Capability, poverty and employability are interlinked.
Financial capability is a skill which contributes to personal
resilience and health, reducing days lost to stress and depression
and improving peoples' chances of moving out of poverty.
Financial capability can be defined as:
Increased financial capability can have the following
- Can make it easier for some people in poverty to cope on a
limited income by minimising expenditure through effective
budgeting, shopping around for the best deal on goods and credit;
Or by maximising their income by accessing benefits.
- Improvements in the health, wellbeing and employability of the
workforce, increasing household income (benefits maximisation or
employment income), reducing demand for crisis-led services such as
money advice, homelessness etc, and reduces debt and arrears.
- Contributes to the increased wellbeing and resilience of the
individual. This has a positive effect on their mental and physical
health, their employability and the experience of their
You can view the event report and video of the 'Building
Resilience' national financial capability seminar which took place
in June 2011 on the
Financial Learning Online Website.