Setting out to make a difference was not Suzanne McClure's goal when she designed the Independent Advantage Program for Burbank City EFCU's teenagers, yet the results of this program have made a difference for hundreds of members.
Independent Advantage is a multi-week course that teaches teens the fundamentals of personal finance. Upon completion of the course, the teen members have a checking account, debit/check card, and a VISA card.
"I always thought that we were doing a good job with our Independent Advantage program, but I didn't realize how good of a job that we really were doing," said McClure, VP-marketing. "I didn't expect such a dramatic difference between those who have taken the course and those who have not."
McClure retained our firm to conduct two focus group sessions-one with Independent Advantage graduates and the other with randomly selected teen members. "I considered doing a survey, but I know that this age group-teens-is notorious for not responding to surveys," says McClure. "Plus, I wanted to hear from them directly and get their perceptions first hand."
The difference found: Independent Advantage graduates were much more "financially savvy" than the other teens. "The graduates understood and were very comfortable discussing financial matters whereas the other group did not have a good handle on the same financial issues," McClure says. "This is tangible evidence that this education has made a difference in their lives. It is valuable to them and they told us so."
McClure also presented the focus group with possible changes to the program. The most dramatic change was to move from the "traditional" classroom environment to a web-based "virtual" classroom.
"I was ready to make the change to online classes and I thought that the focus group feedback would just confirm my plans," McClure admits. "But, the focus groups told us that they wanted to come to the classes. They wanted to be together. Online classes received only a mild, lukewarm response."
Due to the feedback, McClure retained the "traditional" classroom made other changes, such as shortening the general course while adding optional courses. The CU also narrowed the age range, bumping the minimum age to 15 from 13.
McClure cites that since the program's inception, there has been only one charge off of a credit card balance and about five "late" payments made. "I was at city hall the other day and a parent stopped me to tell me that her son gave her a lecture on not using her credit card to buy shoes. He told her what he learned about credit in our program." McClure's advice about focus groups? "Be prepared to listen because information that you get is so valuable and will influence your decisions for a long time," McClure says.
Neil Goldman is President of Member Research, a perception research firm for CUs. He can be reached at (310) 643-6753.
