High-stakes financial health

Financial well-being isn’t just about dollars and cents.

“It's really about building members’ confidence and how they feel about their finances—how they spend, save, borrow, and plan,” says Chris Wolgamott, director of financial well-being and member experience at $1.9 billion asset Meritrust Credit Union in Wichita, Kan. “It's all about giving them the resources and empowerment to take control of their personal finances.”

That’s what credit unions were founded to do, Wolgamott says: Meet members where they are, educate them, and help them gain confidence on the path to financial well-being.

Many consumers aren’t confident right now, according to a panel of financial well-being professionals.

“A lot of people are living day-to-day, paycheck-to-paycheck,” says Cassandre Cassamajor, senior community development representative at $218 million asset SkyPoint Federal Credit Union in Germantown, Md. She cites economic hurdles such as inflation, COVID-19, and economic uncertainty. “It's impacting a lot of people in different ways. You can see different age groups just trying to figure out how to make ends meet.”

She says many baby boomers are attempting to navigate retirement. Millennials are dealing with home ownership, parenthood, and careers. Generation Z is embarking on their financial well-being journey while bombarded by societal pressures and misinformation.

“For younger people, there’s an idea that they have to get money, and they have to get it now,” Cassamajor says. “They are educating themselves through social media or other sources that aren’t reliable. So, it’s important to have space where they can see us in their schools and use us as a reliable tool.

“When someone's in a financial bind, the toll that it does on their mental health is extreme,” she continues. “Knowing you have a community credit union you can go to, talk to on the phone, and see in the branch is why credit unions are so important.”

Engaging in financial well-being for all keeps people out of institutions trying to take advantage of them. Cassamajor stresses the importance of credit unions developing community relationships to get in those spaces, meet people where they are, address their financial needs, and give them a reliable partner on their path forward.

“We have always strived to provide financial education and financial literacy to our members,” says Autumn Solomon, business development officer at $553 million asset Carolinas Telco Federal Credit Union in Charlotte, N.C. “But now is the time that they're a little bit more receptive because, unfortunately, they're in a place they don't know if they can get out of.”

“The stakes are very high right now,” Wolgamott adds. “When we go through something big, like the pandemic or the housing crisis, you always see people rushing to learn more so they’re not put back in a difficult position during the next crisis. Now is the time to remind people how important it is to stay vigilant with finances.”

Wolgamott says people tend to get comfortable over time, easing up on how they manage their finances.

To prevent this, financial well-being must be a continual conversation that prepares people for any twists and turns their life may take.

“I always tell my members, ‘We can get you out of this emergency situation, but as the landscape changes, you have to continue to maintain, learn, and be ready,’” Solomon says. “We're not just preparing you for this financial emergency, we're preparing you for every day, and you know where you can come to ask questions.”