RALEIGH, N.C. -- Move over Pokemon, Local Government Federal Credit Union has created a whole new world for kids under age 8 to explore and learn about money.

The fictional world of Penny Hollow is part of the credit union's latest youth initiative to engage its youngest members in basic financial concepts like saving, interest and planning ahead while having fun.

"There is obviously a trend here, and it's not a good one," said LGFCU President Maurice Smith, pointing out only 48% of NC seventh-graders are financially literate. "We need to get children engaged in the idea of financial literacy from the very beginning, and then continue to support their education so they will grow into financially responsible adults."

With an eye on creating more than just a cute image LGFCU Marketing Designer Laura Slipsky, focused on building characters that live in a world with their own personalities that would be special and unique to the credit union.

"So I started out with different sketches and using the square in the LGFCU logo, it became twins, and from there it was more a matter of thinking up what their personalities would be and basically writing the story and tone for what can happen in Penny Hollow," said Slipsky.

The result was a group of five new mascots: twins Josh and Zoey, their wise dog Winston, mentor Sweet Pea and a funny little fellow from the library, Seymour. To get kids excited about the new youth initiative LGFCU mailed out trading cards featuring each character to its youngest members.

"We wanted to give them something to interact with and thinking back to Pokemon cards the kids didn't really understand how to play the official game but liked the characters and inventing their own games with the cards," said Slipsky. "So we got the idea to mail out these 'toys' they can hold and tell others about."

The trading cards have been a hit and according to Web Marketing Manager Lamar Heyward the mailers are sparking some sibling rivalry with older kids wondering why they aren't receiving something special from their credit union.

He added that the trading cards have been a great way to generate interest in a new LGFCU Web site at www.lgfcukids.org.

The site features the fictional online world of Penny Hollow, which offers games and activities designed to introduce children to basic financial concepts. Symbolically representing all of North Carolina, Penny Hollow has beaches, mountains, farmland and metro areas, where new fun activities will be added several times a year so as to grow with the young members and help keep their interest piqued. Heyward says the site's design was built to accommodate growth, fueled by use and the feedback of users and their parents.

"We knew the overall goal is to create a destination that kids would want to visit and we could slide in these educational pieces as part of the fun," said Heyward.

To accomplish its goals Heyward said Penny Hollow and its residents would have to literally be brought to life as an interactive Web site, and the credit union turned to Baltimore-based animation/ game design branded entertainment provider Bully! Entertainment.

"We could've done it all inhouse, but we wanted to partner with someone who specializes in this, and, having worked with Nickelodeon and PBS Kids, we knew that Bully! would be just as vested as we were in creating this fun, educational site," said Heyward.

The colorful site welcomes members with a catchy theme song, downloads and games range from Dress Zoey and Josh to Seymour's Money Match. Heyward adds that with each visit kids can see the progress of the town being built so there is always something new.

"So far the feedback from kids and parents has been great they are thrilled with song, the Clubhouse is a favorite and they want more games," said Heyward. "That was actually intentional on our end to have a good foundation on which to build off of and Penny Hollow grows organically."

To spread the word, LGFCU's strategy is a mix of online and offline components including a link from its homepage to Penny Hollow and direct mailings.

"Again, we wanted to create a site where both parents and kids can enjoy," said Heyward. "The kids love getting fun stuff in the mail and the real draw is going to be the site itself. As Penny Hollow comes to life and their experience there is unique, fun-- then that will generate word of mouth among the kids and give even more validity to the site."

LGFCU is also working with a newly formed Youth Advisory Council and its 19 other Advisory Councils to gain input and feedback on the children's initiatives to help ensure the public is getting material in a useful way.

"The importance of financial literacy at an early age can't be emphasized enough, but the approach needs to be unique," said Smith. "We need to be thinking of fresh ways to make learning fun. Our efforts are already being well received by our youngest members, so we feel confident we are on the right track. Hopefully, an increased awareness in this matter will encourage others to develop their own plan."

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