Lever of Change

Financial Empowerment

A range of opportunities and supports are needed to support households to increase income and build a cushion of savings that contributes to long term resiliency. Economic and financial resiliency requires adequate income, knowledge of and access to affordable financial products and services, as well as supports and incentives to encourage savings and file personal income tax claims.

Without these supports, many Calgarians are unable to build the financial cushion required for long-term resiliency, especially if their employment situation is not consistent. For this reason, Enough for All’s partners aim to combat financial instability at its root by encouraging education and confidence in financial matters.

In Canada, the personal income tax system has become an important way for the government to deliver income support benefits, like the Canada Child Benefit and GST refunds. By not filing, many individuals and families may be losing out on thousands of dollars in benefits, which have been set up to help those in need. Many community organizations host free tax clinics where volunteers help eligible people complete and file taxes for free.

Aspire is Calgary's financial empowerment collaborative. They work together to address the root causes of poverty while responding to the immediate needs of individuals living on a low income. This is done by designing and delivering Financial Empowerment programs, influencing policy change at multiple levels of government and scaling Financial Empowerment across broad systems.

They facilitate collaboration with 24 community partners, each offering services in one or more of four key areas:

• Taxes & Benefits
• Matched Savings
• Education Savings
• Financial Education & Coaching

Read their 2022 Financial Empowerment Report.

In The Real Cost of Payday Lending, research found that payday lenders charge interest rates that top 400% when annualized and are largely located in lower income neighbourhoods. A collaborative known as the Rise of the Cash Store Committee was convened to work with all orders of government to explore policy recommendations that could change the exploitative practices found within the payday lending industry. Recommendations included changing the allowable density of payday lending businesses in any given area, convene banking institutions to offer affordable products and services at reasonable interest rates and to reduce interest rate levels below the federal 60% maximum.

In December 2021, ACORN Canada, Public Interest Advocacy Centre and Momentum published Revising the Criminal Rate of Interest in Canada discussing how despite significant changes to high-cost credit within various provinces, proliferation of predatory lending continues. VCC endorsed their call for federal government leadership and action to reduce the cost and harm of predatory lenders offering retail credit in Canada.

Each lever of change links to one or more of the 94 calls to action from the Truth and Reconciliation Commission. Financial Empowerment links to #9, #54 and #55.3.