BOULDER CITY, Nev. — While most credit unions say they would like to attract younger members, Boulder Dam CU reports a remarkable 85% penetration of 18-to-29 year olds in its field of membership.
So how did this $507 million institution, which serves a small community southeast of Las Vegas, do it?
One big reason: a commitment to youth financial education that has grown into a program known as "Understanding Your Money," or UYM.
Dr. Brandi Stankovic, partner at Las Vegas-based CU consultancy Mitchell, Stankovic & Associates, has been part of Boulder Dam CU for a long time. She opened her first "Moola-Moola" account in 1989. Today, she is a member, consultant and acting senior executive of human resources. (The CU's moniker hearkens back to the original name of what is now known as the Hoover Dam.)
In 2003, BDCU asked Stankovic to help create a financial literacy program to reach high school-aged youth in the community. The board of directors and executive team offered an incentive of $100 to seniors and $50 to juniors to take the 3-hour class.
The first UYM program was based on the principles other credit unions were teaching their members: checking, credit and savings. When Stankovic taught the first class she was just a few years older than the high school attendees.
"My younger brother's friends heckled me from the back of the room," she recalled. "And although the students learned, we didn't change their lives. We quickly realized we needed more. It needed to be more like life coaching. It needed to have a long-term commitment. The credit union needed a long-term commitment to outreach. The success comes from that commitment."
The program — which now boasts more than 2,500 graduates — has evolved, but the commitment remains, according to Stankovic. One big difference change has been the subject matter. When the program first began, one of the simulations was saving money to buy a CD player. Students also learned how to write a check.
"During the financial crisis we talked about being overleveraged or having a home that is foreclosed," Stankovic said. "Today, we talk about how expensive health insurance is; if they are eligible under their parents' policy. Back then, we pulled up a paper bank statement, today we look at a statement on a tablet or a phone — so the technology has evolved."
'Amazing Evolution'
Jaron Singleton, Boulder Dam CU's investment analyst/card services representative, praised Stankovic's work with UYM.
"Brandi and I have been working on the financial literacy program since the beginning and it has been amazing to see its evolution," Singleton said.
The credit union matched U.S. Census data for Boulder City to determine population and field of membership totals, according to Stankovic. It found than 90% of high school students in the community have taken the course before they graduated and 82% of UYM graduates are still members in good standing with the CU.
Singleton said Stankovic teaches the majority of the classes on Saturdays while UYM was in session. He works to market the program to the local high school. BDCU has supplied guest speakers each year to financial management classes at the high school and it has established a "great working relationship" with some of the teachers, counselors and registrars who help promote the program.
BDCU generally offers four or five classes per school year, with each class typically filling up to max capacity within a few days of the sign-up sheet being posted, Singleton said, adding, "the class now markets itself."
"The reputation and positive feedback received from the students who have already completed the program helps to spread the word to other students," he said. "The $50 for juniors and $100 for seniors is a huge incentive that is hard for students to pass up. The money is what gets them in the door, but then they often get surprised how fun the class is and the material is actually very relevant to them."
Singleton said he performs many of the logistics for the classes, including ensuring the marketing materials are done, class materials are prepared, the classroom is completely set up on Saturday morning, and by making sure the kids have snacks and water the day of the class. Throughout the classes, students go through a variety of hands on activities and budgeting exercises. Singleton walks around the classroom with Stankovic during these periods so the students can obtain any help they need.
"My other role with the program is talking about more specifics about Boulder Dam Credit Union," he continued. "I also am the person they often see when coming back to the credit union to turn in their class review sheets to get their money. If the students are already a member, then once I review their work, I pay them their money that day. If the students are not a member yet, they open an account with a teller to receive their financial incentive for completing the program."
Limited FOM
Boulder Dam Credit Union's field of membership potential is Boulder City, which — unfortunately for growth potential — has a controlled population. There are 15,000 residents in Boulder City, but the credit union has 22,000 members because people are members for life even if they move away.
"To get the $100 or $50 certificate deposited into their account they have to certify in the program," said Stankovic. "They have to become a member to be part of it. We are looking at alumni product incentives."
Nothing stops UYM graduates from switching financial institutions, but Stankovic said the program is based on building a membership, "so, for the most part, they do not leave. Most have maintained an active membership. Only a small percentage have left. The program is about meeting them, learning their names, having a dialog."
The idea of reaching out to young people "is not rocket science," Stankovic observed, but she said the importance of building relationships sometimes if forgotten in a rush to develop more and better products and services.
Singleton said he believes the financial incentive is what gets students' attention initially, but then, "We make the most we can of the time we have them focusing on a variety of financial topics."
"We stress to them they are important to us and that as a member, they own a piece of the credit union," he said. "We encourage them to start thinking about their futures now and let them know that credit unions are truly about people helping people. The class is about establishing a relationship with each student and earning their trust. We teach them that once a member, they are always a member, even if they go away to college or move. We invest in them now and we see their investment in us later."
