On Friday 17th June FINCAP, our governing body, released their annual Voices report, which gives an insight to what is happening around Aotearoa for Financial Mentors and those we support.
It gives a daunting outlook for our financial future comparing the last 3 years of records and how NZ is faring. Given especially that only recently our sector has had significant funding cuts, and many budget services are now fighting for survival.
I recommend reading it for yourself as you may find your own situation amongst the pages, but to give you some key highlights:
Increased incomes have cancelled by the cost-of-living crisis - Despite an overall increase in incomes in 2023, as a median, clients were in more of a deficit each week than in 2022. The median weekly deficit increased to six percent as financial mentors supported whānau who were progressively struggling to cover bare necessities amid the increases in the costs of living.
Families presented more debt in 2023 - At a national level, consumer arrears climbed to 12.01 percent at the end of 2023 according to Centrix data. The highest distress areas were in the central North Island and Northland (Centrix, 2024).
Financial Mentors met more demand with fewer workers in 2023 - Financial mentors supported more whānau, with less financial mentors in services, in 2023 than in previous years3. In 2023, there were 808 financial mentors, which was a drop of 31 since 2022. The client caseload increased from an estimated 49,568 in 2022 to 69,807 in 2023. This huge increase in clients for financial mentors has been paired with a decrease in the number of financial mentors and financial mentoring services altogether in the sector. This is causing strain and stress.
These are only recorded numbers from those who reach out for help with a financial mentoring service. There are still many out there that struggle in silence. Spread the word - Ask for help.
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