Financial wellness: The heart of the credit union

In today’s economic climate, the need for financial stability has never been more dire, yet simultaneously has never felt more unattainable. Affordable housing is nearly impossible to find, the cost of groceries is astronomical—rising more than 21% in the last three years (and is expected to continue to climb)—and American credit card balances are setting records.

These rising costs due to inflation coupled with shrinking (or stagnant) salaries have led to the largest increase in those living in poverty on record. From 2021 to 2022, the poverty rate rose from 7.8% to 12.4%, and for children, the poverty rate during this same period doubled, jumping from 5.2% to 12.4%.

It’s no wonder then that 42% of Americans are living on survival budgets and 78% are living paycheck to paycheck. With so many people nationwide and locally in our communities struggling to stay afloat, the right financial partner can make all the difference, and that is where credit unions come in.

With a mindset of people over profit—offering services such as character-based lending, low-interest loans, and financial counseling—credit unions are perfectly positioned to serve as a life vest for struggling families. By creating access to financial resources and putting financial wellness at the center of the credit union and in everything it does, credit unions can help those in their communities find their way to a more financially secure future.

 

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