Programmes can help the lower-income by relieving the “bandwidth tax”, as AWWA’s experience with unconditional cash assistance shows, says Cindy Ng of Children’s Aid Society.
People in poverty experience chronic stress about immediate concerns, and don't have the mental space for discussions about savings and future plans. , so that they are sure to spend it on essentials? Or how about making financial assistance time-limited, with a review every three months, as a check to ensure taxpayers’ money is well spent?
Mdm Zee* always experiences a sense of relief when her husband’s salary is credited at the beginning of the month. This quickly turns to despair: After paying off the household bills she has only about S$800 left for her family of three. Crucially, those in the intervention group had better job outcomes, such as landing more secure employment contracts or jobs that would provide more stability and longevity. They were not compelled to take just any job.Still, social service professionals all want to ensure that financial resources - whether from taxpayers or donors - are used to achieve the intended outcome of alleviating economic insecurity. This is entirely appropriate and reflects good governance.
It's no surprise that people in poverty often withdraw from well-intentioned programmes or refuse assistance from professionals. A person in poverty is likely to feel the impact of financial mistakes more strongly and be judged for their actions. Even a minor financial misstep can lead to significant consequences.
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