Having the skills to manage
your money well and having access to appropriate financial products
and services plays an integral part in tackling poverty in Scotland
and is a key component in securing sustainable employment.
Alongside income maximisation, debt advice and access to affordable
credit the ability to budget and manage your money well plays an
important role in determining life chances.
According to Citizen's Advice
Scotland one in ten Scots do not have a bank account. This figure
rises to one in five in the 15% most deprived areas in Scotland.
People may be unable to borrow at a fair rate, save for necessities
or make provision for their future. In addition they may face
significant disadvantages such as being unable to start a job or
set up home as bank accounts can be prerequisites for the process.
All of this puts barriers in the way to finding routes out of
Even when people are able to
move into employment they may receive financial shocks as debt
which was previously dormant when unemployed may be reactivated
with some companies aggressively pursuing repayments. Access to
good quality, impartial debt advice and affordable credit can be a
life line in these situations offering individuals the opportunity
to take control of their finances and pay back what they owe in a
manageable way with affordable rates of interest.
Employers and employability
services should be aware of the impact that moving in and out of
work can have financially. Offering the skills to be financially
capable and manage money well can be built into a range of
services. This section looks at some of the ways in which providers
can integrate financial awareness and support into an employability
setting, and why this may help individuals to gain and sustain
employment and hopefully stay above the poverty line.
Research has found that money and debt
- Distract people from jobseeking
- Constrain job search activity
- Create disincentives to work
- Provide barriers to employment, eg not having a bank
- Affect the chances of employment being