Financial capability training for social workers in Singapore: Towards more effective practice

Development of a financial capability curriculum in Singapore

Similar to many other countries (OECD/INFE, 2013), the Singapore government initiated financial education in recent decades (MoneySense, 2021). MoneySense training aims to help people manage their money more effectively and make sounder financial decisions. This initiative works with various government agencies to bring financial literacy programmes to schools, workplaces and other locations. The content centres on money management, insurance, investing and retirement. MoneySense is designed for the general Singaporean population, thus its topics – for example, loans, savings and retirement planning – might be comparatively less applicable to lower-income households than their middle-upper-income counterparts. The financial challenges experienced by lower-income households, such as sizable debt (Ng and Tan, 2021), extend beyond the provision of financial education and require intensive case management and intervention by social workers.

Focusing on financial vulnerability in Singaporean families could also address some gaps in social work education in Singapore, which is viewed as skewing towards interpersonal practice skills and not emphasising environmental factors in well-being. Scholars such as Vasoo (2019) have advocated moving beyond remedial approaches to adopting preventive and developmental perspectives that tackle complex social problems. As a social worker at a children’s home told a reporter, ‘Services help low-income families cope within their means instead of to build for the future . . . There is a significant gap’ (Rashith, 2019). This suggests a need for social work practice in Singapore to look beyond remedial work to embrace preventive and developmental approaches (Midgley, 1995).

In 2017, scholars at the National University of Singapore (NUS) Next Age Institute proposed the development of a training curriculum to equip social workers with knowledge and skills in assisting vulnerable low-income households with financial matters. The initiative, National University of Singapore (NUS) Next Age Institute is a collaboration with U.S.-based Washington University in St. Louis. The mission is to enhance people’s economic security and build capabilities for active engagement across the life course that leads to stable, engaged and productive lives (National University of Singapore, n.d). Singapore scholars contacted colleagues who had developed a financial capability curriculum for vulnerable families (Sherraden et al., 2018).

Phase 1: FG discussions on curriculum development

Eight FGs, with an average of seven participants each, were held in Phase 1 to inform curriculum development. We used a purposive non-probability sampling strategy to recruit practising social workers who work with financially vulnerable clients in a variety of settings. However, to ensure that they were social workers and had enough experience to inform the study, all of them had (1) a degree, graduate diploma or master’s in social work and (2) at least 2 years of practice in the social or health sector. The response rate was high: of the 92 letters of invitations sent to social services agencies, 54 social workers from 31 organisations – including family and children services, services for people with disability, aged care services and healthcare agencies – agreed to participate.

Phase 2: FG discussions with social workers from the pilot training

We held four additional FGs after pilot training to elicit in-depth understanding of the strengths and limitations of the curriculum, and trainees’ suggestions for enhancements. Each FG had an average of four participants (total n = 17). The FG questions examined the relevance of the financial content for local (Singapore) practice, effectiveness of training delivery and suggestions on enhancements of the curriculum and training delivery. The same data analysis procedures were followed as in earlier FGs.

Phase 1: FG discussions on curriculum development

Three robust themes emerged that reflect both the challenges and potential benefits of including financial concerns in social work practice: (1) Social workers are busy ‘fighting fires’ that limit their ability to address underlying financial problems, (2) social workers often feel unprepared to address clients’ underlying financial issues and (3) financial practice with clients could empower both clients and social workers.

Regarding the first theme, fighting fires, social workers reported that clients’ presenting problems demand immediate attention before social workers can focus on underlying financial challenges. In addition, low-income clients often cope with strained family relationships, incarceration, caregiving responsibilities, divorce, family violence, mental illness and other challenges. Participants talked about how these problems complicate efforts to solve underlying financial problems, such as unemployment, problem debt and inadequate resources. For example, Christine, from family services, said that helping clients find employment is difficult because of competing caregiving responsibilities:

We see families with many members having health concerns. They can’t go out to work and even if there is an abled person who may want to go out and work, he or she needs to be at home because of caregiving.

Some clients have other physical or mental conditions that affect their ability to work and have a stable income. As a result, the instability in their lives can be overwhelming. John, practising in children services, said,

It could be either physical or some mental health condition which actually impacts their ability to work and as a result, they’re actually struggling financially also. Or even though some of them may be earning some income, but it may not be stable.

Solving daily financial problems is time-consuming and can be complicated by clients’ cognitive and other disabilities. For example, Janice, practising in the community healthcare sector, explained that organising financial assistance for clients can be arduous:

Older persons want to manage their own matters. But the coordination becomes more and more taxing and challenging . . . It is tedious sometimes even to apply for financial assistance, they have to get ready all documents including pay slips from their children who may be overseas or not close to them.

Clients understandably focus on immediate and distressing problems. As observed by Carrie, from the community healthcare sector, ‘Some of them would say “I just live one day at a time, because we don’t know what is going to happen the next day”’.

When clients incur large debts, social workers find it especially difficult to help. For example, some participants described clients who resorted to borrowing from undesirable financial sources, leading to accumulated debts that were impossible to manage. Andy from family services thought, ‘Maybe those who are highly in debt would, say, borrow from one legal moneylender to pay the other one’. Paul, also from family services, observed that some clients cannot ‘manage the household expenses and then they take unsecured loans. Yes, then [they] snowball to, I think, [Sing$]10,000, 20,000 – or even more. And with their income, they’re unable to [repay]’.

Participants identified socio-environmental factors and system failures that lead to financial troubles. In some situations, they reported that clients incur large medical bills that are not covered by insurance. Amanda, from the disability sector, observed that some medical expenses are ‘not covered by insurance or CPF [Central Provident Fund] or MediSave [the national medical savings scheme]. They have quite a large sum of medical bills that they need to settle as well’.

Often, the complexity and gravity of clients’ situations require involvement at family, agency, community and/or policy intervention level. Addressing systemic issues, however, requires time, skills and autonomy that social workers may not always have. As a result, such issues take a back seat to solving clients’ more immediate problems. Mary, from family services, shared how such structural problems can take a toll on clients’ financial and social well-being:

Sometimes there are barriers to assistance because [clients] . . . don’t qualify for straightforward ComCare assistance like SSO [Social Service Office that handles public financial assistance] or childcare or student care, and they need to bear the burden of paying most of the things.

Participants also recognised the importance of moving beyond ‘firefighting’ and were keen to learn more about taking on a longer-term approach in working with low-income clients, focusing on asset building.

As shared by Ella, from the children disability sector, ‘help us to work with clients for their long term planning . . . plan for their retirement . . . for their future’.

This sentiment was also echoed by Maggie, from the community services sector, when she explained that social workers

basically focus on how to help families in the short-term. I felt that I don’t know how to help financially needy people in the long term. What are my goals? Besides giving assistance, how do I want to help them? So I think we probably need to move towards how to grow them and how to have positive changes.

As Jenny, from the community services sector, summed it up, social workers ‘are in firefighting mode’. They have their hands full tackling immediate issues and crises and have limited capacity to deal with the root causes of financial challenges.

The second theme – social workers do not feel fully prepared to address clients’ underlying financial issues – reflects their limited knowledge of the financial landscape (financial products and services), especially those that are relevant to low-income clients’ lives. They struggle to keep up with the fast-paced changes in the economy and social policy schemes. To solve clients’ underlying financial problems, they said that it would be helpful to have more basic financial knowledge, financial management and financial counselling skills to solve clients’ underlying financial problems.

Some participants said they are unfamiliar with certain types of financial resources including eligibility criteria. Joycelyn, from the community healthcare sector, observed, ‘There are so many new resources every time, updating by the government – so sometimes, we might only know an old one’. Benny from children services puzzled about ‘. . . things like banking services. Some of us – we are also quite confused – at what age can they [children and youth] open an account?’ Rachel, from family services, added that social workers also must know more about relevant policies:

The workers need to be equipped with all the finance knowledge like interest rates, financial products, investment products, and even housing policy and CPF (Central Provident Fund) . . . I think many social workers are not interested or are not trained in these.

Current financial literacy programmes are inadequate to equip social workers for effective practice with financially vulnerable clients, according to some participants. Mala, from family services, observed,

The financial literacy training we see around is very middle class. They are all about investment, but our clients don’t have the money to invest. So we need to look at possible strategies for clients to start saving, start investing in education and reap benefits in the long run. We need to see the possibilities, then we know how to coach.

As Mala suggested, social workers need financial knowledge and skills that are specifically helpful for their clients, especially ways to help them become financially secure over the long term.

Participants said their lack of basic financial management skills, especially in managing credit and debt, impedes their ability to help clients navigate the use of financial products and services. They expressed keen interest in learning more. For example, Steven, from family services, pointed out that he would like more ‘training on debt management because most of the clients are facing some form of debts’. Benny, from children’s services, added it would be helpful to know more about how to help clients settle debts: ‘We see clients struggling to pay off [debts] . . . but what alternatives do they have?’

Participants also said that social workers need effective financial coaching and counselling skills, especially ways to help clients take a longer-term view of their financial situation.

Rachel, from community health services, explained that having a longer-term view is not just about building assets but also managing them in later life, as there are clients ‘who have money in the bank but [are] mentally incapacitated so they cannot manage’.

In addition, Claire, from family services, reflected on the importance of empathising and yet nudging clients towards positive change:

I’m thinking a balance of empathizing with [clients’] situations and how we then also bring them forward [in making changes]? . . . How do we move them from their comfort zone? How do we do it tactfully without pulling down their egos? You know, not putting them down.

Finally, the third theme – that financial practice has the potential to empower clients and social workers – could help practitioners engage in meaningful conversations about household finances. As Ann, from family services, asked: ‘How do we use the income and expenses form in a session itself to talk about the family values?’ As she implies, conversations about finances and money management are sensitive in nature. Participants across all eight FGs agreed. Although financial knowledge and skills are important, they underscored the importance of knowing how to have financial conversations with clients and motivate them to think about their future.

Penny, who works in healthcare, thinks social workers should know how to ‘empower the patients’ to work out multiple financial problems. She hopes that the curriculum would contribute to a shift in thinking about clients as recipients of help to people with strengths and abilities to resolve their problems.

Participants clarified that conversations about assets could also be about reframing the perspective that clients are assets themselves and ‘experts of their situations’ who can be ‘built upon’, affirming the strengths perspective and empowering clients to make positive and sustainable life changes. For example, Helen, from family services, suggested that ‘we [social workers] change our perspectives to see them [clients] as assets rather than liabilities’. Emma, from community services, added: the ‘definition of assets need not be financial but also about social capital, people and relationships’.

An interesting finding that surfaced from a few senior social workers was the hope that the curriculum would ‘excite’ entry-level social workers, especially fresh graduates, about their ability to help clients with their finances.

Phase 2: FG discussions with social workers from the pilot training

After the pilot training, participants reported that certain topics were useful, especially debt management, bankruptcy, budgeting, and housing and homeownership. For example, Priscilla, from the healthcare sector, said learning about budgeting helped to alleviate clients’ anxiety about financial uncertainties and enabled them to make informed decisions. Another social worker from family services, Zoe, said that learning about debt management and bankruptcy helped build her confidence in preparing clients to deal with potential negative consequences of debt.

The trainees said they gained greater awareness about financial products and services and public assistance schemes. Trainees were more confident about having deeper conversations with clients about financial matters, which would permit them to move beyond firefighting. For example, Jonathan, from family services, said his focus in practice shifted from putting ‘out the fire’ and resolving current financial issues to ‘developmental’ or ‘preventive’ work.

Participants said they learnt that there is no quick fix for financial issues. With greater awareness and deeper insights about clients’ financial issues, they reported feeling better prepared to offer financial-related information and help clients begin the change process. For example, Chloe, from the disability sector, said that the curriculum ‘made me more curious . . . and [to] do forward planning’. Instead of focusing solely on the client, she said her focus broadened to include the financial well-being of caregivers: ‘Like how is he doing with his finances? . . . How are his spending habits? His employment? What are his employment benefits? His CPF?’

The reflective discussion and experiential learning activities challenged social workers to reflect on their personal values and beliefs about money management as well as their perceptions of low-income individuals and families. Through these activities, many said they gained deeper insights into the underlying reasons (e.g. cultural, religious, personal values) for people’s financial decisions.

For instance, trainees said they gained appreciation for the impact of the ‘bandwidth tax’ (Mullainathan and Shafir, 2013) that many clients face, which can serve as a barrier to making good financial decisions. They said they are more sensitive and respectful in their conversations with clients about finances. They feel relieved of their own expectations about the ‘right values’ or the need to ‘change’ clients who are not ready to make certain financial decisions. For example, Winnie, from family services, said that this approach empowers clients to make their own informed financial decisions:

We learned from the course that because clients are entrenched in their situations, they tend to make bad decisions due to their coping mechanisms. We need to understand them and give the space . . . This module allows us to have a deeper understanding of the clients.

Gabriel, from children services, also observed that the pilot training gave him greater insight into his clients’ circumstances:

[It] offered us the opportunity to talk about the lived realities of the clients . . . So, I think it really left a strong impression on me because I was reminded of conversations of how families we work with are experts of their situations, and how there are many who are able to help themselves out of poverty, and how [we should] get them to share these experiences with others.

Gabriel continued, making the point that these insights helped him envision other approaches: ‘It got me to think about community building and empowering the families to help others in need’.

However, trainees recognised that there is no quick fix to breaking the poverty cycle and undertaking asset-building interventions with low-income clients. As trainees put it, these are not things ‘that they are able to do next month or even one year later’, and ‘social workers might not see the results so soon’. However, they believed that the training encouraged them to be more intentional than before training in integrating asset-building into their practice.

For instance, Fiona, from family services, said the training ‘suddenly woke me up’. ‘We [social workers] don’t care about it [asset building policies/schemes] then, but now we have more information. We look at it and think twice . . . it is our opportunity to share with clients the knowledge that we received’.

Max, from family services, reflected that

after going through the course, it is a reminder that it is not just about financial sufficiency, there is something else that we want to build upon . . . help clients build towards the future, instead of just getting services to achieve financial sufficiency and then stop there.

In general, it was the more experienced social workers who stressed the importance of advocating for change at the higher management or systemic levels, especially in the areas of employment and/or financial assistance schemes and policies.

Some trainees, however, raised concerns – mirroring similar concerns in the first FGs – that their practice does not permit the time to work with clients on long-term financial capability issues. For example, those working in acute healthcare settings said they have very limited interaction time with patients to work on financial issues. Even so, they think there is potential for innovations that could benefit patients with financial needs.

Research limitations and future work

This study examines the experiences of a diverse group of social workers, but they do not represent all social workers in Singapore. Future research should examine the curriculum’s application in other social welfare settings. The study’s focus is on individual social workers, and as such, does not explore how human service organisations integrate financial issues and practice into their mission and goals. Furthermore, this study does not examine whether the innovation will endure and become integrated into standard social work practice. We do not know if public and private funders will embrace activities designed to address clients’ underlying financial problems. Finally, this study does not (as yet) examine impacts of financial capability practice for clients. New qualitative and quantitative research should fill these gaps going forward, especially examining the outcomes of financial capability training for practitioners, how clients perceive financial capability practice, and whether and how clients’ financial well-being improves over the short term and long term.