F in the A to Z of Advice

inancial Inclusion- let’s achieve it together!

Financial Inclusion is a term being used more and more by, not only advice agencies but by health visitors, banks, employment support services and even the United Nations. But are we all talking the same language? What does financial inclusion mean to you?

A search on Google will bring more than 5 pages of results for the definition of financial inclusion, and this is because there is no definitive definition, each industry will have their own version, however within CARF we use the following:

• Access for individuals to suitable, appropriate financial products and services. This includes having the skills, knowledge and understanding to make the best use of those products and services.

Another term we use in CARF is financial capability.

• Financial capability is your ability to manage your money well from day to day, plan financially for the future and understand how common financial products work.

So, why are these so important? Underpinning financial exclusion are issues such as poverty, inequality and stigma. Signs that someone is experiencing financial exclusion may include:

• Not having a bank account
• Having no savings, insurance or pension
• Using expensive forms of credit such as doorstep lenders
• Paying more for goods and services as a result of being unable to pay by direct debit

Financial education has only been mandatory in Scotland since the introduction of The Curriculum for Excellence in 2010. While it is important to be able to calculate the APR of a payday loan service but it is also important to know the difference between a credit card and a debit card. In order for young people to prepare for leaving home they should know what council tax is or what is an acceptable but healthy budget for food and toiletries.

Within CARF we have a team of specialist projects working with partners to reduce financial exclusion across Fife. We offer financial education to parents, empowering them to teach their children money management skills, while tackling fuel poverty and food insecurity. We also submit evidence to Citizens Advice Scotland on issues of social policy.

You do not need to be in debt to access advice from CARF, nor do you need to have a welfare benefit entitlement. If you are having difficulty accessing a free bank account or any other financial product, or perhaps you would like to improve your own money management skills, contact us on 0345 1400 094, Monday to Friday 8.30am – 4pm.