Improving access for low income earners

Tony Nicholson, Executive Director of the Brotherhood of St Laurence, has over 28 years experience providing services for disadvantaged individuals and families. Here he shares his views on why access to financial services and financial inclusion programs is critical to prevent people on low incomes falling into poverty and disadvantage.

It's often overlooked just how important obtaining finance, even small sums, can be for people on low incomes.

Families the Brotherhood works with have survived without a fridge or a washing machine because they haven't had access to affordable credit. Some have used eskies and ice to keep food cool; others have relied on their local laundromat to do their weekly washing. Over the space of a year these expenses can easily add up to more than the cost of a personal loan.

We also know that many children miss out on school books, uniforms and camps because their parents simply can't pay for these expenses. As a result, their children are excluded from school life and miss out on educational experiences that are crucial to their ongoing learning and development. Being constantly excluded in this way can also leave children with low self-esteem and self-confidence.

By having access to affordable credit and understanding how financial services work however, low income households can obtain financial security and independence and avoid these situations.

In partnership with ANZ, the Brotherhood has been working with people on low incomes to assist them to develop a savings habit, build assets and improve their financial well being. We have developed two financial inclusion programs that are significantly reducing social and economic disadvantage and enabling people on low incomes to participate as equals in the market economy.

Our matched savings program, Saver Plus, and our small loans program, Progress Loans, each form part of a social inclusion approach that the Brotherhood believes is necessary to prevent poverty in Australia. We also deliver ANZ's MoneyMinded, a financial education program.

Social inclusion is the powerful idea that the best way to help disadvantaged people isn't just to provide a monetary safety net – it's about increasing people's capacity to participate fully in the economic and social life of the nation.

Social inclusion considers factors such as poor health and education, geographic isolation, inadequate transport and limited social networks – all the situations that exclude people from jobs and social participation. Access to financial services and financial inclusion programs is also a vital component of a social inclusion approach.

Financial inclusion means that an unemployed parent who needs $1,000 to repair their car isn't prevented from getting a job that's not easily accessed by public transport. With access to a Progress Loan, he or she is able to get a small loan to repair their car and start working and contributing to their community.

Financial inclusion means a 12-year-old child can wear his new school uniform with pride on his first day at high school and attend the school camp with his friends. Thanks to Saver Plus, his mum or dad has been able to save and pay for school costs, ensuring that their son has every chance to participate and enjoy his education.

As we work towards an Australia free of poverty, the Brotherhood knows that our partnership with ANZ and the broader financial sector will continue to be critical. Working together, we can provide financial inclusion programs that offer people on low incomes real solutions to their financial concerns and the opportunity to create a stable and secure future.

Find out more about ANZ's community programs

Visit The Brotherhood of St Laurence website

This article was written to provide you with an insight into financial literacy and inclusion in the community.

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