3.50 Weekly total: $17.50Yearly total: $910.00A spending leak – regular small purchases that add up to significant amounts of money over a longer period of time.
68Spending diary Tool to help: track spending see where costs are occurringanalyse spendingsee opportunities for reducing costsmake decisions about future spending and savingcreate a budget.
70Centrelink Financial Information Service helps people make informed decisions about investment and financial issues for their current and future needs.it can:increase your confidence in dealing with your investment-related financial issueshelp you understand your own financial affairsinform you of your optionsalert you to the levels of risk of each financial product typeexplain the roles of financial industry professionalshelp you be discerning when choosing experts and show you how to use expert informationexplain the advantages of reducing personal debthelp you use credit in a sensible wayencourage you to increase your savings and plan for the futurehelp you plan effectively for your retirementshow you how you can maximise your overall retirement income.Website:
71Child Support AgencyAssists separated parents with information, payments and support such as:Child Support AgreementChild Support AssessmentChild Support Online Services (CSA online)Child Support PaymentChild Support Referral ServicesChild Support for Parents of Children Living Outside AustraliaWebsite:
72CentrepayFree service that allows customers to pay bills via regular deductions from their Centrelink paymentsMany organisations offer Centrepay as a bill-payment option for costs, including:private rent (including community housing)telecommunicationselectricity, gas, and watereducation fees and expensesambulancechild carehome care servicesrental of household goodsmedical services and equipmentWebsite:
74Victorian concessions Concessions for:communicationsdisabilityenergyfinancial and welfarehardshiphealthrates and propertyrecreationmotor vehicle and transportwaterMoneyHelpHome owner and renter supportDisability financial supportFinancial crisis support.
75Dear PamThank-you for my new school clothes. They are brand new and they look good. My new school uniform looks great! The clothes look good on me and keep me warm. The shoes are awesome!Source;State Schools’ Reliefprovides disadvantaged Victorian students with new school wear and attireonly responds to requests from principals, assistant principals and welfare coordinatorsparents or carers who are struggling financially to provide for their child's government education should make an appointment with the school principal or assistant principal/welfare coordinator to discuss their issues.
77Managing debtManaging debt is one of the most complex and stressful areas of money management for women with financial problems.
78Responses to dealing with debt refinancingselling assetsborrowing from family and friendsconsolidating debtincreasing incomedecreasing expendituremaking smaller repaymentsdeclaring bankruptcygetting government assistancedoing nothing/leaving towncontacting support agencies for help with food and energy bill paymentsseeking a moratorium for making payments
79Managing debt ASIC MoneySmart Managing debts webpage making repayments trouble with debtproblems paying your mortgagedealing with debt collectorsconsolidating and refinancing debtsborrowing basicssaving money on credit cards.
83Credit cards Disadvantages include: high cost of credit/interest rates ease of getting into debtdifficulties that arise if minimum payments aren’t madetemptation to use a credit card to pay an existing debt.
84Payday and fringe lenders typically make loans to people excluded from the mainstream personal credit organisations such as banks and building societiespayday lending is advancing money next payday in exchange for a fee/interest rate of approximately 48%fringe lenders typically provide smaller personal loans up to $5,000 in exchange for a fee/interest rate around 48% for periods up to one year.
85Consumer lease contracts hiring an item (for example, a home computer or television) over a period of timemaking regular rental payments (usually monthly) plus fees and charges until the term of the contract finishes.not automatically owning the item at the end of the lease periodusually paying more − total lease payments always add up to more than the cash purchase price of the item.
86Credit ratingsbased on a person’s history of borrowing and making repaymentshave an impact on a person’s future capacity to borrow money.
87Scams Examples Examples chain letters and pyramid schemes dating and romance schemescharity scamsjob and employment scamsspam s and unwanted telemarketing callsinvestment scamssuperannuation scamsbanking and credit card scamsmoney transfer requestslotteries and fake prizes
89Consumer rightsAustralian Competition and Consumer Commission (ACCC) has produced an online handbook listing 1600 private, community and government organisations that offer consumer and business complaint-handling services e.g. financial hardship services, dispute resolution services, consumer protection servicesWebsite:
90Dishonour feeThis week I had two dishonour fees of $45 each because every time I went shopping the bank debited the wrong account. I went back to the bank and the girl said ‘You should have told us’. I said ‘Aren't you going to give me back my $90? – that is really not fair!’ I got home and I rang the Ombudsman then the bank said ‘We are sorry, within half an hour the money will be in your account.’
92Keeping paperwork household bills receipts and dockets banking records and correspondence (including anything to or from the bank)superannuation benefit statements and other documents that come from a superannuation fundproduct disclosure statements, dividend statements and certificates that apply to any investmentsemployment recordscontractsinsurance records.
93Willsa will is a legal document that states how a person’s assets are to be distributed when they die and who is responsible for carrying out these wishesadvice and assistance is available from:State TrusteesASIC MoneySmart websiteVictoria Legal Aidcommunity legal aid servicessolicitors.
94Powers of attorneyPowers of attorney are legal documents that state who is responsible for making decisions for a person if they are unable to make their own informed decisionsTypes:Enduring Power of Attorney (financial)Enduring Power of Attorney (medical treatment)Enduring Power of GuardianshipGeneral Power of Attorney.
95Powers of attorney Information about preparing powers of attorney: Public Advocate’s websiteASIC MoneySmart websiteVictoria Legal Aid.
96Funeralsthere are a number of options for people wishing to make arrangements for paying for their funeral before they die; however, not all the options are financially wise decisionsMoneySmart webpage Paying for your funeral (https://www.moneysmart.gov.au/tools-and-resources (Search: paying for your funeral).