Credit Union Youth Credit Union Youth Marketing Marketing andand

EducationEducation

““In Black & In Black & White”White”Offered by

Heather H. Harris, DE MCUL Custom Training

““Poverty among Poverty among twenty- twenty-

somethings somethings has increased has increased by 50% by 50%

since since the the

mid-1970’s.” mid-1970’s.” Source: “Beyond Generation X” by Claire Raines

““In the 1950’s young In the 1950’s young homeowners could homeowners could make the monthly make the monthly

mortgage payment by mortgage payment by using 14% of their using 14% of their

income. Today income. Today it takes 40%.”it takes 40%.”

Source: “Beyond Generation X” by Claire Raines

Source: Bryan Sims - “The Credit Union Journal,” August 2004

“…“…Capture them in that Capture them in that transition from17 to 18, transition from17 to 18, when they graduate, get when they graduate, get

their first job, move out of their first job, move out of the house.”the house.”

““The second they hit 18, The second they hit 18, they’re on every kind of they’re on every kind of mailing list, from credit mailing list, from credit

cards, to tobacco companies, cards, to tobacco companies, to the Army to the Army

Reserve.”Reserve.”

Source: “Marketing Across the Generations: Age 0 to 19” offered by CUNA & Affiliates, Inc.

““Parent’s financial Parent’s financial habits are habits are reflected in how reflected in how their children their children spend spend

and save.” and save.”

““Fortune 500 Fortune 500 companies are laying companies are laying off workers off workers

at an at an unprecedented pace. unprecedented pace.

The trend is expected The trend is expected to worsen.” to worsen.”

Source: “Beyond Generation X” by Claire Raines

““The median price The median price of a home of a home

(adjusted (adjusted for inflation) for inflation) has increased by has increased by

78% in the 78% in the last 30 last 30

years.” years.” Source: “Beyond Generation X” by Claire Raines

““Today, a 30 year old Today, a 30 year old man can expert to earn man can expert to earn

25%25% lessless than than his father did at the his father did at the

same age. same age. By contrast, his father By contrast, his father earned more than earned more than

Grandpa did at 30.”Grandpa did at 30.” Source: “Beyond Generation X” by Claire Raines

““College age credit College age credit card holders are card holders are

diving deeper into diving deeper into debt with debt with

high balances high balances ranging between ranging between

$3,000 and $7,000, up $3,000 and $7,000, up 61% since 61% since

2000. 2000. Source: Bryan Sims, Brass Media – www.brassmedia.com Nellie Mae, April 2002 Nellie Mae, April 2002

Source: “Marketing Across the Generations: Age 0 to 19” offered by CUNA & Affiliates, Inc.

““Just 8% Just 8% of credit union of credit union members members are in the are in the 18- 18-

24 range.”24 range.”

Source: Bryan Sims, Brass Media – www.brassmedia.com

““The 18-25 age group The 18-25 age group is the credit is the credit

union industry’s union industry’s ‘forgotten market.’ ‘forgotten market.’

Credit unions stop Credit unions stop marketing when marketing when everyone else starts.” everyone else starts.”

Source: “Marketing Across the Generations: Age 0 to 19” offered by CUNA & Affiliates, Inc.

““The minute The minute students get out of students get out of

high school, the high school, the credit card credit card

offers come offers come pouring in.” pouring in.”

Source: The Gallop Organization, 2003

““51% of young 51% of young adults aged 18-29 adults aged 18-29 think they will think they will

have over $1 have over $1 million in assets at million in assets at

some point in some point in their life.” their life.”

Source: CUNA & Affiliates, Inc. – www.cuna.coop

““Roughly Roughly 25% of credit 25% of credit

unions offer formal unions offer formal youth youth

programs.” programs.”

Source: Bryan Sims, Brass Media – www.brassmedia.com The Credit Union Journal – April 2005

RE: The New“Citi mtvU Credit RE: The New“Citi mtvU Credit Card”Card”

““This is the biggest push the financial This is the biggest push the financial sector has ever seen,” said Sims. “It is sector has ever seen,” said Sims. “It is

the the firstfirst nailnail inin the coffinthe coffin forfor credit credit unionsunions if they don’t wake up and if they don’t wake up and

change quickly. change quickly.

With a brand like MTV issuing credit With a brand like MTV issuing credit cards with Citi, how can credit unions cards with Citi, how can credit unions compete? The impacts of this will be compete? The impacts of this will be seen five or 10 years from now when seen five or 10 years from now when

credit unions have no more credit unions have no more borrowers…because they all got their borrowers…because they all got their first credit card with Citi and MTV.”first credit card with Citi and MTV.”

Source: Filene Research Institute – 2004

““Age alone isn’t a Age alone isn’t a sufficient indicator of sufficient indicator of

young consumers’ young consumers’ financial needs. financial needs.

Marital status and Marital status and the presence of children in the presence of children in the household are other the household are other key components in key components in segmenting this market.”segmenting this market.”

Source: Bryan Sims, Brass Media – www.brassmedia.com Jupiter Communications – 2001

““Teenagers Teenagers alone influence alone influence $324 billion $324 billion in spending in spending

annually.”annually.”