The Pulse (04-12-16)



The Pulse

March 12, 2016 ● Volume 5, Issue 15

 The Pulse Archive

Research shows Millennials, Girls and Credit Scores Benefit from Financial Education

Minnesota Credit Unions Lead the Way on Financial Literacy


Minnesota Credit Unions have assembled and reviewed the research to show how millennials, girls, and credit scores are benefiting from financial education such as that required in Minnesota. During April, Minnesota’s Credit Unions will hold events in locations across Minnesota, as well as release a series of infographics and testimonials illustrating the benefits of financial education.


“The statistics about money stress and poor savings rates may seem daunting, but research also shows that Financial Education efforts work. Credit unions have long been leaders in this effort, as it is at the core of the credit union philosophy of ‘people helping people’,” said Andrea Molnau, Director of Communications at the Minnesota Credit Union Network. 


Credit Unions throughout Minnesota will hold numerous events including:


  • The Arrowhead Chapter of Credit Unions is holding an education session on ‘Managing Millennials’ in Duluth
  • Wings Financial Credit Union (Apple Valley) is hosting two “Reality Fairs” with high school students in District 196
  • Hometown Credit Union is encouraging Savings and Financial Fitness at its Owatonna High School branch
  • Spire Credit Union (St. Paul) is reading to Kindergarten and First Grade Girl Scouts in Pine City
  • United Educators Credit Union (Coon Rapids) is holding a Senior Fraud Prevention seminar in partnership with the MN Department of Commerce and LSS Financial Counseling Services

Challenges for Money and Millennials

According to Moody’s Analytics, Americans under the age of 35 have a savings rate of negative 2%.


A FINRA study of Millennials aged 18 to 34 found that 67% have no rainy day funds, 60% aren’t saving for retirement, and 43% use costly non-bank borrowing methods.


Debt concerns weigh heavily on the group: four in ten Millennials say they are overwhelmed with debt, and more than half of Millennials say they are living paycheck to paycheck and unable to save for the future.


Knowledge is Girl Power

Particularly worrisome, studies have identified a gender gap in financial literacy, which is more widespread among single women and widows. Moreover, this gap is still present among young women and girls. A lower level of financial knowledge may have serious consequences because of the increasing individual responsibility for retirement security.


While more research is needed to understand the sources of gender differences in financial literacy, many women also tend to rate themselves low on a personal financial knowledge scale. This self-assessment makes them an ideal audience for financial education programs.


School-based Curriculum Means Better Credit Scores

Students exposed to mandated personal finance education exhibit meaningful improvements in credit outcomes. Three years following the implementation of mandates in Georgia, Idaho, and Texas, severe delinquency rates for those students receiving the education declined by 2% in Georgia, 2% in Idaho, and 6% in Texas, and credit scores increased by 2%, 3%, and 5% respectively.


Keep watching MnCUN’s social media pages for the series of infographics and testimonials illustrating the benefits of financial education. We encourage you to continue to share your efforts with us – contact Andrea Molnau, Director of Communication.



New Website Design Coming Soon!

As announced at the Annual Conference, the Network website will be receiving a facelift this spring. The new design will reflect our updated look, and provide easier navigation for our members. Nothing else will change – your log in will remain the same and the features of the site won’t change. Everything will just be easier to find! Watch for the new design late April. 


Hike the Hill Registration Open

View all Governmental Affairs news stories


NCUA hosts upcoming compliance webinar

CFPB issues advisory and report on preventing elder financial abuse



View all Regulatory Compliance news stories


More Credit Unions Turn to TruStage® to Protect Their Members

CUNA Mutual Group’s TruStage™ Insurance Program continues to protect more members through strong relationships with credit unions across the country. In fact, more than 83 percent of all eligible credit unions* turn to the TruStage Insurance Program.

“Our credit unions tell us that making TruStage available to members is a reliable and flexible way to earn non-interest income, while simultaneously protecting their members and allowing them to build financial security for their members’ families,” said Corrin Maier, vice president, TruStage Partner Management at CUNA Mutual Group. “It’s a win for them and for their members.”

The TruStage Insurance Program offers three product categories: Auto/Home, Life, and Accidental Death and Dismemberment.  While credit unions of all sizes use the TruStage Insurance Program to protect members, there is particularly strong appeal to credit unions with more than $500 million in assets. In fact, two out of every three credit unions with more than $500 million in assets makes at least one TruStage insurance product category available to their members, and in 2015 alone, 190 credit unions of all sizes added more than 330 TruStage product category relationships to their insurance portfolios.

In addition to providing credit unions with a way to protect members’ financial futures—and deepen share of wallet with members —TruStage has also proven to be an excellent way for credit unions to increase non-interest income. Credit unions of all asset sizes saw strong growth across insurance categories; credit unions with more than $1 billion in assets had an overall year-over-year median growth rate of 11.4 percent in non-interest income in 2015.

In 2016, TruStage is focusing on innovation, with plans to invest more than $100 million in expanding media and optimizing channels, making it easier for members to learn about, buy and service their policies. Credit unions that become part of the TruStage Insurance Program are well equipped with access to multi-media marketing materials and credit union staff training materials.

“TruStage’s integrated approach puts everything under one roof for credit unions, allowing us to work closely with our credit unions to optimize interactions through every member experience,” Maier said. “This is what members expect today and it helps credit unions increase their products per member and grow member-friendly non-interest income.”

Your credit union peers have already discovered the many benefits of making TruStage Insurance Program available to their members. Discover the difference it could make for your credit union. For more information on how you can make TruStage available to your members, contact MnCUN Director of Business Development, Kris Jacobsen by email or at (651) 288-5515.

*Credit unions with 2,000+ members are eligible to offer CUNA Mutual Group’s TruStage Insurance Program.

Minnesota Credit Union Network
555 Wabasha Street N, Suite 200
St. Paul, MN 55102

(651) 288-5170
(800) 477-1034