Did you know that 51% of Americans have less than three months’ worth of expenses covered in an emergency fund? While credit unions may not have control over the economy, they do have control over the financial future of their younger members.
With inflation and economic uncertainty clouding 2022, CUs should emphasize the importance of financial education for their members. Offering tools and advice will help members feel and become more financially secure, especially for Gen Z members who are just starting to understand their finances.
The best way to guide Gen Zers is to lead them with easy steps they could implement as part of their daily routine; making better financial choices is a habit worth learning!
Here are a few pieces of financial advice CUs can give when engaging with their younger members that will resonate with them:
- Separate wants from needs. Ask yourself, do you really need this? When money is tight, it should not be spent unless absolutely necessary.
- Keep track of your spending. If you know where your money is going, it will be easier to make changes if you need to. Try to limit using expensive food delivery apps or cancel a streaming subscription you barely use!
- You should have a financial goal. Investments are like modes of transportation: a bicycle, a car, a bus, a plane, etc. What you take depends on where you want to go. This means your financial goals will dictate where and how much you should invest.
If your CU is considering other methods of teaching your members financial literacy, Zogo could be the one. Users are able to learn through bite-sized modules on various topics, like Saving Money or Crypto 101. Zogo also has a fun toolbox feature with a Savings Calculator that will help members determine how they can divide their monthly income into needs, wants, and savings.