America may struggle with financial literacy...
...but not with financial curiosity
When credit union members have questions about money, who is providing the answers? Studies such as TIAA’s P-Fin Index show many Americans have low, or even, as FINRA recently reported, declining financial literacy.
But the same cannot be said of financial curiosity. In fact, a look at search engine queries and questionnaire responses tells us millions of people are thinking about money and looking for answers to basic financial questions.
Ask Google
Mondovo reports that the highest-ranking financial question in Google search worldwide is "how to save money," which ranks 89th out of the top 1,000 most asked. In fact, 110,000 people ask this question every month!
Student loans topped a Liberty Bank investigation of the top Googled financial topics by state.
See Liberty’s full list of Googled financial topics.
Ask anyone
Buzzfeed, the digital news website, asked its member community, “What part of managing money has you most confused?” These are some of the responses they got back.
"What the heck is a Roth IRA, and why do I need one?"
"Savings versus paying off student loans versus investing?
"How to stop impulsive shopping?"
"I get mortgages perfectly fine but still can’t wrap my mind around home equity lines.”
"I know it’s an obvious question, but how do taxes work?"
Investopedia, a leading source of online financial content, recently listed questions kids (up to age 19) are likely to ask about money. Here are three:
“What causes inflation?”
“How do stocks work?”
“Where does money come from?”
If you ask us
People—members—of all ages and financial capability are curious about money and looking for answers. It’s our opinion that the best place for your members to get those answers is the same place members choose to do their banking—at a credit union. Credit unions win by engaging with members to answer their financial questions, and in turn, capture, nurture and deepen member relationships.
The answer
Finally, one of the best ways to answer the call for more financial knowledge is to provide your members with a professionally curated financial literacy program, much like our own.
Tim McAlpine is the Founder & CEO of Currency Marketing. He is best known for developing the It's a Money Thing Financial Education Program that credit unions from around North America are using to connect with new young adult members. He is also a driving force behind CUES Emerge, an emerging leader program that combines online learning, peer collaboration and an exciting competition component.
