Our Members Need Help Navigating 2023

We’re all old enough to know economies are cyclical. We’ve lived through the dot-com crash and the 2008 sub-prime lending crisis, but our young members have only experienced an economy that points north. And in truth, the economy has been so strong for so long, even some of our older members have eased into habits that may not serve them well over the next several quarters. As credit unions in service to our members and the communities we serve, we need to be proactive in the way we help educate our members.

In a September 2022 study published on MoneyTransfers.com, an estimated two thirds of the U.S. population shared that they did not feel optimistic about their personal finances. At the same time, we’re seeing surprising levels of loan applications and credit card spending. What that tells us is even though consumers are concerned about the economy, they’re making financial decisions with a mindset stuck in 2019. With what all economic indicators are telling us for 2023, we should be seeing fewer loan applications and less credit card spending.

What we’re experiencing in our economy is certainly not unprecedented, but for a healthy percentage of our members, it very well may be. The waters have been rough for 2022 and the storm doesn’t seem to be letting up – let’s be a lighthouse for our members.

As the EVP who oversees member outreach at Gesa Credit Union, creating an open and informative dialogue with our members about money management is a top priority. Below are a few tactics Gesa uses as we help educate our members on this important topic.

1. Communication is key.

2023 should be the year of over-communication with our members. Start the year by educating them on the state of our economy while offering perspective and educational tips. It may last four quarters or more, but this too shall pass. It’s not all doom and gloom and certainly our communication to members should remind them there will be light at the end of the tunnel –

until then, your credit union is here to help navigate. Send monthly updates, tips and communication directly to your members.

2. Start early.

While important at any age, teaching financial education early is one of the best ways to prepare someone on how to manage their money. In a 2021 study from Annuity.org, only 36% of Gen Z adults scored 51%-100% on a financial literacy test, compared to 48% of millennials, 48% of Gen X and 59% of baby boomers. With the decline in financial literacy in recent generations, finding ways to bring financial education classes or programs to younger groups, such as high school and college students, is a great way to help bridge that gap.

At Gesa, for example, we’ve seen great success with our High School Credit Union Program. With student-led branches at 12 high schools across Washington, thousands of students have learned how to access and operate their financial accounts as well as perform basic account transactions in a realistic credit union atmosphere. Additionally, student interns help operate the branch as tellers, providing them with real-life financial industry experience.

3. Look at the individual.

With every member comes unique circumstances. As you work to assist each person, always remember that there is no “one-size-fits all” solution. You need to consider what each person’s individual needs are based on their situation. For example, if a member is telling you they feel like their savings aren’t growing, don’t assume it’s only because they don’t have a structured budget in place. Perhaps after talking to them you’ll find out that they do stick to a strict budget, but their savings are being held in an account that offers little to no interest. Listening to what your member is going through helps you better assess the situation at hand and allows you to provide them with thoughtful and specific advice.

4. Be accessible.

Just like every member is going to have a different financial situation that requires a unique solution, each member is going to have a preferred method of how they receive and access information. Money management resources, or any financial education information for that matter, that are offered to your members should cross multiple platforms and be accessible to all. Some examples of this can be offering both in-person and online seminars or providing resources and tools that can be easily found on your website.

When ensuring your resources are accessible, ask yourself questions such as: Are they ADA compliant? Am I setting up this event at a time where it’s easy for people to attend? Am I putting this information online in case someone is not able to attend the in-person event? Can I navigate my website easily?

5. Stay educated.

As times change, you want to ensure your credit union staff are up to date on the most recent information concerning the economy, interest rates and financial education. This not only benefits your staff, but it is also imperative to making sure that your members are getting the most accurate information. You also want to keep training ongoing for your entire team, no matter their position. After all, you’re never too old to learn something new.

At Gesa, one way we train our team is through our internal curriculum, Gesa University. Whether they’re at the corporate office or onsite at one of our branches, each team member is tasked with completing the entire course load. Completing this curriculum not only helps our team members provide our members with the best financial education and advice, but it also serves to assist our team members who are going through the same financial issues that our members are.

6. Listen and learn.

This one may seem obvious, but it’s vital – listen to what your members are telling you. Use their feedback to better shape the financial education information and money management resources you provide. Whether you conduct ongoing member surveys, or you meet with your branch managers to get feedback on what their specific branch and/or region needs, inviting these comments and applying them to your credit union’s practices not only improves operations, but shows members that you value their feedback.

The need for open dialogue about money management is not just restricted to times of economic hardship. Although the circumstances surrounding these conversations will continue to evolve over time, what will not change is our role as credit unions to provide the highest standard of financial care and education for our members.

Richard Waddle is EVP at the $5.5 billion, Richland, Wash.-based Gesa Credit Union.