1. Encouraging savings, rewarding effort
Saver Plus: Encouraging Savings and increasing financial capabilities among low-income families
Roslyn Russell, Sandra Mihajilo, Aruna Nair and Robert Brooks

2. Provides an overview of the 2005 evaluation results of Saver Plus
This presentation…..
Provides an overview of the 2005 evaluation results of Saver Plus
Highlights the key success factors of the program
Gives current directions of Saver Plus

3. Saver Plus
Saver Plus is a program designed to help families on low income improve their levels of financial literacy, develop a savings habit and build assets for educational purposes

4. Saver Plus
Initiative of ANZ Banking Corporation and Brotherhood of St Laurence
Delivered through partnerships with four community organisations:
Brotherhood of St Laurence (Victoria)
Benevolent Society (NSW)
Berry Street Victoria (Victoria)
The Smith Family (QLD)

5. The Benevolent Society Research and evaluation
Partnerships
Saver Plus Management
Committee
(ANZ and the Brotherhood of
St Laurence)
Project Manager
Brotherhood of St Laurence
Relationship Manager
The Benevolent Society
Berry Street Victoria
Participants
Primary Partners
Research and evaluation
RMIT
The Smith Family
Implementation Partners

6. SP Design Features - Pilot
Case management
Recruitment
Support
Facilitate education
Financial education
2 for 1 matching (limit $1000)
Restricted goal: Secondary School education costs

7. Health Care Card Holders ($599 - $741p/week + $34 each child)
Eligibility Criteria
Health Care Card Holders ($599 - $741p/week + $34 each child)
Child in secondary school
Some paid employment
Demonstrated capacity to save

8. Saver Plus locations & numbers
Four locations:
Frankston, Victoria
Shepparton, Victoria
Campbelltown, NSW
Brisbane / Gold Coast 101
Total *
*(nos. of commenced, 408 completed)

9. Evaluation Aims
Degree of success in meeting savings goals
Levels of improvement in financial capabilities
Identify enabling / inhibiting factors for success
Identify other flow-on effects from participating in the program

10. Research process
Questionnaire at commencement
Questionnaire before undertaking financial education
Final questionnaire
Focus groups: during program and three months after completion
Interviews with staff
Banking data

11. Participant Numbers
Total 452
Analysis conducted on 399 participants
44 withdrew
11 did not want to take part in the research

12. Demographics
Average age 42 years
97.8% are female
32.56% couples
67.44% sole parents
On average participants have 2.3 dependent children
Average age of the child is 12 years

13. Language, ethnicity and education levels
94.2% speak English as their first language
2.14% identify as Aboriginal or Torres Strait
Islanders
Most common education level: partial completion of school education followed by a subsequent qualification from TAFE / other (44.17%)

14. Not employed (partner working) 11% Main sources of household income
Employment & Income
Employment
Full-time %
Part-time %
Casual %
Not employed (partner working) 11%
Main sources of household income
Paid employment 43.68%
Government benefits 56.23%
Average family income (after tax) $ p/week

15. Motivations to Join Saver Plus
Opportunity to get matched funds
Opportunity to get financial literacy training
Support and counselling
Learn how to save
80.2%
3.95%
0.79%
12.25%

16. Savings and money management prior to SP
Prior savings levels
Less than $50
24.2%
$50 – 199
24.56%
$200 – 599
19.57%
$600 – 999
10.32%
$1000 – 2999
12.81%
$3000 – 4999
4.27%
$5000 +

17. Past saving and spending behaviour
Past Savings Behaviour
Tried to save when possible
52.79%
Saved only for specific item
25.28%
No point trying to save
19.33%
Saving isn’t important
2.6%
Past Spending Behaviour
Spend all income
27.51%
Feel out of control with debt
13.43%
Could manage if lost income for a short period of time
64.44%
Have problems setting money aside for major financial outlays
40.52%
Have worked out how much is needed for retirement
7.43%
Have long-term financial plan
15.24%

18. Financial products used
Solely
Jointly
Both
Do not have
Ordinary bank account with a bank, building society or credit union
72.01%
15.67%
8.21%
4.10%
Vehicle insurance
60.07%
20.52%
15.30%
Superannuation
68.28%
2.61%
5.22%
23.88%
House or contents insurance
45.90%
23.51%
3.36%
27.24%
A home mortgage
19.40%
19.78%
1.87%
58.96%
A personal loan
22.39%
6.72%
0.75%
70.15%
Private health insurance
9.33%
81.72%
Shares
12.69%
3.73%
1.49%
82.09%
Managed investments other than superannuation
11.19%
84.70%
A lease or hire purchase agreement
1.12%
88.43%
Term deposits
0.37%
89.55%
An investment property
2.99%
95.15%

19. Financial literacy factors
Entire sample score
Day-to-day banking
14.03
Convenience banking
8.90
Investment and credit
9.56
Cards
10.59

20. Levels of success
95% of participants met or exceeded their goals

21. Savings goals
Average saving goal
Average balance saved
Monthly balance
Participants aimed to save the maximum of $1000
$964
$1,214
$125
90.1%

22. Saving behaviour (cont)
Those who saved more:
Earned more (equivalised weekly income)
Single income, full-time employment
Primary income was paid, not govt
Previous savers

23. Patterns of saving behaviour & average final balance

24. Enabling factors assisting saving
Using auto deductions from salary
Motivated by incentive
Knowing that education costs were going to be covered for the year
Establishing a steady habit of putting the money aside
Determined attitude to succeed

25. Difficulties in saving
Around 27% had difficulties in saving during the program
Unexpected bills
Reduced hours of employment
Major illness

26. Financial education Approximately 90% were satisfied or very satisfied
Over 80% of participants found the workshops to be useful or extremely useful
(3.95% were motivated to join because of the opportunity for financial education)
Benefits:
Meeting other people, forming networks and social connection
Increased confidence levels
Practical tips on saving and identifying spending leaks
Distinguishing between ‘needs’ and ‘wants’

27. Changes in money management behaviour
96% of focus group participants reported an increase in their abilities to manage money better
Budgeting
Use of credit
Spending leaks
Choosing products
Establishing contingency savings fund
Learning e-banking
Longer term planning of expenses

28. Saving 3 months Post-Saver Plus
85% still saving
44% same amount
20% more
34% less
Most common amount $76 – 100 per month

29. Effects and benefits of the program
Participants reported
A greater propensity to plan for the future
A more positive outlook on life
A greater level of confidence
A sense of achievement in reaching a goal
Increased self-esteem
A significant reduction in stress levels
92% reported a positive experience in the program

30. Benefits (cont’d) Top three benefits Getting the matched funds 34%
Getting what we saved for 33%
Reduced stress about
school costs %
Evidence of change in perceived benefits from when joined i.e. 80% of participants were mainly motivated by getting the matched funds when they commenced the program

31. Developing a savings habit Gaining confidence in handling finances
Other outcomes
Developing a savings habit
Gaining confidence in handling finances
Started their children on savings programs
Positive effect of the purchase on the child’s schooling
Sharing information, establishment of networks
Established more goals

32. Key success factors of pilot
Holistic approach
Collaboration between ANZ and Community organisations
Dedication and commitment of staff involved
Evaluation from beginning, not an afterthought
‘The whole is greater than the sum of its parts’
Partnerships
Financial education component
Relationship managers
Incentive (co-contribution arrangements)

33. Saver Plus
New Partner: Department of Victorian Communities
Expanded to 18 sites in Vic, NSW, Qld, ACT
Eligibility criteria includes saving for adult vocational education and primary education
Goal to involve over 5000 participants