Description of the programme

Saver Plus is a matched savings account (up to $500) that runs over 10-months, delivered across Australia, primarily through ANZ Bank and the Brotherhood of St Laurence. Matched savings after 10 months must be used for participants' own education or their children’s education expenses. It is targeted at low income households to help build their financial capability.

Participants must be: 18 or over; either a parent or guardian of a child in education or attending or returning to vocational training themselves; have regular income and a demonstrable capacity for regular saving; the owner of a current health card or pensioner concession card; and have a connection to the local area.

There have been over 23,000 participants since 2004, saving regular monthly amounts, attending 10 hours of 'Money Minded' financial education sessions (delivered across 4 workshops), and receiving matching amounts when savings goal achieved.

The study

An assessment of the outcomes and longer-term impacts of Saver Plus over the last ten years. It explores changes in people's behaviour throughout the five phases of the programme, through self-assessment by programme participants.

The study also gives an update on matched savings schemes internationally: how they have evolved and expanded, current target savings groups and innovative features of delivery and funding.

What are the outcomes?

Financial capabilities, financial self-efficacy, and personal and social well-being.

Key findings

The study highlights a range of benefits, from the micro-economic (participant) level to the macro-economic (systemic) level, including:

• 87% of participants were saving the same or more since completing the programme, and 84% were encouraging children/other family members to save;
• 87% of participants were better able to plan ahead, 85% reported better control of their finances, 81% were better equipped to deal with unexpected expenses, and 78% were better able to make ends meet;
• 88% of participants were more aware of where to get help, 86% felt better able to deal with financial problems, and 83% had gained increased knowledge of financial products and services;
• 93% of participants reported better self-esteem, 71% had increased self-confidence, 68% had reduced levels of stress, and 58% felt more connected with their community.

The study also notes a number of important secondary outcomes: that 82% of participants had increased their social networks, 52% continued to invest in education, 48% had a reduced reliance on Government benefits, 41% increased their income, 39% started a new job, 35% felt more confident applying for work, 34% had decreased household debts, 27% had taken out insurance policies and 18% had increased their superannuation contributions.

Points to consider

• there is limited information about methodology in the report, which makes it difficult to assess the robustness of findings. The lack of counter-factual evidence also influences the confidence with which conclusions can be drawn.
• the subject is highly relevant to any country seeking to enhance financial literacy and capability among lower-income consumers, through saving.
• the methodology is transferable to any situation in which objective-driven matched savings strategies are adopted.
• the approach is only really applicable when all the same preconditions are in place – targeted, matched, and objective-driven (whether for education, for children, or for other objectives).

Full report

Saver plus: A decade of impact - full report