CU Tomorrow_Session 6 Handout: Generation Debt_Feb12_10

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This session addresses three related topics:
* Helping young adults face the student debt challenge
* Offering responsible credit
* Addressing young-adult challenges at different leadership levels

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CU Tomorrow_Session 6 Handout: Generation Debt_Feb12_10

  1. 1. CU Tomorrow and REAL Solutions February 12, 2010 Filene Research Institute
  2. 2. The Problem • Unprecedented student/ consumer debt • Stagnating income • Slipping access to health insurance • Lack of financial knowledge Reaching Generation Debt: New Products and Strategies
  3. 3. Unprecedented Debt Reaching Generation Debt: New Products and Strategies
  4. 4. Unprecedented Debt Reaching Generation Debt: New Products and Strategies
  5. 5. Unprecedented Debt Avg. Student Loans $9,250 (1997) to $19,200 (2007) Reaching Generation Debt: New Products and Strategies
  6. 6. Unprecedented Debt Pvt. Student Loan  Volume 5% (1997) to 24% (2007) Reaching Generation Debt: New Products and Strategies
  7. 7. Unprecedented Debt 91%  (college seniors w/ credit card) 75% (credit card seniors  who carry a balance) Reaching Generation Debt: New Products and Strategies
  8. 8. Unprecedented Debt $0.25 of each $1  (credit cost paid by 25‐34 year‐olds  in America) Reaching Generation Debt: New Products and Strategies
  9. 9. Unprecedented Debt, but … Reaching Generation Debt: New Products and Strategies
  10. 10. Lack of Financial Knowledge •Only 31% of eligible millennials participate in 401(k) •57% of young adults know they don’t  make good financial decisions Reaching Generation Debt: New Products and Strategies
  11. 11. The Solution • Student debt fixes. • Responsible use of credit. • Getting started with savings. • Money management / Financial  literacy. Reaching Generation Debt: New Products and Strategies
  12. 12. Responsible use of credit. • Electronic notifications • Email • Text • Online communities
  13. 13. Responsible use of credit. Brighter  Planet CUre Card
  14. 14. Money Management • Goals Smarty Pig What Are You Saving For?  PNC
  15. 15. Money Management • Reward Savings Langley Saves • 5% to $500 • 3% next $2,000 • 1.25% above $2,500 Drive‐Up Savings
  16. 16. Money Management • Online Tools
  17. 17. Money Management • Access 79% of Gen Y: Being able  to do all banking online is  important 87% of Gen Y: A local  branch is important
  18. 18. Five  Approaches
  19. 19. United CU
  20. 20. Belvoir FCU
  21. 21. Research Advice Use the Parents
  22. 22. Research Advice Advertise/Issue Credit
  23. 23. Research Advice Emphasize Transactions
  24. 24. Research Advice Hire Young Talent
  25. 25. Research Advice Improve E‐Delivery
  26. 26. Research Advice Bundle Products
  27. 27. Research Advice Use Social Media Wisely
  28. 28. Research Advice Recruit Young  Volunteers
  29. 29. Leadership Engagement • Level 1: Marketing • Level 2: Management • Level 3: Board
  30. 30. Level 1: Marketing • Campaigns • Collateral • Products
  31. 31. Level 2: Senior Management • Policies • Technology • Positioning • Human resources
  32. 32. Level 3: Board of Directors • Board composition • Strategy • Capital
  33. 33. Stay in Touch www.filene.org benrogers@filene.org 608.231.8171

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