Want to connect and reach out to young members? Then it is timeto do research, observe and discover what young members in yourarea actually want and need.

“I think really understanding what Gen Y needs and what atypical day is like is key,” said James Flores, president/CEO ofyouth marketing firm Subcat Marketing. “Today's kids, teens andyoung adults are very different than how we were, and the morecredit unions can do to understand that the better position they'llbe in.”

He said that means actually talking to local members of Gen Y,Millenials and others and finding out everything from what do theythink about credit unions and banking products and services offeredto how they prefer to consume information.

“If you have a Gen Yer on staff talk to them, if you have highschool branches that is a fantastic place to get their thoughts,views and input as a start in the right direction,” said Flores.“If you form a youth advisory board, tread carefully to ensureyou're getting a real- world experience viewpoint. If for exampleyou present a tween Web site you've developed and simply ask themto critique it, they may alter their behavior and not tell you thatthey wouldn't use it that way in real life. The younger they arethe more they are influenced by people in the group, and theybecome who they think you want them to be.”

Flores added that the inherent challenge in how to engage thisparticular demographic is not only understanding what's going on,but how they interact is constantly changing, so don't just jumpinto something based on the latest alleged Gen Y hot trends?do theresearch in the areas served by the credit union.

Don't fall into Gen Y generalization traps. For example a recentFilene Research Institute study, “Delivering Financial Education toGraduating College Students,” finds that nothing sparks interest infinancial literacy like college graduation. Credit unions that canprovide the right information at the right time to graduates canhelp improve not just delivery but outcomes.

The report was authored by Robert F. Hoel, a Filene fellow and aprofessor at Colorado State University, and W. Ronald Smith, alecturer at the University of Wisconsin, Madison, and chairman ofthe Wisconsin Education Association Credit Union.

“People want to be told what to do,” said Hoel. “Knowing thatyou need to make good decisions isn't enough. But getting realnumbers, specific advice, and one-on-one time with an expert,that's what makes a difference.”

The report showcases a financial independence seminar developedand tested at the University of Wisconsin-Madison over the pastfive years as an inexpensive approach credit unions can duplicate.Graduating students from all majors are invited to participate in aone-day program that includes two lectures and several breakoutsessions. Most student participants also sign up for a half-hour ofone-on-one counseling sometime during the four weeks following themain session.

According to Hoel and Smith, students participating in theprogram overwhelmingly report that the seminar helped them takeactions that will improve their financial wellbeing. When surveyedthree months after the seminar, 98% said the seminar helped themmake real-world financial decisions. Within those three months, 79%took at least one major step to improve their financial well-being,and 55% took more than one.?The seminar also helped deliverlong-lasting results. About 94% of graduates who took the seminarthree years earlier report that it helped them make real-worldfinancial decisions.

College alumni associations are the best on-campus sponsors ofthese programs said Hoel and Smith. Credit union professionals canbe co-sponsors and lead some of the breakout sessions and serve ascounselors for one-on-one?sessions.

Will deHoo, FoolProof founder and president, added that creditunions should rethink financial literacy programs and go beyondjust teaching the mechanics of money. He said at a time whenconsumers are doubting banks, credit unions have a uniqueopportunity to carve real consumer advocacy into their mission.

“Young people in particular need to be taught to thinkcritically.?Knowing how to balance your account is important. Butit is more important to know how to pick the good financialinstitution from the bad one,” said deHoo. “Being told to pay yourcredit card bill on time is important. But it's much more importantto learn how to try to find a good credit card among the many badones and to learn that you should never use a credit card tofinance debt?something not many programs say, since they areunderwritten by banks.”

He said credit union programs should revolve around a basicconsumer advocacy pyramid that starts with learning to questioneveryone and every company that is trying to sell something,learning the skills to use any financial tool wisely, slowing downbefore jumping in and saving consistently.

Flores said with the laser focus on Gen Y, many credit unionsare also missing out on the opportunity to fill a huge need for avital youth connection?parents.

“Any survey that we've done, parents say they want to raise kidsthat are smart about money, but they aren't sure how to go aboutit,” said Flores. “There's an opportunity for credit unions toconnect with parents and help them start those conversations withtheir children. It's a way you can interact with that family, theirlife events and be part of their solutions to nurture and keep thatrelationship from an early age, so when those kids head off forcollege keeping their credit union account is a no-brainer.

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