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Promoting Thrift in an Age of Excess

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This presentation explores how credit unions can promote thrift in an age of excess. It was delivered as part of the CUES Experience webinar series on May 21, 2009.

Published in: Business, Economy & Finance
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Promoting Thrift in an Age of Excess

  1. 1. Promoting Thrift in an Age of Excess Matt Davis Members Credit Union
  2. 2. An Age of Excess
  3. 3. An Age of Excess
  4. 4. An Age of Excess
  5. 5. An Age of Excess - The Sequel
  6. 6. An Age of Excess - The Sequel
  7. 7. An Age of Excess - The Sequel
  8. 8. An Age of Excess - The Sequel
  9. 9. Keeping Up with The Joneses
  10. 10. An Age of Excess - The Sequel *NPR “Behind the Ever-Expanding American Dream House,” Margot Adler
  11. 11. 7,500,000 Spend At least Half Their Income on Housing. *U.S. Census Bureau 2007
  12. 12. 24,000,000 Owe more on their mortgages than their homes are worth. *Zillow.com
  13. 13. Disposable personal income (DPI) Personal Savings Taxes + Outlays 1952 2007 *BUREAU OF ECONOMIC ANALYSIS
  14. 14. Personal Income - Taxes - Outlays ___________________ NIPA Personal Savings 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94 97 00 03 06 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 20 20 20 $32.2 Billion vs. $32.5 Billion *BUREAU OF ECONOMIC ANALYSIS 1961 Savings vs. 2005 Savings
  15. 15. 2005 *BUREAU OF ECONOMIC ANALYSIS
  16. 16. 11.2% Personal Savings ___________________ Disposable Income 0.4% 1982 2005 *BUREAU OF ECONOMIC ANALYSIS
  17. 17. Eleven Consecutive years college costs have outpaced inflation. *College Board 2006
  18. 18. 350% Per Capita Increase in personal bankruptcies from 1980-2005. *Administrative Office of the U.S. Courts: www.uscourts.gov/adminoff.htmlsting
  19. 19. 35% Gen Xers Believe they will never be able to stop working. *Scotttrade/Betterinvesting
  20. 20. 64% Baby Boomers Feel like they can retire and not worry. *Scotttrade/Betterinvesting
  21. 21. A Credit Union is “Organized...for the purpose of promoting thrift among its members and creating a source of credit for provident or productive purposes;” - Federal Credit Union Act §1752 (1)
  22. 22. The credit union’s “most important purpose is to teach and promote thrift.” - J. Orrin Shipe, CUNA June 7, 1965 Issue of U.S. Investor
  23. 23. “The society aims less at obtaining business profits than the strengthening of the economically weak and the furtherance of the intellectual and moral well-being of its members.” - Friedrich Raiffesein
  24. 24. - Alphonse Desjardins
  25. 25. “I’ve been plunged into different things. It reminded me of my father’s ill-health, and what can happen to a family when the breadwinner is struck.” - Alphonse Desjardins
  26. 26. “...if the masses of wage earners gamble in stocks instead of buying the things which they want, they gamble not merely with their savings but with their jobs.” - Edward Filene
  27. 27. thrift (thrĭft) n. 1. Wise economy in the management of money and other resources; frugality. *The American Heritage Dictionary of the English Language, 3rd Edition
  28. 28. How Should Credit Unions Promote Thrift?
  29. 29. 1. Teach Members How to Save
  30. 30. Teach Members How to Save
  31. 31. Teach Members How to Save
  32. 32. SWEET! Sweet!
  33. 33. SWEET! Sweet!
  34. 34. 2. Make Saving Easy
  35. 35. Make Saving Easy
  36. 36. Make Saving Easy
  37. 37. 3. Make Saving Fun
  38. 38. Make Saving Fun
  39. 39. 4. Save Members Money on Expenses
  40. 40. 4. Save Members Money on Expenses
  41. 41. Key Takeaways • Strike while the iron is hot • If you’re not having fun, your members aren’t either • Take Advantage of Cheap Technology • Make your members the stars • Goal should be improving member behavior
  42. 42. Matt Davis Director of Public Relations Members Credit Union Thank You! mattd@memcu.com creditunionwarrior.blogspot.com

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