Help your members save money now
Ten strategies to help your members spend less, save more and survive inflation.
With inflation reaching some of the highest levels in decades, your members are likely feeling the financial pinch at every turn. This includes when filling up at the gas station, paying the rent or phone bill, purchasing groceries and even making travel plans.
According to the Department of Labor, the consumer price index—a measure of the overall change in the cost of a specific set of goods and services—was up 8.5 percent year over year in July. It is down slightly from June’s record-setting 9.1 percent—a 40-year high—but still alarmingly high. In comparison, the rate was 1.4 percent two years ago.
Household debt, such as mortgages, credit cards and car loans, has also hit record levels. Second quarter household debt has risen to $16.15 trillion, driven mostly by increases in mortgage balances, with credit card and auto loan debt also rising.
Overall delinquency rates also rose for all debt types, with delinquencies for credit cards and auto loans creeping up, particularly in lower-income areas, according to the New York Fed's quarterly household debt report.
On the level
In an ideal world, advances in financial literacy—which is defined as the ability to manage debt, investments and savings—should accompany increases in inflation. However, data shows that's not the case. Annual surveys by the TIAA Institute and GFLEC at the George Washington School of Business reveal that financial literacy in the U.S. is at a detrimental level.
Many Americans struggle to make ends meet and are burdened by debt because of their low levels of financial literacy.
Clearly, an increase in adult financial literacy is required, particularly during inflationary periods. So, where do your members go to get some? Where do they even begin? We believe it should be at their credit union. Credit unions that provide financial education benefit both their members' financial capability and well-being and their own through increased loyalty and profitability.
Ten takeaways
At Currency Marketing, we specialize in financial education. It’s a Money Thing, our financial literacy program, offers 48 comprehensive learning modules and is available to the members of over 110 credit unions.
Here are 10 (of 48) financial topics that could be helping your members to improve their financial literacy and weather the impacts of inflation right now:
To learn more about how your credit union’s members could benefit from our financial education program, please click the link below.
Tim McAlpine is the Founder & CEO of Currency Marketing. He is best known for developing the It's a Money Thing Financial Education Program that credit unions from around North America are using to connect with new young adult members. He is also a driving force behind CUES Emerge, an emerging leader program that combines online learning, peer collaboration and an exciting competition component.
