I can’t begin to tell you how great it makes me feel to work for CUNA.

Why?  One reason is because my department—CUNA’s Center for Personal Finance (CPF)—produces personal finance materials that credit unions trust to educate their members about important money matters.

And financial education is important to the credit union movement. Financial literacy efforts are part of the fabric which separates credit unions from other financial institutions. In fact, even American Bankers Association Senior Economist Keith Leggett gave a nod to credit union financial education efforts a few years ago.

So it does my heart some good to be a cog in the mighty credit union wheel.

Now, producing personal finance materials that credit unions can trust doesn’t happen overnight. Each year CPF holds several planning sessions to anticipate the needs of credit unions and the consumer-members they serve.

It’s been said, you can’t truly know where you’re going until you know where you’ve been. So, at the end of the year CPF produces a year in review identifying our contributions to the credit union movement. It’s a wonderful tool that helps the department recognize what worked well and spark ideas to plan and research for the coming year.

Let me peel back the CUNAverse curtain and share the 2010 Center for Personal Finance Year in Review with you… see below. Perhaps your credit union or credit union organization can use this as an example for crafting something similar.

What does your organization do to help with planning for the upcoming year?

CUNA’s Center for Personal Finance Year in Review – 2010

Collaboration

• CPF contributed to CUNA’s ongoing PR and outreach efforts

Each week CUNA’s voice of authority in financial literacy reaches a wide national audience through Home &Family Finance Radio, a joint project under the direction of Washington D.C. staff …. The project entered a new phase with the development of a Home & Family Finance Radio player for credit union websites.

• CPF staff expertise received outside recognition

Staff currently represent CUNA and the credit union movement on the boards Personal Finance Employee Education Foundation of the and the Association for Financial Counseling and Planning Education. In 2010, the following online and print publications tapped CPF for interviews and quotes: bankrate.com, creditcards.com, Parents Magazine, Daily Herald (an online suburban Chicago news outlet), Crain’s Detroit Business, and Parenting Magazine.  Also in 2010, NCUF-funded, CUNA-sponsored, and CPF-guided preschool financial literacy
research conducted in partnership with the University of Wisconsin-Madison
was cited at an international child finance conference in Amsterdam.

• CPF products, programs put the spotlight on credit unions

This year’s annual National Youth Saving Challenge resulted in 176,750 youth at 352 participating credit unionsputting $25,627,753 in existing and 10,631 new youth accounts. Participation in the Desjardins Youth Financial Education Award recognition program brought a record number of entries (56) from a record number of states (29). The Louisiana, California, and Illinois leagues hosted events showcasing CPF’s live group budgeting simulation Mad City Money, which also saw widespread use during Wisconsin’s MoneySmart Week, including all four of Madison’s high schools.

• CPF partnership initiatives reached new markets

CUNA’s relationship with Coopera Consulting was strengthened by a number of
CPF joint projects, including editorial oversight of the Spanish language website El Poder Es Tuyo and the production of a basic money management seminar and four instructional videos in Spanish. CPF also brought Cabot Creamery Cooperative into a partnership with the New York Credit Union League that led to the licensing of content for a youth activity booklet about maintaining health and wealth. A new partnership with the Direct Selling Association and the Direct Selling Education Foundation resulted in a deal to license an online money management course.

Service to credit unions and members

• New CPF products addressed new challenges and opportunities

The launch of the Money Mission, a joint collaboration between CUNA
and the Wisconsin Credit Union league gave CPF entry into the world of online educational gaming. With the launch of El Poder Es Tuyo, CPF expanded its support of CUNA’s Hispanic Initiative while garnering an award from the National Association of Consumer Agency Administrators for quality of text and design, effectiveness of message, accuracy and usefulness of information,
creativity, value to the community, needed changes and program results.

• CPF improvements kept existing products fresh and relevant

A redesign of CPF’s online editorial service Copy & Art Express improved the 12-year-old product’s ability to deliver articles, ads, and images, allowing subscribers to beef up their newsletters and web sites and, in one case, produce a 16-page informational booklet. All told, the department’s suite of onlineEDGE products combined generated an estimated 45 million page views from 850,000 visitors to the websites of 1,223 subscribing credit unions during 2010.

• CPF responded to consumer news and changes in federal regulation

A spate of news stories about investment and other schemes targeting seniors prompted the production of a series of articles and brochures alerting credit union members to the threat and how to protect against it. Guides to Independence added two new credit card courses that reflect consumer changes wrought by the Credit CARD Act of 2009.

We have very talented and dedicated staff working for America’s credit unions here at CUNA. Our interns are no exception.

In fact, one of our Editorial Interns, Casey Mysliwy, was published in the December 2010 issue of Kiplinger’s Personal Finance magazine. Casey helps produce material for CUNA’s Center for Personal Finance web publications such as Home and Family Finance Resource Center and MoneyMix: Launch Your Life.

We know how talented she is, and we are very excited that a respected and established personal finance periodical such as Kiplinger’s recognizes her talents as well. Casey’s success is a testament of her talents and reflects the expertise of CUNA staff.

Watch this video to learn more about Casey’s article, and take a moment to read the article online.

Some of the funniest commercials have aired during back-to-school season, like this one from Office Max (my favorite part is the lollipop switched for a magnifying glass).

But while many students roll their eyes at these commercials, others are scratching their heads wondering how the final set of CARD Act rules–which went into effect on August 22nd–will affect their credit accounts.

It’s my opinion that this is a perfect opportunity for credit unions to reach young adults and help them with financial education.  Why?

1. The CARD Act is arguably the most important financial change to impact this demographic.
2. Young adults WANT to learn how to better manage their money. According to a recent study by Sallie Mae, 84% of undergraduates said they needed more financial education.
3. Credit unions that use financial education to guide young adults through these confusing times will gain their loyalty in return.

It’s that second point that’s most interesting… the average undergraduate senior leaves college with $4,100 in credit card debt AND wishes they had known more about managing credit and their finances. That’s where credit unions can make an impact with this demographic; by providing the desired financial education using relevant communication channels.

This is the main reason I’m psyched about my role here at CUNA. I get to help credit unions provide valuable financial information to my demographic using relevant methods such as the Web and in-person seminars.

We all know using a credit card isn’t difficult. It’s HOW to use a credit card that gets tricky. And that’s what I wanted to convey to folks my age with the video I produced for our new Seminar In A Box aimed at those starting out in life.  (Credit 101: Do You Pass the Test will be released this fall.)

Jeremy was awesome, and very candid. I wanted him to tell his story and offer advice based on his experience with credit. Hearing that message and discussing the situation with peers goes a long way and I think it amplifies the rest of the information presented throughout the seminar.

Check out this shortened version of the video…

Jeremy shares more compelling stories in the longer version that’s sure to resonate with the intended audience… like the story about his roommate’s use of credit, his episode with collections, how his credit problems affected his college career, and some advice based on his experiences.

Now it’s your turn… am I off base? Do you think young adults are a lost cause for credit unions? Are there better ways to reach them and gain their loyalty? I have lots to say about this subject–too much for one post–so let’s keep this conversation going!

Kate Neuens

From Kate Neuens:

When I walked in for my first interview for an editorial internship at CUNA I was asked what I knew about credit unions.

I sat, completely unsure of what to say. I managed to offer, “Well, I belong to a credit union.” I had no idea that credit unions are not-for-profit, cooperatives, and have a D.C. location where they work hard to protect credit union members. I also didn’t realize I had not answered the question that well (it was my first professional interview, so cut me some slack!).

I did not receive the internship at CUNA, but then I received a call a few months later that another internship was open and that I was welcome to interview. Alas, I did not receive that internship as well. I had lost all hope of working at CUNA when I got a call on my first day back to class during my junior year at UW-Madison. I was offered an internship in the Center for Personal Finance working with Googolplex and I’ve been here ever since!

When I started this internship I figured I would just read and edit stories, do my job well, but not become engrossed in the CUNA and credit union system. Well, that didn’t happen. It’s impossible to work here and not get caught up in our mission! I love that credit unions are not profit driven and are run by local communities, focusing on helping consumers. Sometimes it feels like everything is run by “too big to fail” corporations,, but all you have to do is look down Main Street in any town and know that’s not true when you see the credit union. Members aren’t nickel-and-dimed, and credit unions want to help them achieve the best financial success they can. I opened my first account at a credit union, and joined a credit union when I moved to Madison, but I had no idea about the whole amazing system behind the organizations.

Once I learned all that credit unions do to help their members, I found a new appreciation for the work I do here. I think Googolplex is a really important part of our mission here at CUNA and for credit unions. One of our main priorities is protecting consumers, and that means preparing everyone, especially kids and teenagers, for tough decisions about money. We teach youth about the importance of credit, protecting their identity, setting goals for their savings, and how a credit union is the opportune place to get help for anything financial. I’ve always been relatively smart about finding a balance between saving and spending, but I know plenty of people my age who don’t have a clue. I get some pleasure from knowing we may be stopping some kids from making big mistakes with their cash or credit.

So, I came into CUNA knowing nothing, and I mean nothing, about credit unions, and now I know a little something about these fantastic organizations. I’ve learned a lot working here, and I’ve also been taught a slew of valuable lessons and skills, like proper copy-editing, team work in the office, and a whole different type of writing style. I see credit unions as always being a part of my future, because there’s no way I’m moving my account to a bank after all I have learned here!

Kate Neuens is an editorial intern in the Center for Personal Finance. She is set to graduate from UW-Madison in May ’11 with a degree in Communication Arts and English.

I’m grateful for the amount of positive coverage credit unions have received as consumers search for alternative banking solutions.  It’s raised public awareness about credit unions as safe financial institutions with excellent benefits for members.

In my opinion, however, the coverage falls short in delivering the full story on why credit unions are a better option for consumers. I worry that the credit union difference—our voluntary community involvement, commitment to financial education,  service to the under-served, and so on—is becoming lost in the shuffle.

The articles I’ve read tout credit unions’ better interest rates and lower fees. Yes, these are important selling points, but they’re not the only ones that motivate people to move their money or remain loyal. We can’t lose sight of our philosophical differences—either communicating them or operating by them—even though credit unions are enjoying large scale, positive exposure.

Going beyond rates and fees is what truly separates credit unions from other financial institutions.  Sure, lower fees and better interest rates are important. They motivate a certain population. It seems to me, however, that the most loyal members are those who also identify with—and are impacted by—our credit union philosophy.

So here’s my call to action….

We need to pull at the heart strings, not just the purse strings. And we can’t rely on others to do this.

Communicate how your credit union is helping the community through press releases and letters to the editor of your local paper. Reach out to your members by participating in the community and let them know about your efforts. Share member stories and promote your financial education resources like Seminars in a Box. Make a concerted effort to enhance the member ownership experience.

These characteristics are just as important to share with the world. While positive coverage focuses on credit unions as safe alternative banking solutions with great rates and lower fees, it’s our duty to trumpet the credit union difference.

Tracy Anderson

From Tracy Anderson:

I have to admit that my personal finance skills have never been great.  Sure, my parents encouraged me to budget and tried to reinforce the importance of saving for a rainy day.   It wasn’t until I found myself buried with student loans and other “adult” expenses just like many other college grads that I finally cracked down on my spending, and created a personal budget.

I received plenty of help from my credit union to get my budget on track through categorized expense tracking, calculators, personal meetings and and tips on their Web site.  The small amount of personal attention made them my go-to resource for any questions or future financial assistance.

While it is great to have these resources now, I often wish I had been fully engaged with my finances from an earlier age.  I didn’t truly grasp the concept of how much life could cost until I was out on my own – thrown into the real world!

Younger generations are really struggling with money management skills much like older members, and the economy hasn’t made life easier for anyone.  This is evident by a recent article in Credit Union Magazine stating that bankruptcy filings in March of 2010 represented the highest monthly consumer filing, reaching 149,268!  American Bankruptcy Institute(ABI) Executive Director Samuel J. Gerdano states, “The sustained economic pressures of unemployment coupled with high pre-existing debt burdens are a formula for consumer filings to surpass 1.5 million filings.”

Many members are feeling lost and unsure of what their next step should be, so now is the time for credit unions to sweep in and help.  While you can help your current members get back on their feet, you also have the ability to be known as the source of good personal finance habits for potential members and prevent the financial issues many people currently face.

What kinds of things are you doing to be the trusted, go-to resource for your current and future members?

Tracy Anderson is Marketing Communications Specialist for the Credit Union National Association.