
Three young members you can help in 2025
Each year the Member Aging monster has been getting bigger and meaner for credit unions across the county. Why? Because as the average age of a credit union member rises, CUs tend to become increasingly out of touch with younger members.
It doesn’t help that when we discuss young credit union members, we tend to do it in a very general sense. We talk about what young people need and want as if they are one homogeneous group, and compare their newfangled ideas to the more traditional (older) members’ priorities. All in all, this tendency can leave us with conclusions that might be too broad to actually be useful.
Like all generations, young people aren’t a monolith and we need to add some nuance to this discussion. To that end, I’ve created personas to represent three types of young members so that you can see how you might help them this year.
Overdraft Oliver
There’s no way around it, Oliver has some issues with money management. His account balance is low and his finances might be inconsistent. He’s a single-service member, but not for lack of trying. He’s had difficulty getting approved for loans and doesn’t really understand why. As you might guess from his name, he’s no stranger to overdraft fees.
Helping Oliver is all about making improvements. The good news for Oliver is that he’s likely pretty young and has plenty of time to build healthier financial habits. He would really benefit from easily accessible financial education, or maybe some straightforward advice from an advisor at the credit union. But don’t stop there. There are more things Oliver’s credit union can do:
- Be benevolent with fees. With a lot of fees, it can really feel like financial institutions enjoy kicking you while you’re down. Waiving these fees or ditching them altogether can be a big differentiator.
- Help them understand why they might be denied for loans or other products. Credit unions should make this kind of followup a priority. No one likes denying a loan application, so make sure the member knows what to do next time.
Financial-Security Frankie
Frankie might not need quite as much help, but she’s got very little idea what to do with her money. Her checking and savings accounts have healthy balances, but she might not know how the credit union can help her with other products.
Frankie is probably ready to be looking at car loans, mortgage loans, and kick-starting her retirement account. But to tell her about these options you need some face time. A great way to do that is to offer free walk-in or appointment-based financial advising. Make sure you have lots of helpful financial education information as well so that Frankie can get a head-start on figuring out her options. Her credit union can also help her by:
- Help her understand the power and flexibility of personal loans.
- Offer auto loan refinance loans and/or “not-so-gently-used” auto loans when new and used cars are out of her financial comfort zone.
- Help her understand her credit score and how to make sure it stays high.
Investor Isabel
Isabel feels like her personal finances and career are in pretty good shape, and she’s ready to get to the next level, where money can start working for her. But she’s not quite sure where to start. What’s a stock? What’s a bond? What are index funds? Should she get into crypto? And does she want to buy a house, start a business, retire early, or what? She’s getting lots of advice from her friends, but she’s not sure who or what she can trust.
Isabel needs to sit down with a trusted advisor to discuss her goals, her tolerance for risk, and to develop a sensible investment strategy. Her credit union can help connect her with professionals who can:
- Spot and plug any holes in her personal finances; does she have an adequate liquid emergency fund? Is she carrying a card or loan balance? Does she have a monthly budget?
- Review her insurance situation; does she have adequate auto, home, life, and umbrella coverage to protect her assets?
- Discuss risks and goals, and allocate her investment funds in ways that make sense for her.
- Point her to reliable sources for information and education about investing and finance.
Something for everyone
While Oliver, Frankie and Isabel have pretty different financial situations, there’s one approach that will help with all three: Make sure young members know you’re on their side and address their needs as individuals. Remember, they can get cookie-cutter advice and products at any financial institution. If you want your credit union to stand out to young members, they need to know you’ve got their backs.
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