Financial institutions need to provide better access to services and develop products tailored for the needs of Travellers, according to a new report.
Research by the National Traveller Money Advice and Budgeting Service says members of the Traveller community experience much higher levels of financial stress than the settled community.
They also experience exclusion from banking, payment systems, access to credit, use of savings and insurance.
The report titled Financial Unwellness: Financial Literacy and Inclusion Among Travellers, uses previous research on financial wellbeing in Ireland, to compare members of the Traveller community with the general population.
It found that when it comes to saving, Travellers are more inclined to save in a savings club, but are much less likely to possess investments such as stocks and shares.
They are also less likely to use banking apps and automated payments according to the report.
Responsibility for day-to-day decisions about money is generally assigned to women in Traveller households, whereas this responsibility tends to be more shared within the general population.
While similarities were identified between members of the Traveller community and the settled community in relation to planning and keeping a note of spending, researchers found Travellers more likely to employ certain budgeting techniques.
It cites an example of Travellers separating out bill money from income and keeping a note of upcoming bills.
They also prefer to save 'real money' at home or in a wallet, according to the report - reflecting the importance of cash as "a money management tool" - retaining it as a widespread payment and savings option.
Financial resilience
The research involved interviews and surveys with 86 members of the Traveller community.
Responses related to the capacity to afford basic human needs like food, warmth, shelter, clothing and children’s needs without incurring debts or depending on charity.
When they explained how they dealt with an income/expenditure shortfall, half of the respondents said they borrowed or drew on savings of some sort. Some said they went without food, to make sure a bill was paid.
Travellers scored less favourably across the board in comparison to the general populace in relation to financial resilience.
Many said they would be unable to cope with a significant financial shock whereas most of the general population have such an ability.
The report authors noted that "these financial resilience findings reaffirm those of previous work that illustrate income and resource inadequacy to be a core, underlying issue for Travellers and one which prevents the community from achieving financial wellbeing and becoming fully financially included within Irish society".
When it came to financial attitudes and behaviour, Travellers were more likely to see money as there to be spent now rather than saved for the future.
A sizeable majority also felt they were carrying too much debt and that their financial situation limited their ability to do the things important to them.
Marginalisation
The most striking disparity according to the report was having money left over at the end of the week or month. Fewer than a third of Travellers were such a position, in contrast to most of the population.
The research also found that a third of Travellers were unable to pay their bills on time which the report authors noted could impact Traveller mental health.
The most salient finding of the research according to National Traveller MABS, relates to marginalisation because Travellers possess fewer of each type of financial product or service compared to the population at large.
The disparities are particularly pronounced when it comes to pensions, investments, mortgages, credit cards, savings accounts, and stocks, shares and bonds.
While Travellers and the wider population check account balances, buy and transfer money online, the researchers found that in each instance Travellers were less likely to do so compared to the wider populace.
The report has suggested that this is a good basis for increasing ‘electronic financial inclusion’ options for Travellers.
National Traveller MABS’ Coordinator Nancy Power has expressed hope that the research will be taken on board in the development of a new financial literacy strategy that is being prepared by the Department of Finance.
She stressed the need for the development of financial products specifically designed to meet the needs of Travellers.
"One example of this has been the use of the Household Budget Scheme to successfully assist Travellers pay off loans for trailers. In addition, we need to see more microfinancing loans being provided so that Travellers can build up their ability to manage loans," she said.
She added that culturally appropriate financial education and literacy programmes are required, as well as outreach and support services to help Travellers navigate the financial system and access resources.
