Money management skills can be learned

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British Columbia is taking the lead in terms of the numbers of Aboriginal people who are settling their residential school claims against churches, government and individuals. Settlements so far range from about $5,000 up to $250,000 or more. Once they have a rather large sum of cash in hand, some people have difficulty managing it to their best advantage and want to turn to someone who can give them sound advice on which to base their financial decisions.

At least one bank has stepped up to help in this unique situation.

"Given the fact that of the 12,000 plaintiffs, and 80 per cent of them are in British Columbia, said the Royal Bank's Manager of Aboriginal Banking, Gail Murray, then we have a very large responsibility in B.C. to take a leadership role.

"There's something quite exciting that I'm working on," Murray added.

"In B.C. we've initiated a program to deal with the residential school survivors, and it's a complete package for financial planning.

"We've got a number of different things that we're doing with it. We've partnered with the Indian Residential School Survivors Society in North Vancouver. Chief Robert Joseph heads that up.

"They have endorsed us as the official financial institution to head up this initiative and to work with them in spreading the word."

Murray was sensitive to the fact that "the ADR process has got some really negative implications and it's got some negative press, and rightfully so.

"There's a lot of problems around this Alternate Dispute Resolution process. Just for instance ... it's on a grid system; if you're only beaten you get this much, and if you're sexually abused you get this much. The amounts don't seem quite high enough. You still have to prove that the abuse took place. I mean it's riddled with issues. And it's not that we (the bank) agree with those-we basically support the First Nations on that and the Residential School Survivor Society, what their position is.

"We really want to make sure that our position is not aligned with any of that negative (politics)."

Murray added that the Treasury Board just announced $1.6 billion dollars to settle residential school claims, and the bank did not want to be perceived "like we were just there because there was that money there. We want to be able to offer proactive financial advice, and the transfer of knowledge and skills is our main priority."

Murray's financial planning program is national and it has just started. In fact, on Jan. 6, she said it had only been finalized within the previous two weeks and she was waiting on her print materials to arrive. Murray has developed brochures, a PowerPoint presentation and handouts especially for individuals receiving residential school settlements. The theme for her new program is "Finding your way ? Make the most of your financial future." A summary of her financial presentation is on the bank's Web site at www.rbcroyalbank.com/aboriginal, along with the bank's Aboriginal contacts and services.

The Web site enumerates different options for starting a business, buying a vehicle, home or gift, paying down debt, investing for retirement, opening a new savings account, or doing renovations to host a cultural event. Murray's program also includes a "net worth worksheet."

"What we're trying to do is change the pattern of the fact that Aboriginal people, when they receive these settlements, they don't invest them long-term. And so what we're finding is the money lasts maybe two or three years, and then it's gone.

"From seeing what's happening with friends of mine, I thought if there's something we could do to try to change that pattern, maybe we could help some people along the way."

Murray counsels people to take a substantial length of time to decide how they will use their money and to include their family members when they are reviewing their financial options.

"Now, of course, in the Aboriginal community that doesn't mean, you know, all your aunties and uncles; tht's people that contribute to the household income."

Another thing she advises everyone to do is to determine what spending patterns, income and expenditures he or she has, in order to maintain control over money and to be able to plan for the future. She stresses the need for a monthly budget and the need to establish a good credit rating.

"Depending on whatever route they take, whether it's the ADR (Alternative Dispute Resolution) process or if it's through the court system, (it is important that) they are getting the financial advice that they are requiring, and also that they may be able to take that and make a positive impact upon their lives."

"It's really important for us to understand the cultural aspects of this as well, and so we don't see it as frivolous if somebody is going to throw a potlatch. Maybe they've been saving all their lives, or hoping to do this to honour their departed ones."

Murray, who is Metis, pointed out that some people interviewed by the bank after having spent their residential school settlement money said "they just wanted a job at the end of the day, and they didn't have a job, and there they were with no money left."

As a result, Murray expanded her financial planning program to cover small business advice.

She set up a 1-800 number for B.C. so that anyone within the province needing either personal or business financial advice can be directed to the appropriate advisor where they live.

"We've got different advisors that can work with individuals. Say they're buying a vehicle, they would work with one of our personal bankers; if they're wanting to start a new business I would hook them up with one of our Aboriginal business champions; if they're wanting to invest, we've got a whole team of financial planners that we've pulled together, and with buying a new home we've got mortgage reps."

Murray is aware that not everyone is familiar with or comfortable with a lot of financial paperwork, so her financial planning program istailored to help people in different ways. Some will get what they need from the Internet and printed materials and take it from there. Others will want more guidance.

Murray said the bank will provide their print materials to the counselors and staff of organizations such as the Indian Residential School Survivors Society. She pointed out that there are other projects set up throughout the province too, such as the call centre at Bella Bella, "which is a crisis line, and grief counselling and everything. And so if they just have someplace to refer the financial piece, then we're working in partnership with them."

Treaties won't be the "be-all, end-all" of creating prosperity for First Nations, Murray concluded. "People want economic development. The bank supports Aboriginal rights and title, consultation and accommodation."