KANSAS CITY, Mo.–United Labor CU here has seen its lending increase by 10% since it began offering financial education courses for union members 18 months ago, a move that has earned it a “Best Practice” Award from Credit Union Journal.
Erin Williams, VP of marketing and business development at the 3,800-member, $9.7-million CU, explained that the credit union offers seven different financial education modules based on materials available for free from the National
Endowment for Financial Education (NEFE). United Labor updates that curriculum to make it appropriate for adults rather than teenagers, and Williams said United Labor’s primary focus is on two different groups–those who are still learning how to manage their finances and those who are entering a second phase of their career and making more money than they have previously earned.
“We group those two together and say we’re going to start from scratch, teach you basic financial principals and gear it toward your particular craft or the fact that you are a union member now,” she said. Williams added that because the credit union’s board is made up of local union leaders, it has a unique perspective into union issues and can structure the courses accordingly.
“It’s different than working with someone who has a corporate job and might have a 401(k) instead of a national pension plan,” said Williams. “They may have different investment avenues; they’re going to typically have different vacation benefits and sick time benefits than they are in the union atmosphere.”
More than 800 people have taken part in the courses since they began 18 months ago, and the first six months of 2012 saw more than 500 people take part. Williams explained that because the courses are offered in union classrooms during apprentice training, scheduling is at the mercy of the union setting up the class schedule for tradespeople.
Williams said that the strong union presence on ULCU’s board helps sell the program, as does the fact that it’s free and can be tailored to fit specific audiences or made it fit a certain timeframe.
The 'Empower Hour’
“We also offer the Empower Hour, so if your union does not participate in this program, you can call us and get an hour–whether you’re a ULCU member or not–to talk about your finances,” said Williams. “And that creates buzz…I spend 20 cents on a hard hat sticker and when I go to a construction site and see how many people on the site are all from an Empower Hour, I get very excited.”
Assets at United Labor have risen by 13% since starting the financial education classes, and loan originations have increased by 10% (a 12% increase in dollars, from $5.6 million to $6.3 million).
Williams said that while some sessions draw as many as 30 people or more, there have also been times when only a few show up.
“The one thing I’d say we’ve learned is not to give up on it if one, two or three people show up, because you’re still able to touch their lives and you’re still able to talk about it, and they’re still able to use you as a resource in the future.”
More info: www.unitedlaborcu.org
