KEY POINTS:
Name: Maureen Little
Age: 62
Role: Presbyterian Support Northern Manager; Budgeting and Money Management
Working hours: at least 40 hours, including some evenings
Average hourly rate: $12 - $20 per hour.
Qualifications and institution: NZ Federation of Family Budgeting Services (NZFFBS) courses.
Describe what you do.
We meet with clients to assess their financial situation and prepare a plan to help them move towards financial independence. I also run budget training for clients and we have a food bank service.
We also play an advocacy role; supporting clients at interviews with organisations like Work and Income, ACC, Housing New Zealand and the courts to help them get fair entitlements or a fair hearing about their situation.
The budgeting service employs five people, four paid budget advisers, including me, and a reception/ administration person. We're lucky. Most other budget offices are voluntary with limited hours.
Your history?
I worked in a range of financial roles over many years and noticed people always found it easy to approach me for advice on financial and other matters.
I was working as financial accountant for Presbyterian Support's head office when this role came up and I thought it sounded interesting. I liked the idea of meeting with people and helping make positive change. I was tired of book keeping and monthly accounting cycles.
What kind of clients do you have?
Our clients are from all walks of life. Most are in debt because of credit cards, bank loans or personal loans, and the longer they leave it the worse it gets. Over the last year their combined debt, not counting mortgages or student loans, was $6.6 million.
Often we see generations - grandmother, mum and daughter - with the same debts because they have the same spending system.
We have two categories of clients. Two thirds meet with us a couple of times, get advice and a budget, and we never see them again.
The other third end up on a money management system. This means they allocate their income to us and we set up a mutually agreed budget. Then, on a weekly basis, we authorise all the payments out of their account, including, mortgage, rent, food. Fortunately we have a great computer system that makes the authorisation process simple.
How savvy are young people?
According to one of the bigger collection agencies in New Zealand, the Y Generation is defaulting on their debt in large numbers.
Because credit is so accessible, young adults end up with hundreds of dollars of credit available, but no income to service it. And usually they don't understand their rights and obligations around credit. I wish schools did more budget education. I also feel that kids that work for their pocket money start to get a better understanding of the worth of things.
What training or experience is required?
You need solid financial experience, whether formally or through managing your own budget well.
I also had some basic counselling training, including a course in family therapy.
We all do the NZFFBS training which involves an introductory course covering generic employee skills, people skills and technical budgeting skills. This includes things such as drafting a budget, checking benefits and entitlements, managing client debt, establishing rapport, negotiating agreements etcetera. It also includes practical training and initial supervision with clients. We do ongoing modules to stay certificated as budget advisers.
What skills or qualities do you need?
A non judgemental attitude. The ability to quickly establish rapport, stay focused and work under pressure. You need excellent negotiation and advocacy skills. You need accurate information gathering and recording skills and to be able to prepare a realistic accurate budget.
Change doesn't come from us telling someone to stop doing something. But through the process of doing a budget, clients can see themselves where spending is too high and once they acknowledge that, it makes it easier to do something about it.
Best part of the job?
To see people get away from indebtedness and confidently get on with their lives.
Most challenging?
Achieving a reasonable outcome for clients with a huge debt and not enough income.
Some people's situations are worrying. The Working for Families package is working well for families, but I worry about single beneficiary clients many of whom have mental health issues.
Advice to someone wanting to do same thing?
Approach your local budgeting service, discuss the possibilities and then get your name down for training. You can't work with clients until you are trained but you can observe other budgeters in action.
What keeps you going?
I like to see good results and to feel I'm spreading the word about financial management. I believe when one person in a family is helped, it flows on through. Over the past year (June to June) we saw 508 clients which had a flow on effect to 679 children.
Your main message?
Live within your means. Learn to save a little then pay in cash because that gives you bargaining power.
