Source: FinCap
A new report which shows New Zealanders are struggling to pay increasing amounts of debt and are increasingly turning to financial mentors, comes after many financial mentoring services learned that their funding will end.
The second annual FinCap Voices report provides data-led insights into the financial wellbeing of whānau supported by financial mentors.
FinCap’s 2023 Voices report reveals among many other findings that:
– The cost-of-living crisis made access to food unaffordable for many whānau.
– Financial mentors supported more whānau. The numbers of whanau supported by financial mentors increased from 49,568 in 2022 to 69,807 in 2023.
– The amount of debt owed increased significantly in 2023. The median debt level presenting to a financial mentor in 2023 was $14,096 – an increase of $429 on 2022.
– Financial mentors help whānau increase their income by around $200 in the time that they work together[.
This comes at a challenging time for financial mentoring services.
In addition to a $7 million drop in funding for the sector, dozens of financial mentoring services have just discovered that they will no longer be funded by the Ministry of Social Development.
“This report shows the essential mahi that the hundreds of financial mentors across Aotearoa do,” says FinCap Chief Executive Ruth Smithers.
“Each and every one provides crucial support to their community. It is critical that these services are resourced to meet this significant demand arising from financial stress and hardship.”
The Voices report will be formally launched at 12.30pm tomorrow at the Ngā Tapuwae Community Centre, 253 Buckland Rd, Mangere, Auckland by FinCap Chief Executive Ruth Smithers and Senior Policy Advisor Jake Lilley.
About FinCap
FinCap is non-government organisation which supports about 185 financial mentoring services in their work.
We advocate for change in the building financial capability sector to help prevent people from getting into financial hardship.
Financial mentoring services can help anybody who wants to gain control of their money.
