Editor's Note: CUInsight is hosting a free webinar Wednesday, October 15 titled, “Teens: The growth engine credit unions are overlooking”. We hope you’ll join us! Register here.
Credit union leaders often think of teens as “future members,” individuals to focus on once they’re old enough to generate meaningful revenue. But this perspective misses a critical opportunity. Teens are not just tomorrow’s members; they are already active participants in the financial ecosystem and a catalyst for growth today.
Teens are already driving value
Even before turning 18, teens interact with financial products in ways that create measurable value for credit unions:
- Debit card usage and interchange fees: Teens used to save in cash; now they keep over $1,000 on average in their accounts. They regularly spend about 20–30 debit card purchases each month, with an average interchange of $0.35 per swipe. That adds up to roughly $120 a year in interchange revenue. On top of that, those balances earn credit unions around $40 annually at a 4% mixed asset yield. Together, teen accounts become active, revenue-generating relationships.
- Early adoption of digital products: Teens engage quickly with mobile banking and apps, setting expectations for the entire family. Observing their children use these tools encourages parents to explore services and adopt products themselves, creating household-wide engagement and boosting loyalty.
- Daily banking activity: Simple behaviors like checking balances, transferring funds, and depositing allowances build financial habits that, when nurtured, foster long-term loyalty.
Understanding these behaviors allows credit unions to position teen accounts as a core growth engine, not a secondary effort.
Engaging teens brings parents along
The impact of teen engagement extends far beyond a single account; it shapes entire family relationships with the credit union. Parents are the primary decision-makers for major financial activities, from auto loans and college savings to everyday banking, and they have the financial resources to act now. When teens are actively engaged, parents naturally follow, exploring services and adopting products themselves.
In essence, teen engagement multiplies the effect of one account by influencing household-level financial behavior, creating a foundation for immediate revenue and long-term loyalty.
Why this matters
Recognizing teens as active participants, rather than “future members,” allows credit unions to:
- Drive immediate growth: Teens’ debit card usage and product adoption generate revenue today while paving the way for future membership.
- Strengthen family relationships: Products designed for both teens and parents make the credit union central to household financial life.
- Build long-term loyalty: Early engagement shapes financial habits, creating a generation of members likely to remain loyal for decades.
Financial literacy initiatives are powerful, but only when they go beyond passive content. Programs like chore-based allowances, practice loans, and interactive financial lessons allow teens to engage with real products in a safe, guided environment. These hands-on experiences make abstract concepts like saving, budgeting, and responsible spending tangible and memorable.
How credit unions can act
To fully leverage teens as a growth engine, credit unions should consider:
- Integrated family-focused digital tools: Platforms like Boucoup enable parents and teens to engage together, making financial education interactive and rewarding.
- Milestone-triggered engagement: Be present at key life events, such as a teen’s first car or college enrollment, delivering timely, relevant offers.
- Seamless account transitions: Teen accounts should automatically transition to adult accounts at 18, preserving engagement and reducing attrition.
Conclusion
Teens are not merely “tomorrow’s members.” They are today’s growth engine for credit unions, influencing both immediate revenue and long-term loyalty. By designing products and experiences that engage entire households, credit unions can strengthen family relationships, capture new revenue streams, and secure the loyalty of the next generation.
Institutions that embrace this shift, providing hands-on learning, household engagement, and seamless transitions into adulthood, will differentiate themselves in a competitive landscape and position themselves for decades of sustainable growth.
Don’t forget to join CUInsight and Boucoup, powered by BankingOn for our free webinar titled, “Teens: The growth engine credit unions are overlooking“, on Wednesday, October 15. Register yourself and a colleague here.
