EXECUTIVE SUMMARY
Introduction
1 The Scottish Executive commissioned Blake Stevenson to evaluate the financial education activity undertaken by the Greater Easterhouse Money Advice Project ( GEMAP).
2 The Scottish Executive and the Big Lottery provided funding for this activity in 2005 and 2006. Glasgow City Council has funded the project from December 2006 until the end of the evaluation period.
3 The aim of the evaluation was to assess the overall impact of the GEMAP financial education programme, including the effectiveness of its delivery methods and processes. The evaluation was carried out using the following methods: desk-based research; interviews with key stakeholders; interviews with GEMAP staff; focus groups with service users; and analysis and report writing.
Overview of the Financial Education Programme
4 The aims of the GEMAP financial literacy programme are to:
- make people aware of the financial services available to them and of ways to avoid debt
- train people in financial budgeting, and
- enable people to make informed choices thanks to having adequate knowledge of the financial industry.
5 GEMAP employs a Financial Education Manager, and 2 Financial Education Officers, to run the financial education programme. Two Financial Education Assistants also help deliver the programme.
6 The financial education programme staff have developed a series of modules in relation to key areas of financial education, specifically, debt; savings; consumer rights; credit; budgeting; and banking. These modules are delivered to participants by the GEMAP financial education staff using a range of interactive materials such as activities, quizzes, exercises and discussion topics.
7 The GEMAP financial education programme is delivered in conjunction with a series of key partner agencies. Fifteen local organisations were engaged with the programme in 2005 and 2006. Schools have been the major partners for GEMAP and the financial education programme has been embedded within the Personal and Social Education programme in 3 local secondary schools in Greater Easterhouse. Other key partner organisations engaged with the programme have been EVIP, Community Connections and Stepping Stones.
Key Findings and Impact
8 The evaluation findings show that the GEMAP financial education programme is operating successfully. 1,330 participants, of whom 1,072 were school pupils, participated in the programme in 2005 and 2006 and the programme brings a number of benefits to participants, partner organisations and the wider community.
9 Particular impacts for programme participants include:
- an increased understanding of debt and how it can be managed and reduced
- an increased ability to think holistically about their finances and to make more informed choices about how they handle their money
- a greater feeling of empowerment and personal responsibility in relation to their own finances
- an improved awareness of the different choices that are available in terms of money
- the introduction of concepts and strategies such as saving and budgeting that they may have had little awareness of previously
- improved self-esteem
- the opportunity to develop achievable and realistic aspirations in relation to money and debt
- for school pupils engaged in the programme, the introduction of the concept of financial education at an early age, which can be particularly important for pupils from families who have experienced or who are experiencing financial difficulties
- for some adults engaged with the programme, increased confidence and new skills, which have helped to support them move towards other positive outcomes, such as employment
10 The financial education programme has only been in existence for 2 years and it is therefore difficult to measure the long-term impact of the programme.
GEMAP's Financial Education Model
11 The following factors have contributed to the successful implementation of GEMAP's financial education model, and the achievement of the impacts set out above:
- the flexibility of the programme content and delivery methods to meet the specific needs of a particular client group or partner agency
- the commitment, enthusiasm and expertise of the financial education programme staff
- the delivery of the programme by financial inclusion experts who are external to the various partner organisations, and who also have roots in the local area
- the development and use of a range of high quality materials and practical resources to support the delivery of the programme
- the use of group work to deliver the programme, bringing the benefits of peer support, and giving participants the opportunity to discuss a range of issues surrounding money
- the use of a range of key partners, who see how financial education can benefit their organisation and their clients, and who can act as a trusted gateway through which participants can be successfully accessed and engaged
- the development of strong relationships with these key partners through GEMAP's well-established roots in Greater Easterhouse and through regular, informal face-to-face contact and conversations
- the presence of an individual to "champion" the financial education programme in each partner organisation and who is able to help plan how it can be best delivered to their clients
- the engagement of key financial inclusion partners such as credit unions in order to help sustain long-term impacts
- the development and use of a range of different methods for monitoring the processes and outcomes of the financial education programme
12 These factors were not all in place at the outset of the financial education programme, and a number of these features of the programme are the result of lessons that have been learnt over the last 2 years. All the different elements of the model have a key role in its successful delivery, and it is likely that the model would not operate as successfully if one or more of these elements was not present.
13 Whilst this particular model of for the delivery of financial education appears to be working successfully in Greater Easterhouse it should not necessarily be assumed that the model can be replicated in an identical form in other areas. There are certain elements to it that are specifically related to the local context in Greater Easterhouse. It is likely that certain, similar conditions would have to exist in other local areas for the model to be successfully implemented there.
Future Development and Recommendations
Strategic Level
14 As set out above, the evidence from the evaluation is that the GEMAP financial education programme is working well and is providing a valuable service.
15 However the programme currently differs from the city-wide approach for financial education that is being taken forward by Glasgow City Council, particularly in relation to how the programme is delivered in schools. The current city-wide approach is to integrate financial education issues across the school curriculum, whilst the GEMAP approach is to provide dedicated financial education sessions through Personal and Social Education, and through classes such as the Chartered Institute of Bankers certificate in financial management.
16 Financial education is still a relatively new issue that different service providers are seeking to address, and therefore it is appropriate that a variety of approaches should be used, in order to allow providers to learn what works, to identify best practice from a range of different methods, and to consider how long-term, sustainable outcomes can best be achieved. Nevertheless, it is important for GEMAP to ensure that its financial education model ties in with the strategic priorities for financial inclusion in Glasgow.
17 Therefore we suggest that within the Glasgow context, both strategically and financially, discussion needs to take place between key strategic partners about a number of future options for the GEMAP financial education programme.
18 We suggest that in order to fully explore the advantages and disadvantages of a range of different possibilities for the programme that an options appraisal exercise is undertaken, whereby specific options can be assessed against a number of essential criteria developed with key strategic partners in the GAIN network.
19 In the short-term - for a period of say 6 months - we suggest that further funding is provided for the GEMAP financial education programme in order for the benefits of this programme, and the important expertise of the staff, to be retained whilst the future options are considered.
Operational Level
20 To support the GEMAP model in its short-term development we have a series of recommendations in relation to the operation and delivery of the programme.
21 GEMAP currently has a range of methods in place for how it measures the impact of its financial education model. However there are no systematic measures in place for assessing long-term impact, or for measuring developments linked to certain programme objectives such as the number of participants who join a credit union or open or change a bank account following participation in the programme.
22 Therefore we recommend that GEMAP considers developing procedures for how it can measure the medium to long-term impact of the financial education programme, and in particular how it measures changes in bank accounts and take-up of credit union membership. Approaches that could be used might include follow-up surveys with random samples of programme participants 6 months or a year after they have completed their participation in the financial education programme. These surveys could ask participants about what they learned in the programme, and could ask them to identify how they are using what they have learned in their handling of their finances - for example do they budget better now, have they joined a credit union, have they changed bank account, and so on.
23 As part of this on-going monitoring process we recommend that GEMAP works with the local credit unions currently engaged with the financial education programme to set up a system that will allow it to better monitor how many financial education participants have joined a credit union following their participation in programme, and the extent to which the programme has had a role in this action being taken.
24 GEMAP currently collects and stores hard copies of evaluation forms for the financial education programme from partners and participants. In order to allow for easier and more systematic analysis of the data gathered through these forms, which could then be used to inform service development, we recommend that GEMAP sets up a system for recording the information gathered through the forms on its database.
25 The data gathered by GEMAP through the financial education perceptions quiz is currently stored on the GEMAP database. However, it is difficult to measure the average level of progress that all individuals have made in relation to each statement in the quiz. Therefore we recommend that GEMAP adapts its database to allow for more straightforward and comprehensive analysis of this data.
26 A number of other developmental issues and ideas have been identified, but these should not be taken forward until the different options for the future have been considered.