Funding

Funding for financial mentoring can support the cost-of-living recovery in our communities. 

Financial mentors are doing essential work and far too many mentors face uncertainty as to whether their work will be funded in two years' time. 

Financial mentors provide free, confidential support to people who are facing financial hardship. 

A record of more than 30,654 cases in the FinCap run Client Voices system, a 57% increase from 2021. A 121% increase in total client debt over five years to almost a billion dollars. The median client was further behind, spending $107 for every $100 of income each week. 

Difficult debt can have a long tail in people’s lives, so when we miss an opportunity to resolve an issue now, this limits their financial inclusion, challenges their physical and mental health, and puts a strain on their relationships. 

The sector needs a solution to the chronic underfunding that has been growing, so it can ensure this essential service is accessible and safe for mentors and clients in the coming years. 

We need to fill the $30.5m gap in steady funding for financial mentors through the increased government contributions and the introduction of levies on industries that refer people in crisis to financial mentors. 

FinCap published a paper earlier this year explaining the need for funding, opportunities for industry contribution and our recommendations for implementation. We identified the gaps and proposed solutions that don't just target one group but offers a collaborative approach to supporting financial wellbeing in our communities. 

How can you support financial mentor’s funding needs now? 

Talk to your industry contacts about the need for sustainable funding for financial mentors and ask them to help where they can. 

If you're a business, and if you have leftover budget or capacity to free up some money in next financial year's budget, please consider making voluntary contributions to help financial mentors keep the doors open.