CHAPTER EIGHT: IMPACT ON PROJECT PARTICIPANTS AND THE WIDER COMMUNITY
Introduction
8.1 This chapter examines the impact of the GEMAP financial education programme on programme participants and on the wider community.
8.2 Sources used for this analysis include:
- GEMAP end of year reports
- GEMAP reports to the Big Lottery
- service user evaluation forms from GEMAP courses
- financial education perception quiz data
- data from Blake Stevenson focus groups
- interviews with GEMAP staff and partner organisations
Project Outcomes
8.3 As part of the funding that it received from the Big Lottery, GEMAP agreed 5 project outcomes that cover the aims and objectives of the financial education programme. These targets set out how many participants GEMAP aimed to engage through each of the programme modules.
8.4 These project outcomes are outlined in Table 8.1. The targets relate to the number of participants that have completed the relevant module for each project outcome. Table 8.1 shows the project outcomes, the relevant module(s), the number of participants who have completed the module(s), and whether or not the target for each project outcome has been met.
Table 8.1 - Financial Education Project Outcomes
Project Outcome | Relevant Module(s) | Target Number Completing Relevant Module(s) | Number of Participants Completing Relevant Module(s) - Year 1 | Number of Participants Completing Relevant Module(s) - Year 2 | Total Number of Participants Completing Relevant Module(s) |
|---|
1) To provide participants with the skills and abilities to manage and reduce personal debt. | Debt | 750 | 287 | 546 | 833 |
|---|
2) To provide participants with knowledge to make informed choices regarding financial products and services. | Credit
Debt
Consumer rights
Banking | 1000 | 287 | 700 | 987 |
|---|
3) To provide participants with knowledge of consequences of non payment of debt. | Debt | 1000 | 287 | 546 | 833 |
|---|
4) To influence the behaviours of participants through the promotion of effective savings and borrowings strategies. | Savings
Credit | 650 | 287 | 467 | 754 |
|---|
5) To empower individual participants to identify their own needs and solutions and enhance confidence when dealing with creditors and/or financial institutions. | Credit
Banking
Consumer rights | 600 | 287 | 468 | 755 |
|---|
8.5 A total of 1,330 individuals participated in the financial education programme in 2005 and 2006. A number of these participants have contributed to the figures for more than one project outcome. Table 8.1 above shows that in year one the number of participants achieving are identical, but these figures vary in year two. This was because the range of different modules delivered through each partner agency varied in year two, as GEMAP tailored the programme to meet the needs of particular clients and partners.
8.6 Three out of the 5 two-year targets have been exceeded, whilst the other two targets were close to being met.
8.7 258 participants were engaged in the programme in 2005, and 1,072 were engaged in 2006. This increase is mainly due to the embedding of the programme into schools, where larger numbers of participants were reached. The increased number of participants engaged in year 2 can also be attributed to the fact that the materials for the programme, and the relationships with local organisations, were mainly developed and established during year one, therefore allowing increased time for delivery in year two.
8.8 The increase in the number of individuals participating in the programme in 2006 suggests that the 2 targets that were not met by the end of last year will be.
8.9 The following sections look at each project outcome in greater detail, assessing whether the outcomes were met by looking at progress towards targets and milestones, as well as the views of service users on whether they made personal progress after completing each module.
Project Outcome 1: To provide participants with the skills and abilities to manage and reduce personal debt.
Table 8.2 - Project Outcome 1 Target
Target Number Completing Relevant Module(s) | Number of Participants Completing Relevant Module(s) - Year 1 | Number of Participants Completing Relevant Module(s) - Year 2 | Total Number of Participants Completing Relevant Module(s) |
|---|
750 | 287 | 546 | 833 |
8.10 This project outcome, to provide participants with the skills and abilities to manage and reduce personal debt, was measured by the number of participants completing the debt module of the course.
8.11 As Table 8.2 above shows, the 2 year target for the project outcome was clearly exceeded by January 2007, with 11% more participants completing the debt module than the original target.
8.12 Following participation in the financial education programme 61 adults (24% of all adults participating in the financial education programme) accessed GEMAP's money advice services to receive advice on debt issues. Table 8.3, below, shows the outcomes of the advice participants received.
Table 8.3 - Project Outcome 1 Milestones
Milestone | Date to be achieved | Target | Actual |
|---|
Participants to have personally rescheduled or reduced their debt and produced an action plan to tackle personal debt | January 2007 | 15% | 24% |
|---|
Participants to have prioritised their debts and planned a phased reduction and/or produced an action plan to tackle personal debt | January 2007 | 50% | 54% |
|---|
Participants to have received professional help to reschedule or reduce personal debt and/or produced an action plan to tackle personal debt | January 2007 | 10% | 46% |
|---|
8.13 Table 8.3 shows that of those adults who visited GEMAP's money advice services following participation in the financial education programme 54% prioritised their debts and planned a phased reduction; 46% received help to reschedule or reduce debt and produce an action plan to do so; and 24% rescheduled or reduced their debt without further support. All of these figures exceeded the targets that GEMAP had set.
8.14 However, these figures are based on only a relatively low proportion of the total number of participants in the financial education programme. This is because the programme has engaged with a large number of school pupils, who are less able to access credit and are therefore less likely to be in debt.
8.15 Tables 8.4 and 8.5 show the results from the perceptions quiz that are relevant to the debt module and therefore to project outcome one. The tables show the overall percentage change amongst participants in relation to how strongly they agreed with each relevant statement in the quiz following participation in the financial education programme.
Table 8.4 - Perception Quiz (Adults) Debt Module
Statement | % Increase |
|---|
I know exactly how much I owe and who I owe it to | 17 |
|---|
I understand what the consequences are if I don't pay what I owe | 18 |
|---|
Table 8.5 - Perception Quiz (Pupils) Debt Module
Statement | % Increase |
|---|
I know exactly how much I owe and who I owe it to | 28 |
|---|
I understand what the consequences are if I don't pay what I owe | 29 |
|---|
Average Score (for debt module) | 29 |
|---|
Average Score (for all modules) | 31 |
|---|
8.16 Table 8.4 shows that having completed the financial education course adults perceived their knowledge of how much they owe and who they owe it to to have improved by an average of around 17%, whilst their understanding of the consequences of not paying debt improved by an average of approximately 18%.
8.17 Table 8.5 shows that the respective figures for school pupils were higher, at 28% and 29%. It is likely that this difference can be explained partly by pupils having a lower knowledge base of financial knowledge and awareness when the course began
Project Outcome 2: To provide participants with knowledge to make informed choices regarding financial products and services.
Table 8.6 - Project Outcome 2 Target
Target Number Completing Relevant Module(s) | Number of Participants Completing Relevant Module(s) - Year 1 | Number of Participants Completing Relevant Module(s) - Year 2 | Total Number of Participants Completing Relevant Module(s) |
|---|
1000 | 287 | 700 | 987 |
8.18 This project outcome, to provide participants with knowledge to make informed choices regarding financial products and services, was measured by the number of participants completing the credit, debt, consumer rights and banking modules of the course.
8.19 Table 8.6 shows that the 2 year target for this project outcome was very close to being met, and the strong second year performance in this outcome suggests that GEMAP will have met this target very soon after the initial deadline.
8.20 It is likely that the initial deadline was not met because the consumer rights module was not included in some of the shorter courses that GEMAP delivered.
8.21 GEMAP agreed 2 milestones for this project outcome:
- all participants to have revised their own range of financial products
- all participants to understand their own personal budget and produce individual budgets to include current commitments and their suitability
8.22 By virtue of completing the modules required for this project outcome all participants have worked towards achieving the milestones outlined above.
8.23 Tables 8.7 and 8.8 below show the results from the perceptions quiz that are relevant to the banking, debt and consumer rights modules and therefore to project outcome two. The tables show the overall percentage change amongst participants in relation to each relevant statement in the quiz following participation in the financial education programme.
Table 8.7 - Perception Quiz (Adults) Credit/Debt/Consumer Rights/Banking Modules
Module | Statement | % Increase |
|---|
Banking | I know the difference between a credit card and a debit card | 39 |
|---|
Credit | I know all about the costs of taking out a loan | 42 |
|---|
Banking | I have a bank account | 3 |
|---|
Banking | I know how to open a bank account | 9 |
|---|
Debt | I know exactly how much I owe and who I owe it to | 17 |
|---|
Debt | I understand what the consequences are if I don't pay what I owe | 18 |
|---|
Consumer rights | I know what my rights are as a shopper | 28 |
|---|
Table 8.8 - Perception Quiz (Pupils) Credit/Debt/Consumer Rights/Banking Modules
Module | Statement | % Increase |
|---|
Banking | I know the difference between a credit card and a debit card | 63 |
|---|
Credit | I know all about the costs of taking out a loan | 61 |
|---|
Banking | I have a bank account | 18 |
|---|
Banking | I know how to open a bank account | 32 |
|---|
Debt | I know exactly how much I owe and who I owe it to | 28 |
|---|
Debt | I understand what the consequences are if I don't pay what I owe | 29 |
|---|
Consumer rights | I know what my rights are as a shopper | 34 |
|---|
8.24 Participants perceived themselves to have made improvements in their knowledge of financial products and services. Amongst both adults and pupils there was a significant improvement in knowledge of debit and credit cards, a greater awareness of the costs of taking out loan, and improvements in knowledge of consumer rights and debt issues.
8.25 Amongst pupils there was also improved knowledge about opening a bank account. The improvement amongst adults in relation to this issue was very low, as most adults participating in the course already had a bank account or knew how to open one.
8.26 Improvements among pupils in these modules were higher than that for adults, although it is likely that this can be explained partly by a lower knowledge base of financial products when the course began.
Project Outcome 3: To provide participants with knowledge of the consequences of non-payment of debt
Table 8.9 - Project Outcome 3 Target
Target Number Completing Relevant Module(s) | Number of Participants Completing Relevant Module(s) - Year 1 | Number of Participants Completing Relevant Module(s) - Year 2 | Total Number of Participants Completing Relevant Module(s) |
|---|
1000 | 287 | 546 | 833 |
8.27 This project outcome, to provide participants with knowledge of the consequences of non-payment of debt, was measured by the number of participants completing the debt module of the course.
8.28 GEMAP are currently under target for this project outcome, although the second year figures suggest that the number of participants undertaking the debt module is increasing. Given the increase in the number of participants in the programme in year 2 it is likely that this target has now been met or soon will be.
8.29 GEMAP set one milestone for this project outcome: participants will understand the consequences of non-payment of debt, and produce individual consequences matrix. All participants completing the debt module will have reached this milestone.
8.30 Table 8.10 below shows the results from the perceptions quiz that are relevant to the debt module and therefore to project outcome three. The table shows the overall percentage change amongst participants in relation to each relevant statement in the quiz following participation in the financial education programme.
Table 8.10 - Perception Quiz Debt Module
Statement | % Change |
|---|
I understand what the consequences are if I don't pay what I owe - Adults | 18 |
|---|
I understand what the consequences are if I don't pay what I owe - Pupils | 30 |
|---|
8.31 Both adult and pupil participants in the module percieved themselves to have improved their knowledge of the consequences of debt. Pupils registered a higher improvement, although this is again probably due to lower knowledge base and experience of debt prior to the course beginning.
Project Outcome 4: To influence the behaviours of participants through the promotion of effective savings and borrowings strategies
Table 8.11 - Project Outcome 4 Target
Target Number Completing Relevant Module(s) | Number of Participants Completing Relevant Module(s) - Year 1 | Number of Participants Completing Relevant Module(s) - Year 2 | Total Number of Participants Completing Relevant Module(s) |
|---|
650 | 287 | 467 | 754 |
8.32 This project outcome, to influence the behaviours of participants through the promotion of effective savings and borrowing strategies, was measured by the number of participants completing the savings and credit modules of the course.
8.33 The two-year target for the project outcome was clearly exceeded by January 2007, with 11% more participants completing the modules than the original target.
8.34 GEMAP established 4 milestones for this project outcome:
- 15% of participants to open or change bank accounts
- 50% of participants to join credit unions
- All participants to have knowledge of savings schemes and products
- All participants to identify their own banking needs
8.35 Around 40 participants have indicated to GEMAP that they have opened or changed a bank account following participation in the Financial Education Programme. This is around 5% of participants contributing to this project outcome - lower than the target figure of 15%. However qualitative evidence from interviews and focus groups suggests that the proportion of participants who have opened or changed a bank account is likely to be higher than 5%, but there are no systematic measures in place for identifying how many participants have undertaken this action.
8.36 More than 30 participants have reported to GEMAP that they have joined a local credit union following participation in the financial education programme. . This is around 4% of participants contributing to this project outcome - considerably lower than the target figure of 50%. Again, however qualitative evidence the evaluation suggests that the proportion of participants who have joined a credit union is likely to be higher than 4%, but there are no systematic measures in place for identifying how many participants have undertaken this action.
8.37 We analysed a random sample of 50 individual participant project evaluation forms, including analysis of the question which asked whether they would be interested in joining their local credit union. Table 8.12 outlines the responses to the question.
Table 8.12 - Percentage of Participants Interested in Joining a Credit Union
Would you be interested in joining your local credit union? | % Increase |
|---|
Already have | 17% |
|---|
Yes | 31% |
|---|
Possibly | 10% |
|---|
No | 40% |
|---|
Don't know | 2% |
|---|
8.38 17% of participants were already credit union members or had joined during the course of the financial education programme. A further 31% stated that they intended to join their local credit union, and another 10% said they would consider doing so. Meanwhile, around 80 pupils have so far joined one of the school-based credit unions established through the programme, and made total savings of around £400 These figures suggest that the GEMAP has had some success in encouraging programme participants to join credit unions.
8.39 Tables 8.13 and 8.14 show the results from the perceptions quiz that are relevant to the savings and credit modules and therefore to project outcome four. The tables show the overall percentage change amongst participants in relation to each relevant statement in the quiz following participation in the financial education programme.
Table 8.13 - Perception Quiz (Adults) - Savings/Credit Modules
Module | Statement | % Increase |
|---|
Credit | I know all about the costs of taking out a loan | 42 |
|---|
Savings | I know what a credit union is | 25 |
|---|
Savings | If I get a gift of money, I save some for future use | 51 |
|---|
Table 8.14 - Perception Quiz (Pupils) - Savings/Credit Modules
Module | Question | % Increase |
|---|
Credit | I know all about the costs of taking out a loan | 61 |
|---|
Savings | I know what a credit union is | 53 |
|---|
Savings | If I get a gift of money, I save some for future use | 29 |
|---|
| Average Scores (for selected modules) | 47 |
|---|
| Average Scores (for all modules) | 31 |
|---|
8.40 Both adult and pupil participants perceived themselves to have improved significantly on these issues. Participants rated themselves as having greater knowledge about the costs of credit, about the services of a credit union, and as being more motivated to save money for future use.
Project Outcome 5: To empower individual participants to identify their own needs and solutions and enhance confidence when dealing with creditors and/or financial institutions.
Table 8.15 - Project Outcome 5 Target
Target Number Completing Relevant Module(s) | Number of Participants Completing Relevant Module(s) - Year 1 | Number of Participants Completing Relevant Module(s) - Year 2 | Total Number of Participants Completing Relevant Module(s) |
|---|
600 | 287 | 468 | 755 |
8.41 This project outcome, to empower individual participants to identify their own needs and solutions and enhance confidence when dealing with creditors and/or financial institutions, was measured by the number of participants completing the credit, banking and consumer rights modules of the course.
8.42 The two-year target for the project outcome was clearly exceeded by January 2007, with 25% more participants undertaking the modules than the original target.
8.43 GEMAP established one milestone for this project outcome: 60% of participants to develop a personal financial plan, prioritising expenditure and identifying bank and savings needs.
8.44 219 participants developed a personal finance plan in 2005 and 2006. This number is significantly lower than the milestone that had been envisaged. This is because the personal finance plan is designed for adults and therefore has not been completed by most of the school pupils who participated in the programme. Pupils did however complete a "personal finance diary", and GEMAP has recently adapted these diaries to allow them to be turned into personal finance plans.
8.45 Tables 8.16 and 8.17 below show the results from the perceptions quiz that are relevant to the banking, credit and consumer rights modules and therefore to project outcome five. The tables show the overall percentage change amongst participants in relation to each relevant statement in the quiz following participation in the financial education programme.
Table 8.16 - Perception Quiz (Adults) - Empowerment
Statement | % Increase |
|---|
I am confident in handling money | 26 |
|---|
I am assertive in dealing with money | 34 |
|---|
I am motivated to know more about handling finance | 26 |
|---|
Having money makes me feel better | 17 |
|---|
Table 8.17 - Perception Quiz (Pupils) - Empowerment
Statement | % Increase |
|---|
I am confident in handling money | 19 |
|---|
I am assertive in dealing with money | 21 |
|---|
I am motivated to know more about handling finance | 26 |
|---|
Having money makes me feel better | 13 |
|---|
8.46 Participants perceived themselves to be more confident in dealing with their finances. Interestingly this perception was higher amongst adults than pupils. Nevertheless, adults and pupils both indicated that they felt more confident handling money, more assertive dealing with money, and more motivated to know more about handling finance. To a lesser extent participants said that they had experienced an increase in the feeling that having money makes them feel better.
Service User Feedback on the Financial Education Programme
8.47 As part of its monitoring arrangements for the financial education programme GEMAP distributed questionnaires to all programme participants in order to gauge service user responses to the programme.
8.48 The service user evaluation questionnaire asked participants for their views on the course following its completion. Participants were asked to give a rating from 1-10 on the quality of the course, with one being very poor and 10 being excellent.
8.49 We analysed a random sample of 50 service user evaluation forms, and from these 48 participants provided a rating for the programme on the 1-10 scale. The average rating for the programme from these service user evaluations was 8.6, and no respondent rated the course lower than a score 6.
8.50 Service users were also asked to name their favourite module offered in the course. From our random sample 41 respondents provided an answer to this question. Table 8.18 shows these answers.
Table 8.18 - Service Users Favourite Module
Module | Number of participants who named this module as their favourite (Pupils) | Number of participants who named this module as their favourite (Adults) |
|---|
Budgeting | 10 | 3 |
|---|
Debt | 6 | 2 |
|---|
Banking | 4 | 3 |
|---|
Consumer rights | 1 | 4 |
|---|
Credit | 1 | 2 |
|---|
Savings | 0 | 2 |
|---|
Taxation | 1 | 0 |
|---|
Benefits | 0 | 1 |
|---|
Bills | 0 | 1 |
|---|
Total | 23 | 18 |
|---|
8.51 Table 8.18 shows the modules that participants named as their favourite in the course. Nearly half of school pupils named the budgeting module as their favourite, whilst consumer rights was most popular amongst adults. The other modules that were preferred by participants were debt and banking. However it should be noted that some of those modules that appear to be less popular (such as taxation, benefits, and bills) are actually those that tend to be delivered less often, and therefore fewer respondents will have been aware of them.
8.52 As part of the evaluation process, Blake Stevenson undertook focus groups with pupils from Bannerman High School, Smithycroft Secondary School, and Lochend Community High School who had taken part in the financial education programme at their schools. Each focus group included around 10 pupils. As part of the focus groups pupils were asked to rate 5 modules on a scale of 1-10, with 10 indicating a higher preference. Table 8.19 shows the ratings assigned to each module by pupils from each school:
Table 8.19- Blake Stevenson Focus Groups with Pupils
| Savings | Banking | Debt | Budgeting | Credit | Average |
|---|
Bannerman High School | 8.4 | 7.1 | 6.6 | 7.4 | 7.3 | 7.4 |
|---|
Smithycroft Secondary School | 7.9 | 5.3 | 8.2 | 6.8 | 5.3 | 6.7 |
|---|
Lochend Community High School | 8.3 | 8.5 | 6.0 | 5.1 | 7.1 | 7.0 |
|---|
Average | 8.2 | 7.0 | 7.0 | 6.4 | 6.6 | 7.0 |
|---|
8.53 Table 8.19 shows that there is a wide range of perceptions of the GEMAP financial education course and its modules. The average rating awarded was 7.0, with Bannerman High School pupils awarding the highest average rating to the course modules (7.4) and Smithycroft Secondary School the lowest (6.7).
8.54 There were some disparities between the average ratings awarded to each module in the focus groups. The savings module was indicated to be the favourite module of pupils at 2 of the schools taking part. The banking and debt modules were also scored relatively highly, with the budgeting and credit modules being rated below the average.
8.55 The results from the focus groups undertaken at the 3 schools differ from those from the results of the pupils' service user evaluation questionnaires. The budgeting module was named as the favourite module in the service user evaluations, but had the lowest average rating in the focus groups.
8.56 The focus groups and the analysis of the service user evaluation each captured a snapshot of the views of pupils participating in the financial education programme, and the varying results from these 2 sets of data suggests that there are differences in what modules individual pupils preferred. Qualitative evidence gathered in the focus groups suggests these differences may be related to how individual pupils were able to relate the information they received to their own particular situation and experiences.
Overall Impacts and Summary
8.57 Analysis of data relating to the project outcomes for the GEMAP financial education programme indicates that the programme clearly exceeded 3 of its 5 targets by the end of 2006. The other 2 targets were close to being met by the end of the year, and it is likely that these have now been met or soon will be.
8.58 The financial education programme has therefore supported a significant number of people to:
- develop skills and abilities to manage and reduce personal debt
- make more informed choices regarding financial services and products
- develop an understanding of the consequences of non-payment of debt
- consider more effective saving and borrowing strategies
- identify their own needs and solutions and feel more confident when dealing with creditors and/or financial institutions
8.59 The results from the perceptions quizzes indicate that both pupils and adults felt that they had improved their level of knowledge in all areas covered by the financial education programme. Meanwhile although there was some divergence in terms of what were seen as the preferred modules, the data from both the service user evaluation forms and the Blake Stevenson focus groups indicated that participants generally have a reasonably positive view of the financial education programme.
8.60 Stakeholders and focus group participants also indicated that the financial education programme has significant benefits for those engaging with it.
8.61 Research participants reported that the programme enabled participants to think holistically about their finances and raised awareness of the choices that are available to them in terms of money - including savings, loans, credit unions, bank accounts, credit cards and so on. The programme makes people aware of the need for them to take responsibility for their own money, and it gives them increased confidence to do so.
8.62 Respondents to the research suggested that for some financial education participants the programme introduced concepts such as saving and budgeting that were entirely new for them, and it helped to show them how these might be achieved. For example, a group of Stepping Stones clients established their own savings club and using this mechanism had their first ever debt-free Christmas.
8.63 Stakeholders from the 3 schools engaged with the programme indicated that introducing the concept of financial inclusion at an early age is an important issue for their pupils. They pointed out that many pupils within their catchment area come from families where saving is an alien concept, and where loans from high-interest door-stop lenders are often the norm. Therefore they see the financial education programme as a crucial means of trying to bring about a cultural change in how their pupils view and handle money. There may be scope to consider how parents of pupils engaged with the financial education programme could also benefit from the services that the programme offers.
8.64 This was backed up by responses from interviewees and focus group participants, who indicated that the programme had helped to dispel myths around issues such as credit and debt.
8.65 The majority of the adults engaged with the financial education programme have been facing particular challenges in their lives, such as unemployment, homelessness, lone parenthood, and so on. The financial education programme has played an important role in helping to build these participants' self-esteem, and develop achievable and realistic aspirations in relation to money and debt. Interviewees suggested that by helping them to gain more control over their own particular situation the financial education programme has helped to support people towards other positive outcomes, such as employment or a sustainable tenancy.
8.66 The financial education programme has only been in existence for 2 years and therefore it is difficult to measure its long-term impact. As set out in Chapter 5GEMAP is keen to begin to develop a more holistic, community-based approach to the programme in order to help achieve sustainable, long-term benefits for local communities. In seeking to measure this long-term sustainability and impact it may be worth considering what monitoring arrangements might be put in place to identify what benefit engagement with the programme has had for individuals in the long-term.