Award-Winning Financial Literacy Programme Changing Lives

Over 620 Pacific families in the Auckland region have greater financial knowledge and management skills and are working towards reduced debt and home ownership, thanks to Vaka Tautua’s award-winning Pacific financial literacy programme.

A summary evaluation report on the three-year literacy programme which ended on 31 December 2020 shows that a total of 627 Pacific families (2,593 people) had completed the eight-week workshop programme, with its three months’ mentoring support. Of those, 270 families (43%) were Samoan, 235 (37%) were Tongan, and 54 and 51 families were Cook Islands and Niuean respectively. All families had someone in their family who is considered disabled, that is they have a physical or intellectual disability or a long-term medical or chronic health condition which impacts on their lives.

A key finding of the evaluation was the positive impact the programme has had on families’ financial literacy and debt reduction:

• All families (627) had prioritised debt reduction as a key goal, and completed a debt assessment and financial plan or budget to achieve this goal; and

• 65% of the families (405) had begun to reduce their debt.

According to Vaka Tautua Chief Executive Officer, Dr Amanda-Lanuola Dunlop, the comparatively lower level of debt reduction was not surprising because of the two COVID-19 lockdowns in 2020. Some of the programme sessions and mentoring support had to be conducted virtually, and not all families had internet access. Some families were also affected by job losses or increased anxiety and stress and therefore were not in a position to focus on debt reduction. Three programme cohort sessions also ended in December, and so there was not enough time for people to put their learning into action.

“COVID definitely impacted on the results, and our families’ ability to put their learning into action,” said Dr Dunlop.

“This is evident from the data, and the stories that our families shared. 2020 was a difficult year… and that, at the end of years one and two, we were tracking at almost 100 percent for debt reduction, further highlights the impact of COVID.”

Another key finding of the evaluation was the positive impact the programme has had on families’ plans to generate increased income:

• 82% of the families (514) had identified a goal and pathway to increase their family’s collective income. These pathways involved upskilling and education such as business and employment courses, skills training and tertiary study.

• 70% of families (441) had started along their chosen pathway.

The COVID-19 lockdowns and the insufficient timeframe for three programme cohorts to put their plans into action were the key reasons for this.

The evaluation also found that as a result of the programme, families are looking at homeownership and the purchase of other significant assets:

• 63% of the families (392) were on savings plans to purchase their own home.

• 64% of the families (403) were on a savings plan to purchase a significant asset that will generate wealth over time. Examples include shares, bonds and land.

“These findings are particularly pleasing because it shows that our families are putting their new knowledge and skills into action… and planning for a financially stronger and prosperous future for themselves and their wider aiga,” said Dr Dunlop.

“The findings also confirm that our programme, with its family-focused, ethnic and language-specific and mentoring and coaching approach, works for our Pacific peoples… it achieves positive results and outcomes.”

Vaka Tautua begun delivering the financial literacy programme in 2016, starting with a pilot. Designed in partnership with the Commission for Financial Capability, the programme involves eight workshops on money management, goal setting, asset-buying, health and wellbeing and legal information; and three months’ of mentoring support. The programme sessions are delivered in English, Samoan, Tongan and Cook Islands Māori; and to cohorts of families. The programme was a Whanau Ora initiative.

Vaka Tautua also delivers financial capability programmes in emergency housing and sustainable tenancy sites.

Vaka Tautua is a national Pacific health and social services provider with a strong regional presence in the greater Auckland, Wellington, and Canterbury regions. It delivers disability, mental health, older peoples, social services, and financial capability services.