Five ways financial counseling benefits your credit union

April marks two major credit union celebrations dedicated to making members more financially knowledgeable: National Financial Literacy Month and National Credit Union Youth Month™. All month long, credit unions will promote the importance of informed financial decision making by hosting special counseling events for their communities.

Counseling is arguably the best channel credit unions have to educate their members about the complexities of their financial lives, but adding a certified financial counselor on staff is a serious investment; what, exactly, is the return?

To find out, we spoke to Chris Wolgamott, manager of financial counseling at Meritrust CU, and Ken King, retired executive director of Consumer Credit Counseling Service and Family Service Association of Sheboygan. Both financial counselors and educators in the CUNA Financial Counseling Certification Program (FiCEP), they narrowed their answers down to five main areas.

1. Trust

King and Wolgamott assert that the foremost benefit of financial counseling is its power to grow a member’s confidence in their credit union.

“I don’t think you could walk into a major bank and have them send someone to help you sort out your finances,” says Wolgamott. “Offering this service helps distinguish your credit union—and credit unions in general, really—as a reliable source for financial information.”

King adds, “Especially if you have an approach that prioritizes financial wisdom over financial knowledge—if you teach members to be financially independent instead of merely solving their short-term problems—you will absolutely see increased trust from those who seek counseling.”

2. Growth

With increased trust comes increased membership and sales, says King. “I wouldn’t treat financial counseling as a place to do direct sales—your credit union already has enough sales points,” he argues. “But it is a great indirect sales point, because as members feel more comfortable with the credit union, the more likely they are to use you for future business.”

Wolgamott agrees. “I can’t tell you how many times I’ve finished a counseling session and the member says, ‘I’m bringing my checking account here,’” he notes. “Counseling encourages people to take a chance on you.”

3. Millennials

One interesting phenomenon with financial counseling that both King and Wolgamott have observed is its popularity with millennials. King says, “Counseling is popular among young people today because they are really hungry for two things: financial literacy and positive relationships with people they can trust.” King believes this hunger emerges from observing their parents’ financial mistakes as well as memories of the Great Recession from 2007-2009.

4. Staff

 King describes financial literacy as “critical” for the entire staff, and cites FiCEP as an effective way to make them fluent in key issues. “You never know which person will be tasked with identifying and resolving a member’s problem,” says King. “Even if you don’t end up practicing counseling, training in the subject is worthwhile because it prepares you to connect a member to the resources they need.”

Wolgamott adds that staffs as a whole are strengthened and unified when they get certified in financial counseling. “If your whole team enrolls in the same counseling program, you all end up speaking the same language,” he says. “When everyone can speak intelligently about fundamental concepts like budgeting, your credit union creates a positive culture of financial literacy.”

5. Fulfillment

Ultimately, both Wolgamott and King agree that the most personally rewarding benefit of financial counseling is the satisfaction and enjoyment it provides. “I’m a teacher at heart, and I love being able to teach people ways to live more efficiently,” says Wolgamott. “There’s also a fun puzzle-solving aspect to the job that always keeps it interesting.”

King, who teaches for FiCEP “every chance [he] can,” says, “Financial counseling allows you to work members through problems that they weren’t even aware of. That’s exciting.”

To learn more about FiCEP, visit cuna.org/ficep. To learn more about National Credit Union Youth Month, visit cuna.org/youthmonth. For tools you can use in financial counseling, visit cuna.org/microsites.