Pumped about improving financial literacy in my generation

From the age of five until around 15, my entire concept of money and managing finances in general was based on observing my parents. How much (or how little) they spent, how often they’d take my brothers and I out to eat, how much they bought me for my birthday/Christmas and where we went on vacation (or whether we went anywhere at all) were all lessons on money – its value, ease of access to it and the thought and time put into using it.

Unfortunately for most people my age, that sums up the entirety of their financial education. 

For those ambitious types that try to go about remedying their lack of financial know-how, there isn’t really a lot of good resources out there… or rather I should say there aren’t a lot of resources that won’t be so incredibly boring that we convince ourselves within five minutes that our ‘future self’ can worry about being smarter with our money because we are much too busy with school/life/angry birds to do that right now.

"This reality is why I think my generation is sorely under-equipped when facing a myriad of life stages."

This reality is why I think my generation is sorely under-equipped when facing a myriad of life stages (a.k.a. hugely important money-centric decisions that will have a lasting impact on our financial well-being). And while that may sound rather depressing and hopeless, it’s actually exactly why I love working with the Young & Free program. Young & Free is all about being a resource for young people – providing financial education in a format that is actually interesting – even entertaining. Each website is a place where young people can go to find out about more about budgeting, student loans, saving for retirement, credit scores – all the big life/money information – explained by someone our age, in language that actually makes sense.

It is so important that young people find a resource where they can go to learn more about money matters – whether big life stage stuff or the little day-to-day stuff that seems inconsequential but can have a massive impact on their financial health for the future. I’ve spoken with people my age who didn’t know that paying only the minimum payment on their credit card each month was a bad thing – they were completely unaware that they were being charged an insane amount of interest on their remaining balance each month. The lack of awareness is scary. 

There is an endless supply of people and companies spewing infinite ways we should spend our money, but there aren’t a lot of people trying to help us save it. I’m proud to be a part of a program that works hard to be that voice, and even prouder of credit unions for being the type of financial institution that cares enough to prioritize that for their members. 

Last week I was interviewed by a local TV station about the financial education that we provide with the Young & Free program. If you’re not convinced by this point, watch the clip below to see (via my muppet-like expressions) that I really am this pumped about improving financial literacy in my generation.

Cheryl

Story Time: From Credit Union Member To Credit Union Director

Photo by purplebeats

I've been in business for 21 years. My last "real job" was actually in high school. Needless to say, I've been very fortunate to work for myself and build a business that I am proud of. 

Over the years, I've been very focussed on shaping and reshaping my business. In fact, I can count five subtle changes in direction along the way. Fresh out of art school, I started out as an independent graphic designer creating brand identity packages for small local companies within a 75-mile radius. That was version 1.0. Versions 2.0 through 4.0 were a series of additions and subtractions that led to marketing for credit unions. Version 5.0 is the marketing firm you see now – Currency Marketing is dedicated to helping credit unions attract and retain new young adult members and we serve credit union clients all over North America. It's been an exhilarating and rewarding journey.

Somewhere between version 4.0 and 5.0, I hit my first rough patch. For the first 18 years in business, I had never had to worry about expenses exceeding revenue or meeting payroll, but all of sudden late 2008 hit and the bottom fell out of our new target market: U.S. credit unions focussed on the next generation of members. You see, with uncertainty surrounding the impending NCUA assessments, very few credit unions were in a position to commit to a major initiative like Young & Free. We had tremendous interest but I knew I would have to wait out most of 2009 before the new direction would really take off.

To be proactive, I met with my business services account manager at my local credit union branch. I presented my evolving business plan, my forecasts and signed contracts for current and future programs. The intention of this meeting was to be open and honest about what was coming up and to assure my rep that the next year may not look great, but the long-term future was looking very positive.

I received a letter shortly after this meeting letting me know that my line of credit was being pulled and I had 60 days to pay it off. I was stunned.

At the time, I felt like I had a great full-service relationship with my credit union. I had all of my business there including my personal accounts, my investments and my mortgage as well as my business relationship with a generous line of credit that I was barely using at the time but knew I would need to rely on for the coming year.

I had moved all of my business from a national bank to this credit union seven years earlier and I had always been treated like a valued member. I had become an avid supporter and believer in the credit union philosophy of people helping people. I had focussed my business to only work with credit unions. I thought by being honest and presenting a compelling business case that I would be able to work with my credit union to weather the coming year. I spoke with my account manager on the phone to discuss options but the decision was final. I had plenty of equity in my house that I was willing to use as collateral, but nope "head office" said that was that.

The irony was not lost on me. I had moved from the national bank to a local credit union because I wanted to shop local and establish a mutually beneficial relationship. When I received that cold, emotionless letter, the credit union advantages that I had grown to trust evaporated.

After catching my breath, I decided to turn to a man that I have always had the deepest respect for: Gene Blishen, the general manager of Mount Lehman Credit Union. I wasn't looking for a hand out, just advice on my options.

Not only did Gene listen to my story, he and his team believed in my vision and took the time to put together a fantastic financing plan to see me through. Within a month, I moved everything to Mount Lehman and never looked back. The branch is a 40-minute drive away, but that doesn't matter. This little, one-branch credit union (1/50th the size of my previous credit union) has better technology than almost any credit union in Canada and, with the shared ATM network, I have easy access to cash when I need it. The Mount Lehman staff are tremendous and have gone out of their way to help my family and my business. My momentary lapse in the belief that credit unions were different was immediately rejuvenated. 

Thankfully, 2010 and 2011 have gone exactly as planned and we are now in a great place with 10 active Young & Free regions that include 91 participating credit unions. All we needed was a little help from a great credit union to see us through the transition to our new business model.

After being a proud member of Mount Lehman Credit Union for a little over two years I inquired about serving on the board of directors. The timing was right since there was a vacancy that the board was looking to fill. I cobbled together a resume (thank you LinkedIn), met with the board, went through a criminal records check and I am now proud to say that I am a director of Mount Lehman Credit Union.

My interests in serving in this volunteer position are threefold: This credit union helped me when I needed help, so I want to return the favor; as a consultant to the credit union industry, I feel like I will learn a tremendous amount about the inner workings of a credit union through this role; and, most importantly, I want my credit union to survive and thrive.

When credit unions stop looking at the human side of a relationship and just rely on numbers, they stop being credit unions and simply become little banks ruled entirely by unwavering policies. In hindsight, I am grateful that my previous credit union gave me the boot – I've learned a lot about myself and my belief in the credit union movement through this process.

Tim

Young & Free Marketer Meet-up a success!

Since reaching 10 active Young & Free regions, we've been wanting to get our partner credit unions together to meet and learn from one another. We made it happen last Wednesday in Fishers, Indiana. We combined this experience with the CU Water Cooler Symposium 2011 to make the trip more than worthwhile for all of our attendees.

Eight out of 10 Young & Free Spokesters were able to attend. After the first session of the day, they broke off with Cheryl for the Spokester Summit to learn from each other and to collaborate on a series of videos to be released later this month.

The remaining 23 marketers worked together at the Marketer Meet-up. Brent Dixon and Ron Shevlin graciously took time to be our guest speakers and each of the regions represented presented an area that they excel at. The energy in the room was fantastic as everyone learned, laughed and shared. It was great to see friendships made and cooperation and collaboration in action. 

As part of the presentation, we put together this 2011 highlight video.

Combining this event with the CU Water Cooler Symposium made for a magical experience. Thanks to everyone who was able to make it!

Tim

That makes 20 Young & Free Spokesters!

We launched Young & Free Alberta in October 2007 and almost four years later, we've hit 20 Young & Free Spokesters! We are at a moment in time where there are 10 active Spokesters and 10 Alumni.

It has been a real treat to watch as each of these talented young adults has found their voice and created a following in their region. We have now passed 80,000 accounts opened across all regions thanks in large part to their hard work. 

This group of incredibly talented young adults has combined to create more credit-union-loving content than I thought was possible.

I feel kind of like a proud papa!

Want to meet a few of them? We're hosting our second Spokester Summit right before the CU Water Cooler Symposium in Fishers, Indiana. Expect to see seven or eight Young & Free Spokesters hanging out at the Symposium on Friday, September 30—make sure to say "Hi."

Tim

Living Young & Free Show 045: Overpriced Convenience, Buying Used vs. New & Lessons Learned

Michelle in New Mexico looks at the convenience of overpriced items, Dex in Alberta shares tips on buying vehicles new or used and Rob in St. Louis sings us some lessons he's learned as a spokester.

You can also download all of the episode as a podcast from iTunes and you can watch all previous shows!

Cheryl

Are credit unions too local for Gen Y?

Matt Mills, the new Young & Free Indiana Spokesperson, just released a video that explains shared branching. It's excellent, take a look:

I have never heard the phrase "a credit union is simply too local" uttered before. I've known that accessibility is a significant barrier for young mobile adults, but I'd never heard it put so simply and bluntly.

For a century, credit unions have trumpeted how local they are. For some, it's the entire thrust of their messaging. For the next generation of members, it could be one of the biggest put offs.

Technology, shared branching and ATM networks go a long way to solving this problem, but the biggest hurdle is perception and understanding. Matt is an example of a typical 20-something and his opening line should make you think long and hard about your credit union's situation, "When I was first asked to join a credit union, my initial thought was NO WAY."

This begs two questions:

1. How many of you are asking young adults to join? I don't mean on billboards, TV or banner ads. I mean really asking in person at events, through physical referrals. Credit unions are way too polite and never ask for the sale. It is critical to be where Gen Y physically is. Not just on Facebook, I mean at events and on campus.
2. What are you doing to show that your credit union is not too local? This is a barrier to entry that needs to be acknowledged and addressed.

Tim

Living Young & Free Show 044: Tips for Spare Change, Keeping Score & The Pressure to Spend

Janelle from Michigan shares tips for spare change, Rob from St. Louis talks about keeping score and Darryl from South Carolina talks about the pressure to spend.

You can also download all of the episode as a podcast from iTunes and you can watch all previous shows!

Cheryl

Living Young & Free Show 043: Cheap Vs. Frugal, High Interest Debt & Giving Back

Darryl from South Carolina covers the difference between being cheap and being frugal, Alex from Tennessee looks at high interest debt and Lee from Alabama talks about giving back.

You can also download all of the episode as a podcast from iTunes.

Cheryl

Living Young & Free Show 042: Shopping Jedi & Lessons Learned

Rob from St. Louis takes on shopping like a Jedi and Keith from Ontario shares a few lessons he's learned being a spokester.

You can also download all of the episode as a podcast from iTunes.

Cheryl

Living Young & Free Show 041: Textbooks into Money, Talking Finances with Your Spouse and Buying to Impress

Janelle from Michigan sells her textbooks to make money back, Lee and his fiance from Alabama talk budgets and Alex from Tennessee discusses changing your spending habits.

You can also download all of the episode as a podcast from iTunes.

Cheryl