When saving $50 a month brings stress: Low-income families need compassion, not charity

Financial aid for low-income families is welcomed, but programmes tackling the root of poverty must be guided by research findings and a deep understanding of the families’ lived experiences.

Without savings, a small financial emergency or a poor financial decision could plunge a family into debt. PHOTO: BT FILE
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A decade ago, I piloted a debt and savings programme to help families restructure their finances in a bid to help them break out of the poverty cycle. 

The “how” was sufficiently simple – a matching fund to incentivise regular repayments – but what surprised me was how small differences in implementing the scheme could reap vastly different outcomes. 

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