BONUS FOR FAMILIES TO SAVE
April 4, 2011
Low income families across the Latrobe Valley can have their savings doubled under an innovative program coordinated by Berry Street which encourages saving and teaches families how to budget their finances.
The program teaches low income families to review their spending habits and as an incentive for saving, participants can receive matching funds dollar for dollar up to $500.
The Nationals Member for Gippsland Darren Chester said he would lobby for continued government funding of the Saver Plus program, as current arrangements are due to expire June 30, 2011.
In the meantime, he encouraged local families to sign up to receive up to $500 to spend on an educational item of their choice, including a computer, school uniforms or musical equipment.
“The Saver Plus program is open to health card holders or pensioners who have a child attending school or are studying themselves and have a regular income from paid employment,” Mr Chester said.
“Families are mentored through the process of reviewing their budgets and given advice on how to make saving a regular part of their spending habits.”
Saver Plus has reached 300 families in Gippsland since 2006, boosting financial capabilities and increasing saving levels of low-income households.
“Berry Street has conducted some follow up studies and found that 70% of participants continue to save three years after completing the Saver Plus program,” Mr Chester said.
“They report around 85% of participants have been able to decrease debt levels.
“It is a remarkable program, offering genuine budgeting skills that can help families to help themselves break the cycle of disadvantage.”
The Nationals State Member Russell Northe said as well as helping low income families to save, the Saver Plus program allowed Berry Street to make connections with families who might be able to benefit from other services.
“This program allows Berry Street to work with local families and provide them with a positive experience, resulting in a direct cash payment,” Mr Northe said.
“But more than that, it allows Berry Street to make connections with families that might benefit from a range of other services they offer.”
Mr Northe said the program’s success would assist to take pressure of crisis services and give local families the confidence to deal directly with banks and other community services when they needed to.
Saver Plus is run by Berry Street at Morwell in conjunction with the Brotherhood of St Laurence and the ANZ bank and funding from the Federal Government.
