Financial Education is the magic bullet! Credit unions need tooffer more financial education!

As a financial educator, I hear it all the time. But I don'tagree. Financial education is NOT the solution. Sure, it's part ofthe solution, but it's really just the start. Credit unions need tomove beyond education and help members change their behavior.

A wise person once said, “What good is a world-class brainsurgeon if they lie out on the beach all day?” The surgeon hasknowledge and experience but does nothing with it. That isn't power– putting that knowledge into action is power.

Look at health and fitness. We know we should work out and eatbetter. But a daily routine of going home after work, lying on thecouch, watching TV, and eating a pint of Ben & Jerry's is hardto break. No amount of information is going to change that. So whydo we think it's going to be any different for personalfinance?

Despite educating more than 1.2 million students over the pastthree years (according to the latest annual report fromthe National Youth InvolvementBoard), tests show no improvement in youth financial literacy.Young adults are going into record levels of debt to financeeducation and make ends meet. They're using high-risk lendingproducts such as payday lenders and pawn shops. Why do we celebratethe number of presentations and not the impact?

One of my favorite resources for changing behavior is the book“Switch: How to Change when Change is Hard” by Chip and Dan Heath.The book talks about the rider, the elephant and the path. Therider, our rational side, likes data and facts. The elephant, ouremotional side, needs to feel something with regards to change. Thepath is the environment in which we live and work. When all threeare on board/aligned, it's easier to make change stick. Throughpresentations and workshops, we can talk about statistics and factsand information to appeal to the rider/rational side. But how canwe appeal to the elephant?

We need members to think about the emotions they will feel aftermaking a change and reaching their goal. I ask people to write outor draw how they will feel when they are debt free or when theyhave enough money to retire. Then I ask them to write down one-stepaction items to do that day, week and month to get closer to theirgoal.

Environment is just as important to changing behaviors. How areyour branches and products designed? When members use your onlinebanking, are they encouraged to make smart choices? Do you offerPFM tools and encourage members to use them? Do you offer financialcounseling? Even better, do your financial counselors understandbehavior change, habits and motivational theories and know how toimplement them?

I challenge you to help members change their behaviors. We caneducate our members until our face turns blue, but until we helpthem take action, we will have failed them. Let's start focusing onimpact and start making a difference.

Kelsey Balcaitis, CUDE, is youth financialeducation coordinator at A+ Federal Credit Union inAustin, Texas. She can be reached at (512) 421-2880 [email protected].