Financial institutions should focus on enhancing access to services and creating tailored products for the Traveller community, as indicated by a recent report. The National Traveller Money Advice and Budgeting Service conducted research, uncovering higher levels of financial stress and exclusion from banking, payment systems, credit, savings, and insurance among Travellers in comparison to the settled community.
The report, entitled “Financial Unwellness: Financial Literacy and Inclusion Among Travellers,” draws on prior research on financial wellbeing in Ireland to highlight the disparities experienced by the Traveller community. It demonstrated that Travellers have reduced access to traditional banking and are more inclined to save through savings clubs, but are less likely to invest in stocks and shares. Additionally, their usage of banking apps and automated payments is lower, with women predominantly responsible for daily financial decision-making in Traveller households.
Despite some parallels in planning and spending tracking, Travellers use different budgeting techniques, such as separating bill money from income and preferring to save “real money” at home or in a wallet. The significance of cash as a money management tool was evident, reflecting their preference for cash-based payment and savings options.
Based on interviews and surveys with 86 Traveller community members, the research revealed their challenges in affording basic necessities without incurring debts or relying on charity. It also highlighted their financial vulnerability and inability to cope with significant financial shocks, revealing income and resource inadequacy as central issues hindering financial wellbeing and full inclusion in Irish society.
Furthermore, financial attitudes and behaviour differed significantly for Travellers. They were more likely to perceive money as something to be spent rather than saved for the future. A majority felt burdened by excessive debt, limiting their ability to engage in important activities. The report also indicated that fewer than a third of Travellers had money left over at the end of the month, pointing to significant financial strain in comparison to the wider population.
Moreover, a third of Travellers encountered difficulties in paying their bills on time, which can have negative effects on their mental health. The report underscored the marginalisation of Travellers, as they have access to fewer financial products and services such as pensions, investments, mortgages, credit cards, savings accounts, and stocks and bonds in comparison to the general population.
Travellers were also less likely to participate in online financial activities such as checking account balances and transferring money, highlighting the need for increased options for electronic financial inclusion. Nancy Power, Coordinator of National Traveller MABS, stressed the significance of creating culturally appropriate financial products and educational programmes for the Traveller community. She cited the successful use of the Household Budget Scheme in aiding Travellers with loan repayments for trailers and advocated for more microfinance loans to support their financial management capacity.
Looking ahead, the report has underscored the need for a new financial literacy strategy that is currently being developed by the Department of Finance, with the goal of addressing the unique financial needs of the Traveller community. It is crucial to offer outreach and support services to assist Travellers in navigating the financial system and accessing essential resources for financial empowerment.