Financing is the lifeblood of any public policy. First, because the availability of monetary resources conditions the affordability and sustainability of this policy. Second, because the financing systems in place, including the channels, mechanisms and tools for resource collection, allocation and management, are essential, structural factors to guarantee the effectiveness and efficiency of public service delivery. As such, financing is an essential element of good governance. In the field of human capital development policies, and more specifically vocational education and training (VET), this double 'role' of financing is made even more complex by the high multiplicity of stakeholders contributing to and benefitting from VET. Therefore, although the capital importance of financing is not questioned, there is no simple approach defined yet to help partner countries address financing in a holistic and strategic manner. This paper aims to pave the way for such an approach. First, there needs to be a common understanding of what is at stake in the area of financing. Second, a methodology is needed to guide stakeholders through the analysis, decision making and implementation phases in this field. After elaborating further on the rationale for investing in the area of financing, this paper outlines the challenges that many partner countries face in financing their VET systems and policies. The paper provides a working definition of the term 'financing' and proposes a methodological approach to support the policy dialogue on financing in partner countries. The paper also outlines the specific support that the European Training Foundation (ETF) can provide in this field.