15 THE NAFCU JOURNAL JULY–AUGUST 2022 In 2021, the National Financial Educators Council asked 7,246 people in all 50 states to test their current financial knowledge. The results were broken down into various age groups, with 70% considered a pass. Of particular note were the scores for younger generations: 10- to 14-yearolds averaged 57.41%, 15- to 18-year-olds averaged 65.82%, and 19- to 24-year-olds averaged 71.11%.1 These results demonstrate the lack of financial literacy in younger generations as they approach and prepare for their young adult years. Harper wants to change that. “An educated member is the best member,” said Harper. “When credit union members have a solid foundation of personal finance, they can make smarter financial decisions and that forms the basis of a more resilient credit union system.” Those educated consumers are better able to determine what is a safe, fair, and affordable financial product, he added. Personal finance has been a focus for Harper throughout his life, and he maintains that it is never too early to start teaching children good financial habits. “When I was 7-years-old, my family moved to a new house and there was a candy store around the corner,” he said. “I received a weekly allowance of $2, which was a lot of money for a 7-year-old in 1974.” After spending all of his earnings on candy, he realized that there was nothing left to buy Christmas gifts for his parents. Rather than just giving Harper the money, the “bank of Mom and Dad” offered him a no interest loan for the money, and he paid it off at the rate of 50 cents per week for six months. “I am so grateful to my parents for teaching me about money at an early age,” he said. “When I was in school, we all had to take a personal finance class before graduation,” said Harper. “We learned how to balance a check book, fill out a tax form and other day-to-day financial tasks we needed as adults.” While many states have some financial education incorporated into the curriculum, the lessons are often a small part of another class. Only seven states mandate personal finance classes as a graduating requirement. Things are looking up, though, as 21 states have bills before their 2022 legislatures to teach financial literacy as a standalone course.2 The lack of home-based, real-world lessons and formal financial literacy classes in schools provides an opportunity for credit unions to fill the gap, said Harper. Because consumers who have a strong foundation in personal finance are essential to a healthy credit union system, NCUA has created a number of financial education resources that include videos, activities and apps, worksheets, publications and lesson plans. “All of these resources are available for credit unions to use in their community education programs,” he said. (See “resources” on pg. 18) Preparing Young People for the Real World Whether a credit union uses NCUA resources or creates their own, the secret to success is to tailor the program to the community served by the credit union. Mission to $AVE is a savings program offered by Mission Federal Credit Union for elementary schools, youth organizations and youth within the community that teaches students to learn how to save and to understand the value of money. More than 4,300 student savers at 44 local schools have participated in the “ An educated member is the best member. When credit union members have a solid foundation of personal finance, they can make smarter financial decisions and that forms the basis of a more resilient credit union system. ” TODD M. HARPER, CHAIRMAN, NATIONAL CREDIT UNION ADMINISTRATION
RkJQdWJsaXNoZXIy Nzc3ODM=