MADISON, Wis. – The Filene Research Institute, in conjunction with Ohio University and a handful of credit unions, is poised to launch a new way of teaching young people–so-called Gen Yers--real financial skills such as evaluating a car loan, paying rent on a budget, and using investment tools to plan for the future via a three-dimensional Internet application.
The sponsors will introduce their project, which employs technology to make it easier for students and teens to learn responsible money management skills and become informed savers, consumers, and investors, on the Credit Union Island in Second Life next week.
The aim is to attract more young people to both financial education initiatives and to credit union membership, with hundreds of credit unions already developing in-school relationships, either with physical presences like branches or through financial literacy efforts. "Our goal is to allow credit unions that are in the school systems to be able to use this as an additional tool," said Scott Moriarty, a former vice president of lending at Virginia CU and member of Filene’s i3 Innovation project.
Development of the project began in 2007 under the leadership of i3, four credit unions: Ohio University CU, Sunmark FCU, Point Breeze CU and Altra CU, with funding from Members United Corporate FCU and the assistance of Ohio University’s Virtual Immersive Technologies and Arts for Living (VITAL) Lab, a pioneer in virtual learning. The VITAL Lab will be conducting a study to gauge the project’s effectiveness in teaching finance.
The Credit Union Island is basically an online game that features a Web site, interfaces, a prototype island and a simulated financial game, all accessible by a link to the credit union’s Web site.
Teens enter a virtual world where they can interact with each other, send text or voice messages, play games, and build or explore the environment. They interact with car dealerships, open savings accounts, and decide whether to rent or buy an apartment— all within the teen grid of Second Life, the internet’s largest user-created virtual world community.
Credit unions may draw participating members to the site with virtual events such as contests, giveaways or other planned social events such as concerts. "These are ways to present it in a format that young adults and teenagers will be more receptive to," Moriarty told The Credit Union Journal yesterday.
The game allows players to make simulated financial decisions that mirror those they will face in real life, such as buying a car, securing a mortgage, or investing in a 401(k) retirement plan. Players’ decisions will result in the possession of virtual cars or house and also create competition among multiple users to see who makes the best financial choices.
This month, Athens High School, Athens, Ohio will roll out Virtual Finance to 100 freshmen, sophomores and seniors in five classrooms. Rollouts will continue in Wisconsin, New York, and Maryland this spring.
