Financial education is a natural and major part of credit union service to members and community members. It is “people helping people” in a way that we know best – financial management. Does your mission statement and core values include your commitment to financial education?
The goal of financial education is financial “literacy”. A financially literate person has the ability to make appropriate choices regarding money to improve their life. This requires understanding the choices; making conscious and informed decisions; and being able to apply money management skills. Financial literacy is not a static group of tools and facts that one can learn once and be done. That just won’t cut it in our fast paced, ever-changing world.
I'd rather see the word "skilled" added instead of "literate" to reflect this need to be able to adapt and apply financial knowledge. It sounds so much more positive and reflects ability. Yes, all people need to aquire basic financial literacy as a start, but in order to keep up and prosper, we need to be skilled. CUNA’s recently published Model Youth Program Guide states that financial literacy depends on acquiring a set of skills rather than a body of facts. These skills include knowing how to get and use information necessary to make sound financial decisions as personal financial circumstances arise and change.
It is important to offer both youth and adult financial education. Youth need to learn early about savings, goal setting, and financial choices. Because today’s economic challenges and financial choices come quickly, they can outpace the ability of adults to handle their money. Adults need to continually update their knowledge and skills to keep pace, and credit unions are a natural partner to help them stay "financially skilled".
Keywords: Financial education