Little steps that lead to lifelong changesPosted to Financial Capability on 03-09-2015
A group of Cook Island families have learned it’s the little things that can make the difference when it comes to sorting out your finances.
Fifty of them have just graduated from a six-week Sorted Community Programme run by the Commission for Financial Capability (CFFC) in partnership with Tamaki Redevelopment Company (TRC).
The participants dedicated three hours a week to share, think about and put into action what is best for them in managing their money and planning for their futures.
Retirement Commissioner Diane Maxwell said: “This is where people have those moments where they begin to see the small, but significant, changes they can make to their lives and their families to have a healthier and wealthier future. Behaviour change comes from a better understanding of our relationships with money.”
“Behaviour change doesn’t come from working through a handbook week-by-week, it comes from listening, sharing with their peers, and seeing the changes they have chosen to make start to have significant long-term impacts.”
The group celebrated at a special event during Money Week, where they were presented with certificates by rugby league legend Ruben Wiki.
TRC aims to strengthen Tamaki families by assisting them to increase their social and financial mobility.
This includes increasing their awareness of financial literacy and capability, with the long-term objectives of moving towards home ownership or stable home tenure, and increased positive financial behaviour.
TRC’s Community Development Advisor Upusili Tevita Malolo said: “This programme taught the families how to get their finances in order, which for many is the first step to owning a home.”
The programme is designed to bring about an underlying shift in the way people think about and manage the money. It draws heavily on what is known about behavioural economics, present bias, social norms and the mentality of scarcity.
Diane Maxwell added: “We know that when today is bad, it’s harder to think about tomorrow. The programmes work, in part, because they give people the head space to step back and think long term.”
The modules covered everything from managing expenses, to insurance, wills, KiwiSaver, buying a house and more.
Next: A train ride conversation about wills