Supported saving boosts financial wellbeing: report

Supported saving boosts financial wellbeing: report

A new RMIT report confirms actively saving is one of the most important influences on financial wellbeing, benefitting not only individuals but their households, communities and the broader economy.

The study examined the money habits of participants in ANZ’s matched-savings program, Saver Plus.

The first program of its kind in Australia, Saver Plus was developed by ANZ and the Brotherhood of St Laurence to encourage saving for educational expenses.

It is now the largest and longest running matched savings program in the world, with more than 36,000 participants since 2003, the majority being women.

The new study found that even up to seven years after completing Saver Plus, 87 per cent of participants were still saving the same amount or more, demonstrating the long-lasting effect of such schemes.

Of those participants, 73 per cent said they were now better able to provide for their families, highlighting the broader impact of the change. 

"Since going through the program it has given me an absolute freedom which I didn’t think I was going to have for years to come.” Stacey

The research was led by Professor Roslyn Russell, from RMIT’s School of Economics, Finance and Marketing, who said the findings demonstrate that for people to move out of poverty they need assets as well as income.

“Such programs aim to encourage participants to develop a regular saving habit, build financial capabilities and save for an asset – be it a home, enterprise, education or savings,” she said.

Saver Plus was initially based on international models that showed building savings could help people overcome disadvantage.

To date, participants have saved more than $A19 million, with ANZ matching these savings up to $500 per person. 

Parents David and Shani said all their family’s income goes to daughter Harriet’s education and learning how to budget properly has enabled them to buy her a new uniform for the first time in five years.

“With the Saver Plus program you put aside $50 a month and after ten months you have $500 saved and the ANZ match that $500.”

The report, Saver Plus: Pathways to Wellbeing, shows the financial wellbeing score of participants increased to an average of 64 out of 100 following the program, in excess of the national average score of just 59.

Russell said extensive research on matched savings programs since the 1990s has found other important outcomes include increasing participant self-confidence, future outlook, capabilities and overall wellbeing. 

 “It’s taught me that we can set goals for things that we thought we couldn’t do or couldn’t have. We can have those things. And without the program we probably wouldn’t have those things.”  Program participant and mother of three, Jamie.

RMIT is also currently working with ANZ to deliver work integrated learning (WIL) programs, providing business students with the opportunity to respond to real briefs and present their findings to key stakeholders.

Story: Grace Taylor

Share

  • Society
  • Business

Related News

RMIT Vietnam launches digital education centre

A new Centre of Digital Excellence at RMIT Vietnam has been launched by Victoria’s Minister for Training and Skills, Steven Herbert.

Research set to take European forest assessment to new heights

The use of low-cost and lightweight unmanned aerial vehicles to assess forest health in Europe is the focus of a research collaboration between RMIT and the Italian National Research Council.

RMIT students design ACMI’s first ever line of merchandise

The Australian Centre for the Moving Image (ACMI) has launched a fresh line of merchandise locally designed and produced in collaboration with RMIT textile design students.

RMIT student awarded European internship with industry leader

An RMIT engineering student has spent two months in the south of Spain working on an innovative solar energy project for one of the country's largest chemical groups.

Subscribe to RMIT NewsSubscribe
Flag Image One Flag Image Two

Acknowledgement of Country

RMIT University acknowledges the people of the Woi wurrung and Boon wurrung language groups of the eastern Kulin Nation on whose unceded lands we conduct the business of the University. RMIT University respectfully acknowledges their Ancestors and Elders, past and present. RMIT also acknowledges the Traditional Custodians and their Ancestors of the lands and waters across Australia where we conduct our business.

More information