Connect with us

Finance

I Have a Six-Figure Savings Account. It’s Completely Useless.

Published

on

I Have a Six-Figure Savings Account. It’s Completely Useless.

Pay Dirt is Slate’s money advice column. Have a question? Send it to Athena, Kristin, and Ilyce here(It’s anonymous!)

Dear Pay Dirt,

How does one figure out what they’re even saving for? I’m reaching my 30s, and many of my friends are still in very “spendy” times of their lives—a lot of them spend big on going out/vacations/etc. by using the sentiment, “What am I even saving for?” I’m admittedly a bit more conservative with my money and try to save as big a portion of my salary as I can (while still making space for the things I enjoy). Because of this, I’ve amassed quite a bit in savings (just over $100,000).

But lately, I’ve been wondering, what am I actually saving for? The chances of affording a home one day in my high cost of living area are actually very small (a lot of people here are lifelong renters, even into middle age). Of course, there’s money for emergencies and retirement, but beyond that what is all this money actually for! How do people decide? It seems like the natural conclusion is saving for a home, but if that’s out of the picture, what then?

—A Saver With Doubts

Advertisement

Dear Saver with Doubts,

Congratulations on hitting a huge milestone: $100,000 in savings. That’s no small feat, and I’m sure you’ve made some tough choices to get there. I’d like to reframe your questions. You ask, “What am I saving for?” as if the only answer is something tangible: A house, a new car, a big, fancy trip. Instead, imagine if what you’re saving for are “options and opportunities.”

What happens if you save too much money? You can take a year off, retire early, help your family and friends, or contribute to a worthy cause. You can indulge your passions, whatever they may be, go back to school for an advanced or different degree, become a caregiver, or stay at home and game all day long. Having money in the bank (and hopefully the stock market) gives you the option and opportunity to explore and experience your life differently.

As for saving for a house, let’s reframe that, too. What if you continue to rent in your neighborhood but buy a vacation or investment property elsewhere? Could you start building a nest egg of rental properties or perhaps purchase a small commercial building that will eventually deliver passive income to help fuel your options and opportunities? You’re building financial security that will pay off down the line, just when you need it most. So, keep an open mind. Talk to people about their lives and investments. I have no doubt that one day you’ll find an opportunity worth pursuing.

Want Advice From Pay Dirt?

Advertisement

For questions on the money issues in your life try submitting to Pay Dirt!

Dear Pay Dirt, 

My wife is in her first year as an attending physician and is absolutely burned out. She wants to quit and find a part-time position that would likely pay her around $100,000 less per year. We have a 3-year-old and recently bought a house in a high cost of living area based on the assumption that she’d be working full-time. We barely have savings after her eight years as an underpaid medical student and resident.

I want to support her choices, but I also know we can’t make up $100,000 just by cutting back on Starbucks. We would have to make life-altering changes to stay afloat financially. We fight whenever I  bring it up. She gets upset when I talk about the trade-offs, and I get frustrated when she refuses to consider them. How should we approach this problem? What can I do differently?

—Bad News Bearer

Advertisement

Dear Bad News Bearer,

Your wife must be under immense stress: She’s in her first year as an attending physician, getting used to all that working full-time entails. She probably feels that she’s short-changing everything else in her life, including you, your toddler, and your marriage. She’s worried about financially supporting the family without losing her mind, especially if she has student loans. (The average medical school graduate owes over $250,000 in total student loan debt and 73 percent of medical school graduates have educational debt.)

For what it’s worth, my doctor friends say the first few years as an attending are the worst. You’re getting used to the job, the hours, and the pushback you get from the healthcare industry, older/more established physicians, and even some of your patients. So, yes. Her life is tough right now. She knows you’re barely making it financially. What she doesn’t realize is that she has a partner in her success: You!

You’re watching her struggle and in addition to keeping your eye on the bottom line, you have to help her remember why she went through eight to 12 years of schooling and residency to become a doctor. Help her recall the trade-offs you both made so that she could achieve her dream. Back off on the money discussion for the moment and focus on what you can do immediately to lighten her load. Can you pick up more slack with your toddler? Do more around the house? Manage playdates, run errands, or find a way for your wife to get some personal time (and maybe a massage, if she enjoys that sort of thing)?

More concerning is that you two are talking past each other when it comes to money. She doesn’t want to give up her home and lifestyle, not after all the time and energy she spent to get there. That’s why she fights you whenever you bring it up. On the other hand, you don’t want to dig a hole you can’t climb out of. That’s fair, too. The good news is there’s a way through these tough times. It involves sitting down and talking about how hard things are now and the timeline for when you both envision them getting better. Make a list of the positives and negatives of her staying full-time. Figure out how long it will take her to feel better about work and stabilize your finances. It might take six months or a year or two to get there. But I find that once you put a number down on paper, you can mark time against it. Writing down financial goals helps put things in perspective. It’s your own 30,000-foot view. Then, check-in at three or six months and see how much progress you’re making. If she’s still unhappy, nail down the new pain points she’s feeling and work to relieve the pressure. Is there a way you can increase your income to help balance a reduction in hers? Is there a temporary part-time role she can take on while she recovers her equilibrium that would help save on child care or other expenses? Are there strategic cuts (beyond Starbucks) that will help you stay in your home and focused on the future while you work through this financial pinch?

Advertisement

If you can’t have this conversation calmly (and opening a bottle of your favorite beverage doesn’t help), then you might need a third party to help you get there together. Marriage counseling is where I’d start. See if you can find a way to communicate about your money issues that doesn’t sound (to her ears) like a threat, a give-back of hard-won gains (like the house), or a vision of a bleak future devoid of fun. Once you learn how to talk to each other about money, find a financial advisor you can trust to help you plan through the tough times and visualize all the good stuff that’s coming.

Want more Pay Dirt every week? Sign up for Slate Plus now.

Dear Pay Dirt,

My husband and I (38 and 40, no kids) have steadily worked our way up and after 14 years of marriage, I feel like we’re finally pretty comfortable. We have a combined income of just over $100,000, a house with a decent amount of equity, retirement accounts, a more short-term investment account, and a savings account (“high-yield” at a pitiful half a percent) with around $60,000 in it. Our only debt right now besides the mortgage is my husband’s student loan, around $10,000.

I guess my question is… what now? Should we pay off his loans? Should I be more focused on maxing out retirement savings? Put some money into renovating our house? We have a financial advisor, but he’s pretty low-key and just asks us what WE want. I’m not sure how to prioritize!

Advertisement

—We’re Comfortable, Now What?

Dear We’re Comfortable,

What a nice place to be at 40. Congratulations on doing so much right. Here are a few suggestions for taking it all to the next level:

First, take some of your low-yield savings and pay off those student loans. You’re probably paying 8 percent on the debt while earning half a percent. That’s not a winning strategy. And, while you’re at it, there are plenty of true high-yield savings accounts online. Some are returning 5 percent, or more. So, find one (Bankrate lists a bunch) and transfer a big chunk of your excess savings there so you can make your money work harder for you.

Next, absolutely maximize your 401(k) accounts. And, if you haven’t already, open up a couple of Roth IRAs. In 2024, you can plow up to $7,000 each in after-tax funds ($8,000 if you’re at least 50 years old) into those accounts, which will grow tax-free forever. Trust me: It’ll be nice to have the option of using tax-free funds in retirement. Once you’ve done all that, pay down your vehicle loan(s) and home loan.

Advertisement

As for renovating your house, that’s a huge project in and of itself. The question you need to answer is whether you need to do something (i.e., the roof is leaking) or you think you’ll live happier or better in some way. That could mean freshening up your decorating or perhaps tackling a larger project like redoing a bathroom or kitchen. Renovating your home is costly and it takes up a lot of time. And, unless your home is way out of date, it’s unlikely you’ll recoup the cost of the renovation within a year, according to the latest Cost vs. Value report. I wonder if you wouldn’t have more fun planning a special trip somewhere instead.

Finally, I’m all for steady and dependable financial advisors. But asking you what you want without offering a conversation around setting goals seems a little too laid back. Try engaging your financial advisor in a conversation about short-term and long-term goals. Put down some of each on paper and spitball some numbers so you know what you’re working toward. Then, go back to your financial advisor and have a more specific discussion about each item on your wish list and talk about what it would take to get there now, in five years, or in retirement.

Dear Pay Dirt,

My partner and I are finally about to move to a big city with a much higher cost of living compared to the smaller town we’ve lived in for the past few years. We’ve talked about this move for many years and are finally in a place with our careers where we can make it happen. We’re so excited! We’ve started the initial search of looking for apartments. But there’s one thing that’s keeping me up at night: How do we prep for this major change in the cost of living? Our rent is about to at least double, that is the easy part to prepare for. But I can’t stop worrying about everything else: groceries, transportation, nights out, hobbies, etc.

Right now we don’t have strict budgets, we just generally spend about $300-ish on our credit cards bi-weekly and pay it in full when we get paid and keep track of our spending in that way. I know realistically we won’t be able to save as much as we do now, but how does one prepare for this big of a financial change? Do we need to make a strict budget even though we’ve never been spreadsheet people?

Advertisement

—The City of $$$

Dear City of $$$,

Landing a long-time dream feels great, doesn’t it? But like most things in life, dreaming is safe while reality bites. I don’t love the idea of setting a strict budget now without knowing what your new life will cost. It’s like saying you’ll spend $10,000 renovating your kitchen before you discover that the stove you’ve been eyeing actually costs $15,000.

Instead, do some field research. Move into your new place and unpack. Take a month or two in your new city and see where you’re spending money. Focus on your behavior, not on the dollars. For example, if you find yourself eating out every night or ordering food for delivery, you know you’ll wind up in the red pretty quickly. So limit restaurants to one or two nights a week, and make sure you have enough food in the fridge so your default isn’t DoorDash. If theater or concerts are your thing, buy tickets monthly, not weekly. Make sure you have a healthy emergency savings account and are continuing to contribute to your retirement savings.

I do want you to write down what you’re spending. Use a pad of paper, your phone, a budgeting app, or a spreadsheet. At the end of the month, take a look at your credit cards and bank accounts. Are they in balance? Are they (hopefully) growing? If not, go back to your list of expenses and analyze where you’re leaking cash. You may have some extra one-time expenses that won’t be repeated or perhaps you met friends for drinks a few too many times. You should be able to pinpoint a few places where you can reduce your spending immediately and keep your budget in balance.

Advertisement

If the goal is to stay in this new city permanently, then you’ll need to find a way to pare back while still enjoying the social and cultural benefits your new home offers. Writing down every cent you spend will speed up that process and get you to the joy part faster!

—Ilyce

Classic Prudie

Recently, a local center focused on LGBT issues posted my dream job. I was not able to apply due to timing. My partner applied and got the job. I know she’ll be incredible at it. But I feel very envious knowing that my dream job exists and I missed out.

Advertisement

Finance

Trump says he wants Pulte to further slash staffing at national intelligence office

Published

on

Trump says he wants Pulte to further slash staffing at national intelligence office

ABOARD AIR FORCE ONE (AP) — President Donald Trump said Friday that he wants his new acting director of national intelligence, Bill Pulte, to cut the office, which has already been significantly scaled back during his second term.

WATCH: Trump says Pulte isn’t ‘permanent’ pick for national intelligence chief after GOP pushback

Trump noted that the size of the office has been “way too high for way too long” and that “if he cut, I wouldn’t mind that.”

“He’ll do a very good job,” Trump told reporters on Air Force One as he traveled to Wisconsin for an event on agriculture. “He’ll watch it closely, but Bill Pulte is very good, he’s very talented.”

The Republican president said in an earlier interview with The Wall Street Journal that he has asked Pulte to start the process of firing employees. In the interview, Trump said he has already conveyed his view to Pulte, who has served as head of the Federal Housing Finance Agency but has no apparent national security expertise.

Advertisement

“I’d like to see it smaller. I think there are a lot of people in there that shouldn’t be there,” Trump said, which the Journal said was in reference to intelligence community officials who had served in the Democratic administrations of Presidents Joe Biden and Barack Obama.

Trump told the Journal that he wants Pulte to “start the process” of firing personnel and that the eventual permanent director of national intelligence should continue it. The president has indicated that he would not formally nominate Pulte for the position.

“Frankly, it might be good for him to shake it up before people come,” Trump said. “Because, if he (Pulte) reduced the size, in conjunction with me … and in conjunction with possibly the person coming in … he can do a lot of the hard work and we wouldn’t have to saddle somebody that goes in.”

Pulte was tapped by the president earlier this week in a surprising move that has been met with bipartisan resistance in the Senate, which confirms presidential nominations. The temporary appointment has now snarled the renewal of a critical national security surveillance program on Capitol Hill, with Democrats key to the vote pointing out that they did not trust Pulte — whose office oversees 18 intelligence agencies — to help administer the surveillance program.

Trump told reporters on Air Force One that Pulte will stay in the position depending on how long it takes to get his successor confirmed. The president also said he was considering five people who were “all very good, all people that you know very well, all people that do that kind of thing.”

Advertisement

“They’re very respected people,” Trump said of his intelligence candidates, without naming them.

Under Pulte’s predecessor, Tulsi Gabbard, the DNI office had already taken steps to scale back its size. In August, the Trump administration said that the office’s budget would be cut by more than $700 million per year, while slashing the size of its workforce.

At the time, Gabbard said the office had become “bloated and inefficient” while she announced the roughly 40% workforce reduction.

Gabbard resigned last month after revealing her husband’s cancer diagnosis.

Kim reported from Washington.

Advertisement

A free press is a cornerstone of a healthy democracy.

Support trusted journalism and civil dialogue.


Advertisement
Continue Reading

Finance

Calls for inquiry into all royal finances after Andrew subletting revelations

Published

on

Calls for inquiry into all royal finances after Andrew subletting revelations

Campaigners have called for radical reform and a public inquiry into all royal finances after revelations that Andrew Mountbatten-Windsor received an undisclosed private income from subletting three cottages on his Royal Lodge estate while paying a “peppercorn rent”.

A report from the public spending watchdog, the National Audit Office (NAO), found the rental income went to the former Duke of York, but said: “We do not know what rent was charged.”

It was published on Friday as part of a public accounts committee inquiry set up after a public outcry over revelations that the former prince was paying a peppercorn rent (a small token payment) on the Royal Lodge estate in Windsor before he was evicted to Marsh Farm in Norfolk by the king.

The anti-monarchy campaign group Republic and the former Liberal Democrat minister Norman Baker said they would be pressing the public accounts committee for a full investigation.

Republic called the subletting a “flagrant abuse of public property” and said that while serious concerns remained about the former duke’s use of publicly owned property, the whole family was “benefiting from a multimillion-pound public housing scheme”.

Advertisement

The report also revealed that Mountbatten-Windsor’s daughters, the princesses Beatrice and Eugenie, who do not perform royal duties, live in royal palaces with their rent paid privately by King Charles, and adjusted, or discounted, owing to tenants having to be security vetted.

Graham Smith, the chief executive of Republic, said: “The crown estate and royal palace property portfolio is state property. It should all be used for the benefit of the public, not the private enrichment of the royals.”

He added: “MPs need to seize this moment to push for radical reform, including removing all royals but the monarch from publicly owned accommodation.”

Baker called for an investigation into “all royal finances, not just Andrew’s”, adding: “I am happy to open this can of worms.”

Margaret Hodge, who previously led the public accounts committee, told BBC Radio 4’s Today programme she was “very concerned” that the NAO was not able to find out how much money the former prince had made from letting properties.

Advertisement
The entrance gates near the Royal Lodge, the former home of Andrew Mountbatten-Windsor in Windsor, Berkshire. Photograph: Mathilde Grandjean/PA

Two organisations, the crown estate and the royal household, provide properties to members of the royal family.

The crown estate, a £15 bn portfolio of land and property, is held by the monarch “in right of the crown” but is not their private property. It runs as an independent business with profits paid directly to the Treasury.

A proportion its profits, known as the sovereign grant, is handed to the royal family to support their official duties in exchange for the monarch’s surrender of the revenue from the crown estate and is to be reviewed this year. The crown estate is required to achieve the best price when letting or selling properties, including those let to members of the royal family.

Mountbatten-Windsor was entitled to rent out the cottages under his long lease for which he paid a £1m premium and £7.5m in renovations in 2003, and a peppercorn rent thereafter.

Subletting provisions are a feature of certain long-lease structures granted by the crown estate but are not automatic, and are explicitly documented in each lease agreement. Most of the crown estate’s residential properties are on long leases, the NAO said.

Advertisement

Sources suggested Mountbatten-Windsor’s subletting did not generate profit, and rent was set at a rate to cover only maintenance and running costs for staff living there. But no further details have been made public.

Baker said the former prince could have been getting £30,000 a year for each of the three cottages before surrendering the lease.

“And if that figure is wrong, they have to come forward and say what he got. So I challenge him to come forward and tell us what he got,” added Baker, the author of Royal Mint, National Debt: The Shocking Truth About the Royal’s Finances.

“But it’s not just Andrew. It’s the whole gamut. We have Edward leasing out his stable block. Then there is William and the duchy of Cornwall,” he said, referring to recent reports that the duchy, which provides the future king’s private income, is poised to make millions charging the Ministry of Justice for leasing the abandoned Dartmoor prison.

Dr Craig Prescott, a specialist in UK constitutional law at Royal Holloway, University of London, said from a property law perspective it was perfectly normal to get a lease on an estate and then sublet different parts of it. However, when it came to royalty, perception was key.

Advertisement

“The perception is of people living in massive palaces or properties, and the concern is that they’re getting a very good deal or, worse, making money from it,” Prescott said.

The fact it was a crown estate property led to “more scrutiny” because its profits go to the Treasury, he said, adding that Mountbatten-Windsor had paid £7.5m upfront at the start of his lease.

Official residences include Kensington Palace in London. Photograph: imageBROKER.com/Alamy

The royal household manages and maintains the land and buildings in the occupied royal palaces estate through the sovereign grant. The occupied palaces are not owned by the monarch, but held “in the right of the crown” in trust for the nation, and include official residences such as Buckingham Palace, Windsor Castle, St James’s Palace, Clarence House and Kensington Palace.

The royal household generates rental income to help support the monarch in official duties by charging for residential properties within the occupied royal palaces estate, which amounted to £3.6m in 2024-25. As of May 2026, the royal household had 255 properties available for use within the occupied palaces.

Before 2011, the Department for Culture, Media and Sport was accountable to parliament for their upkeep, and delegated responsibility to the royal household in return for an annual grant.

Advertisement

Under David Cameron, the Sovereign Grant Act removed the responsibility of the secretary of state so that in future the properties would be maintained by the monarch out of the grant.

Prescott said: “The problem is essentially of perception here. That all this is so complicated and difficult to explain and understand; what is public and what is private is really quite a complex question at times. The reality is hidden behind all this complexity and that doesn’t help for public understanding.”

Continue Reading

Finance

Future of the finance ministry: the battle for talent and trust –

Published

on

Future of the finance ministry: the battle for talent and trust –

‘The Future of the Finance Ministry’: the report is based on interviews with 10 senior leaders from finance ministries around the world I Credit: Yan Krukau (Pexels)

A global study of government finance leaders has revealed shared priorities and challenges in an era of unpredictable geopolitics and rapid digital transformation.

The Future of the Finance Ministry study – published by Global Government Forum and sister title Global Government Finance – is based on interviews with 10 senior leaders from finance ministries around the world.

The interviews were led by John McCarthy, chief economist in Ireland’s Department of Finance, working with the editors of Global Government Forum and Global Government Finance. Microsoft is the knowledge partner for the report.

Advertisement

“In a world where ‘disorder is the new norm’, the traditional role of the finance ministry is undergoing a fundamental transformation,” McCarthy writes in the foreword.

Four key themes are identified in the report: the evolving role of the finance ministry in response to uncertainty; the shift to more flexible finance systems that support outcomes; digital transformation and the growth of artificial intelligence; and the battle for talent and trust.

This chapter extract (below) focuses on the battle for talent and trust.

DOWNLOAD FULL REPORT The Future of the Finance Ministry

Recruiting talent fit for the future finance ministry

Advertisement

Governments are facing what has been described as a ‘war for talent’, driven by factors including tight public sector budgets, increased competition with the private sector, and shifts in working patterns since the pandemic.

Finance ministries are particularly exposed to these challenges as central departments and, at the same time, the type of skills they need is evolving.

In the face of their evolving role, finance leaders say the skills mix their departments need is changing. While financial and economic expertise remains desirable, interviewees consistently highlighted the need to combine these skills with digital literacy, data capability and an understanding of wider geopolitical and security risks.

One leader explained: “We are changing the profiles of our human resources [recruitment] right now. We are trying to incorporate [more] young people with data skills.”

However, building this capacity takes time, and many ministries are still working to clearly define their future skills needs and identify gaps.

Advertisement

“We really are going to have to build up that capacity… we spend probably too much time doing things we shouldn’t do, and not enough on [strategic work],” one interviewee said.

Among the countries that have done this strategic work, a need for “multi-skilled” staff has been identified – individuals that are able to move between technical analysis, policy advice, and cross-government coordination. As one put it: “I look for people with multiple skills.”

Some finance ministries have made progress on bolstering their skills mix, noting that five years ago there were “zero” data analysts in the department. Now there are “a lot more of them in our workforce”, one interviewee said.

However, finding the right balance can be a challenge.

“We’re getting some really good technical skills coming in, but a lot of our people have no finance skills, and so we’re having to train them,” one leader said.

Advertisement

Looking ahead, another interviewee noted: “It depends on how artificial intelligence develops: there might also be obstacles skills-wise.”

GLOBAL GOVERNMENT FINANCE SUMMIT: a unique event that brings together senior civil servants from finance ministries around the world. Enquire about attending the Global Government Finance Summit: 14-15 September 2026, Dublin.

Recruiting and retaining finance talent

As they focus on addressing their skills gaps, many finance ministries are finding it increasingly tough to recruit – and retain – the multi-skilled personnel they identify as necessary.

Many interviewees say higher salaries in the private sector are the primary battleground for skills.

Advertisement

“Our salaries are a bit lower than in the private sector,” one commented. “We compete with banks and investors, and yes, attracting young people here is very, very difficult,” said another, while a third added that “the salaries which we offer here will never be able to compete with what’s offered in the private sector”.

In some cases, salaries can be as much as 50 per cent higher in the private sector.

Some finance ministries have responded to this by implementing new pay scales to be able to compete for talent in senior digital and financial roles. However, not all governments are in the position to do so.

There are other contributing factors to retention pressures that ministries – and indeed governments as a whole – face. One leader said they have particularly high levels of turnover at the analyst level – a pressure exacerbated in some cases by large numbers of younger skilled workers moving abroad.

Added to this is the competition for talent within government itself. While some leaders report a positive trend that public service is being viewed as a “good thing” by the younger generation, this means that there is competition across the whole of government for tech- savvy and multi-skilled personnel.

Advertisement

As one leader highlighted, when finance ministries employ “smart graduates of quite diverse backgrounds”, these individuals typically move on rapidly. It is a well-worn tradition in civil services that once these staff members have spent a couple of years at the Treasury, they become “very, very attractive to other civil service employers”, which contributes to significant turnover.

To counter this, many finance ministries seek to leverage their unique position at the centre of government. One leader highlighted that the principal attraction of a finance ministry role is the opportunity to work at “the heart of everything that government does”.

Staff in the finance ministry get a level of “exposure to a broad range of global and national issues” that they simply “might not get elsewhere in other government departments”.

It was also highlighted that finance ministries have a wider systemic responsibility to ensure financial leadership across government.

Some explicitly highlighted concerns about the quality of financial leadership in line agencies, calling it “extremely mixed and sometimes incredibly weak”.

Advertisement

Managing their own skills while also contributing to systemic leadership is therefore a difficult balancing act.

WEBINAR: REGISTER TO ATTEND The future of the finance ministry unpacked – and what it means for government – on 24 June 2026, focused on the research’s findings

The issue of trust

The uncertainty and low growth discussed in this report can be seen as having contributed to the rise of populism in many countries, leading to a corresponding decrease in public trust in governments and civil services.

Some – though not all – finance leaders in this report flag public trust as an increasing challenge, which can also impact the ability to recruit and retain public servants.

Advertisement

As one noted, they face an environment of “profound mistrust of politicians and experts”, while another highlighted that political populism has meant that “it’s very popular to say that government officials… are stupid, that they are lazy”.

One even reported that civil servants in finance have faced physical threats following the implementation of unpopular policies.

Another leader added that public servants are “petrified of having their name in the paper” and that there “certainly seems to be a distrust of public officers”.

Finance leaders cannot address this alone – it will require a cross-government effort, and some finance ministries highlighted that they are developing outreach programmes to the public to explain the role of finance ministries.

“We always talk to experts, but we are trying to do a bit more pedagogy – talking to high schoolers about what we do, about public finances, about how the economy works.

Advertisement

“I think there’s a question of: how do finance ministries fit in a world [where] there’s a lot of distrust of experts [and] the level of financial and economic literacy is very low? So, we are thinking more about how we engage with the general public.”

Global Government Finance’s editorial newsletter (free): sign up here

The future of the finance ministry: providing engaging work now and in the future

Finance ministries need to modernise their skills mix and working models to attract, retain, and support the people required to deliver effectively in an increasingly complex environment.

Despite the challenges, interviewees consistently emphasised that finance ministries remain central to the functioning of government, and that this centrality can be a powerful tool for attracting and retaining talent.

Advertisement

One leader described finance ministries as “highly respected organisations” and a “desirable place of employment”.

As technology frees up time, leaders see growing opportunities for staff to focus on higher-value analysis, long-term stewardship, and strategic advice.

Another leader highlighted that embracing technology such as AI can reinforce this appeal, by demonstrating that they are not “reliant on old ways of doing business”.

This leader sees technology as “fast tracking” the “hard yards” of data entry to allow staff more time for “alternative perspectives” and strategic thinking.

Interviewees also noted that work in finance ministries is becoming more engaging as they expand their scope to include complex, “non-traditional” policy areas.

Advertisement

This shift requires “reinventing the way we do things” such as offering staff more varied career paths and opportunities for growth, one said.

Even the finance ministry leader who was among the most concerned about the competition for talent acknowledged that the work of the ministry is “very interesting” and that they are implementing new pay scales to better “reward good performance”.

Writing in the afterword, Valentina Ion, public finance and social services global lead at Microsoft, said: ‘Innovation as a talent magnet: The skills challenge in the public sector is acute as complexity increases. This is not just about recruitment, but also about retention.

‘Offering modern, innovative digital tools is now a primary benefit for the current workforce; if a ministry relies on legacy systems, it will struggle to attract the data scientists and multiskilled professionals required to navigate the future.’

Interviewees for the study were: Lai Chung Han, permanent secretary, Ministry of Finance, Singapore; Carlos Guberman, secretary of the Treasury, Argentina; John Hogan, secretary general, Department of Finance, Ireland; Andrew Lai Chi-Wah, permanent secretary for financial services and the Treasury, Hong Kong; Struan Little, chief strategist, Treasury, New Zealand; Chidozie Ofoego, financial secretary, Government of Bermuda; Dorothée Rouzet, chief economist in France’s Treasury; Merike Saks, secretary general, Ministry of Finance, Estonia; Bas van den Dungen, secretary general, Ministry of Finance, The Netherlands; and Matt Yannopoulos, secretary, Department of Finance, Australia.

Advertisement
Continue Reading
Advertisement

Trending