Returned to youth money management

A young person can be returned to youth money management for the following reasons:

• they are subject to a grade 1, 2 or 3 sanction or
• they are demonstrating poor financial judgement

After a sanction has been imposed, the young person will be returned to youth money management when they recomply.

To earn the right to manage their money again, the service provider or Work and Income "in-house" service will need to be satisfied that the young person has been demonstrating a continued compliance with their obligations.

Generally a young person may be considered to have poor financial judgement if they have:

• sought or accessed hardship assistance without a good and sufficient reason, or where they could have avoided the application
  (for example, they did not pay their power account, but spent the money on clothes)
• purchased an unnecessary item on credit
• spent their in-hand allowance on items that are inappropriate for their situation (for example, alcohol and cigarettes and had no money to buy their weekly bus pass)
• increased their costs unnecessarily (for example, moved into more expensive accommodation)
• not used their part-time earnings in a way that is appropriate for their situation (for example, bought very expensive clothing items when they should have saved for their car registration)
• entered a relationship with a coercive partner, who is starting to control their money or are being unduly influenced by peer pressure

When a young person is returned to youth money management because they have demonstrated poor financial judgement, they will retain their in-hand allowance and any incentives earned.

For more information see:

• Assessed as financially competent
• Continued compliance with their obligations
• Earning the right to receive payment directly
• Youth money management
• Obligations Removing incentive payments