Young unemployed to get help managing money

Young people on state benefits are to receive help managing their finances, according to a government official.

Families minister Jenny Macklin spoke to the Courier-Mail concerning changes to the welfare system unveiled this week, which could potentially lead to good savings accounts habits.

The move, which will be rolled out in the Northern Territory next year, is expected to affect 20,000 people with a view to opening the scheme up to the rest of the country.

It will see as much as half of individuals’ benefits income quarantined to ensure that it is spent on essentials, the news provider revealed.

Ms Macklin said: "Income management can be really useful to families to make sure money is spent on food, clothes and rent and less money is available for alcohol and gambling."

People should be putting more away in accounts such as high interest savings, according to Gail Kelly, Westpac chief executive.

Earlier this month, the official said this was essential in order to avoid another economic downturn.

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