Financial Literacy Credit unions lead the way Interest in financial literacy, long a staple of the credit union philosophy, has soared in the past few years, fueled in part by the personal financial disasters of the recent recession. Few days went by without new stories of massive credit card debt, homes bought by people who couldn’t afford them and college graduates with large student loan balances adrift in an economy without jobs. In response, many organizations stepped up efforts to educate consumers about money management, and credit unions have become prominent leaders in the effort. A recent financial literacy survey of credit unions by the National Association of Federal Credit Unions (NAFCU) showed that: - Most of the responding credit unions (58.9 percent) participate in a financial education program at a local high school. On average, respondents participate through such programs at more than 10 schools and have been operating the program for over eight years.
- For those respondents with financial literacy programs in place, most focus on credit counseling (63.6 percent), followed by retirement planning (48.5 percent), encouraging saving (42.4 percent) and mortgage counseling (39.4 percent).
- Nearly one-quarter (22.2 percent) of respondents participate in programs that emphasize the benefits of basic banking services. Additionally, 18.2 percent host or participate at a volunteer income tax assistance site.
Throughout the country, there are numerous examples of credit unions engaged in activities to educate people about personal finance. In one successful program targeted at youth, Franklin Mint FCU in Broomall, PA, a long-time user of Galaxy® from Fiserv, entered into an exclusivity agreement to use the popular children’s book characters The Berenstain Bears in financial literacy efforts. The credit union even commissioned Mike Berenstain (son of the original authors) to write The Berenstain Bears Visit the Credit Union. “This unique credit union book and The Berenstain Bears Financial Literacy Program is available to other credit unions through our CUSO CUNFL,” CEO and President John D. Unangst said. Franklin Mint also constructed Bear Country Credit Union, a financial literacy center that offers a hands-on, interactive experience to help young children learn about money. Bear Country Credit Union simulates a credit union branch that might be found in The Berenstain Bears’ Bear Country. In Ukiah, CA, Mendo Lake Credit Union, a user of Portico® from Fiserv, was recently mentioned in headlines in the Ukiah Daily Journal for the credit union’s financial literacy program, particularly for educating 33 Mendocino College football players in face-to-face training sessions. Mendo Lake’s financial curriculum, which, for years, also focused on younger students, won the credit union first place honors last year in a statewide competition, the Desjardins Youth Award. In Ft. Lauderdale, FL, BrightStar Credit Union is providing financial literacy education to all Broward County middle schools through Biz Kid$, an Emmy Award-winning show where kids teach other kids about money and business. BrightStar has made this possible by receiving a $20,000 Biz Kid$ Education Grant, one of only 16 grants awarded nationwide in 2013, from the National Credit Union Foundation (NCUF). The credit union, a client of Spectrum® from Fiserv, provides information and resources for thousands of additional students throughout the school district via its CU@School program, and operates BrightStar University, a financial literacy website for students, parents and teachers, including content in Spanish for Spanish-speaking consumers. Fiserv has also committed to financial education and has taken steps to advance the effort. At Forum Spring and Forum Fall, Fiserv representatives passed out pedometers so all attendees could track their steps. When attendees at each event collectively reached 30 million steps, Fiserv made donations to the Boys & Girls Clubs of Southern Nevada and Central Florida to support financial literacy initiatives. Clearly, the nation’s credit union community remains in the forefront of efforts to provide consumers with the knowledge and skills to manage their financial resources effectively. It’s in their genes, and the benefits are pure credit union: better informed members using financial services wisely. |