How Credit Unions Can Build Lifelong Member Relationships Through Immersive Financial Education
By Tanya Van Court, CEO, Goalsetter
November 20, 2024
Imagine this: a 12th grader, ready to step into the world, brimming with dreams and potential. But when handed a simple quiz on personal finance, they stumble over questions about credit scores, loan interest, and budgeting.
Now imagine that next to this teenager sits their parent, taking the same quiz – and surprisingly, they’re struggling too. This scenario isn’t just a thought experiment; it’s the reality uncovered by a report released by Goalsetter earlier this year.
Goalsetter’s platform, which quizzes both teens and adults on the building blocks of personal finance, has spotlighted a critical knowledge gap. Basic financial skills, like understanding debt management or how credit scores affect future opportunities, elude not only young people but many adults as well.
Shockingly, 87% of teens lack essential money management knowledge. Parents, who feel they should be guiding their children, report feeling just as underprepared. According to a report released by Wise, only 36% of parents reported feeling very confident about the financial advice they offer their children. They’re not alone – financial literacy has been a national challenge for decades.
So, what happens when young people enter adulthood without the financial skills they need? Unfortunately, many quickly find themselves facing crippling debt, low savings, and other challenges that can cast a shadow on their goals and delay their effort to thrive financially.
This is where Goalsetter’s “Learn Before You Burn” feature comes into play, transforming the typical debit card transaction into a lesson in financial responsibility. Imagine a young person excited to make their first purchase but required to complete a weekly financial literacy quiz to unlock their funds.
The goal isn’t to restrict spending – it’s to foster understanding about the impact of spending. Each quiz question reinforces concepts, covering topics from budgeting to investing in a relevant and engaging way. As children learn, they bring their parents along on the journey, sparking conversations around the dinner table about everything from savings goals to the cost of borrowing.
For credit unions, this kind of tool is invaluable. It goes beyond simply providing a card – it’s a gateway to building lasting relationships with families who appreciate that their credit union is invested in their long-term financial health. Parents, knowing that their credit union offers this resource, feel a sense of trust and relief. They’re not alone in trying to navigate the often-murky waters of financial education, and they don’t have to shoulder it all alone. In fact, nearly 80% of parents say they want help teaching their kids about money – and they’d prefer it come from a trusted institution like their credit union.
But why stop there? As financial literacy grows within a family, so does their financial confidence, laying the groundwork for generational wealth. With tools like Goalsetter’s “Learn Before You Burn” feature, credit unions aren’t just supporting members in the present; they’re investing in future generations. They’re positioning themselves as trusted guides, helping young people grow from curious teens into financially confident adults.
For credit unions in today’s competitive landscape, this type of engagement is crucial. Fintech platforms have attracted young members by offering digital-first convenience, but they often lack the trusted, community-focused reputation that credit unions bring to the table. Partnering with Goalsetter allows credit unions to give young members the best of both worlds: digital access and meaningful financial education, backed by an institution that cares about their well-being. This unique feature creates lifelong bonds, encouraging kids who grow up using the platform to stay connected to their credit union as they advance through life.
In the end, Goalsetter’s data from “Are You Smarter Than a 12th Grader?” provides a powerful reminder of how vast the financial literacy gap truly is. But more importantly, it also offers a solution. Credit unions have the opportunity to lead in helping to close this gap by empowering young people with the knowledge they need and fostering loyalty that benefits everyone.
As we envision a future where financial wellness is the norm, tools like these are no longer just nice-to-haves – they’re essential. And for credit unions ready to be part of that future, Goalsetter offers the perfect partnership.
Connect with Goalsetter to learn more.
Goalsetter is a fintech and not a bank. Banking services and debit cards are provided through participating credit unions.
About Goalsetter
Founded by Tanya Van Court in 2016, Goalsetter is an education-first family finance and technology platform offering credit unions a 360° solution for reaching their next generation of members. A former Nickelodeon and Discovery Education executive, Tanya had a long career trajectory in creating digital products, but it wasn't until her 8-year-old daughter asked for an investment account and a bike for her ninth birthday that she realized her true calling. In that moment, she knew if she could get every kid in America to become a saver and investor instead of a consumer, she could change the world. And so, Goalsetter was born.